Despite record-high allocations from the Federation Account Allocation Committee (FAAC) since June 2023, many Nigerians say they feel little relief from the nation’s worsening economic hardship. The federal, state, and local governments have collectively shared over ₦41.8 trillion between January 2023 and September 2025 — yet inflation, poverty, and unemployment continue to bite deep.
According to data, allocations rose sharply from ₦8.2 trillion in 2022 to ₦15.26 trillion in 2024, and by September 2025, the figure had reached ₦16.4 trillion. However, economists warn that the apparent windfall is deceptive, as inflation and naira depreciation have eroded the real value of these funds. The removal of fuel subsidies and unification of the exchange rate — reforms that initially boosted revenues — have also triggered severe price hikes.
The economic toll is staggering. Fuel prices now hover between ₦1,000 and ₦1,200 per litre, while inflation peaked at 34.8% in December 2024. Poverty levels have also surged — from 93.8 million Nigerians in 2023 to about 139 million people now living below the poverty line, according to World Bank estimates.
President Bola Tinubu has urged state governors to “wet the ground” by delivering more visible results at the grassroots. Economists like Muda Yusuf, however, caution that while revenue has grown nominally, it has not translated into real wealth. “Nominal growth can be misleading — it creates an illusion that states are getting richer,” Yusuf warned.
Experts such as Dr. Samson Simon and Dele Oye argue that the focus should shift from celebrating higher allocations to improving transparency and efficiency in spending. They point out that despite increased inflows, many states still struggle with poor infrastructure, joblessness, and social instability.
Even with reforms yielding more revenue, Oye insists the economic distress facing citizens calls for sober reflection. He advocates for prudent resource management, reduced borrowing, and verifiable welfare programs that genuinely cushion vulnerable citizens.
While some governors like Ekiti’s Biodun Oyebanji have lauded the federal administration for improving fiscal transparency and funding, analysts maintain that Nigeria’s real progress depends on how effectively these trillions are converted into tangible development.
Until then, the irony remains stark — more money is flowing into government coffers, yet more Nigerians are slipping deeper into poverty.
