News
26 States Depend on FAAC as Wage Bills Exceed IGR
At least 26 Nigerian states were unable to generate enough Internally Generated Revenue (IGR) to cover their personnel expenditure in 2025, highlighting the continued dependence of many state governments on allocations from the Federation Account.
An analysis of a 2026 BudgIT report showed that only eight of the 34 states covered by the study generated more IGR than they spent on personnel during the year.
The eight states were Lagos, Enugu, Ogun, Delta, Kaduna, Kwara, Abia and Anambra.
The remaining 26 states collectively generated about ₦1.16 trillion in IGR but spent approximately ₦1.91 trillion on personnel, leaving a shortfall of about ₦747 billion.
The figures were contained in BudgIT’s 2026 report, Nigeria’s Economic Reforms: What Has Changed Across Nigeria’s States? An Analysis of State Finances in the Post-Subsidy Years.
The report examined actual figures contained in states’ full-year budget implementation reports for 2022 and 2025. Akwa Ibom and Rivers states were excluded because of incomplete or unavailable data.
BudgIT clarified that the figures do not suggest that states are expected to finance salaries exclusively from internally generated revenue, since statutory allocations are a legitimate source of government income. However, the data illustrate the extent to which several states would struggle to meet their personnel obligations without federal transfers.
Dependence on federal allocations rises
The growing dependence on federal transfers has continued despite a significant increase in revenues available to state governments following the removal of the petrol subsidy, foreign exchange reforms and increased receipts into the Federation Account.
According to BudgIT, aggregate FAAC allocations to states rose from ₦3.43 trillion in 2022 to ₦11.38 trillion in 2025, representing a 232.06 per cent increase.
State IGR also increased substantially, rising from ₦1.57 trillion to ₦4.15 trillion during the same period.
However, the growth in FAAC allocations outpaced the increase in IGR. As a result, FAAC accounted for 73.3 per cent of aggregate state revenue in 2025, compared with 68.7 per cent in 2022.
Conversely, the contribution of IGR declined from 31.4 per cent to 26.7 per cent over the same period.
BudgIT said stronger domestic revenue mobilisation would be essential to improving the long-term fiscal sustainability of state governments and reducing their dependence on federal transfers.
Yobe records widest personnel-to-IGR disparity
The state-by-state figures revealed significant differences in the ability of states to finance personnel costs from internally generated revenue.
Yobe recorded one of the widest gaps, generating only ₦15.42 billion in IGR in 2025 while spending ₦76.34 billion on personnel. Its personnel expenditure was therefore almost five times its IGR.
Taraba generated ₦17.89 billion against personnel expenditure of ₦55.60 billion, while Sokoto recorded IGR of ₦20.58 billion against personnel costs of ₦58.65 billion.
Adamawa generated ₦24.14 billion internally but spent ₦65.73 billion on personnel.
Jigawa’s personnel expenditure stood at ₦92.66 billion, compared with IGR of ₦35.27 billion, while Benue generated ₦29.38 billion but spent ₦73.94 billion on personnel.
Kogi generated ₦36.50 billion against personnel expenditure of ₦89.20 billion, while Kebbi recorded IGR of ₦18.41 billion, less than half of its ₦44.82 billion personnel expenditure.
Other states where personnel costs exceeded IGR included Bauchi, Bayelsa, Borno, Cross River, Ebonyi, Edo, Ekiti, Gombe, Imo, Kano, Katsina, Nasarawa, Niger, Ondo, Osun, Oyo, Plateau and Zamfara.
Oyo records largest absolute gap
In absolute terms, Oyo recorded the largest gap among the 26 states.
The state generated ₦102.52 billion in IGR but spent ₦170.04 billion on personnel, leaving a shortfall of approximately ₦67.51 billion.
Yobe followed with a gap of about ₦60.91 billion, while Jigawa recorded a shortfall of ₦57.39 billion.
Ondo generated ₦45.63 billion but spent ₦99.58 billion on personnel, creating a gap of ₦53.94 billion.
Kogi recorded a difference of ₦52.70 billion, while Bayelsa generated ₦52.15 billion against personnel expenditure of ₦98.75 billion, leaving a gap of ₦46.60 billion.
Some states, however, came close to covering their personnel costs through IGR.
Edo generated ₦98.45 billion and spent ₦99.27 billion on personnel, leaving a gap of less than ₦1 billion.
Gombe generated ₦36.36 billion compared with personnel expenditure of ₦53.95 billion, while Osun recorded ₦58.80 billion in IGR against personnel costs of ₦87.46 billion.
Slight improvement from 2022
The situation represented a modest improvement from 2022, when 28 of the 34 states covered by the report had personnel expenditure exceeding their IGR.
Abia, Delta, Enugu and Kwara moved from having IGR below personnel expenditure in 2022 to generating enough revenue to cover their personnel costs in 2025.
