The removal of fuel subsidy and increased taxation have led to a hike in the statutory allocations to states.
However, analysts say there has not been commensurate evidence of appropriate utilisation of these funds by state governments.
Investigations by LEADERSHIP Sunday showed that federal account allocation to states and local governments from January to June 2025 indicated that huge amounts of money was shared among the states and their local governments.
In the south-south region, states in the region and their local government received the following: Rivers – ₦374.56 billion, Delta – ₦368.75 billion, Akwa Ibom — ₦309.15 billion, Bayelsa — ₦259.94, billion, Edo — ₦138.34 billion and Cross River — ₦106.34 billion.
In the South-West, the states received Lagos — ₦464.51bn, Oyo — ₦196.23bn, Ondo — ₦138.71bn, Osun — ₦133.29bn, Ogun — ₦108.88bn while Ekiti got ₦97.73bn.
For the seven states and their local governments in the north west, they got: Kano — ₦250.76 billion, Katsina — ₦182.11 billion, Jigawa — ₦157.29 billion, Kaduna — ₦150.58 billion, Sokoto — ₦141.32 billion, Kebbi — ₦133.11 billion, with Zamfara receiving ₦115.48 billion.
For the North-East, the six states and their local governments received: Borno — ₦161.91 billion, Bauchi — ₦132.87 billion, Adamawa — ₦128.81 billion, Yobe — ₦115.45 billion, Taraba — ₦112.60 billion and Gombe — ₦93.47 billion.
The North-Central states and their local governments got:
Benue — ₦152.67 billion, Niger — ₦148.02 billion, Kogi — ₦134.82 billion,FCT — ₦119.06 billion, Plateau — ₦119.00 billion, Kwara — ₦110.00 billion and Nasarawa — ₦102.70 billion.
The five states and their local governments in the South-East received: Imo — ₦151.96 billion, Anambra — ₦150.03 billion, Abia — ₦125.18 billion, Enugu — ₦123.21 billion and Ebonyi — ₦99.63 billion.
A simple arithmetic showed that each zone got the following: South South — ₦1.56 trillion, South West — ₦1.14 trillion, North West — ₦1.13.65 trillion, North Central — ₦799.05 billion, North East — ₦745.11 billion and South East — ₦650.02 billion.
This amount does not include states’ internally generated revenue which in some states runs into billions of naira every month.
The Federal Account Allocation Committee is responsible for the distribution of revenue generated by the Nigerian government among the federal, state, and local governments.
But despite a significant increase in revenue since the removal of fuel subsidies and the unification of the exchange rate, state governors have largely failed to translate the windfall into tangible improvements in the lives of their citizens.
The fuel subsidy removal in May 2023 by President Bola Tinubu was hailed by economists and brought about an unparalleled increase in allocations from the Federation Account Allocation Committee (FAAC).
For example, in 2024, FAAC shared N28.78 trillion to the three tiers of government, a 79 percent jump from the N16.28 trillion disbursed in 2023, and a leap from N12.36 trillion in 2022, according to data from FAAC and Agora Policy.
Rather than improving Nigerians’ living conditions and increasing the level of development in states, a joint report by the World Bank and the National Bureau of Statistics (NBS) found that 129 million Nigerians, over half the population, now live below the national poverty line, up from 104 million in 2023.
This means that an additional 25 million people fell into poverty within a year owing to the pressures from subsidy removal, high inflation, and unemployment.
Some analysts have blamed governors, saying the huge sums they receive every month do not translate into development in their states.
Our correspondents spoke with state officials on the subject.
NASARAWA: ‘Gov Sule putting increased allocation to judicious use’
The Nasarawa State Government has insisted that Governor Abdullahi Sule is putting the enhanced allocation from the Federation Account to judicious use.
The Secretary to the State Government (SSG), Dr Labaran Magaji, explained that the massive development the state has experienced is a result of increased allocations and other incentives accruing from the Federal Government, as well as internally generated revenue.
He noted that Governor Sule’s administration has not taken out any loans, despite achieving tremendous infrastructural development across the state.
According to him, the governor has demonstrated capacity and prudence in managing the state’s resources to improve the lives of its citizens.
