FAAC REVENUE HITS ₦47TN AS GOVERNORS FACE SPENDING QUESTIONS

Nigeria’s 36 state governors are facing renewed scrutiny over the use of funds shared through the Federation Account Allocation Committee (FAAC) after about ₦47.25 trillion was distributed to the three tiers of government between 2023 and 2025.

Data from the Federal Ministry of Finance showed that the amount represented about half of the ₦93.13 trillion shared between 2017 and 2025. The sharp increase followed major economic reforms, including the removal of petrol subsidies, foreign exchange reforms, and efforts to improve revenue collection.

States emerged as major beneficiaries, receiving about ₦21.71 trillion between 2022 and 2025. Their annual allocation increased from ₦4.18 trillion in 2023 to ₦8.93 trillion in 2025.

However, analysts and civil society groups have questioned whether the higher revenue has translated into better living conditions, improved infrastructure, healthcare, education, and other essential services.

The debate has also highlighted the impact of naira depreciation. Although FAAC allocations have risen sharply in naira terms, their value in dollar terms has fallen when converted using prevailing exchange rates.

Analysts have therefore called for greater transparency and accountability in how governments spend public revenue, arguing that increased allocations should produce measurable improvements in citizens’ welfare and public services.