Welcome

Tag: State Governors

  • States Receive Nearly Three Times More FAAC Allocations Under Tinubu Reforms

    Nigerian states received significantly higher allocations from the Federation Account Allocation Committee (FAAC) in April 2026 compared to the period shortly after President Bola Ahmed Tinubu assumed office, according to official figures highlighted by the President Bola Ahmed Tinubu Media Centre.

    The data shows that state governments collectively received about ₦772 billion in April 2026, compared to approximately ₦266 billion shared in May 2023, reflecting a sharp rise in federation account revenues following major economic reforms introduced by the current administration.

    FAAC Allocations Rise Across States

    Several states recorded substantial increases in their monthly allocations during the period under review.

    Lagos State’s allocation increased from ₦11.5 billion in May 2023 to ₦40.5 billion in April 2026, while Abia State’s share rose from ₦6.25 billion to ₦16.1 billion.

    Oil-producing states, including Rivers and Delta, also recorded notable increases as higher oil revenues boosted overall federation earnings.

    For April 2026, FAAC distributed a total of about ₦2.257 trillion to the three tiers of government. The Federal Government received ₦787.351 billion, state governments received ₦772.360 billion, while local governments got ₦540.152 billion. An additional ₦157.254 billion was paid as 13 per cent derivation to oil-producing states.

    Tinubu Reforms Linked to Revenue Growth

    The increase in allocations has been linked to key economic reforms introduced by the Tinubu administration shortly after taking office in 2023.

    These include the removal of fuel subsidies, the unification of exchange rates that led to naira devaluation, and improved tax and VAT collections.

    Supporters of the reforms argue that the policies have strengthened federation revenues, increased foreign reserves, and pushed monthly FAAC distributions to levels ranging between ₦1.8 trillion and ₦2.6 trillion in recent periods.

    Concerns Over Inflation and Purchasing Power

    Despite the rise in nominal allocations, critics have argued that inflation has significantly reduced the real value of the funds received by states.

    They note that cumulative inflation since mid-2023 has exceeded 100 per cent, while the depreciation of the naira has reduced the dollar value of some state allocations.

    Some analysts contend that although states now receive more money in naira terms, many Nigerians have yet to see corresponding improvements in public infrastructure, healthcare, education, or salary payments.

    Calls for Greater Accountability

    The increase in FAAC allocations has renewed calls for greater accountability at the state level.

    Supporters of the administration maintain that governors now have more resources to deliver development projects and improve public services, while critics insist that citizens deserve clearer evidence of how the additional revenues are being spent.

    The debate continues as Nigeria balances higher government revenues with ongoing challenges such as inflation, unemployment, and rising living costs.