The 36 state governors are facing growing pressure to account for how they have spent public funds disbursed as revenue by the Federation Account Allocation Committee in the last three years, according to The PUNCH, ABNTVÂ reports.
This scrutiny follows the revelation that the Federation Account disbursed about N47tn to the three tiers of government in the three years since the removal of the petrol subsidy.
This was as the Federal Government, 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025, with more than half of the amount distributed in the three years following the economic reforms introduced by the Federal Government in 2023.
These figures were disclosed in a document obtained by our correspondent from the Federal Ministry of Finance on Sunday.
It showed that N47.25tn, representing about 50.7 percent of the N93.13tn shared during the period, was distributed between 2023 and 2025 alone, highlighting the sharp expansion in revenues following the removal of petrol subsidy, exchange rate reforms, and increased revenue mobilization.
But 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.
In an interview with PUNCH, 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 favor conspicuous projects while schools, healthcare facilities, water supply, and other basic services receive inadequate attention,” he said.
The removal of the petrol subsidy and other economic reforms introduced by the Federal Government in 2023 have triggered an unprecedented surge in revenue flowing into the Federation Account, with the 36 states and 774 local government areas receiving significantly higher allocations amid growing questions over how the windfall has translated into improved infrastructure, security, and public services.
The sharp increase in Federation Account Allocation Committee payouts has, however, placed state governors under renewed scrutiny, as many Nigerians continue to grapple with high living costs, poor infrastructure, and worsening insecurity despite the substantial growth in revenues available to subnational governments.
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.
Findings by The PUNCH showed that the Federal Government, states, and local governments received about N47tn from the Federation Account in the three years following the reforms, exceeding the amount shared in the preceding six-year period and reigniting the debate over the benefits and consequences of the subsidy removal policy.
