Delta State received the highest net FAAC allocation
Delta State received the highest net allocation among Nigeria's 36 states in August 2026, collecting ₦98.27 billion from the Federation Account Allocation Committee (FAAC), while Lagos fell to fifth place with ₦43.22 billion.
The figures, compiled by Nairametrics Research from FAAC data, show that the 36 states received a combined ₦1.07 trillion in net disbursements during the month, representing a 52.44% increase from the ₦704.01 billion shared in August 2025.
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The distribution highlights the influence of oil revenue derivation on state finances, with oil-producing states occupying four of the top five positions.
Delta leads as oil-producing states dominate
Delta's ₦98.27 billion allocation placed it ahead of Rivers, which received ₦81.89 billion, and Bayelsa, with ₦78.39 billion. Akwa Ibom ranked fourth with ₦77.75 billion.
Delta's allocation increased by 93.82% year on year, representing an additional ₦47.57 billion compared with August 2025. Its largest revenue component came from the 13% derivation allocation, through which it received ₦73.57 billion.
Rivers recorded the fastest year-on-year growth among all 36 states, with its allocation rising by 96.62%. Bayelsa's allocation increased by 88.77%, while Akwa Ibom recorded a 92.53% increase.
The strong performance of these states reflects their entitlement to a share of revenue from oil and gas production within their territories.
Lagos drops to fifth despite leading VAT receipts
Lagos received ₦43.22 billion in net allocations, placing fifth in August, down from second position in the corresponding month of 2025.
Its allocation increased by just 3.30% year on year, the weakest growth among the 36 states. It also fell by 26.53% from the ₦58.84 billion received in July 2026.
Despite the lower ranking, Lagos remained the largest recipient of net VAT revenue, collecting ₦34.79 billion. However, deductions reduced the amount available to the state.
The state recorded an external debt deduction of ₦10.81 billion and a VAT deduction of ₦9.89 billion. Its gross allocation stood at ₦63.92 billion before these deductions and other adjustments.
The figures illustrate why a state's gross allocation and the amount it ultimately receives as net disbursement can differ considerably.
Top 10 states receive nearly half of total allocations
The 10 largest recipients collected a combined ₦521.41 billion, accounting for 48.58% of the total net disbursements to states in August 2026.
This compares with ₦315.13 billion, or 44.76% of the total, in August 2025.
The top 10 states also accounted for 95.15% of derivation revenue distributed to states, 51.92% of net statutory allocations and 43.16% of net VAT allocations.
Beyond the four leading oil-producing states, the ranking included Kano in sixth place with ₦34.46 billion, Oyo in seventh with ₦29.54 billion, Ondo in eighth with ₦26.61 billion, Imo in ninth with ₦25.68 billion and Jigawa in tenth with ₦25.58 billion.
Kano recorded the highest gross statutory allocation nationwide, at ₦22.18 billion before deductions, while Oyo's allocation received substantial support from VAT revenue.
What the allocations mean for state development
FAAC disbursements provide states with funding for public expenditure, including infrastructure, education, healthcare and other government responsibilities. The increase in allocations could expand the fiscal resources available to state governments, although the actual impact depends on their revenue management, spending priorities and debt obligations.
For the housing and construction sectors, the distribution is relevant because state governments play important roles in providing infrastructure, developing housing programmes, improving land administration and supporting urban development.
States receiving larger allocations may have greater fiscal room to fund such initiatives. However, higher FAAC receipts do not automatically translate into increased housing investment or improved infrastructure delivery.
The key issue for the property market is how effectively state governments convert available public revenue into roads, utilities, serviced land and housing-related infrastructure that can support private investment and improve living conditions.
The August figures therefore offer an indication of the resources available to state governments, but their development impact will depend on how those funds are deployed.
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