By Happiness Samuel 

State governments are receiving billions of naira through a relatively new Federation Account Allocation Committee intervention for infrastructure and security, with available half-year budget implementation reports showing that at least N435bn in revenue was recorded under the funding window by 29 states between January and June 2026.

The intervention, classified in state financial records as “State Infrastructure and Security” under the National Chart of Accounts code 11010313, is distinct from the FAAC conventional statutory allocations but distributed as regular FAAC revenue. No amount was disbursed for this purpose in the corresponding period of 2025.

The data was obtained from the fiscal performance of each state, utilising data from the Q1 to Q2 budget performance reports from January to June 2026 obtained from Open Nigerian States, a BudgIT-backed website that serves as a repository of government budget data, and was analysed by our correspondent on Thursday.

The intervention comes as Nigeria battles worsening insecurity and a huge infrastructure deficit, with banditry, kidnappings, attacks on schools and communities, poor roads and other infrastructure gaps placing increasing pressure on state governments.

Between March 2024 and May 2026, no fewer than 603 pupils, students and teachers were abducted in seven mass school abductions, despite the government’s N145bn Safe Schools Initiative.

The government recently intensified efforts to address the security crisis, including the expansion of the Nigerian Army from eight to 12 divisions and the approval for the recruitment of 28,000 additional soldiers. However, the scale of insecurity has increased pressure on state governments to also invest more in security and critical infrastructure.

It was against this backdrop, and following the removal of petrol subsidy, that President Bola Tinubu approved the Infrastructure Support Fund for the 36 states in July 2023 to strengthen their capacity to invest in roads, agriculture, health, education, power, water and other critical areas.

A June 2025 publication by The PUNCH disclosed that between March 2024 and May 2025, state governments and the Federal Capital Territory received a total sum of N1.6tn for infrastructure and security projects. Three years after the pronouncement, this funding has now emerged as another revenue source for meeting government obligations by sub-nationals.

Our correspondent reviewed data covering 32 states for which information was available to make this submission. Of the 32 states reviewed, 16 specifically reported a combined N265.50bn under the dedicated State Infrastructure and Security revenue line.

Another 13 states reported a combined N169.75bn as other separately disclosed FAAC-related revenue, although their reports did not classify the money directly as infrastructure and security funding.

The combined amount from the 29 states with identifiable receipts therefore stood at N435.25bn.

Three states, Adamawa, Anambra and Oyo, recorded zero actual receipts under the infrastructure and security line during the period, despite Adamawa and Anambra making budgetary provisions for the item and Oyo expecting an N8bn allocation.

Akwa Ibom was included among the 32 states reviewed, but its available half-year report did not disclose a figure for the infrastructure and security revenue component.

Four states, Bayelsa, Edo, Osun and Rivers, were not covered by the available dataset and were therefore excluded from the calculation.

While Bauchi, Borno, Cross River, Ebonyi, Enugu, Gombe, Imo, Jigawa, Kano, Katsina, Kogi, Kwara, Ogun, Sokoto, Taraba and Yobe clearly reported the dedicated infrastructure and security revenue, several other states recorded substantial sums simply as other revenue distributions from FAAC.

This suggests that the total amount flowing to states through the special revenue window may be larger than the N435.25bn identified in the available accounts.

A state-by-state analysis showed that Enugu recorded the highest cumulative receipt of N27.02bn among states that separately reported a dedicated infrastructure and security revenue line, followed by Gombe with N24.50bn.

Jigawa, Katsina and Ogun each received N19.50bn, while Cross River and Yobe recorded N17.50bn apiece. Borno received N16.41bn, Bauchi got N14.58bn, while Ebonyi, Imo, Kano, Kwara and Taraba each reported N14bn. Sokoto received N12.50bn, and Kogi recorded the lowest amount among the 16 states with actual dedicated receipts at N7bn.

However, when states that classified the money under other FAAC-related revenue heads were included, Ondo emerged as one of the biggest beneficiaries, reporting N31.86bn, while Lagos received N30.30bn.

Abia reported N24.50bn, Nasarawa N21.24bn, Niger N15.50bn, while Benue and Plateau each recorded N14bn. Delta received N5.50bn, Ekiti reported N5.38bn, Kaduna N3.83bn, Kebbi N1.95bn and Zamfara N1.71bn.

