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Increased Revenue Allocation to States: How Impactful? – NAN Survey

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In the wake of fuel subsidy removal by President Bola Tinubu, the monthly disbursement to the three tiers of government by the Federal Account Allocation Committee (FAAC) increased significantly.Based on statutory sharing formula, the Federal Government receives 52.

68 per cent of the total sum while the States and Local Government Areas (LGAs) receive 26.
72 per cent and 20.
6 per cent respectively.The monthly allocation, particularly to states and local governments, is meant to fast track execution of viable economic and social infrastructure development projects at the grassroots.The allocation, which is readily available monthly, is expected to cushion the impact of the economic crunch and promote people-oriented programmes to improve overall wellbeing of the people.
With the jettisoning of fuel subsidies which had cost the nation’s treasury over 10 billion dollar annually, more funds are, thus, made available by FAAC to the states.A survey conducted by the News Agency of Nigeria (NAN) in Bauchi, Jigawa and Gombe states, however, reveals that the citizens are yet to feel the impacts of the increased allocation, especially in mitigating the effects of fuel subsidy removal.The 2023 States’ Annual Report of FAAC, obtained by NAN reveals that, from January 2023 to May 2023, pre subsidy removal, the 36 states received a total net allocation of N1.19 trillion.The reports, obtained from Nigeria Governors’ Forum Repository, shows that from June to December of the same year, when President Tinubu removed fuel subsidy, the FAAC disbursement to the 36 states doubled.Specifically, the net allocation received within the period of June 2023 to December 2023, by the 36 states rose from N1.19 trillion to N2.31 trillion, an increase of about N1.12 trillion.Similarly, between January 2024 and June 2024 FAAC disbursed a total sum of N2.16 trillion to the 36 states.It is worthy of note that the funds captured above, excluded the 20.6 per cent federal allocation to the 774 LGAs, which was also paid to the states via joint account of the two tiers.Some residents of the three states, who spoke to NAN in separate interviews in Bauchi, Dutse and Gombe decried poor management of the funds by the respective state government.They said the increased funds were yet to translate into meaningful results in mitigating impacts of the fuel subsidy removal and alleviating their sufferings.Mr Rambi Ayala, Chairman, New Nigeria Peoples Party (NNPP) in Gombe State, said the citizens were passing through untold hardship in spite of the increased federal revenue allocation to the state running into billions of Naira.He said, although FAAC allocation to Gombe had doubled since the new administration came into power, there were no enhanced social services across the stateNAN reports that Gombe state, which received the least among the 37 states, got gross allocation of N78.72 billion from FAAC for the year 2023.Deduction from the statutory was N17.28 billion bringing its net allocation for the year to N61.43 billion.From the N61.43 billion net allocation to the state for the year, the pre-subsidy removal months of January to May 2023 accounted for N20.46 billion.With subsidy removal, the net allocation to the state from June to December, same year doubled to N40.97 billion an increase of N20.51 billion.On year over year comparison, from January to June 2023, the net FAAC allocation to Gombe was N25.6 billion which rose to N42.8 billion within the same period in 2024, an increase of N17.2 billion.Ayala alleged lack of transparency and prudent management of the funds by the government stressing that people are being impoverished even in midst of plenty.“A lot needs to be done in the state. For example, in my own area, Billiri LGA, I haven’t seen any significant projects since the ending of fuel subsidy.“The general hospital in Billiri is in terrible condition, with critical facilities in disrepair, and people have no idea how the funds are being used.“Also, we are in the farming season, yet, there aren’t enough inputs and equipment being provided to improve production and livelihood of farming communities,” he said.Ayala also alleged that palliatives meant for all Nigerians are often used to reward party loyalists.“In Gombe state, there is no clear formula for distributing the palliatives, to include the opposition.“This is particularly troubling because hunger doesn’t discriminate base on party or religion,” he said.Rabiu Babayo, a commercial motorcyclist, accused the state government of insensitivity and lack of commitment to addressing the challenges of the people.Babayo said government increased taxes on trades and services without recourse to the impacts on the people and businesses.Also, Ibrahim Yusuf, Chairman, Gombe Network for Civil Societies (GONET), said the state government has not initiated programmes and projects that would directly impact the people and ameliorate their sufferings“What we want the government to focus on is, human capital development and empowerment that will yield quick results,” he said .The situation is not different in Jigawa, where citizens alleged that the state government initiated white elephant projects at the detriment of the citizens.They alleged that the billions on Naira accruing to the state monthly from FAAC is not being used for people oriented projects and programmes.NAN reports that Jigawa state’s gross allocation from the Federation Account for the year 2023 amounted to N95.03.billion. Deduction from statutory was N3.39 billion bringing its net allocation for the year to N91.64 billion.From the N91.64 net allocation to the state for the year, the pre-subsidy removal months of January to May 2023 accounted for N32.86 billion.With the removal of subsidy, the net federal allocation to Jigawa from June 2023 to December 2023 rose to N58.68 billion, an increase of N25.72 billion.From January 2024 to June 2024, Jigawa received total net allocation of N60.14 billion, an increase of N20.11 billion when compared to N40.03 billion received within the same period in 2023Yau Garba, a resident of Dutse said the citizens expected the increased allocation to be deployed to agricultural projects, the economy mainstay of the the state.He said the government also failed to prioritise road and other infrastructure development for sustainable social and economic development of the state.