News
Big money, small impact: Non-Performing Govs on fire over N9tn FAAC windfall
FAAC allocations to states surged by over N2tn in one year, according to an analysis of Federation Account disbursement data published by the National Bureau of Statistics highlighting the scale of the revenue windfall that flowed to subnational governments in 2025 amid higher federation inflows.
The sharp rise has triggered criticism from organised labour and opposition political parties, with the Nigeria Labour Congress warning that higher allocations have failed to deliver meaningful improvements in citizens’ welfare due to weak governance, misplaced priorities, and corruption at the state level.
Civil society organisations have also faulted state governments, accusing them of mismanaging the inflows and failing to translate increased revenues into visible development outcomes, while calling for stronger accountability and oversight.
Economists, meanwhile, say the surge has expanded states’ fiscal space but caution that heavy dependence on federally shared revenue and poor revenue management continue to undermine sustainable development at the subnational level.
The Federation Account disbursement data show that state governments received a total of N7.315tn from the Federation Account Allocation Committee in 2025, compared with N5.186tn in 2024. The year-on-year increase of roughly N2.13tn represents a jump of about 41 per cent in direct FAAC allocations to states.
When the constitutionally mandated 13 per cent derivation revenue is added, total inflows attributable to states climbed to N8.934tn (about N9tn) in 2025, up from N6.533tn in 2024, a rise of N2.4tn or 36.74 per cent.
This surge came against the backdrop of a sharp expansion in total FAAC distributions. Aggregate allocations to the three tiers of government, including derivation, rose from N15.259tn in 2024 to N21.897tn in 2025.
States therefore captured a substantial share of the overall increase, both in absolute terms and as a proportion of total federation revenues. Without the 13 per cent derivation component, states’ N7.315tn allocation in 2025 accounted for about 33.4 per cent of the N21.897tn total FAAC disbursement for the year, compared with roughly 34.0 per cent in 2024.
When derivation revenue is included, total state-linked receipts of N8.934tn represented about 40.8 per cent of total FAAC disbursements in 2025, down from around 42.8 per cent in 2024, indicating that while inflows grew in nominal terms, their relative share declined as allocations to all tiers expanded.
A closer look at monthly disbursements shows that state allocations improved steadily throughout 2025. States received N498.50bn in January, well above the N396.69bn recorded in January 2024.
Monthly allocations continued to trend higher, peaking at N727.17bn in October before easing to N601.73bn in December. By contrast, only two months in 2024 recorded allocations above N500bn, with the highest monthly figure being N549.79bn in December.
By the end of June 2025, states had already received over N3.32tn, compared with about N2.33tn in the first half of 2024, easing short-term liquidity pressures, particularly for states with heavy wage bills and debt service obligations.
Derivation revenue also played a critical role. In 2025, derivation payments rose to N1.619tn from N1.347tn in 2024, an increase of about N272bn or just over 20 per cent. Monthly derivation inflows were especially strong in September 2025, when oil-producing states shared N183.01bn, compared with N99.47bn in September 2024.
Despite the surge, states did not disproportionately outpace other tiers. Federal Government allocations rose from N4.951tn in 2024 to N7.613tn in 2025, while local government allocations increased from N3.774tn to N5.351tn.
Nevertheless, the impact on states is particularly significant given their responsibility for delivering education, healthcare, and infrastructure. The additional N2.4tn received in 2025 alone is equivalent to nearly half of what states received from FAAC in total in 2024.
The 10th edition of the BudgIT State of States Report, titled ‘A Decade of Subnational Fiscal Analysis: Growth, Decline and Middling Performance’, revealed that over 30 states rely heavily on FAAC allocations.
An executive of BudgIT said on Channels Television’s Politics Today programme, “At least thirty states, excluding Lagos, Ogun, and Enugu, relied on FAAC for more than sixty per cent of their recurrent revenue. Lagos remains an outlier, but Ogun and Enugu also seem to be performing quite well.
“In total, 31 states depended on FAAC for at least 80 per cent of their current revenue, which shows just how challenging the fiscal situation has become for many of them.
“For example, Lagos’s FAAC allocation rose from N4.24bn to N11.38bn, a massive increase that highlights how significant federation account transfers have become within a single fiscal year. Still, credit should go to the states that recorded strong year-on-year growth, as well as those that grew consistently over the ten-year period we reviewed.”
The report added that 29 states relied on FAAC receipts for at least half of their total revenue, 28 relied on it for at least 55 per cent, and 21 relied on it for over 70 per cent.
The BudgIT executives expressed concern that rising FAAC inflows were discouraging states from expanding internally generated revenue. This is “concerning because the more FAAC money states receive, the less incentive some of them have to develop their own internal revenue sources”.