However, Ebonyi and Jigawa moved in the opposite direction.
Lagos and Enugu drive aggregate figures
The data also showed the enormous influence of Lagos on the overall IGR figures.
Lagos generated ₦1.85 trillion in IGR in 2025, up from ₦656.35 billion in 2022. Its revenue accounted for about 44 per cent of the ₦4.15 trillion generated by the 34 states covered by the report.
The state spent ₦333.67 billion on personnel, meaning its IGR was more than five times its personnel expenditure.
Enugu generated ₦406.77 billion compared with personnel expenditure of ₦56.40 billion, while Ogun recorded IGR of ₦237.65 billion against personnel costs of ₦151.27 billion.
Delta generated ₦206.44 billion in IGR and spent ₦197.81 billion on personnel.
Other states whose IGR exceeded personnel expenditure were Kaduna, with ₦86.72 billion in IGR against ₦77.63 billion in personnel costs; Kwara, ₦85.21 billion against ₦65.22 billion; Abia, ₦66.86 billion against ₦62.26 billion; and Anambra, ₦54.24 billion against ₦39.95 billion.
Excluding Lagos, the remaining 33 states generated about ₦2.30 trillion in IGR in 2025, while their combined personnel expenditure stood at roughly ₦2.56 trillion.
Enugu records dramatic IGR increase
Enugu recorded the most significant increase in IGR during the period, rising from ₦25.12 billion in 2022 to ₦406.77 billion in 2025.
The increase of approximately ₦381.66 billion represented a compound annual growth rate of 153.01 per cent.
BudgIT, however, noted that much of the increase was linked to proceeds collected by the Enugu State Housing Development Corporation following the state government’s intervention in the landed property market.
The organisation expressed reservations about the classification of the receipts and warned about their potentially cyclical nature.
Niger recorded the second-fastest IGR growth, with collections increasing from ₦12.11 billion to ₦66.37 billion, while Abia’s IGR rose from ₦14.67 billion to ₦66.86 billion.
Not all states recorded growth. Jigawa experienced the sharpest decline, with IGR falling from ₦59.40 billion in 2022 to ₦35.27 billion in 2025.
Sokoto’s IGR dropped from ₦23.60 billion to ₦20.58 billion, while Ebonyi recorded a marginal decline from ₦23.89 billion to ₦23.25 billion.
Jigawa’s situation was particularly concerning because its personnel expenditure increased from ₦52.37 billion to ₦92.66 billion during the same period, even as its IGR declined.
FG urges states to increase revenue
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, recently called for stronger fiscal federalism, improved revenue generation and economic diversification.
Speaking at the 2026 National Council on Finance and Economic Development Retreat in Owerri, Imo State, Oyedele urged stakeholders to review existing allocation and derivation principles while promoting greater fiscal responsibility and accountability among the three tiers of government.
He also urged state governments to improve their IGR, attract investments and create jobs rather than rely heavily on federal allocations.
Imo State Governor Hope Uzodimma, represented at the event by his deputy, Chinyere Ekomaru, said states must be empowered to generate more revenue and efficiently manage available resources.
Economist and former Vice-Chancellor of the University of Uyo, Prof. Akpan Ekpo, also called on states to explore new ways of increasing IGR, particularly by improving service delivery and creating conditions capable of attracting more revenue.
Similarly, Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, warned that many states remained financially unsustainable and could face serious fiscal challenges without increased investment.
He also urged governors to address bloated bureaucracies, excessive overheads and the large number of political appointees on state payrolls.
The findings underline the growing need for Nigerian states to strengthen their internally generated revenue, attract private investment and control recurrent expenditure if they are to reduce their dependence on federal allocations.
“If You Have Evidence Against Stanley Mbam, Charge Him; Otherwise, Release Him” — Oganiru Izzi
A socio-cultural organisation of Izzi extraction, Oganiru Izzi, has challenged Ebonyi State Governor, Chief Francis Ogbonna Nwifuru, to either release the state’s sacked Commissioner for Works, Mr Stanley Mbam, or charge him before a competent court if the government has credible evidence of wrongdoing against him.
The group said the continued detention of the former commissioner without a formal charge raises concerns about due process, constitutional rights and the rule of law.
The leader of Oganiru Izzi, Mr Godwin Mbam, made the demand while speaking with correspondents of National Issue Newspapers at the Crack Department of the Ebonyi State Police Command in Abakaliki.
Mbam condemned what he described as the prolonged detention of Stanley Mbam without allowing a court to determine whether he had committed any offence.
He challenged the state government to produce evidence if it believes the former commissioner committed a criminal offence.
“If there is credible evidence against him, charge him to court and let the court decide. If there is no case against him, he should be released,” Mbam said.
