Agora Policy

Agora Policy is a Nigerian think tank and non-profit committed to finding practical solutions to urgent national challenges. We conduct policy research, facilitate frank and purposeful dialogues, and build capacity for governance, policy and advocacy.

In value terms, Lagos, Oyo and Bayelsa received the highest total revenue and FAAC revenue in Q1 2026 while Lagos, Ogun and Enugu recorded the highest IGR.

Four states (Ekiti, Cross River, Yobe and Kogi) generated more IGR than projected in their budgets while 28 states fell short of their IGR targets.

🚨 States’ Revenue Performance (Q1, 2026) In Q1 2026, 32 out of 36 states combined realised 66.5% of their total projected revenue. Of the ₦3.54tn in actual revenue, ₦2.52tn (71.2%) was from FAAC while ₦1.02tn (28.8%) was through IGR.

Oyo state recorded the highest budget performance on a pro-rated basis at 140% compared to Enugu which had the lowest at 12%.

In value terms, Lagos, Oyo and Akwa Ibom recorded the highest total expenditure and capital expenditure in Q1 2026. For recurrent expenditure, Lagos, Oyo and Ogun recorded the highest.

🚨 States’ Budget Performance (Q1, 2026) In Q1 2026, 32 out of the 36 states combined achieved a budget implementation rate of 43%. Of the ₦3.5tn spent, ₦1.8tn (51.5%) was allocated to capital projects, while ₦1.7tn (48.5%) covered recurrent costs

Lagos received more than four times the gross FAAC allocation Ebonyi got in 2025. At the zonal level, the South South received more than double the allocation received by the South East.

Among the bottom 10 states by gross FAAC allocation, two are from the South East, two from the South West, two from the North Central, and three from the North East, while Cross River is the only South South state in the bottom group.

🚨Gross FAAC Allocation to States (2021-2025) Gross FAAC allocation to states has increased by 216% from ₦2.89tn in 2021 to ₦9.12tn in 2025. The most significant year-on-year increase within the five-year period occurred between 2024 and 2025 when allocations grew by 46%.