The Federation Account Allocation Committee (FAAC) allocations are a critical source of revenue for Nigeria’s 36 states.
As of April 2026, there is a massive gap between the highest-earning states (like Lagos and the oil-producing states) and those at the bottom of the table.
States that receive the least allocation are typically those with small industrial bases, lower populations, and no oil production to qualify for the 13% derivation fund.
Top 10 States With The Lowest FAAC Allocation (2025/2026 Data)
Based on consolidated reports for 2025 and the latest monthly disbursements in April 2026, the following states consistently receive the lowest net allocations.
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Ogun State: Interestingly, while Ogun has a high industrial base, it often ranks at the bottom of net FAAC receipts because of heavy deductions for external and domestic debt servicing.
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Ekiti State: Consistently ranks among the lowest due to its small landmass and limited industrial activity.
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Cross River State: Despite being a former oil-producing state, the loss of its oil wells to Akwa Ibom years ago significantly dropped its allocation.
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Gombe State: A small state in the North-East with one of the lowest statutory and VAT receipt profiles.
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Ebonyi State: Receives low allocations due to its relatively smaller population and landmass compared to its neighbors.
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Osun State: Like Ogun, Osun suffers from significant debt-deductions that slash its “take-home” pay.
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Kwara State: Ranks low due to its modest internally generated revenue (IGR) and consumption-based VAT contributions.
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Nasarawa State: Often cited by NEITI (Nigeria Extractive Industries Transparency Initiative) as receiving the absolute lowest monthly average.
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Taraba State: Faces low allocation despite its size, due to limited commercial activity.
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Yobe State: Struggles with both low statutory allocation and low VAT generation.
Why the Disparity Exists
The allocation formula is not equal. It is built on several factors that work against smaller, non-oil states:
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13% Derivation: This is the biggest “game changer.” States like Delta, Akwa Ibom, Rivers, and Bayelsa receive billions extra because they produce oil. Non-oil states receive 0% from this fund.
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VAT Generation: VAT is shared based on where it is collected (50%), equality (35%), and population (15%). States with low commercial activity (like Yobe or Gombe) naturally get less.
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Debt Servicing: The “Net Allocation” is what the state actually receives after the Federal Government deducts money for unpaid loans. This is why Ogun and Osun often appear at the bottom—they are paying back more than others.
The “Lagos vs. The Rest” Factor
To put the “least” into perspective, the NEITI Quarterly Review for 2026 highlighted that Lagos State’s allocation (roughly ₦179bn in a single quarter) was more than double the amount received by the bottom three states combined.
As the NEITI Executive Secretary, Dr. Ogbonnaya Orji, noted in the January 2026 report:
“The range between the highest and lowest state allocations was ₦136.8bn… this materially alters state rankings, throwing up the derivative states as receiving nearly half of the gross allocations.”
Recent FAAC Totals (April 2026)
In the meeting held on April 22, 2026, the committee shared a total of ₦2.036 trillion for the month of March.
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Total shared to States: ₦657.596 billion
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Shared to Oil-Producing States (Derivation): ₦120.759 billion
This trend confirms that the gap between the “rich” oil states and the “least allocated” landlocked states is continuing to widen in 2026.