“In the last one-year, Gov. Umar Namadi has travelled to many countries on the claim of understudying modern agricultural transformation methods.“His administration, however, has not justified the benefits of his adventures,” he said.A farmer in Kiyawa, Mohammed Aliyu said feeder roads leading to farm settlements in the states are in deplorable condition.“The fertilisers and seedlings distributed by the state government did not get to farmers, the direct beneficiaries.“The tractors brought to rural farmers are old and our people cannot afford to pay for the services.“Is this the agricultural transformation?“It is important for the government to embark on projects that will have direct impacts on the lives of the people,” he said.The resentment is not different in Bauchi, where Sabo Mohammed, a Chieftain of the All Progressives Congress (APC), said the government was economical with the truth on the actual amount that accrued to it from the federation account.He stressed the need for the state government to keep people informed on the amount being received from the federation account on monthly basis.According to him, such disclosure would ensure transparency, accountability and probity in the management of the funds towards achieving good governance.NAN reports that Bauchi state’s gross allocation from the Federation Account for the Year 2023 amounted to N98.422 billion. Deduction from statutory was N23.99 billion, bringing its net allocation for the year to N74.42 billion.From January to May of same year, which was subsidy regime, the net allocation to Bauchi state was, N25.26 billion.With the removal of subsidy, the net allocation to Bauchi state from FAAC between June and December 2023 rose to N49.16 billion, an increase of N24.10 billion.Also, from January 2024 to June 2024, Bauchi state received total net allocation of N46.80 billion, an increase of N15.08 billion when compared to N31.72 billion received within the same period in 2023.Mohammed queried what the state government was doing with the increased accrual from the federation account courtesy of subsidy removal.“In Bauchi state, there seem to be dis-connect on engagement between the government and its citizens.“We were told that the ongoing roads and flyover projects in the state were being financed with N100 billion World Bank loan.“We were also told that the Rural Access and Agricultural Marketing Projects (RAAMP) that will fast track the construction of 115km access road were also being funded by the World Bank and French Development Agency with a total cost of N23.3 billion.“What then has the state done with the humongous allocations received from the federal government?” he queried.It would be recalled that the Bauchi State government announced that the state secured N100 billion loan for infrastructure development.The state’s Commissioner for Information and Communication, Mr Usman Garba had said that the N100 billion loan was earmarked for the construction and rehabilitation of 200 kilometres of roads across the state.The commissioner had also said that two flyovers at the busiest areas of Wunti and Central Market in Bauchi metropolis were part of the projects.The APC chieftain, however, said that the state government must come out clean to explain to the citizens what they were using the huge allocation from FAAC for.In defense of the allegations, however, Ibrahim Galadima, the Commissioner for Works and Transportation, said the state is investing heavily on infrastructure and other laudable projects and programmes touching the lives of the citizens.According to him, Gov. Bala Mohammed approved the rehabilitation of 29km Adamami – Disina -Jama’are road at N6.8 billion and the Bayara township road at a cost of N737 million.He said the upgrading of the Emirs’ palaces in Bauchi, Jama’are, Ningi and Dass were undertaken at the cost of N2.2 billion.Equally, he said the Bauchi government planned to spend N25 billion on the upgrade of the Special Hospital, Bauchi, to enhance access to quality healthcare service delivery in the state.Galadima said the construction of the Sharia Court of Appeal in Bauchi metropolis would gulp N606 million.‘This is the first time in the history of the Bauchi state that the rural areas are receiving an unprecedented attention in road construction to the tune of over N23 billion,” he said.On his part, Mr Ismail Uba-Misili, Director-General, Press Affairs, Government House, Gombe, said the administration of Gov. Inuwa Yahaya has been utilising funds accruing from the federal allocations to deliver good governance and lessen the burden of economic hardship on the people.He said that funds received from the federation account were being channeled to services that have direct bearing on the lives of the residents of the state.The governor’s aide said the state government expanded various programmes to ease the burden on the citizens and drive inclusive development.“The projects and programmes being implemented by Gombe state government are not only helping to alleviate current economic pressure, but also laying the groundwork for sustainable development and long-term prosperity in the state.“We have also rolled out palliative measures, including the distribution of food and non-food items to the most vulnerable segments of the population.“This effort is targeted at providing immediate relief to the hardest hit by the economic challenges” he said.Uba-Misili added: “Understanding the critical role of agriculture in the state’s economy, the government made subsidised fertiliser available to farmers at a 50 per cent discount.“This initiative not only supports food security but also helps farmers to reduce production costs, thus boosting agricultural productivity and profitability,” he said.He listed other interventions to include payment of wage award to civil servants, gratuity arrears to pensioners, bursary awards, youths and women empowerment, and support to people with special needs.When contacted for the state’s position, the Jigawa state’s Commissioners for Budget and Economic Planning, Alhaji Babangida Umar declined comment.Alhaji Auwalu Sankara, the state’s Commissioner for Special Duties, who is also in charge of distribution of palliatives also declined talking to the media.Sankara neither answered calls placed to him by our correspondent nor responded to sms messages, on how the 20 trucks of rice palliative from the federal government were distributed to the people.(NAN

