Nigeria's Oil-Producing States See 125% Revenue Surge

In 2025, oil derivation revenue for Nigeria's nine oil-producing states increased by 125%, totaling N1.51 trillion, compared to N671.92 billion in 2024. This surge significantly outpaced the growth of internally generated revenue (IGR), which rose by 35.54% to N1.15 trillion from N845.25 billion.

The difference in growth rates shifted the balance between the two revenue sources, with derivation revenue exceeding IGR by N368.30 billion in 2025, a reversal from the previous year when IGR was N173.33 billion higher than derivation. The increase in derivation receipts was N842 billion, while IGR saw an additional N301.33 billion.

In the first five months of 2025, the states received N620.23 billion from the derivation fund, marking a 101.3% increase from N308.19 billion in the same period of 2024. Revenue growth varied among the states, with Rivers generating the highest IGR at N428.42 billion, while Bayelsa experienced a decline in IGR, falling to N50.30 billion.