Nigeria’s federation account recorded its highest quarterly disbursement ever in the third quarter of 2025, with allocations rising to ₦6 trillion, according to the Nigerian Extractive Industries Transparency Initiative (NEITI).
This marks a 55.6% year-on-year increase compared with Q3 2024 and more than a doubling of allocations over two years. However, NEITI warned that weakening oil prices and declining crude output heading into Q4 could expose fiscal risks.
Breakdown of Allocations
- Federal Government: ₦2.19 trillion
- State Governments: ₦1.97 trillion
- Local Governments: ₦1.45 trillion
- 13% Derivation to Oil-Producing States: ₦141.39 billion (Sept–Nov, per NBS)
Statutory revenues accounted for 62% of receipts, VAT contributed 34%, while the Electronic Money Transfer Levy (EMTL) and non-oil excess revenue augmentation each contributed 2%.
State-by-State Allocations
- Highest: Lagos — ₦179.3 billion (₦59.76 billion monthly average)
- Next: Kano — ₦79.2 billion; Rivers — ₦78.8 billion
- Lowest: Nasarawa — ₦42.5 billion; Ebonyi — ₦42.9 billion; Ekiti — ₦43 billion
Among oil-bearing states, Delta recorded the highest gross revenue allocation at ₦180.68 billion, followed by Akwa Ibom, Bayelsa, and Rivers.
Governor Sheriff Oborevwori of Delta State urged his counterparts to use the increased allocations to improve citizens’ lives, insisting that states now have sufficient resources.
Debt Obligations
- Deductions for debt servicing: ₦225.89 billion (6.5% decline from Q2)
- Average debt service ratio: 9.4% (range: 1.5%–26.8%)
- One-third of states recorded ratios below 5%, while two-thirds remained below 10%, suggesting improving debt sustainability.
Fiscal Risks Ahead
Despite record inflows, NEITI cautioned that Q4 indicators point to mounting fiscal pressure:
- Average daily crude oil production fell from 1.64m bpd in Q3 to 1.59m bpd in October.
- Oil prices are trending lower, with exchange rates slightly higher than in Q3.
The National Bureau of Statistics (NBS) confirmed FAAC disbursements of ₦3.64 trillion in September, ₦3.05 trillion in October, and ₦2.93 trillion in November 2025.
Revenue-generating agencies also received cost-of-collection payments:
- Nigeria Customs Service (NCS): ₦29.64 billion
- Federal Internal Revenue Service (FIRS): ₦50.71 billion
- Nigerian Upstream Petroleum Regulatory Commission (NUPRC): ₦34.92 billion
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