28 States’ 5-month FAAC Allocation In 2026 Tops 2025 IGR By 90.5%

By BUKOLA ARO-LAMBO and DEBORAH BELLO, Lagos

Twenty-eight states received a combined N2.64 trillion from the Federation Account Allocation Committee (FAAC) between January and May 2026, a sum that is 90.5 per cent more than the N1.387 trillion they generated internally throughout 2025, a BudgIT report has shown.

The figures highlight state governments’ continued reliance on federal allocations over internally generated revenue (IGR).

The report, with the title Nigeria’s Economic Reforms: What Has Changed Across Nigeria’s States? An Analysis of State Finances in the Post-Subsidy Years, showed that the 28 states generated a combined N1.387 trillion in IGR in 2025.

The difference between their five-month FAAC receipts and annual IGR was N1.255 trillion, representing 90.45 per cent.

BudgIT analysed the IGR performance of 34 states, excluding Rivers and Akwa Ibom because data for the two states were unavailable. The 34 states generated a combined N4.147 trillion in IGR in 2025, up from N1.565 trillion in 2022, representing nominal growth of 165.01 per cent.

The state-by-state comparison showed that 28 of the 34 states covered by the report received more from FAAC in the first five months of 2026 than they generated internally throughout 2025.

Bayelsa recorded the largest difference, receiving N221.84 billion in net FAAC allocations between January and May 2026, compared with N52.15 billion generated as IGR in 2025.

Its five-month FAAC receipts were therefore N169.69 billion, or 325.4 per cent, higher than its annual IGR.

Delta followed with N275.09 billion in FAAC receipts against N206.44 billion in IGR, a difference of N68.65 billion, representing 33.3 per cent above its 2025 IGR.

Kebbi received N82.62 billion in FAAC, compared with N18.41 billion in IGR, while Sokoto received N83.85 billion against N20.58 billion.

Yobe received N77.18 billion, more than five times its 2025 IGR of N15.42 billion, while Taraba received N79.46 billion compared with N17.89 billion in IGR.

Adamawa also recorded a substantial difference, receiving N81.16 billion from FAAC against N24.14 billion generated internally. Benue received N86.15 billion compared with N29.38 billion in IGR.

Other states where five-month FAAC allocations exceeded their entire 2025 IGR were Borno, Imo, Ondo, Jigawa, Zamfara, Ebonyi, Plateau, Kogi, Anambra, Gombe, Katsina, Bauchi, Nasarawa, Kano, Abia, Niger, Oyo, Ekiti, Osun and Cross River.

Cross River recorded the narrowest margin among the 28 states, receiving N57.54 billion in FAAC compared with N57.45 billion in IGR in 2025. This left an FAAC advantage of about N90 million.

At the other end of the scale, six states generated more IGR in 2025 than they received from FAAC during the first five months of 2026.

Lagos remained the clear outlier, generating N1.845 trillion in IGR in 2025, compared with N320.09 billion received from FAAC between January and May 2026. Its IGR was therefore N1.525 trillion higher than its five-month FAAC receipts.

Enugu also recorded a significant gap, with 2025 IGR of N406.77 billion compared with N78.34 billion in five-month FAAC receipts, leaving a difference of N328.43 billion.

Ogun generated N237.65 billion in IGR in 2025 against N64.71 billion in FAAC receipts, while Edo generated N98.45 billion compared with N84.03 billion received from FAAC.

Kwara and Kaduna also recorded higher IGR than their five-month FAAC allocations. Kwara generated N85.21 billion in 2025 compared with N72.17 billion in FAAC receipts, while Kaduna generated N86.72 billion compared with N79.85 billion.

The figures point to the continued dependence of most state governments on Federation Account distributions, despite improvements in internally generated revenue across the states.

According to the BudgIT report, FAAC allocations to states increased from N3.427 trillion in 2022 to N11.378 trillion in 2025.

The share of FAAC in aggregate state revenue also rose from 68.7 per cent in 2022 to 73.3 per cent in 2025, while the contribution of IGR declined from 31.4 per cent to 26.7 per cent.

BudgIT attributed the increase in federal transfers to factors including currency devaluation, improved tax collection and higher oil revenues.

The figures indicate that, despite improvements in revenue mobilisation, the fiscal structure of many Nigerian states remains heavily dependent on federally distributed resources.

However, the trend was not uniform across all states. Enugu recorded the fastest growth in IGR, with internally generated revenue rising from N25.12 billion in 2022 to N406.77 billion in 2025, representing a compound annual growth rate (CAGR) of 153.01 per cent.

Lagos recorded the largest absolute increase in IGR, with revenue rising by about N1.19 trillion over the period. But while some states made significant gains, others struggled to expand their internally generated revenue.

Ebonyi was among the states that recorded negative IGR growth. Its internally generated revenue fell slightly from N23.89 billion in 2022 to N23.25 billion in 2025, representing a negative CAGR of 0.91 per cent.

The differences show that states have had varying degrees of success in building their revenue bases. Higher state revenue also did not necessarily translate into a corresponding increase in personnel expenditure.

BudgIT found that personnel expenditure grew much more slowly than total state revenue, suggesting that wages did not keep pace with the growth in government resources or inflation. This may have limited the impact of higher state revenues on households.

The State of States report also stressed the role of FAAC in state finances, noting that federal transfers accounted for a significant share of recurrent revenue across the country.

In its 2025 report, BudgIT said 31 states relied on federal transfers for at least 80 per cent of their recurrent revenue.

The sharpest contrasts were recorded among states with relatively low IGR bases. While Kebbi generated N11.37 billion over 12 months, its five-month FAAC allocation stood at N82.62 billion.

Yobe’s annual IGR of N11.08 billion compared with N77.18 billion received from FAAC, while Ebonyi generated N15.23 billion in 2024 against N70.43 billion received in five months.