The 36 state governors are facing renewed pressure to account for how they have spent increased allocations from the Federation Account, following the disbursement of about N47.25tn to the three tiers of government between 2023 and 2025.
Figures from the Federal Ministry of Finance showed that the Federal Government, states and local governments shared N93.13tn between 2017 and 2025, with more than half of the amount distributed in the three years after the removal of petrol subsidy and other economic reforms introduced in 2023.
FAAC allocations rose from N5.64tn in 2017 to a record N21.90tn in 2025. However, analysts noted that the increase in naira terms was partly driven by the weaker naira, with the 2025 allocation worth about $14.4bn compared with roughly $26bn for the N7.98tn shared in 2018.
The Finance Ministry said states received about N9.17tn in additional allocations between June 2023 and December 2025, while local governments received about N6.66tn. State allocations rose from N4.18tn in 2023 to N8.93tn in 2025, making them the largest beneficiaries of the post-reform increase.
Despite the revenue surge, policy analysts and civil society groups said the additional funds had not translated into a corresponding improvement in Nigerians’ living conditions. They cited persistent high living costs, unemployment, poor infrastructure, insecurity and inadequate access to basic services.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, called for greater transparency and citizen participation in monitoring how states spend their allocations. He warned against spending on projects such as state-owned airlines while neglecting essential infrastructure including roads and water supply.
Development economist Aliyu Ilias also urged citizens and civil society organisations to track state spending, saying the increased revenues had created a greater responsibility for governors to demonstrate tangible improvements in citizens’ welfare.
