FAAC trillions: Govs list projects, Nigerians await relief

Governors across Nigeria's 36 states and the Federal Capital Territory are experiencing unprecedented revenue increases, largely attributed to President Bola Tinubu's removal of the petrol subsidy. Federation account allocations have surged, with July 2026 marking the first time monthly distributions surpassed N3 trillion. This windfall has significantly boosted state coffers, ushering in an era of multi-billion naira monthly revenues.

While governors are linking these increased receipts to various development projects such as road construction, healthcare, and education, a significant disconnect exists between the enhanced revenue and the daily lives of ordinary Nigerians. Policy analysts, civil society groups, and critics point out that the rising cost of living, unemployment, and poverty persist, with no corresponding improvement in public services or economic hardship alleviation. This has fueled calls for greater transparency and accountability in how states manage these additional funds.

In the first six months of 2026, the 36 states collectively received approximately N4.54 trillion from the Federation Account Allocation Committee (FAAC), a 25.77 percent increase compared to the N3.61 trillion shared in the same period of 2025. Lagos State recorded the highest FAAC receipts, followed by Rivers, Delta, Akwa Ibom, and Bayelsa, largely due to factors like Value Added Tax (VAT) and oil derivation revenues. Conversely, states like Adamawa, Gombe, Ekiti, and Ebonyi reported lower receipts.

The surge in revenue stands in stark contrast to allocations prior to the subsidy removal. Between April and June 2023, monthly FAAC distributions ranged from N655.93 billion to N907.05 billion. The trend continued upward through 2024 and 2025, culminating in the N3.007 trillion distribution in July 2026. This significant increase has prompted organizations like the Socio-Economic Rights and Accountability Project (SERAP) to scrutinize state governments' spending, particularly concerning the N14 trillion in alleged fuel subsidy savings received through FAAC allocations.