Between March 2024 and May 2025, the Federal Government of Nigeria disbursed a total of ₦1.6 trillion to state governments and the Federal Capital Territory (FCT) for infrastructure development and security enhancement. The disbursements were made through a special intervention programme funded from non-oil revenue savings, according to records from the Office of the Accountant-General of the Federation (OAGF).
These figures were captured in documents presented at the May 2025 Federation Account Allocation Committee (FAAC) meeting. The funds were intended to support subnational governments in addressing infrastructure gaps and tackling security challenges across the country.
During the May 2025 FAAC meeting, a total of ₦1.659 trillion was distributed among federal, state, and local governments. This figure represented a ₦22 billion decline from the ₦1.681 trillion shared in April.
The intervention fund originated from non-oil revenue savings, which accumulated ₦1.7 trillion over the 15-month period. Of this amount, ₦1.6 trillion was disbursed to the states and FCT, leaving a balance of ₦100 billion in the intervention account as of May 16, 2025. However, the breakdown by state or whether these funds were part of regular monthly allocations was not disclosed.
Payments were documented as “Payment for Intervention to States and FCT” with inflows recorded as “Transfer from Non-Oil Savings.” A total of 21 separate payments were made, with a peak disbursement of ₦222 billion recorded in May 2024.
The first disbursement of ₦200 billion occurred on March 20, 2024, covering allocations for January and February. Subsequent payments of ₦100 billion or more were made almost monthly, with notable regularity from April through November 2024. Gaps in December 2024 and January 2025 suggest either pauses or delayed transfers.
In July 2023, President Bola Ahmed Tinubu approved the creation of the Infrastructure Support Fund (ISF) to help states cope with the economic impact of fuel subsidy removal. The fund was intended to support projects in transport, agriculture, healthcare, education, power, and water infrastructure, all aimed at improving Nigeria’s competitiveness and boosting livelihoods.
The programme was also designed to stabilize the economy by mitigating the inflationary effects of increased revenue from subsidy reforms and exchange rate harmonization. Part of the policy included saving a portion of distributable proceeds to reduce monetary pressures and inflation.
Despite the scale of the intervention, concerns have emerged about the actual utilization of the ₦1.6 trillion. Civil society groups have criticized both federal and state governments over transparency and the lack of visible impact from the spending.
Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), expressed strong reservations about the effectiveness of the fund. In an interview, he stated that the disbursed funds had not translated into noticeable improvements in infrastructure or public services, citing persistent insecurity and deteriorating living conditions.
He argued that the absence of accountability, alongside political distractions ahead of the 2027 elections, had undermined the fund’s purpose. Rafsanjani described the current state of governance as one marked by “financial recklessness” and “collapse of responsible governance.”
He further stressed that the failure to publicly track how states utilized the intervention fund reflects systemic governance challenges. According to him, “If this money was judiciously spent, we would have seen results; better infrastructure, improved security, and quality services in education and healthcare.”
As of May 2025, the federal government had disbursed ₦1.6 trillion of the ₦1.7 trillion non-oil savings, maintaining a balance of ₦100 billion. Yet, doubts remain over whether the states effectively deployed these funds toward the intended development goals.
