Despite a sharp rise in revenue shared among Nigeria’s three tiers of government, civil society organisations say the increase has not translated into meaningful improvements in living standards, renewing calls for stronger accountability systems around public spending.
Between January and May 2026, allocations from the Federation Account Allocation Committee (FAAC) rose significantly to N10.45tn, up from N8.30tn recorded in the same period of 2025—an increase of about 25.85 per cent. The funds were distributed among the Federal Government, 36 states, the Federal Capital Territory, and 774 local government areas, amid ongoing concerns over economic hardship and rising inflation.
However, civic groups argue that the surge in disbursement is being undermined by weak transparency structures and a disconnect between government earnings and citizens’ welfare.
The debate has also been fuelled by recent public reactions to comments made by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, who said he did not personally observe the level of hunger frequently reported by Nigerians—remarks that sparked widespread criticism against the backdrop of worsening living conditions.
Rising Revenue, Limited Relief on the Ground
While acknowledging the higher FAAC figures, civil society leaders insist that the key issue is not the size of allocations but their real impact on citizens.
The Country Director of ActionAid Nigeria, Andrew Mamedu, described the increase as “a significant increase by any measure,” but warned that deeper fiscal realities tell a more complex story.
He explained: “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,” Mamedu said.
According to him, a substantial portion of the increase is linked to macroeconomic distortions rather than productive growth.
“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,” he said.
Weak Transparency Systems Under Scrutiny
Beyond revenue composition, Mamedu raised concerns about the absence of a robust accountability framework that tracks how subnational governments utilise FAAC allocations.
“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 there is no consistent, publicly accessible system tracking how each kobo translates into wells drilled, classrooms staffed and resourced, primary health centres stocked with personnel and medicine, or security presence extended into rural and farming communities,” he stated.
He further stressed that despite increased funding, many communities still face shortages in essential services such as healthcare, education, water, and security.
“The constitutional responsibility for primary healthcare, basic education, and a good deal of security infrastructure sits with states and local governments, the tiers of government closest to where poverty and exclusion are actually experienced, and there is currently no binding mechanism requiring them to publish or account for how FAAC receipts are spent, line by line,” he noted.
Calling for reform, he added: “Until that accountability architecture exists, increases in disbursement, wherever they sit across tiers of government, will keep outpacing improvements in the welfare of the people who need that money to reach them most.”
He also urged authorities to strengthen social protection systems and deepen citizen participation in budgeting processes.
Calls for Visible Impact on Public Services
Echoing similar concerns, the Chief Executive Officer of the Public and Private Development Centre, Lucy Abagi, said Nigerians expect to see tangible improvements in public services, infrastructure, and security given the scale of allocations.
“With these huge disbursements, the citizens need to see a tangible shift in capital projects that will ultimately benefit the states in terms of welfare, availability of basic amenities, and security for all. The government owes the people transparent processes on how these resources are utilised, and we demand an accountable procurement process,” Abagi said.
Growing Public Concern Over Living Conditions
The renewed calls for accountability come amid sustained complaints from labour unions, private sector players, and ordinary citizens over rising living costs, insecurity, and declining purchasing power, even as government revenue distribution hits record levels.
According to data analysis of FAAC disbursements, the Federal Government received N3.72tn between January and May 2026, while states got N3.56tn. Local government councils received N2.51tn, and the 13 oil-producing states shared N673.17bn as derivation revenue.
Despite the surge in allocations, civic actors insist that without stronger oversight mechanisms and transparent spending practices, increased revenue may continue to have limited impact on everyday life.