ABUJA, NIGERIA — Nigerian state governors and local government chairmen are facing intense public pressure to account for public spending following revelations from the Federal Ministry of Finance that ₦47.25 trillion was disbursed to the three tiers of government over the three years following the 2023 petrol subsidy removal.
According to Ministry of Finance data, total Federation Account Allocation Committee (FAAC) disbursements between 2017 and 2025 reached ₦93.13 trillion. Remarkably, more than half (50.7%) of that total was distributed in just three years—2023, 2024, and 2025—driven by fuel subsidy removal, foreign exchange unifications, and aggressive tax mobilization.
Breakdown of the Post-Reform Revenue Boom
The ₦47.25 trillion post-reform payout generated significantly more distributable revenue in three years than the preceding six years combined (2017–2022 generated ₦45.88 trillion):
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State Allocations Surge: State governments saw their annual FAAC receipts more than double—rising from ₦4.18 trillion in 2023 to ₦8.93 trillion in 2025.
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Shift in Distribution: By 2024, state governments began collectively receiving higher distributable revenues than the Federal Government, marking a structural shift in Nigeria’s fiscal revenue flow.
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Local Government Inflows: Local councils received a cumulative ₦13.01 trillion between 2022 and 2025, bolstered by direct account disbursements following the landmark Supreme Court autonomy ruling.
┌────────────────────────────────────────────────────────────────────────┐
│ POST-SUBSIDY FAAC DISBURSEMENT SNAPSHOT (2022–2025) │
├────────────────────────────────────────────────────────────────────────┤
│ • Federal Government : ₦17.34 Tn total (₦1.99Tn in '22 → ₦7.02Tn in '25)│
│ • State Governments : ₦21.71 Tn total (₦2.06Tn in '22 → ₦8.93Tn in '25)│
│ • Local Governments : ₦13.01 Tn total (₦1.28Tn in '22 → ₦5.35Tn in '25)│
│ │
│ • Key Takeaway : States & LGAs collected ~₦15.83 Trillion in │
│ "additional" revenue above pre-reform baselines. │
└────────────────────────────────────────────────────────────────────────┘Civil Society & Expert Backlash
Despite the historic revenue expansion, policy analysts, labor unions, and civil society organizations emphasize that increased state-level revenues have not yielded tangible relief for citizens enduring high inflation, rising food prices, and inadequate public transportation.
“The Finance Minister said states have collected massive revenue from subsidy savings, so it has to show… Non-governmental organisations must actively track how states utilize these allocations. The real test of the post-subsidy era is whether Nigerians feel a tangible improvement in basic services, healthcare, and living standards.”
— Economic Policy Commentators, reacting to the Ministry of Finance report
