FAAC trillions: Govs list projects, Nigerians await relief

Governors of the 36 states and the Federal Capital Territory have become the biggest winners of President Bola Tinubu’s petrol subsidy removal, with unprecedented federation account allocations swelling state coffers and ushering in an era of multi-billion-naira monthly revenues.

Allocation reached a record N3.007tn in July 2026, making it the first time monthly Federation Account Allocation Committee distributions crossed the N3tn mark.

The amount shared among the Federal Government, states and local governments also increased the funds available to state governments.

The July allocation followed N2.551tn shared in June and N1.894tn in February.

However, policy analysts, civil society groups and other critics say the increase in revenue has not translated into a corresponding improvement in the living conditions of Nigerians facing rising living costs, unemployment, poverty and inadequate public services.

Tinubu’s windfall

A review by Sunday PUNCH showed that states have taken different approaches to spending the increased revenue.

While some governors have linked higher FAAC receipts to road construction, bridges, healthcare, education, workers’ welfare and other projects, residents in some states said the increased revenue had not resulted in improved public services or reduced economic hardship.

In the first six months of 2026, the 36 states received about N4.54tn from FAAC, representing a 25.77 per cent increase over the N3.61tn shared during the corresponding period in 2025.

Lagos recorded the highest FAAC receipts among the states during the period, with N365.78bn, followed by Rivers with N295.99bn.

Delta, Akwa Ibom and Bayelsa also ranked among the states with the highest receipts, largely due to Value Added Tax, internally generated revenue and oil derivation.

Lagos received N344.06bn from VAT during the period.

Adamawa, Gombe, Ekiti and Ebonyi were among the states with lower receipts during the period.

The increase in revenue is a departure from the allocations recorded before the subsidy removal.

Between April and June 2023, FAAC distributed N655.93bn, N786.16bn and N907.05bn respectively to the three tiers of government, bringing the three-month total to about N2.35tn.

In 2024, the first six months produced N12.45tn in distributable revenue, with monthly allocations reaching N2.33tn in March.

The increase continued through 2025 and 2026, with FAAC distributing N3.007tn in July this year.

SERAP, Atiku criticise reforms

The figures have led to calls for greater scrutiny of how state governments are spending the additional revenue.

In December 2025, the Socio-Economic Rights and Accountability Project sued the 36 state governors and the FCT Minister, Nyesom Wike, over what it described as their failure to account for N14tn in fuel subsidy savings allegedly received through FAAC allocations.

SERAP argued that despite the increase in revenue accruing to states since subsidy removal, the funds had not translated into adequate improvements in healthcare, education and other essential services for poor and vulnerable Nigerians.

The reform has also attracted criticism from the Emir of Kano, Muhammadu Sanusi II, who questioned why the Federal Government continued to borrow despite the increase in revenue following subsidy removal.

Former Vice-President Atiku Abubakar also criticised the policy, saying it had increased hardship and promised to reverse it if elected president in 2027.

The Presidency, however, defended the reforms, with Tinubu saying the policy strengthened public finances and dismissing Atiku’s position as a lack of understanding of economic management.

‘No justification for failure’

As governors continue to receive higher FAAC allocations under the Tinubu administration, former senator and businessman Ben Murray-Bruce says state governments have no justification for failing to cushion the economic hardship facing residents.

He challenged governors to account for the billions of naira flowing into their coffers, arguing that part of the post-subsidy revenue should be used to subsidise transportation within their states.

According to him, FAAC allocations to states rose from N2.8tn in 2022 to about N7.3tn in 2025 following the removal of petrol subsidy, creating room for social interventions.

“What have you done with your own allocation?” Murray-Bruce asked.

He argued that governors should devote five per cent of their allocations to transport subsidies while using the balance to fund other responsibilities.

“If a governor cannot find five per cent to stop his own people from suffering, then the problem in that state was never money,” Murray-Bruce added.

He proposed free transportation for students and a maximum N500 intra-city fare, saying states could achieve this by registering commercial transport operators, regulating fares and reimbursing drivers for the difference.

FAAC allocations translating to devt – Govs

Amid the criticism, some of the governors say the increase in FAAC revenue is translating into development, citing investments in roads, bridges, healthcare, education, salaries, pensions, agriculture and social welfare.

In Osun, the government said it had sustained investments in roads and bridges just as Delta recently inaugurated official quarters for permanent secretaries, alongside other infrastructural projects.

In Gombe, officials said the higher allocations had enabled Governor Inuwa Yahaya to continue road construction across the state’s 11 LGAs and 13 Local Council Development Areas.

Benue officials similarly linked the increased federal allocations to regular salary payments and infrastructure projects.

• Mr President, how many fake DGs can you chase?
• Jigawa ADC backs Atiku’s plan to restore fuel subsidy
• How ‘fake’ Made-in-Nigeria office penetrated states, foreign offices

Residents told Sunday PUNCH that workers now receive salaries between the 25th and 27th of every month, while the government has begun clearing inherited pension and gratuity arrears.