He also appealed to the Ebonyi State Police Command to uphold the Constitution and resist any pressure that could result in unlawful detention.
Vanco Flyover: “We Will Reveal the Full Details”
Mbam also issued a three-day challenge to Governor Nwifuru, declaring that if the former commissioner was not released or charged to court, his organisation would make public what it described as the “full details” of the Vanco Flyover project.
According to him, the proposed disclosure would address issues surrounding the project, including its funding, payments, contractual arrangements and other financial details.
“We will let the world know the full details of the Vanco Flyover and how the funds were utilised,” he warned.
He further challenged the state government to demonstrate transparency by making relevant documents concerning the project available to the public.
“What About the Alleged ₦1.5 Billion Forfeiture?”
The Izzi group also questioned what it described as the selective application of the state government’s anti-corruption campaign.
Mbam referred to allegations involving an account reportedly frozen by the Economic and Financial Crimes Commission (EFCC) and an alleged ₦1.5 billion forfeiture to the Federal Government.
He questioned why, according to him, the governor had allegedly not taken similar action if the facts surrounding the matter warranted it.
Mbam stressed that he was not opposed to the fight against corruption but insisted that any anti-corruption campaign must be comprehensive, transparent and applied equally.
“If Governor Nwifuru wants to fight corruption, let him fight it holistically. Nobody should be targeted while other serious allegations are ignored,” he said.
“If Nwifuru Says He Knows Nothing, We Will Produce the Facts”
Mbam further challenged Governor Nwifuru to publicly state whether he was aware of alleged corruption issues within the Ministry of Works.
“If Nwifuru publicly claims that he is unaware of corruption in the Works Ministry, I will make public the facts available to me. The facts will shock the state,” he declared.
He insisted that the matter should not degenerate into a political vendetta, arguing that the appropriate place to determine criminal liability is a court of law.
According to him, the people of Ebonyi State deserve clear answers concerning the Vanco Flyover and other issues involving public funds.
“Everybody Should Be Subject to the Law”
The Oganiru Izzi leader maintained that the controversy should be resolved through transparency, documentary evidence and due process.
“If there is a case, charge him. If there is no case, release him. The government cannot claim to be fighting corruption while abandoning the principles of justice and the rule of law,” he said.
Mbam warned that failure to address the issues could compel the organisation to make further disclosures concerning the Vanco Flyover and other matters it considers to be in the public interest.
By Our Correspondent
As Nigeria celebrates its 66th Independence Anniversary, the candidate for the House of Representatives seat representing the Ezza South/Ikwo Federal Constituency, Hon. Chief Kevin Tobias Chukwu, has called on Nigerians to remain hopeful and committed to building a better country.
Chukwu, also known as Ochiri Ozua 1 of Amagu Ikwo, made the call in an Independence Day message to Nigerians, particularly the people of Ezza South/Ikwo Federal Constituency and Ebonyi State.
He described the anniversary as not only a moment for celebration but also an opportunity to reflect on the state of the nation and the responsibilities of leaders in building a Nigeria that meets the aspirations of its citizens.
According to him, Nigeria’s journey since independence has been marked by significant challenges, with millions of citizens currently facing economic hardship, while young people continue to search for opportunities and many communities contend with insecurity and uncertainty.
Despite these challenges, the Ebonyi politician said the resilience of Nigerians remained a source of hope for the country’s future.
“I believe in the resilience of our people. I believe in the ingenuity of our youths, the strength of our women, the wisdom of our elders and the determination of ordinary Nigerians who wake up every morning and refuse to give up on this country,” he said.
Chukwu, however, stressed that hope must be matched by responsible leadership, arguing that public office should be viewed as a responsibility rather than a privilege.
He called for leadership that prioritises the protection of lives, creation of economic opportunities, provision of infrastructure, strengthening of institutions and responsible management of national resources.
The candidate also emphasised the need to create an environment where young Nigerians can pursue successful lives within the country and where hard work, merit and enterprise are rewarded.
He said Nigeria had “come too far to surrender to hopelessness,” urging citizens and leaders alike to remain committed to the country’s progress.
“A better Nigeria is still possible, but it will require responsible leadership, accountable institutions and citizens who refuse to give up on their country,” he said.
Chukwu concluded by expressing optimism about Nigeria’s future, declaring: “Nigeria will rise. Nigeria must rise. And together, we must build the Nigeria we deserve.”
He also paid tribute to the nation’s past heroes, praying that their sacrifices would continue to inspire the country.
“May the labour of our heroes past never be in vain,” he said, as he wished Nigerians a happy 66th Independence Anniversary.
By Okey Maduforo, Awka
As Nigeria celebrates its 66th anniversary of independence from colonial rule, democracy in the country has continued to evolve and deepen, the Anambra State Chairman of the All Progressives Congress (APC), Senator Emma Anosike, has said.