The SSG stated that the recent visits by President Bola Ahmed Tinubu to Nasarawa State, during which he commissioned several projects executed by the All Progressives Congress (APC)-led administration, were a clear manifestation of prudent resource deployment.
He highlighted that, in the last two years of his second term, Governor Sule has constructed a multi-billion Naira flyover and underpass in Lafia, a state-of-the-art Secretariat, the Akwanga underpass, and dualised Shendam Road. He added that the Akwanga project is nearing completion, while work has since commenced on the Keffi project. Numerous urban and rural roads have also been completed, with many others ongoing.
Dr Magaji further stated that the state government recently distributed over 100 electric vehicles, tricycles, and motorcycles to various groups through a revolving loan scheme aimed at improving their economic status.
“In the coming weeks, the governor has directed the release of funds for another one-kilometre road in each of the 13 Local Government Areas of the state. He is not borrowing money from anywhere.
“All we need now is to encourage the people of the state to continue to support his peace mission, because it is due to peace that we can achieve all these.
“Nasarawa State is one of the safest states in Nigeria, which is why there has been an influx of people coming to invest. Very soon, one of the biggest lithium processing factories in the world will be inaugurated by the President,” he said.
KADUNA: ‘Gov Sani building roads and schools despite debt burden’
The Kaduna State Government has explained how Governor Uba Sani is utilising monthly statutory allocations following the removal of fuel subsidy and the implementation of increased taxation.
According to the State Government’s media team, despite payments towards inherited debt burdens, Governor Sani has awarded over 82 road projects in the last two years, 32 of which have already been completed.
The government further noted that more than 600 classrooms have been constructed, with many others undergoing renovation. Additionally, 62 new secondary schools have been built, while construction is ongoing on 50 more.
Last month, the government reportedly distributed 400 trucks of fertiliser free of charge to 100,000 smallholder farmers, with each beneficiary receiving two bags at no cost.
The media team said Governor Sani’s utilisation of federal allocations and internally generated revenue spans various sectors, including health, education, agriculture, human capital development, and the security of lives and property.
KEBBI: Gov Idris keeping spending decisions under tight control
Efforts to obtain official comments on the utilisation of statutory allocations in Kebbi State yielded limited responses.
When contacted, the Accountant General of the State, Alhaji Bello Nahaliku, said only His Excellency, the Executive Governor, could speak authoritatively on the matter.
He confirmed that the state receives its statutory allocation monthly but emphasised that spending decisions rest solely with the governor, based on memos received from ministries, departments, and agencies.
“Therefore, spending from the statutory allocation has to be made based on the approval of His Excellency,” the Accountant General said.
Similarly, the Commissioner for Local Government and Chieftaincy Affairs, Alhaji Abubakar Umar Dutsinmari, confirmed that his ministry receives monthly allocations for the local government councils.
“These funds go into the respective councils’ accounts every month. I know the governor, Nasir Idris, has given them a marching order to utilise what they are receiving by executing developmental projects.
“The majority of them comply, while only a few have refused to obey,” he added.
AKWA IBOM: ‘Gov Eno focusing more on empowerment than infrastructure’
Although the Akwa Ibom State Governor, Pastor Umo Eno, has consistently praised President Bola Tinubu’s Federal Government for releasing more funds via monthly allocations, there appears to be a lack of commensurate developmental projects on the ground.
Checks revealed that aside from investing billions in boosting the tourism sector — such as hotels, relaxation centres, and other elitist projects — most of the funds have reportedly been used as handouts to woo supporters ahead of the 2027 elections.
For instance, during the recently concluded Town Square meetings held across the 10 federal constituencies — widely seen as a subtle campaign — the governor disclosed that his administration had spent ₦10 billion on empowerment donations for 7,688 rural poor.
However, in terms of infrastructure and public utilities such as electricity, urban roads, and government interventions, observers note that progress remains minimal.
“We have ecological challenges in places like Aka Itiam, Abak Road, Atiku Abubakar Way, IBB Avenue, and the Urua Ekpa axis of the Calabar–Itu Highway begging for government intervention. Yet the governor is throwing cash around to cement his re-election by building friendships with the people through cash planks,” lamented Ufok Ekanem, a resident of Uyo.
