Nigeria’s oil-producing states earned a total of N393.93 billion as 13 per cent derivation revenue payments from the Federation Account in the first three months of 2025, findings by New Telegraph has shown.

The amount is 15.36 per cent, or N52.46 billion, higher than the N341.47 billion that the states received in the corresponding period of last year.

An analysis of communiqués issued by the Federation Account Allocation Committee (FAAC) at the end of its meetings so far this year, indicates that the oil producing states earned N1.25 billion, N136.04 billion and N132.61 billion as 13 per cent derivation revenue payments in January, February and March, respectively.

The country’s oilproducing states such as, Rivers, Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Imo, Edo and Ondo, are statutorily required to be paid, in addition to their usual allocation, 13 per cent of oil revenue from the Federation Account as Derivation Fund, which for the exclusive benefit of their oil/ gas producing communities whose environments are typically negatively impacted by mineral exploration and production activities.

For instance, the statement recently released by the Director, Information and Public Relations at the Federal Ministry of Finance, Mohammed Manga, on the outcome of the FAAC meeting for April 2025, said that the committee shared a total sum of N1.578 trillion to the three tiers of government as Federation Allocation for the month of March 2025 from a gross total of N2.411 trillion.

Specifically, the statement said: “The Federation Account Allocation Committee (FAAC), at its April 2025 meeting chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared a total sum of N1.578 trillion to the three tiers of government as Federation Allocation for the month of March 2025 from a gross total of N2.411 trillion.

“From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference, the Federal Government received N528.696 billion, the States received N530.448 billion, the Local Government Councils got N387.002 billion, while the Oil Producing States received N132.611 billion as Derivation, (13% of Mineral Revenue).

“The sum of N85.376 billion was given for the cost of collection, while N747.180 billion was allocated for Transfers Intervention and Refunds.”

Analysts note that compared with 2022 and 2023, the country’s 36 states have generally benefitted from higher FAAC allocations, especially from exchange rate gains in the oil sector and increased oil production, occasioned by reforms introduced by the President Bola Tinubu-led administration when it came into office on May 29, 2023.