Nigerian States Earn N1.51 Trillion from 13% Derivation Fund in 2025

In 2025, nine Nigerian states, including Abia, earned a total of N1.51 trillion from the 13% derivation fund, a substantial increase from the N671.92 billion received in 2024. This fund is designed to compensate oil-producing states for the environmental impact of resource extraction.

The increase in revenue highlights the dominance of crude oil in shaping the revenue rankings of these states. Despite similar geographical distributions, oil-producing states continue to earn more from the derivation fund compared to non-oil-producing states.

Abia, ranking ninth, saw its derivation receipts increase to N20.51 billion in 2025 from N6.69 billion in 2024, driven by improved oil-linked inflows. This growth in derivation revenue signifies a strengthening of the state's fiscal profile, reducing its dependence on consumption-based statutory inflows.

The data underscores the fiscal advantage enjoyed by oil-producing states and the importance of oil revenue in their overall revenue mix.