Michael Eboh
Dublin, Ireland — A total of N179.312 billion was paid to nine oil and gas producing states in August 2025, under the 13 per cent oil derivation principle, according to a report presented to the Federation Account Allocation Committee (FAAC) by the Office of the Accountant-General of the Federation (OAGF).
In the September 2025 report, the OAGF stated that the funds allocated to the nine states in August 2025 was 52.33 per cent higher than the N117.714 billion shared by the nine oil-producing states in July 2025.
According to the report, the nine states were Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, Rivers.
Giving a breakdown of the funds, the OAGF disclosed that allocation from the 13 per cent derivation fund shared by the nine oil and gas-producing states stood at N128.612 billion; gas derivation stood at N12.588 billion; while add-back refund stood at N38.11 billion.
Further breakdown of the allocation on a state-by-state basis showed that in the month of August 2025, Abia collected N2.069 billion; Akwa Ibom’s share of the allocation was N36.951 billion; Anambra received N2.716 billion; Bayelsa – N38.289 billion; Delta – N54.917 billion; Edo – N4.868 billion; while Imo, Ondo and Rivers received N4.515 billion, N4.009 billion, and N30.956 billion, respectively.
In comparison, the OAGF reported that in July 2025, Abia received N1.268 billion; Akwa Ibom – N23.738 billion; Anambra – N1.85 billion; Bayelsa – N26.407 billion; Delta – N34.636 billion; Edo – N3.83 billion; Imo – N2.589 billion; Ondo – N3.31 billion, and Rivers – N20.086 billion.
The 13 per cent oil derivation principle in Nigeria is a constitutional provision that mandates the allocation of 13 per cent of the country’s mineral revenue to the states from which that revenue is extracted.
The aim of the fund is to compensate these states for the environmental and infrastructural impacts of oil and gas exploration and to assist them in developing their communities.
The fund is disbursed from the Federation Account to oil-producing states and is meant to provide direct benefits to oil-producing communities.
Furthermore, explaining the source of the funds from which the 13 per cent derivation monies was disbursed, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed that it collected N745.204 billion in August 2025, representing a percentage performance of 61.85 per cent.
In comparison with the approved monthly budget of N1.205 billion, the NUPRC stated that a negative variance of N459.598 billion, an equivalent to 38.15 per cent, was recorded.
According to the NUPRC, the low performance compared with the budget, was due to fluctuation in crude oil price and shortfall in crude oil production, adding that there was also shortfall in concession rentals collection when compared with July 2025 collection.
It added that: “Total collection increased by N22.036 billion, equivalent to 3.05 per cent when compared with N723.168 billion collected in July 2025. The increase in collection for the month of August 2025 can be attributed to a revenue drive that led to an increase in almost all the revenue heads.”