Analysis

Much Ado About the PBAT Door-to-Door Movement

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By Catherine Agbo 

In the unfolding drama of Nigerian political discourse, few things excite the commentary circuit quite like a prominent figure stepping decisively into the political arena.

The recent media frenzy surrounding the activities of the High Chief Government Ekpemupolo-led PBAT Door-to-Door Movement is a classic study in selective outrage.

Ekpemupolo, popularly known as Tompolo, is the Grand Patron of the movement.

 

From editorial columns in national dailies to online commentary, critics have been relentless in dishing out opinions about the group’s activities targeted at mobilising support for President Bola Tinubu’s re-election campaign.

Yet, beneath the righteous indignation lies a fundamental misinterpretation of constitutional rights and democratic principles.

The narratives being spun across several opinion pieces, such as those asking why Tompolo should be actively involved in partisan politics or phoney groups labelling his endorsement as “deceptive,” are all built on shaky foundation.

Critics point to his role as a major security stakeholder in the Niger Delta and argue that a person of his background should remain politically passive or detached from party politics. Others question the deployment of operational vehicles and logistics to coordinators of the movement across states for the campaign, framing legitimate political mobilisation as an overreach.

However, this wave of criticism ignores a fundamental truth, that Nigeria is a constitutional democracy governed by the rule of law.

Section 39 and 40 of the 1999 Constitution of the Federal Republic of Nigeria (as amended) guarantee every citizen the right to freedom of expression and the right to peaceful assembly and association.

These rights are not reserved exclusively for career politicians, armchair intellectuals, or media commentators, they belong to every Nigerian citizen in equal measure.

Critics who have raised the alarm over campaign spending have also conveniently ignored the provisions of Nigeria’s statutory electoral framework.

The way I see it, High Chief Ekpemupolo has not gone against the Electoral Act 2026 in any way.

The Electoral Act 2026 sets clear financial caps on direct spending by individual candidates and limits on direct monetary donations to political parties or candidates’ accounts.

It also limits the amount a donor can make to a candidate or political party to N500 million. 

The Electoral Act 2026 does not, however, specify, mandate, or place any financial spending ceiling for independent third-party support groups, non-governmental movements, or citizen-led mobilisation platforms.

