CSOs seek transparency over N10.45tn FAAC disbursements

Civil society organizations (CSOs) in Nigeria are calling for enhanced transparency and accountability in how funds disbursed by the Federation Account Allocation Committee (FAAC) are utilized. This demand comes in the wake of a significant 25.85% increase in allocations to federal, state, and local governments, rising from N8.30 trillion to N10.45 trillion between January and May 2026. Despite this substantial rise in public revenue, CSOs note that it has not translated into tangible improvements in the living standards of Nigerians.

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The more important number sits quietly behind it: gross government revenue only grew by about 4.3 per cent over the same period. That gap between a 26 per cent rise in what was shared and a 4 per cent rise in what was actually generated tells its own story.

The calls for greater scrutiny are amplified by growing public concern over worsening economic hardship and recent criticism directed at presidential advisor Bayo Onanuga for downplaying the extent of hunger in the country. While the increase in FAAC disbursements is acknowledged as significant, CSOs emphasize that the underlying revenue growth is far less impressive. Andrew Mamedu, Country Director of ActionAid Nigeria, pointed out that gross government revenue only grew by approximately 4.3% during the same period.

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A large part of the increase in disbursable revenue is coming from naira devaluation effects, exchange rate gains, and one-off items like the N250bn augmentation in March, rather than from a genuine expansion in the productive base of the economy. That distinction matters a great deal for ordinary Nigerians because money that flows from currency depreciation does not translate into more purchasing power for households.

Mamedu explained that the larger increase in disbursable revenue is primarily driven by factors such as naira devaluation, favorable exchange rate gains, and one-off items, rather than a genuine expansion of the economy's productive base. He stressed that funds derived from currency depreciation do not enhance the purchasing power of households. The lack of a robust transparency framework in Nigeria makes it difficult to ascertain whether these additional funds are being used effectively, particularly by state governments, exacerbating the problem.

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We do not yet have the transparency architecture in Nigeria to answer that with confidence, and that itself is part of the problem. States receive these allocations and we do not have the mechanism to track how they are used.