Nigeria’s Federation Account Allocation Committee (FAAC) disbursements in Q1 2025 showcased significant growth, with total FAAC allocation reaching N1,796.5 billion, a 37.78% increase compared to N1,303.8 billion recorded in Q1 2024. This was revealed in a report by BudgIT Nigeria.
Data from BudgIT Nigeria revealed that the South-South region took the largest share, reaching N568.9 billion from N445.3 billion in Q1 2024, a 27.74% increase.
The South-South’s dominance was driven by Delta State, which received N138 billion, the highest among all states. This substantial allocation underscores the region’s critical role in Nigeria’s oil-driven revenue stream, with other states like Rivers (N59.6 billion) and Akwa Ibom (N42.5 billion) also securing significant shares.
The South-West region recorded a remarkable 46.86% surge in FAAC allocations, climbing to N300.4 billion in Q1 2025 from N204.5 billion in Q1 2024. Lagos State led with N49.3 billion, followed by Oyo (N37.6 billion) and Ondo (N35.1 billion), reflecting robust economic activity in the region.
North-West’s FAAC disbursements soared by 49.78%, reaching N294.2 billion in Q1 2025, up from N196.4 billion the previous year. Kano State topped the region with N41.1 billion, while Kaduna and Katsina received N29.5 billion and N26.1 billion, respectively, signaling strong federal revenue distribution.
The North-Central region saw a 49.57% increase, with allocations rising to N261.1 billion in Q1 2025 from N174.5 billion in Q1 2024. Benue led with N43.2 billion, followed by Kogi (N38.8 billion) and Niger (N38.2 billion), highlighting improved fiscal inflows to the region.
North-East’s allocations grew by 40.81%, totaling N201.2 billion in Q1 2025 compared to N149.3 billion in Q1 2024. Bauchi State received N43.6 billion, while Borno and Adamawa secured N33.6 billion and N24.6 billion, respectively, reflecting steady growth in federal disbursements.
The South-East region posted a 43.06% increase, with FAAC allocations reaching N170.7 billion in Q1 2025, up from N133.8 billion in Q1 2024. Anambra led with N30.4 billion, followed by Imo (N28.8 billion) and Abia (N24.6 billion), showcasing consistent revenue growth.
The data reflects a broader trend of increased federal revenue in Q1 2025. This growth, driven by improved oil revenues and non-oil contributions, signals a positive trajectory for Nigeria’s fiscal landscape.
However, disparities in state-level allocations highlight the need for targeted fiscal policies to address regional economic imbalances.