Anosike made the observation in a message to mark Nigeria’s Independence anniversary, noting that despite the challenges the country had encountered since 1960, its democratic system had continued to improve under successive administrations.
According to him, since the return to democratic rule in 1999, Nigeria has witnessed relatively smooth transitions from one administration to another, while citizens have continued to exercise their fundamental rights to hold governments accountable for their performance.
“Before the return of the democratic process, it was indeed difficult and near taboo to challenge the leadership of the country, and those who may have attempted it in the past faced grave consequences.
“Similarly, we have had smooth transitions from one dispensation to another, producing five presidents through the ballot and not through the barrel of the gun. These elected presidents were produced by different political parties.”
Anosike said the administration of President Bola Ahmed Tinubu had sustained the country’s democratic principles and created an avenue for Nigerians, irrespective of tribe, race or religion, to express their views on government policies and programmes.
“Under the stewardship of President Bola Ahmed Tinubu, Nigerians have been enjoying the freedom to express themselves over issues, policies and programmes of government, and those expressions have been shaping and guiding the administration of Mr President,” he said.
The APC chairman said Nigeria’s 66th independence anniversary provided an opportunity for citizens to reflect on the country’s journey as a nation and the progress made since independence.
He said President Tinubu’s Independence Day broadcast had offered another opportunity for Nigerians to renew their hope for a greater and more prosperous country.
Anosike also commended what he described as the “enormous infrastructural development” taking place across the country under the Tinubu administration.
He urged Nigerians to continue to support and have faith in the administration as the country approaches the 2027 general elections.
An Elder Statesman, Chief Hycienth Ngwu, has called on political leaders and policies formulators to ensure governmental policies and programmes directly touch lives of the people and reduce hardship in the country.
Ngwu, who is a prominent community leader in Enugu, urged Nigerians to maintain peace within neighbourhoods and communities, as no meaningful development can take place without peace.
The statesman made the call on Thursday in Enugu while reacting to the developmental efforts of Nigeria at its 66th Independence.
He said that previous and present administrations had put in place policies and programmes to reset the socioeconomic fabric of the nation.
Ngwu said that while the removal of fuel subsidy, and unification of the foreign exchange had good intentions, their impact is yet to reflect on the lives and livelihoods of vast majority of Nigerians.
He urged leaders to ensure that public resources were properly managed while citizens remained patient with reforms aimed at improving the socioeconomic status of the country.
The elder statesman noted that at 66th independence, the country was still struggling on keeping its peace and co-existence as a country; adding that the founding leaders of Nigeria envisaged a closely united, bonded and peaceful country.
He called for return to policies that promote local production, indigenous industries and entrepreneurship, arguing that excessive dependence on imports had continued to weaken the country’s productive capacity.
According to him, we are yet to achieve economic independence even as we needed to do more on non oil revenue earns as the greater part of the world is moving towards greener and clean energy.
“Greater emphasis should be on skills acquisition, creativity and entrepreneurship education system, as academic qualifications without practical skills could leave graduates dependent on scarce white collar jobs.
“We ought to be economically productive nation capable of producing and exporting goods while developing its human capital,” he said.
Ngwu noted that current insecurity and social instability could be partly attributed to poverty and ignorance, while calling for greater honesty and trust between leaders and citizens.
“Corruption, tribalism and selfishness must be addressed if Nigeria is to achieve peace and lasting progress,” he added.
He also called for the scrapping of state electoral commissions as they have not helped in deepening democracy at that level. The National Election body should take over that responsibility.
As Nigeria marks its 66th Independence Day, Macmaduson Concepts Limited, a leading provider of HVACR,industrial parts, sensors, electrical and plumbing materials, has extended warm Independence Day greetings to its customers, clients and business partners across the country.
In a goodwill message to mark the occasion, the company expressed appreciation to its valued customers for their continuous support, trust and partnership over the years.
Macmaduson Concepts Limited, which specialises in HVACR,Industrial Materials, sensors, air-conditioners, refrigerators, cold rooms, chillers, refrigerants, electrical materials and plumbing materials, said the occasion provides an opportunity to celebrate Nigeria and reflect on the nation’s journey.
The company wished Nigeria continued growth, unity, peace and prosperity, while expressing hope for a brighter future for all Nigerians.
The message from the company reads in part:
At Macmaduson Concepts Limited, we celebrate our great nation, Nigeria, and appreciate our valued clients for their continuous support, trust and partnership. May Nigeria continue to grow in unity, peace and prosperity.”
The company concluded its Independence Day message with the theme: “One Nation, One People, A Brighter Tomorrow.”
Happy Independence Day, Nigeria!
Happy 66th Independence Anniversary from Macmaduson Concepts Limited.
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