Lagos Tops with N200bn as 10 States Receive 40.1% of Q1 2026 FAAC allocations

An analysis of Federation Account Allocation Committee (FAAC) disbursements shows that just 10 states received N998.65 billion, representing 40.1% of total allocations to states in Q1 2026. Total allocations rose to approximately N2.49 trillion, up from N1.98 trillion in Q1 2025.

Lagos led with N200.21 billion, followed by Delta (N143.42bn), Rivers (N123.96bn), Bayelsa (N114.47bn), and Akwa Ibom (N109.76bn). VAT has become the dominant revenue source for many states, with states receiving over N1.28 trillion from VAT compared to N811.97 billion from statutory allocation.

Key Points:

Lagos received N200.21bn, driven almost entirely by VAT receipts.
VAT has overtaken statutory allocation as the main revenue source for many states.
Rivers and Ekiti were the only states to record year-on-year declines.
The top 10 states’ share of allocations eased from 42.5% to 40.1%.
VAT and electronic transactions are becoming increasingly important drivers of state revenues.

The shift to VAT-driven revenues reflects Nigeria’s changing fiscal landscape. States with strong commercial activity are benefiting the most.

Sources: Nairametrics, Business Post

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