Because the law contains no statutory cap on what an independent group can spend to mobilise voters, logistically equip its coordinators, or advocate for a candidate, Tompolo’s support group operates entirely within the legal limits of the Nigerian electoral law. 

To invent non-existent legal infractions simply to tar a political support group is a disingenuous exercise in bad faith.

Tompolo has not been indicted by any court of competent jurisdiction, nor has he violated any law of the land by supporting a presidential candidate of his choice. 

He has not been found wanting in any legal measure whatsoever for exercising his democratic suffrage and organising a political support group. 

To, therefore, suggest that he should sit on the sidelines while other private citizens and influencers exercise their constitutionally guaranteed right to endorse and fund candidates is to demand a double standard that borders on hypocrisy.

Political association in a democratic society is rooted in choice, conviction, and interest.

If Tompolo believes that the current administration’s policies, particularly in stabilised oil production, maritime security, infrastructure, increased allocation to states, security, especially the State Police bill which 25 state Houses of Assembly have already approved, among others, align with the long-term prosperity of his constituency and the nation, he is within his full constitutional rights to persuade others to share that vision.

Mobilising grassroots support at the ward, household, and polling-unit levels through peaceful door-to-door engagement is the very essence of citizen participation in governance. It is political organising at its most fundamental level.

Those rushing to judge him prematurely are mistaking political enthusiasm for wrongdoing.

A citizen’s choice to donate campaign vehicles, set up organisational structures, and hold political rallies across different geopolitical zones is standard practice in presidential politics globally. In democratic climates, such actions are celebrated as evidence of civic investment and grassroots empowerment. Why should a different standard be constructed when the participant happens to be an influential opinion leader like Tompolo?

The online backlash and critical editorials reveal a deeper prejudice.

Nigeria’s democracy matures when citizens participate freely without fear of unwarranted public trial by the media.

The PBAT Door-to-Door Movement is operating entirely within the boundaries of civil political engagement and statutory electoral law. Rather than attacking the messenger, critics would do well to focus their energy on robust policy debates, engaging the electorate on ideas rather than seeking to curtail the lawful rights of individuals.

Tompolo has broken no law, breached no electoral act provision, and violated no constitutional mandate. He is simply exercising his fundamental right as a free citizen of Nigeria to associate, express his preference, and campaign for the candidate he trusts to lead the country. The misplaced outrage and hasty judgments filling opinion pages ought to be laid to rest.

In a free nation, the right to choose belongs to everyone and Tompolo is no exception.

Agbo, a strategic and development communication expert writes from Abuja. 

agbocatherine@yahoo.com

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OPINION

Restoring the Naira as a Store of Value

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By Uddin Ifeanyi

Much of the palaver over the recent meeting of the Central Bank of Nigeria’s policy committee was exercised by how well the apex bank is doing its job. Against its primary goal of maintaining price stability, the CBN’s Monetary Policy Committee’s decision to recalibrate its monetary policy rate (MPR) in order to align it with the market invited the most attention.

First, there is the question of what the MPR anchors.

In reality, nothing. Ideally, however, the CBN’s policy rate should transmit price signals through the financial system, influencing saving, borrowing, liquidity, inflation expectations, and in the end, the naira’s exchange rate.
It should, in other words, signal the central bank’s intentions. Yet, we have had years in which the MPR stoically remained unchanged even as inflation ran riot, and the naira’s exchange rate came under severe downward pressure.

The CBN has regularly papered over this crack with an often-bewildering arsenal of tools — including some eccentric flimflams that it has deployed in recent times. But this only raises further questions as to how useful even these are. Take the cash reserve requirement.

At 45 percent for deposit money banks, it means that nearly half of banks’ qualifying deposits are warehoused with the central bank at any given time. While these sums may not, therefore, be available to build bubbles in the foreign exchange and equity markets, they are not likewise available for lending. Even if we argue that long-term lending ought properly to be funded by equity, banks and not shareholders should bear the burden of financing businesses’ working capital needs. Then, there is the small matter of how the CBN’s cash reserve requirement might be just as orphaned as its policy rate.

Banks raising naira deposits end up paying the CRR tax. In an economy that has witnessed considerable dollarisation — “the process where a country uses a foreign currency (most often the greenback) alongside or completely in place of its own domestic currency” over the years, does it matter that deposits into domiciliary accounts are not CRR compliant? And how?