On rural development, there is reportedly a near-total absence of progress. Projects such as rural electrification, healthcare facilities, and road networks have stalled, with some local government chairmen blaming poor allocations, despite the Supreme Court ruling on direct allocation to the 774 LGAs.
“We still operate a subtle state–LGA joint account because the allocation doesn’t come to us directly from the centre, as we were made to believe. Sometimes, what comes to us from the state is barely enough to execute any project,” a local government chairman from Eket Senatorial District, who spoke under anonymity, told our correspondent.
Supporting this view, Otuekong Franklyn Isong, Director of the Centre for Human Rights and Accountability Network (CHRAN), a civil society organisation, said: “There is no imprint of development across the 31 LGAs” and challenged local government chairmen “to prove me wrong with records.”
DELTA: ‘Gov Oborevwori completing legacy projects and expanding infrastructure’
The secretary to the Delta State Government, Dr Kingsley Emu, said the state has been using the increased revenue to benefit its people, describing Delta as “a symbol of diversity, academic excellence, and human capital development.”
Speaking on the achievements under the “MORE Agenda” — now in its second year — he highlighted the completion of several inherited road and bridge projects, as well as new landmark infrastructure projects, including flyovers at PTI Junction, Enerhen Junction, DSC Roundabout, Otovwodo Junction Ughelli, and Uromi Junction in Agbor.
In riverine areas, he said the Ayakoromo Bridge and the Omadino–Okerenkoko–Kokodiagbene road projects are being prioritised to unlock the blue economy, enhance connectivity, and create employment.
He also reaffirmed the administration’s commitment to youth empowerment through scholarships, skills training, and entrepreneurship support. Investments in healthcare and education remain a priority.
Primary healthcare centres are being upgraded with modern equipment, and free medical services continue for pregnant women and children under five. The government is also strengthening vocational institutions to boost human capital development.
IMO: ‘Gov Uzodimma raising workers’ welfare and delivering massive projects’
The Chief Press Secretary to the Governor of Imo State, Hon. Oguwike Nwachuku, has revealed that the state, under Governor Hope Uzodimma, is setting the pace in the utilisation of resources to work for the people.
Hon. Oguwike made this revelation while interacting with LEADERSHIP Sunday.
According to him, a practical demonstration of this is the recent announcement of an increase in the minimum wage of workers in Imo State across labour unions, with the least-paid worker now set to receive ₦104,000.
He said: “Needless to say that ever since Governor Uzodimma took that initiative, other states in the country are now struggling to catch up with that critical policy statement regarding the welfare of the workers.
Before now, Imo State was among the states in the country that religiously paid the ₦30,000 minimum wage, which the Governor later increased to ₦40,000 following the removal of fuel subsidy.”
He highlighted that since 2020, Governor Uzodimma has consistently paid a 13th-month salary to Imo State workers—making his administration the first to do so since the state was created in 1976.
“Recall that Imo workers, since the inception of Uzodimma’s administration, have enjoyed uninterrupted free transportation to and from office, free meals, free medical treatment via a fully paid health insurance scheme, among other benefits.
Permanent Secretaries enjoy brand new vehicles, Judges across all courts—including Magistrate Courts—ride in SUVs under Governor Uzodimma’s government.
“Pensioners are paid regularly, unlike before. The last tranche of the total ₦65 billion arrears of gratuity owed to retirees for more than 20 years—which Uzodimma inherited—has now been reduced to ₦16 billion, which has just been released to complete the payment of gratuity to retirees in Imo State.”
The CPS stressed that pensioners, like civil servants, receive monthly payments and gratuities and enjoy free medical care.
He added: “It is important to note that Imo State, under Governor Uzodimma, has witnessed a turnaround in areas such as roads, hospitals, schools, power generation, agriculture, digital employment, security, transportation, among others.
There are more than 120 verifiable solid roads across the three senatorial zones where the Governor has invested and is still investing the state’s resources.
The Governor’s desire to light up Imo State in a few months has reached a feverish pitch, with contractors working day and night to meet the target.”
He urged: “Please spare time to visit the Imo Digital City along Egbu Road and see for yourself how a government that is thinking about tomorrow and the future of the youth has utilised the people’s resources.
