FAAC: How Six States Shared N3.79 Trillion Between 2003 and 2026

• Nigeria’s six Southwest states received a combined N3.79 trillion in FAAC allocations between 2023 and the first quarter of 2026, with Lagos emerging as the highest recipient.

The six states in Nigeria’s Southwest geopolitical zone received a combined N3.79 trillion from the Federation Account Allocation Committee (FAAC) between 2023 and the first quarter of 2026, with Lagos State accounting for the largest share of the allocations.

An analysis of FAAC disbursements over the 39-month period showed that Lagos, Oyo, Ondo, Osun, Ekiti and Ogun states collectively received trillions of naira to fund salaries, infrastructure, healthcare, education and other government responsibilities.

Lagos remained the highest beneficiary, receiving N1.44 trillion during the review period. Oyo followed with N635.62 billion, while Ondo received N550.08 billion. Osun got N423.7 billion, Ogun received N372.4 billion, and Ekiti recorded N366.92 billion.

FAAC is the monthly revenue-sharing system through which the Federal Government distributes earnings from crude oil sales, taxes, customs duties, Value Added Tax (VAT), electronic money transfer levies and other federally generated revenues among the federal, state and local governments.

Under the current sharing formula, the Federal Government receives 52.68%, state governments 26.72%, while local governments receive 20.60%. Oil-producing states also receive an additional 13% derivation from oil revenues.

A breakdown of the allocations showed that Lagos received N371.39 billion in 2023, N368.93 billion in 2024, N514.6 billion in 2025 and N184.9 billion in the first quarter of 2026.

Oyo received N207.37 billion in 2023, N145.25 billion in 2024, N213.7 billion in 2025 and N69.3 billion in Q1 2026. Ondo recorded N156.33 billion, N142.45 billion, N198.4 billion, and N52.9 billion over the same periods.

Osun’s allocations stood at N141.48 billion in 2023, N97.21 billion in 2024, N144.9 billion in 2025 and N40.1 billion in the first three months of 2026. Ekiti received N107.5 billion, N93.22 billion, N130.3 billion and N35.9 billion, while Ogun recorded N120.72 billion, N90.77 billion, N124.2 billion and N36.7 billion, respectively.

Public finance analyst Olubunmi Akorede said FAAC allocations remain the primary source of funding for many state governments and should be channelled into critical sectors such as infrastructure, healthcare, education, agriculture and job creation.

She noted that fluctuations in FAAC allocations largely reflect changes in Nigeria’s federally collected revenues, including crude oil earnings, exchange rates and tax collections, rather than the internally generated revenue performance of individual states.