Oil-producing states received a combined ₦620.23 billion as 13% derivation allocation between January and May 2025, more than double the ₦308.19 billion shared in the same period of 2024.
The figures, released by the Federation Account Allocation Committee (FAAC) and the National Bureau of Statistics (NBS), show a 101 percent jump in revenue to the nine oil-producing states. The derivation is a constitutionally mandated benefit to compensate states where crude oil is extracted, outside their monthly statutory FAAC allocations.
Bayelsa, Delta, Rivers Top the List
Bayelsa led the pack with ₦130.21 billion, a 122 percent rise from ₦58.62 billion in 2024. Delta followed with ₦185.16 billion, up from ₦101.51 billion, representing an 82 percent increase. Rivers earned ₦114.06 billion, more than double its ₦53.24 billion in the same period last year.
South-East Gains Momentum
South-East oil-producing states also recorded sharp increases. Imo grew its share to ₦14.48 billion from ₦5.12 billion, up 183 percent. Abia earned ₦8.99 billion compared to ₦2.95 billion, marking a 205 percent rise. Anambra saw its allocation rise 126 percent, from ₦3.72 billion to ₦8.42 billion.
Akwa Ibom, Edo, Ondo Post Strong Gains
Akwa Ibom received ₦124.79 billion, a 98 percent increase from ₦63.03 billion. Edo earned ₦18.60 billion, up 69 percent from ₦10.99 billion. Ondo collected ₦15.51 billion, representing a 72 percent jump from ₦9.02 billion in 2024.
Questions Over Impact
Despite the surge in oil revenue, questions remain over how much of it translates into tangible improvements in infrastructure, education, and healthcare in these states. Critics argue that higher derivation funds have rarely mirrored better living conditions for oil-producing communities, which continue to grapple with poverty, unemployment, and environmental degradation.
As the next FAAC disbursement approaches, analysts say pressure will mount on governors of oil-producing states to justify the sharp rise in derivation funds and demonstrate clear progress in governance and development outcomes.