State governments and the Federal Capital Territory received a total sum of N1.6tn from the Federal Government between March 2024 and May 2025 as financial support for infrastructure and security projects, official records from the Office of the Accountant-General of the Federation have shown.
The disbursement, which spanned over 15 months, was aimed at bolstering infrastructure development and strengthening security operations at the subnational level, as part of ongoing efforts to address widespread insecurity and bridge critical infrastructure gaps across the country.
These details were contained in internal documents from the OAGF, submitted at the May 2025 Federal Accounts Allocation Committee meeting, obtained on Sunday.
During the meeting, the committee distributed a total of N1.659tn to the Federal Government, state governments, and local councils, a decrease of N22bn compared to the N1.681tn shared in April.
The disbursements were made under a special intervention programme funded through non-oil revenue savings, as part of efforts to ease fiscal pressure on subnational governments and accelerate project execution at the grassroots.
The document, titled “Ledger of Savings on Intervention to States Infrastructure and Security,” showed that the payments were drawn from non-oil revenue savings, totalling N1.7tn within the 15 months.
However, the document did not disclose how much each state received or whether the funds were disbursed separately from the monthly revenue allocation.
Details of the transactions indicated that the total receipts by the Federal Government over the period stood at N1.7tn, from which N1.6tn was paid out to state governments and the Federal Capital Territory, leaving a balance of N100bn as of 16 May 2025.
Each payment is recorded as a “Payment for Intervention to States and FCT”, while corresponding inflows are titled “Transfer from Non-Oil Savings.”
The cumulative breakdown shows that 21 separate payments were made during the period, amounting to N1.6tn, with a remaining balance of N100bn in the account as at 15 May 2025.
The first tranche of N200bn was transferred on 20 March 2024, covering January and February 2024. From then on, disbursements of N100bn or more were made almost every month. A peak payment of N222bn was recorded in May 2024.
Recall that on July 20, 2023, President Bola Tinubu approved the establishment of the Infrastructure Support Fund for the 36 states of the federation as part of measures to cushion the effects of the petrol subsidy removal on the people.
Shedding more light on the establishment of the ISF for the 36 states, the then Special Adviser to the President, Special Duties, Communications and Strategy, Dele Alake, said, in a statement, “The new infrastructure fund will enable the states to intervene and invest in the critical areas of transportation, including farm to market road improvements; agriculture, encompassing livestock and ranching solutions; health, with a focus on basic healthcare; education, especially basic education; power and water resources, that will improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.
“The committee also resolved to save a portion of the monthly distributable proceeds to minimise the impact of the increased revenues, occasioned by the subsidy removal and exchange rate unification, on money supply, as well as inflation and the exchange rate.”
He added, “These savings will complement the efforts of the ISF and other existing and planned fiscal measures, all aimed at ensuring that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.”
