Nigeria’s oil-producing states have received a windfall of ₦620 billion from the 13% derivation fund between January and May 2025. This marks a 101% jump from the ₦308 billion shared in the same months of 2024.
Delta State took the biggest share, with ₦185.16 billion, followed by Bayelsa’s ₦130.21 billion and Akwa Ibom’s ₦124.79 billion. Rivers got ₦114.06 billion, while Edo’s share was ₦18.60 billion. Ondo, Imo, Abia, and Anambra trailed behind with smaller amounts.
This 13% derivation is carved out of oil revenue and returned to the producing states under Section 162(2) of the 1999 Constitution. It is meant to cushion exploration impacts and support development in oil communities.
These figures hover under the watch of Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission—which manages fiscal fairness across federal, state, and local levels.
Derivation Funds Double — What It Means
More money flowing into oil states could ease crushing debts and fund urgent infrastructure.
In fact, since June 2023, these states reduced domestic debt by around ₦611 billion. The debt shrank from ₦1.66 trillion to ₦1.05 trillion by March 2025.
Still, not all states benefit equally. Rivers, for example, faced a rising debt profile despite its large allocation.
The Niger Delta region—home to millions across Bayelsa, Delta, Rivers, Akwa Ibom, Abia, Edo, and Ondo—is rich in oil, yet communities remain underdeveloped.
Yet, it must be noted that the higher revenue stems from more earnings to the federal government due to the removal of subsidy, which means petroleum products are sold to Nigerians at higher price.
The devaluation of Naira against foreign currencies, also means more Naira is available to governments.
In US dollar terms however, the revenue is the same or lower than pre-2023 revenues.
Governments have had to confront inflation, too, as the cost of the projects has hiked as well.
Yet, citizens want to know if these rising inflows are being judiciously used for visible progress and enhanced quality of life for the citizenry, or merely more money to spend for the political actors.
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