A trio of states overshadow others in quarterly allocation of funds

Nearly three-quarters of the N321.90bn distributed to Nigeria's oil-producing states under the 13 per cent derivation principle in the first quarter of 2026 went to Delta, Bayelsa, and Akwa Ibom states, highlighting their dominance in revenue allocation.

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This development is based on an analysis of data published by BudgIT Nigeria, which utilized figures from the National Bureau of Statistics and the Federation Account Allocation Committee to determine that 11 states benefited from derivation payments between January and March this year.

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Delta state emerged as the largest beneficiary, receiving N101.60bn, followed closely by Bayelsa with N71.64bn and Akwa Ibom with N69.39bn, with the three states collectively receiving about 75 per cent of the total derivation allocation for the quarter.

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Rivers state ranked fourth, receiving N46.09bn, which meant that the four leading oil-producing states accounted for almost 90 per cent of all derivation funds shared during the period.

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The remaining states received significantly smaller allocations, with Ondo getting N9.39bn, Edo receiving N7.47bn, and Imo obtaining N7.39bn.

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Abia and Anambra states received N5.42bn and N3.49bn, respectively, while the newest oil-producing states, Enugu and Kogi, each received a relatively small amount of N46,991.

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The distribution of derivation funds reflects the uneven spread of crude oil production across the country, with states having larger oil fields and export infrastructure attracting higher derivation revenues.

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In contrast, emerging producers like Enugu and Kogi receive only token allocations, with Delta's quarterly payment being more than two million times the amounts allocated to these states.

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Imo's receipt of N7.39bn has also drawn attention, given the state's gas reserves and ongoing upstream activities by energy firms operating within its territory.

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Nigeria's constitution provides for a 13 per cent derivation payment to oil-producing states as compensation for petroleum resources extracted from their territories, with the allocation determined largely by production volumes.

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Historical figures indicate that derivation payments have risen sharply in recent years, with oil-producing states sharing N1.51tn in 2025, up from N671.9bn in 2024.

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The list of beneficiary states has also expanded from nine to 11 states, following the recognition of Enugu and Kogi as oil-producing states, although both currently receive only symbolic allocations due to their relatively low production levels.