The Federal Government has disbursed a total of ₦2.45 trillion to state governments and the Federal Capital Territory (FCT) to support infrastructure development and security interventions, official records from the Office of the Accountant-General of the Federation (OAGF) have revealed.
The funds were released between March 2024 and August 2025 under a special intervention programme aimed at strengthening subnational capacity to address insecurity and close critical infrastructure gaps across the country.
Documents presented at the December 2025 meeting of the Federal Accounts Allocation Committee (FAAC) show that the disbursements were funded from non-oil revenue savings and designed to ease fiscal pressure on states while accelerating project delivery at the grassroots level.
According to the document, titled Ledger of Savings on Intervention to States Infrastructure and Security, total receipts by the Federal Government during the 17-month period amounted to ₦2.45 trillion, all of which was fully disbursed to the states and the FCT, leaving a zero balance as of August 25, 2025. The records did not, however, provide a breakdown of allocations to individual states or clarify whether the funds were separate from regular monthly revenue allocations.
In 2024, four intervention payments totalling ₦1.184 trillion were made, with disbursements recorded in April (₦259bn), May (₦222bn), September (₦370bn) and December (₦333bn). In 2025, six payments amounting to ₦1.266 trillion were released in February (₦216bn), April (₦200bn), May (₦250bn), June (₦250bn), July (₦250bn) and August (₦100bn).
Each payment was listed as “Payment for Intervention to States and FCT,” while corresponding inflows were recorded as “Transfer from Non-Oil Savings,” indicating a structured savings-and-disbursement strategy. In some months, funds were saved without disbursement, while in others payouts exceeded inflows, reflecting the flexible funding model. For instance, ₦300bn was saved in March 2024 without any release, while ₦259bn was paid out in April despite inflows of only ₦100bn.
The intervention programme followed the establishment of the Infrastructure Support Fund (ISF) for the 36 states, approved by President Bola Tinubu on July 20, 2023. The ISF was created to cushion the impact of petrol subsidy removal and exchange rate unification, while supporting investments in key sectors including transport, agriculture, healthcare, education, power and water resources.
At the time, then Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, said the fund was intended to enhance states’ economic competitiveness, create jobs and promote shared prosperity. Part of the strategy also involved saving portions of monthly distributable revenue to manage inflationary pressures linked to subsidy reforms.
However, concerns have been raised over the impact and utilisation of the funds. Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), Auwal Rafsanjani, criticised the disbursements, arguing that persistent insecurity across the country suggests the intervention has not achieved its intended objectives. He alleged that political considerations were taking precedence over people-centred development.
Beyond the intervention funds, the Federal Government has continued to finance large-scale infrastructure projects nationwide. These include a ₦1 trillion Metropolitan Rail Service for Kano State, which Governor Abba Yusuf said would improve urban mobility, connect major districts within the metropolis and stimulate trade and investment.
While the ₦2.45 trillion intervention is aimed at tackling pressing infrastructure and security challenges at the state level, analysts say the absence of detailed state-by-state disclosures has renewed calls for greater transparency and accountability in the management of public funds.