“This is a government that was the first to start the Ministry of Digital Economy and E-Government in the country, working tirelessly to position Imo in line with a contemporary digital economy. Really, your inquiry should not include Imo State, because under Governor Uzodimma, the people’s expectations have been met and surpassed. The current story on the lips of the people is that Imo State is now on the rise.”
ABIA: Gov Otti increasing project rollout despite soaring budget needs’
At the office of the Accountant-General of Abia State, a senior official—who pleaded anonymity—dismissed concerns about mismanagement of increased allocation.
“I would rather say that, in view of the enormity of both completed and ongoing projects across the state, the government isn’t even having enough,” she said.
She explained that when the government announced a record ₦750.3 billion budget for the year, many thought it was excessive.
“But sometime in August, it became clear that more funds were needed, hence the Supplementary Budget of ₦150.3 billion. The government is holding nothing back.”
GOMBE: ‘Gov Yahaya prioritising citizens through accountable spending’
Responding to inquiries about the utilisation of increased revenue, Isma’ila Uba Misilli, Director-General of Press Affairs to Governor Inuwa Yahaya, stated that the Gombe State Government has adopted a deliberate, citizen-focused approach.
“The government is guided by a clear governance agenda which prioritises projects and programmes that have a direct and measurable impact on citizens. Funds are being channelled into both immediate and long-term development goals—from infrastructure to human capital investments.”
He said that frameworks for budget tracking, project monitoring, and public engagement have been institutionalised.
Key sectors prioritised include healthcare, education, environmental remediation, infrastructure, and public service reform.
“This includes upgrading of health facilities, procurement of medical equipment, and recruitment of healthcare personnel.
There is also renovation and construction of classrooms, provision of learning materials, teacher training, and targeted efforts to reduce the number of out-of-school children.”
Misilli added that Gombe State has strengthened its Public Procurement Agency, ensures due process, and regularly publishes performance reports and budgets. Town hall meetings have also become a norm for citizen engagement.
BENUE: ‘Gov Alia using every kobo to touch lives at the grassroots’
The Principal Special Assistant to the Governor on Print Media, Donald Kumun, said Governor Hyacinth Alia is utilising increased federal allocations for the benefit of Benue people.
“Every income that comes from the Federation Account is tagged with how it is expected to be utilised—and that’s exactly what the Governor is doing,” Kumun stated.
Since assuming office, the Governor has ensured that workers and pensioners are paid regularly—typically between the 23rd and 24th of each month.
“As an indigene of Benue working here, you can attest to the numerous people-oriented projects—completed and ongoing—executed by His Excellency.”
He said that within two years, the Governor has made significant strides in education, healthcare, agriculture, infrastructure, humanitarian services, and youth and women empowerment.
“The Governor is focused on improving the well-being of citizens, especially the less privileged, while uplifting their socio-economic status. Truly, he deserves to be celebrated for his unwavering commitment to grassroots development.”
Kumun also cited the recent flag-off of 1,080 housing units for low-income earners as evidence of the administration’s achievements.
ENUGU: ‘Gov Mbah transforming infrastructure with subsidy savings’
Governor Peter Mbah of Enugu State has attributed the financing of key infrastructure projects to the removal of fuel subsidies by President Bola Tinubu’s administration.
He noted that the policy has freed up resources to execute large-scale capital projects.
The ongoing projects include the construction of 7,000 classrooms, 3,300 hospital beds, and 2,000 hectares of farm estates across the state’s 260 wards.
NIGER: Gov Bago investing allocation in roads, health, and agribusiness’
In Niger State, following the dissolution of the state cabinet, permanent secretaries declined to comment on the use of funds. However, Chief Press Secretary to the Governor, Bologi Ibrahim, told LEADERSHIP Sunday that Governor Mohammed Umaru Bago has made significant investments in agriculture, infrastructure, and healthcare.
“The government is working to build a local economy and create jobs in Niger State through several initiatives,” he said.
He highlighted investments in agribusiness and infrastructure, including 1,000 kilometres of roads (some federal), and the construction of Step 2 Primary Healthcare Centres in all 274 wards.
Education, he added, has also received renewed attention under the current administration.
“It is evident on the ground that Niger is judiciously using what accrues to it, by investing across all sectors for a New Niger,” Ibrahim concluded.
