NEITI reports a record N6trn FAAC disbursement in Q3 2025, reflecting a sharp rise in revenues shared by all tiers of government
Nigeria’s Federation Account recorded its highest quarterly disbursement in the third quarter of 2025, with N6 trillion shared among the three tiers of government, according to the Nigerian Extractive Industries Transparency Initiative.
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The disclosure was contained in NEITI’s Quarterly Review for the third quarter of 2025, which showed a 55.6 per cent year-on-year increase compared with the same period in 2024.
The report also revealed that allocations have more than doubled over the past two years, signalling a sharp surge in shared revenues.
NEITI stated that the Federation Account Allocation Committee disbursed a total of N9.62 trillion between September and November 2025, marking one of the strongest revenue-sharing periods in recent history.
The N6trn FAAC disbursement included 13 per cent derivation payments to oil-producing states, underscoring the continued importance of oil revenues to the federation account.
A breakdown of the allocation showed that the Federal Government received N2.19 trillion, state governments N1.97 trillion, and local governments N1.45 trillion, reflecting increased statutory transfers across all tiers.
Reacting to the development, Delta State Governor Sheriff Oborevwori urged governors nationwide to prioritise the welfare of citizens, arguing that rising allocations removed excuses for poor service delivery.
Governor Oborevwori spoke during the flag-off of the N39.3 billion Otovwodo flyover project in Ughelli North Local Government Area, stating that claims of inadequate funds were no longer justifiable.
NEITI’s analysis showed that statutory revenue accounted for 62 per cent of total shared receipts, while Value Added Tax contributed 34 per cent.
The Electronic Money Transfer Levy and augmentation from non-oil excess revenue each accounted for two per cent.
The distribution to the 36 states also included an additional N100 billion augmentation from the non-oil excess revenue account, drawn alongside statutory revenue, VAT, EMTL and the Ecological Fund.
State-level data revealed significant disparities in allocations. Lagos State received the highest share of N179.3 billion in the quarter, averaging N59.76 billion monthly.
Kano State followed with N79.2 billion, while Rivers State received N78.8 billion.
At the lower end of the scale, Nasarawa received N42.5 billion, Ebonyi N42.9 billion and Ekiti N43 billion.
NEITI said the gap between the highest and lowest state allocations stood at N136.8 billion during the quarter.
Among oil-producing states, Delta recorded the highest gross allocation of N180.68 billion, with Akwa Ibom, Bayelsa and Rivers also emerging as major beneficiaries of derivation inflows.
Oil-producing states collectively received about N424 billion in the period.
On debt obligations, NEITI disclosed that deductions from states’ allocations totalled N225.89 billion, representing a 6.5 per cent decline from the previous quarter.
The average debt service ratio fell to 9.4 per cent, with over two-thirds of states recording ratios below 10 per cent.
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Despite the record inflows, NEITI warned of mounting fiscal risks in the fourth quarter of 2025, citing lower average oil prices and a decline in crude oil production from 1.64 million barrels per day in the third quarter to 1.59 million barrels per day in early Q4.
David Okere is a journalist and contributor to Freelanews.com, covering business, governance, public affairs, and human-interest stories with a commitment to accuracy, balance, and public interest reporting.
