Three States Receive Bulk of Q1 2026 Oil Derivation Funds

Delta, Bayelsa and Akwa Ibom states received almost three-quarters of the N321.9 billion shared among Nigeria’s oil-producing states under the 13 per cent derivation principle in the first quarter of 2026.

An analysis of data released by BudgIT Nigeria, based on figures from the National Bureau of Statistics and the Federation Account Allocation Committee, showed that 11 states benefited from the derivation fund between January and March. Delta received the highest allocation of N101.6 billion, followed by Bayelsa with N71.64 billion and Akwa Ibom with N69.39 billion.

Rivers State ranked fourth with N46.09 billion, bringing the combined allocation to the four leading oil-producing states to nearly 90 per cent of the total derivation funds distributed during the period.

Other beneficiaries received significantly lower allocations. Ondo got N9.39 billion, Edo N7.47 billion, Imo N7.39 billion, Abia N5.42 billion and Anambra N3.49 billion. Enugu and Kogi, the country’s newest oil-producing states, received just N46,991 each.

The distribution highlights the wide gap in crude oil production across the country. States with larger oil reserves and established export infrastructure continue to earn the highest derivation revenues, while emerging producers receive only symbolic allocations. Delta’s earnings were more than two million times higher than those of Enugu and Kogi.

Under Nigeria’s Constitution, oil-producing states are entitled to 13 per cent of revenue derived from petroleum resources extracted within their territories. Derivation payments have grown substantially in recent years, rising from N671.9 billion in 2024 to N1.51 trillion in 2025, while the number of beneficiary states increased from nine to 11 following the recognition of Enugu and Kogi as oil-producing states.

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