Lagos Takes the Lead as FAAC Revenue Surges: Full List of Nigeria’s Top 10 States in H1 2026
- Lagos State's FAAC revenue surged by 54% to N365.78 billion in H1 2026, making it the leading state in allocation
- VAT receipts played a pivotal role in Lagos' ascent, highlighting economic activity's growing importance
- Overall state revenue distribution rose significantly, with H1 2026 allocations reaching N4.54 trillion
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Lagos State has emerged as Nigeria’s biggest beneficiary of Federation Account revenue in the first half of 2026, overtaking traditionally dominant oil-producing states as its allocation jumped by more than 54 per cent year-on-year.
The commercial hub received N365.78 billion in net FAAC revenue between January and June 2026, compared with N236.92 billion during the corresponding period in 2025.
Source: Getty Images
The N128.86 billion increase represents a 54.39 per cent growth, lifting Lagos from third place in the first half of 2025 to the top of the ranking.
VAT Powers Lagos to the Top
Lagos’ remarkable rise was driven overwhelmingly by its VAT receipts, underscoring the growing importance of economic activity and consumer spending in Nigeria’s revenue-sharing system.
The state received N344.06 billion in net VAT allocation, compared with just N10.91 billion from statutory revenue.
It also received N3.31 billion from the Electronic Money Transfer Levy and N5.05 billion in non-oil revenue augmentation.
Lagos’ total gross allocation stood at N476.59 billion.
The development comes as the amount distributed to Nigeria’s 36 states increased significantly during the period, according to a report by Punch.
States receive N4.54tn in six months
The 36 states collectively received N4.54 trillion in net FAAC revenue in H1 2026, up from N3.61 trillion in the same period of 2025.
That represents an increase of approximately N930 billion, or 25.77 per cent.
The 10 largest beneficiaries received a combined N2.16 trillion, compared with N1.74 trillion a year earlier.
However, their share of total state allocations fell slightly from 48.16 per cent to 47.47 per cent, indicating that revenue growth was spread beyond the biggest recipients.
Delta falls as Lagos surges ahead
Delta State, which ranked first in H1 2025, slipped to second place despite recording higher receipts.
The state received N331.43 billion, compared with N299.96 billion a year earlier, representing 10.49 per cent growth.
Delta remained heavily supported by oil-related revenue, receiving N229.71 billion in derivation revenue.
Its other receipts included N262.54 billion in statutory revenue, N63.39 billion in VAT, N510.42 million from the Electronic Money Transfer Levy and N3.83 billion in non-oil revenue augmentation.
Rivers also dropped one position to third, although its allocation rose by 11.74 per cent to N295.99 billion from N264.90 billion.
Oil states still dominate derivation revenue
Despite Lagos’ breakthrough, oil-producing states continued to dominate the derivation component of FAAC.
Delta, Akwa Ibom, Bayelsa, Rivers and Ondo collectively received more than N707.32 billion in derivation revenue during the first six months of 2026.
Akwa Ibom ranked fourth overall with N270.27 billion, up from N230.99 billion in H1 2025. Bayelsa followed in fifth with N266.72 billion, compared with N229.56 billion a year earlier.
Ondo ranked eighth after its allocation climbed 28.29 per cent to N113.04 billion.
Full list of top 10 states
The ranking also highlights the growing role of non-oil economic activity. Kano retained sixth position with N152.57 billion, while Oyo remained seventh after its allocation surged 45.99 per cent to N139.09 billion.
Jigawa made one of the biggest jumps, moving from 13th to ninth with N111.61 billion, up 30.36 per cent. Borno completed the top 10 after moving up from 11th place.
Source: Getty Images
The H1 2026 figures point to a changing revenue landscape in which VAT and the size of a state’s economic base are becoming increasingly important alongside oil-derived income.
Lagos’ dramatic rise to the top could therefore signal a broader shift in Nigeria’s fiscal landscape, as states with strong commercial and consumption bases increasingly compete with oil-producing states for a larger share of federation revenue.
Lagos tops Nigeria's IGR per capita
Legit.ng earlier reported that Lagos State has recorded the highest Internally Generated Revenue (IGR) per capita in Nigeria, according to the State Performance Index 2026 published by Statisense, while Kebbi ranked last among all states assessed.
The index measures how much revenue each state raises from internal sources, such as taxes, levies, and fees, relative to its population.
Unlike raw IGR totals, the per capita measure gives a clearer picture of how efficiently a state converts economic activity into public funds.
Source: Legit.ng
