Market News
Hunger worsens, hopes wane - THE SUN
…2 years after increased FAAC allocations to FG, states
N18.57trn shared in 1year under Tinubu
From Adanna Nnamani, Abuja
With no sugar-coated words, President Bola Tinubu had summarily announced the end of petrol subsidy during his inaugural speech on May 29, 2023.
His simple and firm message was that Nigeria could no longer afford to fund a policy that costs trillions of naira annually while yielding minimal developmental returns.
What followed was swift and sweeping. The downstream petroleum sector was deregulated, fuel prices tripled, and inflation surged.
But in return, the Federal Government pledged to redirect the savings into infrastructure, education, health, and, most critically into the hands of sub-national governments.
Today, two years on, the numbers show that statutory allocations to states have ballooned. But has the money made any difference? It is mixed feelings in the states.
Data from the Federation Account Allocation Committee (FAAC) show that total monthly disbursements to states jumped significantly after the subsidy removal.
For context, in the last two years of President Muhammadu Buhari’s administration (2021–2023), average monthly allocations to the 36 states hovered around N590 billion.
Under President Tinubu (2023–2025) monthly allocations have averaged over N900 billion, with some months exceeding N1 trillion, especially after the removal of petrol subsidies and unification of exchange rates.
States like Lagos, Rivers, Delta, Akwa Ibom, and Bayelsa, already top earners, received even more due to their oil-producing status.
