Lagos State received N165.57 billion from the Federation Account Allocation Committee (FAAC) in the second quarter of 2026, marking a N34.64 billion drop from its first-quarter figure, Nairametrics revealed on Wednesday.
The 17.3 per cent decline occurred while total disbursements to all 36 states rose by 12.2 per cent, climbing from N2.13 trillion in the first quarter to N2.39 trillion between April and June. The total increase across the country stood at N259.41 billion.
Lagos, which topped the allocation table in the first quarter with N200.21 billion, fell to third position in the second quarter. Oil-producing states recorded strong quarter-on-quarter growth, taking four of the top five allocation positions.
A sharp fall in Value Added Tax (VAT) receipts drove the overall reduction in Lagos State’s allocation.
Value added tax fall drives down Lagos receipts
Lagos State received N150.56 billion in net VAT payments in the second quarter, down by N42.94 billion or 22.2 per cent from the N193.50 billion collected in the first quarter.
The state had recorded an unusually high first-quarter figure after receiving N101.34 billion in VAT during February alone, alongside Electronic Money Transfer Levy (EMTL), ecology allocations, and non-oil revenue augmentations.
Despite the quarter-on-quarter reduction, Lagos retained its position as the largest net VAT recipient nationwide, ahead of Rivers State which received N75.81 billion, and Oyo State which collected N44.29 billion. Kano State took N34.17 billion in VAT, while Delta State collected N29.61 billion.
Lagos was the only state out of the 36 states that recorded an overall decline in total FAAC receipts between the first and second quarters.
Delta and Rivers rise to lead allocation table
Delta State replaced Lagos as the largest overall FAAC recipient, collecting N188.01 billion in the second quarter. The figure represents a N44.59 billion or 31.1 per cent increase from the N143.42 billion it received in the first quarter.
Delta received N53.77 billion in April, N67.81 billion in May, and N66.44 billion in June.
Rivers State recorded the second-largest total allocation at N172.03 billion, up by N48.07 billion or 38.8 per cent from N123.96 billion in the first quarter. Rivers received N46.64 billion in April, N55.07 billion in May, and N70.32 billion in June. The June figure was the highest single monthly sum received by any state in the second quarter.
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Akwa Ibom State recorded a 46.2 per cent increase, moving from N109.76 billion to N160.51 billion. Bayelsa State increased its receipts by 33.0 per cent, rising from N114.47 billion to N152.25 billion.
Delta, Rivers, Akwa Ibom, and Bayelsa added N181.19 billion to their combined quarterly receipts.
Ekiti records rebound as Northern states log modest gains
Ekiti State recorded the highest percentage increase in the country, jumping by 129.2 per cent. Its allocation grew by N22.12 billion, moving from N17.12 billion in the first quarter to N39.24 billion in the second quarter.
The state had suffered negative statutory deductions of N16.19 billion in January and N1.68 billion in February. Despite the recovery, Ekiti remained the second-lowest recipient nationwide, behind Cross River State.
Kano State remained the highest recipient among northern states, collecting N77.53 billion in the second quarter compared to N75.03 billion in the first quarter, representing a 3.3 per cent increase.
Oyo State recorded a 1.7 per cent increase, moving from N68.98 billion to N70.12 billion. Oyo ranked seventh in total FAAC receipts but held the third position in VAT collections.
Ogun State grew its allocation by 18.1 per cent from N36.13 billion to N42.67 billion, while Imo State rose 14.1 per cent to N57.38 billion. Jigawa State recorded a marginal increase from N55.75 billion to N55.86 billion, while Enugu State moved from N45.67 billion to N45.86 billion.
What readers should know about FAAC revenue shifts
The 36 states shared N2.39 trillion in the second quarter of 2026, supported by an additional N200 billion non-oil revenue augmentation distributed in April.
The top five state recipients—Delta, Rivers, Lagos, Akwa Ibom, and Bayelsa—collected N838.37 billion. This group accounted for 35.0 per cent of all state allocations in the second quarter, up from 32.4 per cent in the first quarter.
Total FAAC receipts depend heavily on statutory and oil derivation funds, giving oil-producing states higher total allocations. Conversely, commercial activity drives VAT distributions, where Lagos, Rivers, and Oyo lead.
State allocations fluctuate quarterly due to statutory debt deductions, loan repayments, and revenue augmentations applied by the Federation Account Allocation Committee.
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