Oil-producing states in Nigeria shared a total of ₦620.23 billion as their 13% derivation fund between January and May 2025, more than double the ₦308.19 billion disbursed during the same period in 2024.
According to official figures, Delta State emerged as the highest recipient, with ₦185.16 billion, followed by Bayelsa State with ₦130.21 billion and Akwa Ibom State with ₦124.79 billion. Rivers State also recorded a significant share of ₦114.06 billion.
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Other beneficiary states include:
Edo State – ₦18.60 billion
Ondo State – ₦15.51 billion
Imo State – ₦14.48 billion
Abia State – ₦8.99 billion
Anambra State – ₦8.42 billion
The 13% derivation fund, mandated by the Nigerian Constitution, is allocated to oil-producing states to compensate for environmental degradation and economic impacts of crude oil exploration.
Analysts say the sharp increase in allocations reflects higher oil revenues and improved remittances, offering these states a unique opportunity to boost infrastructure and socio-economic development.
As the oil market remains a major driver of Nigeria’s economy, stakeholders are urging state governments to ensure transparent and impactful use of the funds to benefit citizens in the Niger Delta and beyond.
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