Recent data from the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) reveals that Nigeria’s three tiers of government have received approximately N118.8 trillion since 2023, comprising N53.3 trillion from the Federation Account Allocation Committee (FAAC) and around N65.5 trillion from independent revenues. Expectations suggest that total revenues may reach N150 trillion by the year’s end.
The findings indicate a marked increase in revenue, with monthly FAAC distributions averaging N2.083 trillion in the first five months of 2026, a significant rise from N758 billion monthly in 2022. This growth has been attributed largely to government reforms, including the removal of fuel subsidies and the liberalization of the foreign exchange market.
However, despite this surge in funding, many governments are falling short of fulfilling financial commitments, including overdue payments to contractors and pension obligations. Protests from contractors have become common, highlighting frustrations over unpaid debts. Current reports indicate that only a fraction of expected payments have been made, sparking concerns over transparency and accountability in public spending.
Civil society organizations have voiced their discontent, pointing out that the increase in revenue has not translated into substantial improvements in infrastructure or public services. Experts emphasize the necessity for better management of financial resources, underscoring the weak accountability framework at state and local levels. They argue that the lack of accessible budget information hampers public scrutiny and engagement.
Activists stress the importance of citizen participation in governance, advocating for increased awareness and demands for accountability from elected officials. Transparency in revenue allocation and public spending is paramount to ensure that the benefits of increased revenue reach the populace effectively.
As Nigeria grapples with these fiscal challenges, the need for an outcome-driven approach to public spending becomes increasingly urgent.
