Nigeria’s 36 states received a combined ₦2.39 trillion from the Federation Account in the second quarter of 2026, representing a ₦259.41 billion, or 12.2%, increase from the ₦2.13 trillion received in the first quarter.
The Q2 distribution marked a significant reshuffling at the top of the state allocation table, with Delta, Rivers, Akwa Ibom and Bayelsa recording strong quarter-on-quarter increases, while Lagos dropped from first position in Q1 to third in Q2.
Delta emerged as the largest beneficiary in Q2 with ₦188.01 billion, up from ₦143.42 billion in Q1. Rivers rose to second place with ₦172.03 billion from ₦123.96 billion. Lagos, which received the largest allocation in Q1 at ₦200.21 billion, saw its allocation fall to ₦165.57 billion, a decline of ₦34.64 billion or 17.3%.
Kanyi Daily reports that Delta’s Q2 allocation increased by ₦44.59 billion, or 31.1%, from its Q1 receipt. The state received ₦53.77 billion in April, ₦67.81 billion in May and ₦66.44 billion in June, taking its quarterly total to ₦188.01 billion. Rivers recorded an even larger absolute increase, rising by ₦48.07 billion, or 38.8%, from ₦123.96 billion in Q1 to ₦172.03 billion in Q2.
Akwa Ibom recorded the largest percentage increase among the major oil-producing states, with its allocation rising 46.2%, from ₦109.76 billion in Q1 to ₦160.51 billion in Q2. Bayelsa also recorded a strong increase, with its allocation rising from ₦114.47 billion to ₦152.25 billion, representing a 33.0% increase. Together, Delta, Rivers, Akwa Ibom and Bayelsa added about ₦181.19 billion to their combined allocations between Q1 and Q2.
Lagos was the major outlier among the leading states. The sharp movement is particularly important because Lagos’ Q1 allocation was unusually high and was driven overwhelmingly by VAT. The state received approximately ₦193.50 billion from VAT in Q1, including ₦101.34 billion in February alone. By comparison, Lagos’ Q2 net VAT allocation was ₦150.56 billion, meaning its VAT receipts alone fell by approximately ₦42.94 billion, or 22.2%, from the Q1 figure.
Lagos remained the dominant VAT recipient in Q2, receiving ₦150.56 billion, followed by Rivers with ₦75.81 billion and Oyo with ₦44.29 billion. Kano received ₦34.17 billion, while Delta received ₦29.61 billion. The Q2 VAT distribution therefore differs significantly from the broader FAAC ranking.
Kano remained the largest northern recipient in Q2, receiving ₦77.53 billion, compared with ₦75.03 billion in Q1, an increase of just ₦2.50 billion, or 3.3%. Oyo’s allocation rose from ₦68.98 billion to ₦70.12 billion, an increase of just 1.7%.
Ekiti recorded the largest percentage increase between the two quarters. Its allocation jumped from just ₦17.12 billion in Q1 to ₦39.24 billion in Q2, an increase of ₦22.12 billion, or 129.2%. The sharp increase follows an unusually weak Q1 performance, when Ekiti recorded negative statutory allocations. However, even after the rebound, Ekiti remained the second-lowest recipient in Q2, ahead of only Cross River.
Most states recorded increases between Q1 and Q2. Imo rose from ₦50.31 billion to ₦57.38 billion, an increase of 14.1%, while Taraba rose 13.1% and Kaduna increased 12.0%. Abia rose 11.2%, Ondo increased 11.3%, while Ebonyi and Borno recorded increases of 9.5% and 9.3% respectively. Lagos was the only state to record a quarter-on-quarter decline in total FAAC receipts.
The Q2 data points to a significant change in the composition of state FAAC receipts. The ₦259.41 billion increase in total allocations was driven primarily by stronger receipts among oil-producing states. In Q1, the top five states received a combined ₦691.82 billion, representing about 32.4% of all state allocations. In Q2, the same five states received ₦838.37 billion, lifting their combined share to about 35.0%.
