Its VAT allocation alone accounted for almost 94 per cent of its total net FAAC receipt. The figures highlight the importance of Lagos’ large formal economy, concentration of businesses and high level of commercial and consumer activity in generating VAT revenue. READ ALSO: FAAC Revenue Soars 33 Percent To ₦4.5trn, Delivering Bigger June Payouts To FG, States And LGsOil states remain major beneficiariesDespite Lagos’ rise, oil-producing states continued to dominate the upper end of the FAAC ranking. Lagos’ rise to the top of the ranking does not mean oil-producing states have lost their fiscal advantage. Rather, it shows how a state without derivation revenue can outperform traditional oil beneficiaries when its economic base generates sufficiently large VAT receipts.