The breakdown showed that the 16 states with clearly identified infrastructure and security revenue accounted for about 61 per cent of the N435.25bn total, while the 13 states that reported other separately disclosed FAAC-related revenue accounted for approximately 39 per cent.

The total amount is equivalent to nearly 10 per cent of the N4.55tn federation allocation received by states with available half-year records. It was also equivalent to 20.71 per cent of the N2.10tn generated internally by the same states during the period.

When compared with the combined N6.65tn FAAC and independent revenue, the N435.25bn represented 6.55 per cent.

Further analysis of the “State Infrastructure and Security” revenue line revealed that Gombe State has received N24.50bn against a full-year budget provision of N5bn, representing 490 per cent of its annual estimate within the first six months.

Bauchi recorded N14.58bn, equivalent to 86.6 per cent of its N16.84bn annual budget for the item. Jigawa received 65 per cent of its N30bn annual provision, while Yobe recorded 48 per cent of its N36.49bn budget. Yobe recorded N17.50bn against a N36.49bn budget, achieving 48 per cent of its annual projection. The state was therefore N18.99bn, or 52 per cent, short of its full-year estimate.

Ogun received N19.50bn compared with its N51.28bn budget, representing 38 per cent performance. This left the state with a funding gap of N31.78bn, or 62 per cent of its annual projection.

Enugu recorded N27.02bn against a N80bn budget, achieving 33.8 per cent of its full-year estimate. The state’s receipts were therefore N52.98bn, or 66.2 per cent, below the amount budgeted.

Similarly, Borno received N16.41bn out of its N49.44bn budget, representing 33.2 per cent performance and a shortfall of N33.03bn, or 66.8 per cent. Katsina received N19.50bn against a budget of N60.27bn, achieving 32.4 per cent of its annual estimate. The state was N40.77bn, or 67.6 per cent, below its budget projection.

Kwara received N14bn out of N49.62bn, representing 28.2 per cent performance, while Kano recorded N14bn against a budget of N61.07bn, equivalent to 22.9 per cent.

The figures left Kwara with a N35.62bn gap, representing 71.8 per cent of its annual estimate, while Kano was N47.07bn, or 77.1 per cent, below its projection. Kogi received N7bn against a N39.19bn budget, representing 17.9 per cent performance and leaving a gap of N32.19bn, or 82.1 per cent.

Taraba recorded N14bn compared with its N80.70bn annual budget, representing 17.3 per cent performance. The state was therefore N66.70bn, or 82.7 per cent, short of its annual estimate. Ebonyi received N14bn against a budget of N88.41bn, achieving just 15.8 per cent. This left an outstanding balance of N74.41bn, representing 84.2 per cent of the state’s projection.

Sokoto recorded one of the widest gaps, receiving N12.50bn against its revised N90bn budget. The amount represented 13.9 per cent performance, leaving a balance of N77.50bn, or 86.1 per cent.

Adamawa and Anambra recorded the biggest percentage shortfalls after receiving no money under the dedicated revenue line by the end of June. Adamawa had budgeted about N35.23bn, based on its revised estimate, while Anambra projected N10bn. Both states therefore recorded a 100 per cent funding gap.

Cross River and Imo received N17.50bn and N14bn, respectively, but the available data did not provide corresponding budget figures for the infrastructure and security revenue line. Their budget performance could therefore not be calculated.

Experts speak

Commenting on the development, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, described the increased flow of funds to states as a positive step towards a more decentralised federation, but warned that the impact would depend on transparency and how the money is spent.

He said, “That amount is high, but for me, I think it is a good development because that means we are gradually moving towards decentralisation, which is what a federation should be. You don’t concentrate too many resources at the centre.

“For impact to be felt, the more revenue you have at the subnationals, the better the prospect of an impact, if they spend it well. I feel that it is a very good development that more resources are going towards the subnational governments and the regions. It is going to make development a lot more inclusive, widespread, and create more geographical equity, but that ‘if’ is important.”

Yusuf stressed that the funds must be directed towards projects that directly improve citizens’ lives. He warned that some states could divert resources to ventures with limited economic value.

“Transparency is also a big issue because sometimes monies are spent on unnecessary things. Of recent, states are concerned about setting up airlines that are not even profitable. We need a framework for the citizens themselves to be able to engage with sub-nationals. There is a limit on how the federal government can dictate to them on how they should spend their money. And citizens should be given that power,” he said.

