The 36 state governors are facing renewed pressure to account for how they have spent the increased funds received from the Federation Account following the removal of petrol subsidy and other economic reforms.
According to data from the Federal Ministry of Finance, the Federal Government, 36 states and 774 local governments shared about N47.25tn between 2023 and 2025, representing more than half of the N93.13tn distributed through the Federation Account from 2017 to 2025.
FAAC allocations rose from N10.09tn in 2023 to N15.26tn in 2024 and a record N21.90tn in 2025.
Despite the increased revenue, many Nigerians continue to face high living costs, unemployment, poor infrastructure and insecurity.
Data for 2022 to 2025 showed that states received about N2.06tn in 2022, N4.18tn in 2023, N6.53tn in 2024 and N8.93tn in 2025, bringing their total allocation over the four years to about N21.71tn.
The Federal Government received about N17.34tn during the same period, while local governments received approximately N13.01tn.
Policy analysts say the focus should now move beyond the amount shared by FAAC to how the money is spent.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, warned that poor transparency could undermine the benefits of the increased revenue.
He said state governments should prioritise critical infrastructure such as roads and water supply instead of projects that could become a financial burden on taxpayers.
With states now receiving substantially higher allocations, analysts say governors have a greater responsibility to demonstrate measurable improvements in infrastructure, healthcare, education, employment and other essential services.
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