FG disburses ₦1.6tn to States for infrastructure, security

The Federal Government has reportedly disbursed a total of ₦1.6 trillion to state governments and the Federal Capital Territory between March 2024 and May 2025 as financial support for infrastructure and security-related projects.

This information was revealed in official records from the Office of the Accountant-General of the Federation, obtained during the May 2025 Federal Accounts Allocation Committee meeting.

According to documents, the disbursements were part of a special intervention programme funded through non-oil revenue savings aimed at addressing widespread insecurity and critical infrastructure gaps nationwide.

The intervention was said to have followed a consistent pattern, with monthly payments averaging ₦100 billion, peaking at ₦222 billion in May 2024.

The funds were drawn from a ₦1.7 trillion savings pool generated over 15 months. As at May 2025, ₦1.6 trillion had been distributed, leaving a balance of ₦100 billion.

The initiative was introduced shortly after the removal of petrol subsidy, when President Bola Tinubu approved the creation of an Infrastructure Support Fund (ISF) for states to cushion the economic effects of the subsidy withdrawal.

However, questions have been raised over how effectively the funds have been used. Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre, criticised both the Federal Government and state governors, alleging that the intervention funds have failed to produce tangible results, especially in addressing insecurity and developmental challenges.

Rafsanjani accused political leaders of prioritising personal political interests ahead of the 2027 general elections over responsible governance, stating that public resources were being diverted with little or no accountability.

He further asserted that if the ₦1.6 trillion had been judiciously utilised, Nigerians would have felt the benefits through improved infrastructure, healthcare, education, and security.

His comments reflect growing public concerns about transparency and accountability in the management of public funds, particularly at the state level.

Many citizens have expressed frustration over persistent security challenges and decaying infrastructure across the country despite the huge financial interventions.

The Federal Government, through this intervention programme, sought to ease fiscal pressure on subnational governments and fast-track grassroots development projects.

Yet, as critics observe, the outcome of these funds remains largely invisible in the daily realities of ordinary Nigerians.