Nine Nigerian States’ July Oil Derivation Funds allocation has fallen slightly from the June records as oil revenue rises sharply, government data reveals.
Nine Nigerian states have shared ₦117.7 billion ($76 million) from the country’s 13% oil derivation fund for July 2025, according to the Office of the Accountant-General of the Federation (OAGF).
The report, presented to the Federation Account Allocation Committee (FAAC) in August, shows the payout was 0.46% lower than the ₦118.26 billion distributed in June. The funds are reserved for oil-producing states under Nigeria’s revenue-sharing formula, which allocates a portion of proceeds from crude oil and gas to regions where production occurs.
Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers were the beneficiaries. Delta State received the largest share at ₦34.64 billion, followed by Bayelsa with ₦26.41 billion and Akwa Ibom with ₦23.74 billion. Rivers collected ₦20.09 billion. Smaller allocations went to Edo (₦3.83 billion), Ondo (₦3.31 billion), Imo (₦2.59 billion), Anambra (₦1.85 billion) and Abia (₦1.27 billion).
The OAGF breakdown showed ₦91.79 billion came from crude oil revenue, while ₦25.93 billion was derived from gas earnings. This compares with June’s ₦95.66 billion from crude oil and ₦22.59 billion from gas.
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The Nigerian National Petroleum Company Limited (NNPCL) reported that its total oil and gas earnings for July rose sharply to ₦84.48 billion — a 271% increase from June’s ₦22.77 billion. The surge was attributed to higher revenue from production sharing contracts (PSC) and frontier exploration funds.
According to NNPCL, management fees from PSCs — which account for 30% of profits — jumped to ₦25.34 billion in July from ₦6.83 billion a month earlier. The federation’s 40% share of PSC proceeds also climbed significantly to ₦33.79 billion, up from ₦9.11 billion in June.
The 13% derivation fund was established to compensate oil-producing states for environmental and economic impact caused by extraction. Analysts say fluctuations in monthly allocations often reflect shifts in global oil prices, production levels, and Nigeria’s crude output, which remains vulnerable to theft and pipeline vandalism.
Nigeria, Africa’s largest oil producer, relies on petroleum for more than half of its government revenue and over 80% of export earnings, making derivation payments a critical source of income for the Niger Delta states.
