Nigeria's Oil Producing States See Significant Revenue Boost

The allocation of oil revenue to Nigeria's key oil-producing states through the 13 percent derivation fund has increased significantly in the first seven months of this year. According to findings by New Telegraph, the oil producing states shared N1.11 trillion as 13 percent derivation revenue payments from January to July 2026, up 22.17 percent or N202.11 billion compared to N911.68 billion in the corresponding period of 2025.

The increase is attributed to improved crude oil production and elevated crude oil prices, supported by the prolonged conflict in the Middle East, which has kept global oil prices relatively high. Analysts at Quest Merchant Bank noted that revenue mobilisation has been driven by a combination of factors, including gains from the implementation of the new tax Act, which has improved collection efficiency and enhanced digitization of revenue collection processes.

The country's major oil producing states, such as Delta, Rivers, Akwa Ibom, Bayelsa, Abia, Imo, Edo, Ondo, and Anambra, receive 13 percent of oil revenue from the Federation Account as Derivation Fund to cushion the impact of exploration and support development.

New Telegraph reports that figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) show that Nigeria's oil output climbed to a 74-month high in June 2026, averaging 1.735 million barrels per day of crude and condensate. This indicates that Nigeria met 104 percent of its 1.5mbpd OPEC quota.