Lagos State received the highest share of the December 2025 Federation revenue shared in January 2026.

The state received N55.83 billion which accounts for 7.9 per cent of the N706.47 billion distributed to the 36 states by the Federation Accounts Allocation Committee (FAAC).

The share of Lagos federation revenue was buoyed by its share of the value added tax (VAT) revenue which amounted to N50.12 billion, a 49.68 per cent higher than the N25.21 billion it received in December 2025 and 25.06 per cent higher than the N40.07 billion it got in November 2025.

Lagos was followed by Delta state with a share of N47.15 billion including a VAT revenue of N11.43 billion.

Akwa Ibom State received the third highest revenue with N35.89 billion of which VAT component was N10.82 billion.

States with the lowest share of the Federation revenue are, Ogun, N12.78 billion of which VAT component was N10.01 billion, Cross River with N12.64 billion with VAT of N8.72 billion, and Ekiti which recorded negative allocation of N-6.69 billion even with a VAT share of N8.96 billion.

Analysis of the FAAC disbursements in January 2026 according to the National Bureau of Statistics (NBS) report, shows that a total sum of N2.59 trillion was shared to the three tiers of government from the total revenue generated in December 2025.

The report shows that the amount disbursed comprised N1.63 trillion from the statutory account, N39.91 billion from Electronic Money Transfer Levy (EMTL) and N913.96 billion Value Added Tax.

The report further shows that the Federal Government share of the amount was N653.50 billion, the 36 states got N706.47 billion while the 774 local governments councils received N513.27 billion.

The FAAC allocation report also shows that a sum of N96.08 billion was shared among the oil producing states from the 13 per cent derivation fund.

According to the report, the revenue generating agencies comprising the Nigeria Customs Service (NCS), the Federal Inland Revenue Services (FIRS), now Nigeria Revenue Service (NRS), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC), received N27.85 billion, N53.12 billion and N23.72 billion respectively as cost of revenue collections. (The Guardian)

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