Delta, Bayelsa Top List as 13% Derivation Revenue Hits ₦1.51 Trillion
How 9 States Shared ₦1.51 Trillion Derivation Fund
Nigeria’s nine oil-producing states earned a cumulative ₦1.51 trillion from the 13% derivation fund in 2025, marking a significant increase from the ₦671.92 billion recorded in 2024. The sharp rise in receipts reflects higher distributable oil revenues and improved inflows into the Federation Account.
According to data on the Federation Account Allocation Committee (FAAC) net derivation receipts, all nine beneficiary states recorded strong year-on-year growth. The 13% derivation fund is a constitutionally mandated payout reserved for oil-producing states to compensate for the environmental impact and resource extraction occurring within their territories.
Delta and Bayelsa Lead the High Earners
The distribution pattern confirms the continued dominance of the "Big Four" oil states, which account for the lion's share of the total payout. Delta State emerged as the top recipient, securing ₦458.65 billion nearly a third of the total distributed to the nine states.
Bayelsa State followed in second place with ₦320.45 billion, while Akwa Ibom and Rivers states received ₦303.86 billion and ₦269.78 billion, respectively. These figures highlight the decisive fiscal advantage that derivation revenue provides to core oil-producing states, often forming the most substantial portion of their total net receipts.
The Ranking of Beneficiary States (2025)
The following is the breakdown of the 13% derivation receipts for the nine beneficiary states in 2025:
Delta State: ₦458.65 billion
Bayelsa State: ₦320.45 billion
Akwa Ibom State: ₦303.86 billion
Rivers State: ₦269.78 billion
Edo State: ₦45.32 billion
Ondo State: ₦39.81 billion
Imo State: ₦34.90 billion
Anambra State: ₦20.74 billion
Abia State: ₦20.51 billion
Fiscal Profiles and Growth Trends
While the top four states are heavily reliant on oil-linked earnings, the remaining states on the list show a more diversified revenue mix. For instance, Abia State, which ranked ninth, saw its derivation receipts grow by 206.5% from ₦6.69 billion in 2024 to ₦20.51 billion in 2025. Despite this growth, Abia remains more dependent on statutory allocations (₦81.84 billion) and Value Added Tax (VAT) receipts (₦79.24 billion) than on oil revenue.
Similarly, states like Edo and Ondo continue to balance their fiscal profiles with a combination of statutory inflows and consumption-based taxes, even as their derivation earnings saw significant boosts compared to the previous year.
Economic Implications for Sub-nationals
The upward trend in derivation payouts highlights how fluctuations in crude oil earnings and exchange rate adjustments directly reshape the fiscal strength of sub-national governments. For the core Niger Delta states, these funds are critical for infrastructure development and environmental remediation.
As Nigeria continues to navigate its energy transition and seeks to diversify its economic base, the 13% derivation fund remains a vital, albeit volatile, component of the nation’s fiscal federalism. The 2025 data underscores the widening revenue gap between oil-producing states and their non-oil-producing counterparts across the federation.
