State governments and the Federal Capital Territory (FCT) have been the recipients of a colossal ₦1.6 trillion in financial support from the Federal Government between March 2024 and May 2025.
This significant allocation, confirmed by official records from the Office of the Accountant-General of the Federation (OAGF), was earmarked to bolster infrastructure development and enhance security operations across the country.
The disbursement, made over a 15-month period as part of a special intervention program, aimed to alleviate fiscal pressures on subnational governments and accelerate development projects, particularly amidst persistent national insecurity and economic strain.
These funds were drawn from the Federal Government’s non-oil revenue savings and channeled through the Infrastructure Support Fund (ISF), a mechanism approved by President Bola Tinubu in July 2023 following the removal of petrol subsidies.
Internal OAGF documents, titled “Ledger of Savings on Intervention to States Infrastructure and Security” and presented at the May 2025 Federation Accounts Allocation Committee (FAAC) meeting, reveal a total receipt of ₦1.7 trillion, with ₦1.6 trillion already disbursed and a remaining balance of ₦100 billion as of May 16, 2025.
The payments were categorized as “Payment for Intervention to States and FCT,” while the inflows were labeled “Transfer from Non-Oil Savings.”
The records indicate 21 separate payments during this period, predominantly in monthly tranches of ₦100 billion.
The inaugural disbursement of ₦200 billion, covering January and February 2024, was made on March 20, 2024.
The single largest payout occurred in May 2024, when states received ₦222 billion. While the payment pattern generally remained consistent, December 2024 and January 2025 saw no recorded activity.
February 2025 notably saw a ₦200 billion payout without a corresponding receipt, suggesting it drew from previously accumulated balances.
It’s worth noting that the FAAC’s May 2025 distribution saw a total of ₦1.659 trillion disbursed to all tiers of government, a slight decrease of ₦22 billion from April’s ₦1.681 trillion.
According to a 2023 statement by Dele Alake, then Special Adviser to the President on Special Duties, Communications and Strategy, the ISF was conceived to enable states to invest in vital infrastructure sectors such as roads, agriculture, health, education, power, and water resources.
It was also intended to mitigate the economic impact of subsidy removal by fostering economic competitiveness and job creation.
Part of the strategy also involved saving a portion of monthly distributable proceeds to manage inflationary pressure and exchange rate volatility.
Despite the substantial scale and consistent nature of this financial intervention, civil society groups have voiced serious concerns regarding the utilization and overall impact of these funds.
Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), strongly criticized both the Federal Government and state governors, citing “poor accountability and lack of visible developmental impact” from the disbursed ₦1.6 trillion.
Speaking to National Daily Newspaper, Rafsanjani expressed worries that political leaders have prioritized personal and electoral interests over public welfare. “We are in the era of financial recklessness and collapse of responsible governance. These funds were meant to address critical development challenges — infrastructure, insecurity, healthcare, education — but we have seen little or no results,” he asserted.
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Rafsanjani alleged that many public officials are now focused on the 2027 elections, with government resources potentially being diverted for political gains.
“The whole idea was not to allow the public to know how these funds are being spent, to avoid accountability. If the ₦1.6tn had been judiciously used, the impact would be visible across the country,” he added.
While the OAGF documents confirm the cumulative disbursement figures, they notably lack specifics on how much each state received or whether these funds were in addition to or integrated into monthly FAAC allocations.
This opacity has intensified calls for greater transparency and an independent audit of the intervention program.
As insecurity and infrastructure deficits continue to plague many parts of the country, the apparent disconnect between the disbursed funds and their on-ground impact raises critical questions about governance, fiscal discipline, and the true beneficiaries of Nigeria’s intervention programs.
With ₦100 billion still remaining in the intervention account and a growing public demand for transparency, the Federal Government faces increasing pressure to release detailed state-by-state breakdowns and compel states to account for the massive financial support they have received.