President Bola Tinubu has strongly urged state governors in Nigeria to translate the significantly increased Federation Accounts Allocation Committee (FAAC) disbursements into tangible development and improved welfare for citizens at the grassroots. His call comes amid a substantial surge in FAAC allocations to states and local governments over the past year, largely attributed to the removal of fuel subsidies and exchange rate adjustments.
The Context of Increased Allocations:
Since President Tinubu’s assumption of office in May 2023, and particularly following the fuel subsidy removal, there has been a notable increase in the funds distributed through FAAC. Data indicates that between June 2024 and June 2025, a total of N11.195 trillion was disbursed to states and local governments combined. Of this, states received N6.492 trillion, while local governments got N4.704 trillion. This marks a significant increase compared to previous years, with some reports indicating a tripling of monthly allocations to states. For instance, in 2024 alone, FAAC shared N28.78 trillion with the three tiers of government, a 79% jump from N16.28 trillion in 2023.
This “windfall” is a direct consequence of the government’s economic reforms, especially the removal of the costly fuel subsidy, which has freed up substantial funds previously used for subsidizing petrol consumption.
Tinubu’s Charge to Governors:
Speaking at the National Executive Committee (NEC) meeting of the All Progressives Congress (APC), President Tinubu emphasized that despite the increased financial inflows, many Nigerians at the grassroots are still expressing dissatisfaction with the pace of governance and the benefits of democracy. He stressed the need for governors to “redouble their efforts in delivering development at the grassroots” and to “wet the ground and give more dividends of democracy.”
