• Oborevwori tasks govs as FAAC shares N9.62tr in three months
• NEITI flags fiscal risks as oil prices soften, urges urgent policy safeguards

Nigeria’s federation account recorded its highest quarterly disbursement in the third quarter of 2025, with total allocations rising to N6 trillion, highlighting a sharp surge in shared revenues but exposing growing fiscal risks as oil prices weaken and crude output slips heading into the final quarter of the year.
  
The figures were released yesterday by the Nigerian Extractive Industries Transparency Initiative (NEITI) in its Quarterly Review for Q3 2025, showing a 55.6 per cent year-on-year increase compared with the same period in 2024 and more than a doubling of allocations over a two-year period.
  
With the N9.62 trillion FAAC shared between September and November, Delta State Governor, Sheriff Oborevwori, charged his counterparts across the federation to give their people a better life as they receive more money.
  
The N6 trillion includes 13 per cent derivation payments to oil-producing states, underscoring the scale of oil-linked inflows driving federation revenues.
  
A breakdown of the disbursement shows that the Federal Government received N2.19 trillion, state governments N1.97 trillion, while local governments got N1.45 trillion, reflecting a broad-based rise in statutory transfers across all tiers of government.
  
While revealing that states now receive more in federation allocations, the Delta governor added that “some people” should stop claiming that there is no money.
  
Oborevwori spoke during a ceremony for the construction of the N39.3 billion Otovwodo flyover project in Ughelli North Local Council. The governor said there is no point in concealing the truth from Nigerians, insisting that state governments now have sufficient resources.
  
NEITI’s analysis showed that statutory revenues accounted for 62 per cent of the shared receipts, while Value Added Tax (VAT) contributed 34 per cent. The Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for two per cent, highlighting the continued dominance of oil and tax revenues in the federation account.
   
The distribution to the 36 states, drawn from statutory revenue, VAT, EMTL and the Ecological Fund, also included an additional N100 billion augmentation from the non-oil excess revenue account, further boosting quarterly inflows to subnational governments.
  
State-by-state figures revealed wide disparities in allocations, with Lagos recording the highest receipt of N179.3 billion for the quarter, translating to an average monthly inflow of N59.76 billion. Kano followed with N79.2 billion, while Rivers received N78.8 billion, placing it third.
  
At the lower end of the scale, Nasarawa received N42.5 billion, Ebonyi N42.9 billion, and Ekiti N43 billion.  NEITI noted that Nasarawa’s allocation translates to an average monthly inflow of N14.1 billion, with the gap between the highest and lowest state allocations standing at N136.8 billion in that Q3. 

The data further showed that Lagos’s N179 billion allocation was more than double the amounts received by Kano and Rivers, the second and third-highest-grossing states.

Among the oil-bearing states, Delta recorded the highest gross revenue allocation of N180.68 billion, standing out alongside Akwa Ibom, Bayelsa and Rivers as major beneficiaries of derivation inflows during the period
   
On debt obligations, NEITI disclosed that deductions from states’ allocations to service debt and other obligations totalled N225.89 billion, representing a 6.5 per cent decline from the previous quarter. The average debt service ratio across states stood at 9.4 per cent, with ratios ranging from 1.5 per cent to 26.8 per cent.
  
The data showed that about one-third of states recorded debt service ratios below five per cent, while more than two-thirds remained below 10 per cent, suggesting improving subnational debt sustainability.
  
Despite the record inflows, NEITI warned that early indicators for Q4 2025 point to mounting fiscal pressure, citing lower average oil prices and slightly higher exchange rates compared with Q3.   
 
 Average daily crude oil production declined from 1.64 million barrels per day in Q3 to 1.59 million barrels per day in the first month of Q4, developments the agency said could reduce foreign exchange inflows and distributable revenues if sustained.
NBS, in the FAAC Allocation Reports for September to November 2025 released yesterday, disclosed that FAAC disbursed N3.64 trillion to the three tiers of government in September 2025, N3.05 trillion in October and N2.93 trillion in November. 
  
The amount disbursed, according to NBS, comprised: N2.16 trillion recorded from the Statutory Account, N49.87 billion from EMTL and N719.83 billion from VAT.
 
 The NBS report disclosed that N141.39 billion was shared among the oil-producing states from the 13 per cent derivation fund, while revenue-generating agencies comprising the Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) received N29.64 billion, N50.71 billion and N34.92 billion respectively, as cost of revenue collections.