Official records from the Office of the Accountant-General of the Federation have confirmed that Nigeria’s 36 states and the Federal Capital Territory received a cumulative N1.6 trillion from the Federal Government between March 2024 and May 2025. The funds were earmarked for infrastructure development and security enhancement at the subnational level.
The disbursement, which spanned 15 months, was part of a special intervention programme funded by non-oil revenue savings. The initiative was designed to ease fiscal pressures on state governments and accelerate the execution of critical projects, especially in the wake of widespread insecurity and infrastructure deficits.
According to documents presented at the May 2025 Federal Accounts Allocation Committee meeting, a total of N1.659 trillion was distributed among the federal, state, and local governments in May, slightly less than the N1.681 trillion shared in April. The “Ledger of Savings on Intervention to States Infrastructure and Security” revealed that N1.7 trillion had been saved, with N1.6 trillion disbursed to states and the FCT, leaving a balance of N100 billion as of mid-May 2025.
The records showed that 21 separate payments were made, beginning with a N200 billion transfer in March 2024. Most subsequent payments were N100 billion or more, with a notable peak of N222 billion in May 2024. However, the documents did not specify individual state allocations or clarify whether these payments were distinct from regular monthly revenue distributions.
This financial support aligns with President Bola Tinubu’s July 2023 approval of the Infrastructure Support Fund, which was established to help states manage the economic impact of petrol subsidy removal. The fund targets key sectors such as transportation, agriculture, health, education, power, and water resources, aiming to foster economic competitiveness and job creation.
Dele Alake, the then Special Adviser to the President, highlighted the importance of saving a portion of monthly revenues to cushion the effects of subsidy removal and exchange rate changes on inflation and the money supply. He emphasized that these savings, alongside the ISF, were intended to deliver tangible improvements in Nigerians’ living standards.
Despite the regularity of the payments, concerns have been raised about the transparency and effectiveness of the fund’s utilization. Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre, criticized the government for what he described as poor and unaccountable use of the N1.6 trillion. He argued that the funds have not produced the intended benefits, pointing to ongoing insecurity and inadequate infrastructure.
Rafsanjani stated, “First and foremost, we are in the era of financial recklessness… Instead, we are seeing democratic scrambling of public resources without accountability for personal use.” He further suggested that political considerations for the 2027 elections have overshadowed development priorities.
In summary, while the Federal Government’s intervention has provided significant financial support to states and the FCT, the effectiveness and transparency of these disbursements remain subjects of public debate.