A new analysis has shown that funds shared by the Federation Accounts Allocation Committee to the three tiers of government have surged sharply in the last four years, yet living conditions for most Nigerians keep deteriorating. The report revealed that total FAAC allocations jumped from about N9.18 trillion in 2022 to N10.9 trillion in 2023 and N15.26 trillion in 2024, an increase of roughly 66 percent within two years.
Despite this rise in public revenue, poverty indicators remain grim, with more households struggling to afford food, transport, health care and housing. Rising inflation, weak job growth and the impact of subsidy removal have combined to wipe out any potential benefits of higher government earnings for ordinary citizens.
Data in the report show that states and local governments have also benefited significantly from the higher inflows, receiving record amounts from FAAC between 2022 and 2025. However, concerns persist that much of this money is being spent on recurrent costs, political projects and debt servicing rather than on infrastructure, education, health and social protection.
Civil society and economic analysts quoted in the report argue that the core problem is not a lack of resources but poor planning, corruption and weak accountability systems. They point to unfinished projects, unpaid workers, decaying schools and hospitals as evidence that increased allocations are not translating into real improvements on the ground.
The World Bank and other development partners have also flagged Nigeria’s worsening poverty situation, warning that more people are being pushed below the poverty line despite higher government revenues. They have urged federal and state authorities to prioritise targeted social spending, credible safety nets and investments that can create jobs and boost productivity.
Experts further note that exchange rate pressures and high import dependence mean that governments are paying more for the same level of services and projects. As a result, the real value of the increased allocations is being diluted, while mismanagement and leakages amplify the pain felt by citizens.
The report concludes that unless transparency, fiscal discipline and citizen oversight improve, the pattern of “more funds, more pains” is likely to continue. It calls for open budgeting, stronger audit systems and active public participation to ensure that future FAAC inflows are used to reduce poverty instead of deepening it.
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