Might the “dollarisation” phenomenon hold the key to the CBN’s toolkit’s redundancies? Countries formally adopt the dollar in place of their domestic currencies when locals lose faith in the latter. This process restores the stability that struggling economies often find unable to achieve with their currencies and drives investment inflows.

 Nigeria’s dollarisation is only partial and barely adjacent. Yet, while the country may not have lost the gains — seigniorage — from printing its own currency that is one consequence of dollarisation, the CBN looks to have partially lost control of the monetary policy space, with the sums that Nigerians increasingly park in their dollar accounts.

There are, thankfully, many ways to regain this control without having to nationalise dollar deposits. Neither the CBN nor the government can talk their way out of this, though. You cannot tell Nigerians to keep their savings in naira while offering them a savings rate below inflation. The smart choice in this circumstance is for domestic economic actors to move their savings into dollars, property, equities, commodities, inventory, or other assets.

 Giving Nigerians a reason to save in naira should thus be the central goal of a policy reset. How to do this? We have got to keep inflation low. At 30% year-on-year a while back, the CPI numbers were an outrage. At a little over 15 percent today, it is still doing great injury to the naira. N100 today has roughly the purchasing power of only ₦50 after five years. The solution here goes beyond the CBN setting a credible, explicit medium-term inflation target.

 It also transcends the CBN laying out incentive structures that make deviations from this target costly both politically and institutionally. More than this, the national commitment to the CBN not financing fiscal deficits must be religious and total. While this means that monetary policy is no longer subordinate to the federal government’s financing requirements, it must aim at positive real interest rates for savers.

Still a spectre haunts monetary policy in Nigeria. It is unfortunately not in the CBN’s gift to exorcise the nightmare that the federal government’s financing requirements have become.

How do we persuade our public sector boffins that a government that persistently spends more than it can sustainably pay for creates pressure for any of higher taxation, additional borrowing, monetary accommodation, inflation, or the naira’s depreciation? If the naira is only as strong as Nigeria’s balance sheet, then the task of getting both the fiscal and monetary authorities to operate under a common nominal inflation anchor must begin with reducing recurrent expenditure, broadening the tax base instead of increasing the tax rate, returning off-budget borrowing back to the budget, publishing complete fiscal accounts, improving the quality of public investment, establishing a credible medium-term strategy, and ceasing to use the CBN as a piggy bank.

Hopefully, this should help the economy produce more tradable goods and services. Because the naira represents a claim on the economy by anyone holding it, we cannot permanently defend the currency’s exchange rate through interest rates and reserves, if the economy continually uses up more foreign exchange than it earns. In other words, then, the economy must work for the naira to work.

Uddin Ifeanyi, a journalist manqué and retired civil servant, can be reached @IfeanyiUddin.

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OPINION

Nigerian Disability; We Sold the Well, Charged for and Withheld the Water

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By Prince Charles Dickson Ph.D

There is an old story about a lawyer who sold his well to a teacher, then returned demanding payment for the water inside it. The teacher smiled. If the water still belonged to the lawyer, he replied, perhaps the lawyer should remove it or pay rent for storing it in somebody else’s well.

Suddenly, the lawyer remembered he had only been joking.

It is funny until we recognise ourselves as lawyers.

We tell people with disabilities that public spaces belong to everyone. Then we demand an additional price for entering them.

We give them citizenship, but charge for the ramp. We promise education, but make the classroom unreachable. We proclaim equal opportunity, then construct the doorway too narrow for their wheelchair.

That contradiction came home to me when Grace shared her story with me, she titled Public Place Accessible Report for Inclusion. It contained no sentimental appeal. It simply insisted that public places should allow everyone to enter, move, communicate, receive services and participate independently, safely and with dignity.

I listened to it in her voice once as a report. Then, I read it again as an indictment.

Behind every line was somebody’s ordinary day made unnecessarily difficult. A mother arrives at a hospital, already frightened for her child, discovering that the entrance has steps but no ramp. A young man preparing carefully for an interview, only to find his opportunity waiting upstairs without a lift. An older woman confronting a pavement that has forgotten her legs cannot move as quickly as they once did.

