FG ALLOCATES N435BN TO STATES FOR SECURITY, INFRASTRUCTURE

By:Tajudeen Aminat

State governments received at least N435.25bn in special Federation Account Allocation Committee revenue for infrastructure and security between January and June 2026, according to half-year budget implementation reports from 29 states.

The funding is recorded in state financial documents as “State Infrastructure and Security” under the National Chart of Accounts code 11010313. It is separate from conventional statutory FAAC allocations but is distributed through the same revenue-sharing mechanism.

The data, obtained from Q1 and Q2 budget performance reports published on Open Nigerian States, a BudgIT-backed platform that provides access to government budget information, was analysed by our correspondent on Thursday.

The intervention comes amid growing security challenges and significant infrastructure deficits across the country, with state governments under increasing pressure to finance roads, schools, healthcare facilities and other critical projects while also responding to banditry, kidnapping and attacks on communities.

The funding was introduced following President Bola Tinubu’s approval of the Infrastructure Support Fund for the 36 states in July 2023, after the removal of the petrol subsidy. The initiative was designed to strengthen states’ capacity to invest in roads, agriculture, healthcare, education, power, water and other critical sectors.

A previous report by The Press disclosed that state governments and the Federal Capital Territory received N1.6tn between March 2024 and May 2025 for infrastructure and security projects.

For the latest analysis, data from 32 states was reviewed. Sixteen states specifically reported a combined N265.50bn under the dedicated State Infrastructure and Security revenue line, while another 13 reported N169.75bn as other separately disclosed FAAC-related revenue.

The combined figure for the 29 states with identifiable receipts stood at N435.25bn.

Adamawa, Anambra and Oyo recorded no actual receipts under the dedicated infrastructure and security revenue line during the period. However, Adamawa and Anambra had made budgetary provisions for the funding, while Oyo had projected an N8bn allocation.

Akwa Ibom was also reviewed, but its available half-year report did not provide a specific figure for the infrastructure and security component. Bayelsa, Edo, Osun and Rivers were excluded because the relevant data was unavailable.

Among the 16 states that clearly reported the dedicated revenue, Enugu recorded the highest receipt at N27.02bn, followed by Gombe with N24.50bn.

Jigawa, Katsina and Ogun each recorded N19.50bn, while Cross River and Yobe received N17.50bn apiece. Borno recorded N16.41bn, Bauchi N14.58bn, while Ebonyi, Imo, Kano, Kwara and Taraba each reported N14bn.

Sokoto received N12.50bn, while Kogi recorded the lowest amount among the 16 states, with N7bn.

When states that classified the funds under other FAAC-related revenue heads were included, Ondo recorded N31.86bn and Lagos N30.30bn. Abia received N24.50bn, Nasarawa N21.24bn, Niger N15.50bn, while Benue and Plateau each recorded N14bn.

Delta received N5.50bn, Ekiti N5.38bn, Kaduna N3.83bn, Kebbi N1.95bn and Zamfara N1.71bn.

The 16 states with clearly identified infrastructure and security receipts accounted for about 61 per cent of the N435.25bn total, while the 13 states reporting the funds under other FAAC-related revenue heads accounted for roughly 39 per cent.

The analysis suggests that the actual amount distributed through the special revenue window could be higher than N435.25bn because some states did not separately identify the funds in their financial reports.

The N435.25bn was equivalent to nearly 10 per cent of the N4.55tn in federation allocations received by the states with available half-year records. It also represented 20.71 per cent of their combined N2.10tn internally generated revenue and 6.55 per cent of their total N6.65tn FAAC and independent revenue.

Gombe recorded one of the strongest performances against its annual budget, receiving N24.50bn against a full-year provision of N5bn, representing 490 per cent of its budget estimate within the first six months.

Bauchi received N14.58bn, representing 86.6 per cent of its N16.84bn annual provision, while Jigawa recorded 65 per cent performance against its N30bn budget.

Yobe received N17.50bn out of its N36.49bn projection, representing 48 per cent performance. Ogun received N19.50bn against a N51.28bn budget, equivalent to 38 per cent.

Enugu recorded N27.02bn against its N80bn annual provision, representing 33.8 per cent performance, while Borno received N16.41bn out of N49.44bn, or 33.2 per cent.

Katsina recorded 32.4 per cent performance after receiving N19.50bn against a N60.27bn budget. Kwara received N14bn out of N49.62bn, representing 28.2 per cent, while Kano recorded 22.9 per cent after receiving N14bn against a N61.07bn projection.

Kogi received N7bn against N39.19bn, representing 17.9 per cent performance, while Taraba recorded 17.3 per cent after receiving N14bn against its N80.70bn annual provision.

Ebonyi received N14bn out of N88.41bn, representing 15.8 per cent, while Sokoto recorded 13.9 per cent after receiving N12.50bn against a revised N90bn budget.

Adamawa and Anambra recorded 100 per cent funding gaps under the dedicated revenue line after receiving no funds during the period. Adamawa had budgeted about N35.23bn, while Anambra projected N10bn.

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 development that could promote greater decentralisation.

He, however, stressed that the impact would depend on transparency and responsible utilisation of the funds.

Yusuf said the additional resources could promote more inclusive development and greater geographical equity if properly deployed, but warned against spending on projects with limited economic value.

He also called for greater citizen participation in monitoring how state governments spend the funds.

Similarly, economic analyst Aliyu Ilias described the decision to earmark the funds for specific purposes as a positive step but urged stronger public oversight.

Ilias called on citizens and civil society organisations to monitor the utilisation of the funds and ensure that they are directed towards critical areas such as infrastructure, agriculture and security.

The increased funding comes as state governments acknowledge the improved financial resources available to them following the Federal Government’s fiscal reforms.

Enugu State Governor, Peter Mbah, recently attributed the state’s ability to expand infrastructure projects partly to increased financial support for subnational governments.

Delta State Governor, Sheriff Oborevwori, also acknowledged the increase in funds available to states, urging governors to use the additional resources to improve the welfare of their citizens.

Bayelsa State Governor, Douye Diri, similarly praised Federal Government interventions that have supported the state’s infrastructure projects, including its 60-megawatt gas-fired power project.

Nasarawa State Governor, Abdullahi Sule, described the increase in federation allocations as unprecedented, saying the additional resources came with greater responsibility for governors to invest in development and security.

The Nigerian Governors Forum has also reaffirmed its commitment to working with the Federal Government on fiscal reforms aimed at strengthening state capacity, improving revenue mobilisation and expanding service delivery.

However, the ultimate impact of the special funding will depend on whether states transparently account for the money received and ensure that the additional resources translate into improved infrastructure and enhanced security for residents.