The nine oil-producing states in Nigeria, namely Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers, have seen a significant surge in their oil derivation revenue. In 2025, they received a combined N1.51 trillion from the 13% derivation fund, up from N671.92 billion in 2024. This represents a 125% increase in derivation revenue over the one-year period.
In contrast, the internally generated revenue (IGR) of these states grew by 35.54% to N1.15 trillion in 2025, up from N845.25 billion in 2024. The sharp difference in growth rates between derivation revenue and IGR has altered the balance between the two revenue sources. In 2024, the nine states generated N173.33 billion more in IGR than they received from derivation. However, by 2025, derivation revenue had moved N368.30 billion ahead of their combined IGR.
The strength of the derivation increase was evident in the first five months of 2025, when the nine states received N620.23 billion from the fund, compared with N308.19 billion in the corresponding period of 2024. This represents a 101.3% increase. The IGR growth across the nine states was uneven, with most recording increases but at significantly different rates. Rivers remained the largest generator of IGR among the group, with internally generated revenue rising by N111.12 billion.
Delta followed with IGR increasing by N44.70 billion, while Edo's revenue rose by N41.06 billion. Akwa Ibom's IGR increased from N75.77 billion to N100.80 billion, representing a 33.04% rise. Abia recorded a stronger percentage increase, with revenue climbing from N40.01 billion to N70.41 billion, a 75.97% increase. Ondo recorded one of the largest percentage increases in the group, with IGR rising from N31.25 billion to N60.32 billion.
Anambra's internally generated revenue increased from N42.69 billion to N57.03 billion, while Imo recorded an increase from N25.27 billion to N43.65 billion. However, Bayelsa was the only state among the nine to record a decline in IGR, falling by N13.71 billion from N64.01 billion in 2024 to N50.30 billion in 2025. The figures show that although most of the oil-producing states expanded their internally generated revenue, the pace of growth varied widely.
The combined IGR performance of the nine oil-producing states trailed the national growth rate in 2025. Across Nigeria's 36 states and the Federal Capital Territory, IGR increased by 40.93% from N3.65 trillion in 2024 to N5.15 trillion in 2025. The nine oil-producing states recorded a 35.54% increase, indicating that their combined internally generated revenue grew more slowly than the national average.
The result was a significant change in the relative contribution of the two revenue sources. In 2024, the nine states collectively generated N845.25 billion in IGR, compared with N671.92 billion received through derivation. By 2025, derivation receipts had climbed to N1.51 trillion, while IGR stood at N1.15 trillion. This means derivation revenue moved from being N173.33 billion below combined IGR in 2024 to N368.30 billion above it in 2025.
Key points
- The nine oil-producing states in Nigeria received a combined N1.51 trillion from the 13% derivation fund in 2025.
- The IGR of these states grew by 35.54% to N1.15 trillion in 2025.
- Derivation revenue increased by 125% during 2025, compared with 35.54% growth in IGR.