The state Chairman of the All Progressives Congress, Benjamin Omale, said projects worth over N100bn had been executed in Benue South Senatorial District alone, including the N25.59bn Oju–Awajir Road, N19.37bn Igumale–Agila Road and N29.89bn Obagaji–Okokolo–Agagbe Road.

In Kaduna, the Commissioner for Information and Culture, Ahmed Maiyaki, said the additional revenue had enabled the state to expand infrastructure and social interventions.

He said the administration had cleared N18bn out of N24bn in inherited pension and gratuity arrears, while 115 road projects spanning more than 1,400 kilometres were ongoing across the state’s 23 local government areas.

According to him, agricultural funding rose from N1.4bn in 2023 to over N100bn in 2026, while about 25 per cent of the state budget was allocated to education.

He added that 100 compressed natural gas buses had transported about four million residents free of charge, saving commuters an estimated N4bn.

In Bauchi, Governor Bala Mohammed said the state had recorded higher revenues under the Tinubu administration and passed part of the increase to local councils.

He attributed the construction of about 3,000 kilometres of roads to the improved revenue position, alongside World Bank-supported interventions.

In Sokoto, the government said higher FAAC receipts had funded township and rural roads, water infrastructure, education, healthcare, housing and agriculture, citing the N14.1bn Tamaje Water Scheme as a major project expected to improve water supply in Sokoto metropolis and neighbouring communities.

Kano, on its part, said the additional FAAC receipts had funded road construction and rehabilitation, women’s empowerment and scholarship programmes.

In Zamfara, the government attributed the completion of the Gusau International Airport, township roads, healthcare centres, water schemes and agricultural interventions to increased federal allocations.

The government claimed it had cleared inherited salary obligations and now paid workers before the end of each month.

In Abia, the Commissioner for Information, Okey Kanu, said the state had used the increased revenue to sustain salary and pension payments, reduce its debt by more than 70 per cent, revive moribund industries and expand investments in housing, transport, airport development and security.

Bayelsa, Oyo, Ondo, Edo list projects

Government figures from Bayelsa showed that the state received N95.14bn in April and May 2026 alone, of which N26.1bn went to salaries, pensions, tertiary institutions and support for local councils.

The state said it was also funding projects including the Nembe-Brass Road, Angiama-Oporoma Bridge, a nine-storey secretariat complex and a 60MW gas turbine project.

Oyo listed major highways, more than 300 primary healthcare centres, an independent power project and investments in education among projects funded during the period.

In Ondo, the government said increased allocations had financed more than 40 road projects, the recruitment of over 6,000 workers, debt servicing and more than N10bn in gratuity payments.

In Edo, the government said higher revenues had enabled it to expand rural roads, upgrade schools, increase the monthly subventions to Ambrose Alli University from N41m to N500m, and fund flyovers, flood-control projects and agricultural development.

Governor Sheriff Oborevwori of Delta said the era of blaming poor finances for poor governance was over.

Speaking during the groundbreaking of the N39.3bn Otovwodo Flyover, he said governors must deploy the increased allocations transparently to improve citizens’ welfare. He added that the project was part of a wider N78bn infrastructure package covering Warri and Effurun.

Despite the projects listed by the state governments, residents in some states said the increased revenue had yet to translate into improvements in their daily lives.

In Yobe, the government listed flyovers, roads, agricultural inputs, healthcare, education, electricity projects and youth empowerment as evidence of how the increased revenue was being used.

However, some residents said the benefits had yet to reach ordinary households.

“For ordinary people, there is no tangible development. The cost of food is rising, electricity remains a problem and many families are struggling,” a civil servant, Ibrahim Musa, said.

A trader, Aisha Adamu, said residents were more concerned about whether government spending was improving household welfare than announcements of projects.

In Jigawa, residents in Dutse and Hadejia also said the benefits remained limited.

“We hear billions are coming, but salaries are still delayed and our roads are bad,” trader Mohammed Adamu told Sunday PUNCH.

Analysts question FAAC spending

Meanwhile, analysts said the measure of the post-subsidy reforms should be whether the increased FAAC allocations are improving citizens’ lives.

A policy analyst, Adebayo Abubakar, said the removal of subsidy had increased government revenues but argued that the additional funds had not always translated into spending that reflected the economic hardship facing Nigerians.

“Roads, bridges, drainage and other infrastructure remain important, but some governments appear to favour conspicuous projects while schools, healthcare facilities, water supply and other basic services receive inadequate attention,” he said.

Abubakar also criticised the concentration of development projects in major urban and political centres, saying public revenue should benefit communities across the states rather than selected constituencies.

Similarly, an Abuja-based analyst, Olayemi Adebanjo, said the increased revenue should have led to stronger interventions in affordable transportation, healthcare, education, agriculture and job creation.

Another analyst, Festus Oyabambi, said rising government revenues alongside worsening hardship would raise questions about how public funds were being deployed.

“The real test of the post-subsidy era should be whether Nigerians can feel a tangible improvement in their lives,” he said.