These are imagined scenes, but the barriers Grace identified are painfully real. Poorly enforced building standards. Toilets that exclude. Transport that humiliates. Signs people cannot read. Public information people cannot hear. Facilities built without consulting those who will need to use them.

Grace’s intervention mattered because she did not reduce accessibility to a construction problem. Her story and experience understood something profound: every inaccessible entrance is also a message. Sometimes it says, “We did not think of you.” Sometimes, more cruelly, it says, “We thought of you, but you were not worth the expense.”

What does that message do to a child’s heart?

Imagine a girl with cerebral palsy watching other children rush into a school assembly while she waits outside for someone to carry her over the steps. Imagine her learning, year after year, that she must be grateful for help rather than entitled to access. Imagine how quietly a society can teach someone to apologise for existing.

On 3 October 2026, at GlowingStar Empowerment Initiative and Development’s World Cerebral Palsy Day commemoration in Bukuru, I delivered a keynote titled Beyond Therapy: Seeing the Whole Person, Not Just the Condition. Its central argument was simple: a person has cerebral palsy; cerebral palsy does not have the person.

A diagnosis is information, not identity. Therapy is necessary, valuable and sometimes life changing. But therapy is supposed to be a bridge into life, not the whole landscape of living. Beyond treatment are friendships, classrooms, jobs, ambitions, relationships, leadership, laughter, choices and dreams that deserve room to breathe.

We can celebrate a child’s progress in therapy while failing that same child at the school gate. We can praise a parent’s devotion while exhausting that parent with inaccessible transport, expensive care and the endless labour of explaining why their child deserves a chance. We can call ourselves compassionate while our architecture remains indifferent. At the commemoration, parents spoke of stigma, costly therapy and limited support. Their courage was unmistakable, but courage should not be the currency families must spend to secure ordinary human rights.

That was why I argued that admission is not inclusion. Allowing a child through the gate means little if the classroom, teaching methods, toilet, playground or attitudes inside still tell that child to remain on the margins.

And communication must never be confused with intelligence. When someone speaks differently or needs more time, our responsibility is neither impatience nor pity. Ask. Then wait. Listen without finishing their sentences. A human voice does not lose its authority because it travels by an unfamiliar route.

I returned to Grace’s story and noticed how practical her demands were: sensible ramps and handrails, usable toilets, safe pathways, accessible transport, clear signage, Braille, captions, audio information and regular audits. It called for architects, officials and contractors to understand universal design, and for people with disabilities themselves to help plan and evaluate the spaces they use.

Nothing about us without us. That principle is not a decorative language for conferences. It is what stops a well-meaning official from installing a ramp that is too steep, or declaring a school inclusive without asking the students to navigate its corridors.

Nigeria has legal commitments against disability discrimination. Yet a law that cannot travel from the statute book to a bus stop, hospital, workplace or classroom remains a promise stranded on paper. Rights should not require influential relatives, public sympathy or a viral photograph before anyone honours them.

Sometimes, as I said in that keynote, society needs therapy. Our buildings need rehabilitation. Our policies need rehabilitation. Our assumptions, professional habits and careless language need rehabilitation. We must stop asking only how a person can adapt to a hostile environment and begin asking why we made that environment hostile.

I keep thinking about Grace, my newfound friend. As she shared recommendations, their moral weight was larger than the suggestions itself. She reminded me that inclusion often begins when someone refuses to look away from what everyone else has learned to step over. It begins with the uncomfortable decision to measure progress not by the elegance of our speeches, but by who can actually enter the room.

The lawyer in the story wanted to sell the well while keeping its water hostage. Too often, our society offers people with disabilities belonging without access, opportunity without accommodation, dignity without choice. Then it calls every concession generosity.

But the water was never ours to withhold.

Every child deserves more than survival. Every caregiver deserves more than exhaustion. Every adult with a disability deserves the freedom to work, love, contribute and belong without performing gratitude for rights already theirs. The purpose of inclusion is not to make people feel fortunate to be tolerated. It is to build a country where nobody must beg to be considered human.

So, Grace, thank you for disturbing our comfort with something as unromantic, and as revolutionary, as sharing your story with me. May we answer it with budgets, redesigned spaces, enforced standards and genuine listening. May the next child approaching a public doorway find no argument waiting there, only an opening.

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