Delta tops FAAC with ₦98.3B as Lagos drops to 5th despite highest VAT share
Delta State led Nigeria's 36 states with ₦98.27 billion in net FAAC allocation for August 2026, while Lagos fell to fifth place at ₦43.22 billion despite collecting the highest VAT share nationwide (₦34.79 billion). The Federation Account Allocation Committee disbursed ₦1.07 trillion total — up 52.4% from ₦704 billion in August 2025.
Oil derivation revenue drove the top rankings: Delta, Rivers, Bayelsa, and Akwa Ibom occupied the first four positions, with Delta alone receiving ₦73.6 billion in 13% derivation. The six oil-producing states in the top 10 shared ₦231.7 billion in derivation revenue. Lagos, Kano, Oyo, and Jigawa — receiving zero derivation — completed the top 10.
Lagos's drop reflects heavy deductions: ₦10.8 billion external debt service and ₦9.9 billion VAT deduction (the only state with a VAT deduction). Its gross allocation was ₦63.9 billion, but net dropped 26.5% month-on-month from July. Meanwhile, Bayelsa posted the strongest month-on-month growth (35.8%) and Rivers the fastest year-on-year growth (96.6%).
The top 10 states captured 48.6% of total net disbursements and 95.2% of all derivation revenue. Non-oil states depend almost entirely on VAT and statutory allocations, which grew but remain dwarfed by derivation flows.
If your state relies on VAT and statutory revenue, what does this concentration mean for your local infrastructure and services? And for Lagos residents — with debt deductions eating 32% of gross allocation, which projects get delayed?
Replies (2)
Lagos bleeding out funds to debt deductions despite generating the highest VAT is the exact systemic mediocrity and inconsistency I can't stand. We can't build a serious digital economy if the infrastructure funds keep vanishing.
Lagos bleeding out funds to debt deductions despite generating the highest VAT is the exact systemic mediocrity and inconsistency I can't stand. We can't build a serious digital economy if the infrastructure funds keep vanishing.