FG Disburses N2.45tn to States for Infrastructure, Security
The Federal Government has disbursed a total of N2.45 trillion to state governments and the Federal Capital Territory to support infrastructure development and security operations, official records from the Office of the Accountant-General of the Federation (OAGF) have revealed.
The intervention funds, released between March 2024 and August 2025, span a 17-month period and form part of the Federal Government’s broader fiscal strategy to address Nigeria’s deepening infrastructure deficit and rising insecurity at the subnational level.
Internal OAGF documents submitted to the Federal Accounts Allocation Committee (FAAC) meeting in December 2025 indicate that the funds were drawn entirely from non-oil revenue savings, highlighting a shift towards alternative revenue sources amid volatile oil earnings.
FG Disburses N2.45tn to States for Infrastructure, Security
According to the document titled “Ledger of Savings on Intervention to States Infrastructure and Security”, the Federal Government received and disbursed exactly N2.45tn within the period, leaving a zero balance as of August 25, 2025.
However, the records did not specify how much each state received individually, nor whether the funds were separate from regular monthly FAAC allocations.
The data show that N1.184tn was disbursed in 2024 through four major transactions. These included payments of N259bn in April, N222bn in May, N370bn in September, and N333bn in December, reflecting uneven but substantial intervention releases throughout the year.
In 2025, total disbursements increased to N1.266tn, spread across six payment windows in February (N216bn), April (N200bn), May (N250bn), June (N250bn), July (N250bn), and August (N100bn).
The pattern underscores a sustained commitment by the Federal Government to maintain financial support for states amid fiscal pressures.
Each transaction was recorded as a “Payment for Intervention to States and FCT”, while corresponding inflows were labelled “Transfer from Non-Oil Savings”, suggesting a structured mechanism for channeling surplus revenues into targeted interventions.
The intervention programme traces its roots to July 20, 2023, when President Bola Tinubu approved the establishment of the Infrastructure Support Fund (ISF) for the 36 states following the removal of petrol subsidies.
The policy was designed to cushion the economic shock of subsidy removal while accelerating critical development projects nationwide.
At the time, the President’s former Special Adviser on Special Duties, Communications and Strategy, Dele Alake, said the fund would enable states to invest in priority sectors such as transportation, agriculture, healthcare, education, power, and water resources.
He added that a portion of monthly distributable revenue would be saved to limit inflationary pressures linked to subsidy removal and exchange rate reforms.
A closer examination of the OAGF records reveals fluctuations in monthly savings and payouts. In March 2024, for instance, the Federal Government saved N300bn without making any disbursement. This was followed by a N259bn payout in April, despite inflows of just N100bn during that period.
Similar patterns persisted through mid-2024, with intermittent savings of N100bn and delayed disbursements, before a sharp intervention spike in September 2024, when N370bn was released to states.
By late 2024 and throughout 2025, inflows and disbursements became more closely aligned, suggesting improved coordination between savings accumulation and intervention releases.
Despite the scale of the intervention, concerns over transparency and impact remain. The Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), Auwal Rafsanjani, has criticised both federal and state authorities over what he described as the poor utilisation of funds meant for infrastructure and security.
Rafsanjani argued that the persistent insecurity and infrastructure decay across the country raise serious questions about how the funds are being spent. He warned that growing political focus on the 2027 general elections could further undermine accountability and people-oriented development.
Beyond these intervention payments, the Federal Government continues to approve large-scale infrastructure projects, including a N1 trillion Metropolitan Rail Service for Kano State, aimed at improving urban mobility and stimulating economic activity.
Kano State Governor Abba Yusuf said the project would provide an affordable mass transit system linking major districts within the metropolis.
While the disbursement of N2.45tn underscores the Federal Government’s fiscal commitment to subnational development, analysts insist that measurable outcomes, transparency, and accountability will ultimately determine whether the intervention delivers tangible benefits to Nigerians.