Similarly, an economic analyst, Aliyu Ilias, said attaching the funds to specific purposes was a positive development but called for stronger public oversight.

“First and foremost, it is a good one that the government has started attaching money given to states for something specific. But citizens must monitor them to see what they are actually doing. The states also need to be more transparent. The finance minister said States have collected N6tn from subsidy savings, so it has to show.

“Recall that the president also cautioned them from just building bridges and doing more developmental projects. Government should also attach funds to agriculture to solve food inflation. Over 60 per cent of income is spent on food spending,” he said.

Ilias added that non-governmental organisations should track the utilisation of the funds, noting that states receive substantial resources from subsidy savings.

The new reporting structure comes as state governments face growing pressure to finance roads, schools, hospitals and other infrastructure while also increasing spending to address kidnapping, banditry and other security challenges.

The PUNCH reports that the increased infrastructure funding comes against the backdrop of growing acknowledgements by state governors that the Federal Government’s fiscal reforms and interventions have expanded the financial capacity of subnational governments.

One of the clearest recent acknowledgements came from Enugu State Governor, Peter Mbah, who directly attributed the rapid expansion of infrastructure projects in his state to increased financial support flowing to subnational governments under President Bola Tinubu.

During the Presidential Media Tour of the South-East in June 2026, Mbah said the increased allocations had strengthened Enugu’s capacity to finance its ambitious development programme.

He said, “It would have been impossible, to say the least, for us as a state to have done things at a scale we did without some of the bold and courageous policies of Mr President.

“First of all, what the policies of Mr President did for sub-nationals is largely to free up resources. So, I think there is a clear intention. I think Mr President has been very intentional about how this trillion-dollar economy is to be achieved. He strongly believes this won’t come from the top down; it’ll come from the periphery. To achieve that, you have to strengthen the periphery both in terms of responsibility and in terms of providing them with the finances.”

In Delta State, Governor Sheriff Oborevwori was even more direct in acknowledging the sharp increase in the money available to state governments.

Speaking at the groundbreaking ceremony for the N39.3bn Otovwodo flyover project in January, Oborevwori said there was little point in governors denying that the financial position of states had improved.

He said, “I want to tell you something some people do not even know. More money is coming to the states. I am not a governor who will hide it. What am I going to hide it for?

“The money is coming from somewhere. Some people want to hide that there is no money; there is money. Use the money, as we are using it in our state. Use it in your state, so that the people will be very happy.”

Similarly, Bayelsa State Governor, Douye Diri, applauded the Federal Government for interventions that supported the state’s infrastructure programme, particularly the development of its 60-megawatt gas-fired power project.

Diri said the Federal Government’s policy interventions had enabled the state to pursue its ambition of improving electricity supply and supporting economic activities.

According to him, “Your administration’s decisive policy interventions have paved the way for meaningful reforms in various sectors, including power, enabling us to deliver on our pledge of reliable, independent energy through the construction of these 60-megawatt gas-fired turbines.

Also, Nasarawa State Governor, Abdullahi Sule, described the increase in federation allocations as unprecedented, arguing that the larger resources imposed a greater responsibility on governors to invest in development and security.

He said, “For the first time in our history, all tiers of government are sharing more revenue than they ever imagined. Over N2.2tn was shared this month alone. When I became governor in 2019, we were sharing between N590bn and N620bn. Today, it is four times that amount.”

Sule added, “Every state now has the resources to secure its people. We should stop blaming anybody for our security. If we are blaming anybody, blame ourselves.”

In April 2026, Kaduna State Governor, Uba Sani, also publicly applauded the Federal Government over the scale of infrastructure commitments to the state.

The Nigerian Governors Forum, in the same month, reaffirmed its commitment to working with the current administration on fiscal reforms aimed at strengthening state capacity, improving revenue mobilisation and expanding service delivery.

The governors agreed with the President on the need for what it described as an “irreducible minimum” of infrastructure investment to sustain the gains from ongoing macroeconomic reforms.

The full impact, however, will depend not only on how much states eventually receive, but also on whether governments disclose how the funds are deployed and whether the additional resources translate into improved infrastructure and stronger security for residents.