They noted that “the proportion of IGR within total recurrent revenue declined slightly from 25.27 per cent in 2023 to 20.27 per cent in 2024, indicating continued dependence on federal transfers”.
The Managing Director of Optimus by Afrinvest, Dr Ayodeji Ebo, said, “These revenues are volatile and largely outside state control, making budgets vulnerable to oil price shocks. Over time, this approach also discourages ingenuity, as states become dependent on external inflows rather than building durable local revenue sources.”
A development economist and Chief Executive Officer of CSA Advisory, Dr Aliyu Ilias, said subnational governments are creating challenges for the federation through how they manage FAAC allocations.
He suggested “counterpart funding,” where states that increase their IGR receive proportional benefits, warning that without incentives, states would continue to rely heavily on Abuja. Ilias said, “While FAAC allocations are at unprecedented levels, they are not necessarily translating into improved living standards.”
NLC speaks
The country’s biggest labour union said rising FAAC allocations have failed to deliver meaningful benefits to citizens, blaming weak governance, misplaced priorities, and persistent corruption at the state level.
“Very few states are doing well in terms of how they deploy what they receive,” Assistant Secretary-General of the NLC, Onyeka Christopher, said. “The idea behind federal allocations is to bring the government closer to the grassroots, but unfortunately, in many states, this has not translated into the desired results for well-known reasons.”
The NLC added that, “Once people know there are no consequences, they will continue to steal public funds,” warning that kleptocracy continues to undermine development. “For FAAC to truly benefit the people, the issue of kleptocracy must be addressed. What are the EFCC and ICPC doing?” it asked.
By Chinedu Sabastine
ENUGU — Umuchigbo Iji Nike Autonomous Community in Enugu East Local Government Area of Enugu State has fixed Sunday, September 13, 2026, for its annual New Yam Festival.
The cultural celebration, which is scheduled to commence at 3 p.m., is being organised under the leadership of the Executive Chairman of Umuchigbo, Hon. Chief Afam Joseph Ogbene, popularly known as Akirika Chioku 1, Na Nike Kingdom.
The festival is expected to showcase the rich cultural heritage and traditions of the people of Umuchigbo and Umuenwene in Iji Nike Autonomous Community, while promoting unity and communal bonding.
Ogbene, in an invitation to the festival, described the celebration as an opportunity for the people to preserve their cultural heritage, strengthen community ties and give thanks for the year’s harvest.
He said, “Our New Yam Festival is more than a cultural celebration. It is a time for us to come together as one people, appreciate our heritage and give thanks for the blessings of the year.”
According to him, the event will also provide an opportunity for sons and daughters of the community, as well as friends and well-wishers, to reconnect and celebrate together.
“We are inviting everyone to come and celebrate with us. It is a celebration of our culture, our community and thanksgiving for the new yam season,” he added.
According to the invitation, activities will commence at Ogbene’s residence on Akirika Chioku Avenue, Nome Ogba Aniji Road, Umuchigbo, before proceeding to Obodoeze Iji Village Square, Odangene, for the New Yam rites and masquerade display.
The event will also feature traditional cuisine, music and other forms of cultural entertainment.
The organisers urged sons and daughters of Umuchigbo, friends, well-wishers and members of the public to join the community in celebrating the festival.
The Nigerian Army has announced a major reshuffle of senior officers, with several major generals and brigadier generals redeployed to key command, operational and administrative positions.
The changes, approved by the Chief of Army Staff, Lieutenant General Waidi Shaibu, are aimed at strengthening the Army’s operational effectiveness.
Major General IA Ajose has been appointed the new Theatre Commander of the Joint Task Force North East, Operation HADIN KAI. He moves from the Department of Army Operations at Army Headquarters to take charge of military operations against insurgency in the North-East.
Other notable appointments include:
Major General AE Abubakar — Dean, Faculty of Operational Research, Nigerian Army Heritage and Future Centre.
Major General AM Alechenu — Nigerian Army Heritage and Future Centre.
Major General RT Utsaha — Commander, Defence Headquarters Garrison.
Major General AM Umar — Commandant, Army War College Nigeria.
Major General UM Alkali — Director, Department of Civil-Military Affairs.
Major General GS Muhammed — Director General, Nigerian Army Finance Corporation.
Major General JE Osifo — Chairman, Military Pension Board.
Major General IE Ekpenyong — Director of Engineering Services, Defence Logistics, Defence Headquarters.
The reshuffle also affects several brigadier generals, including Brigadier General AA Bello, Brigadier General MS Adamu, Brigadier General MS Sule, Brigadier General I Sule, Brigadier General E Azenda and Brigadier General AS Bugaje, who have all been assigned to new command or administrative roles.
The Chief of Army Staff directed the newly posted officers to carry out their responsibilities with professionalism, dedication and a strong sense of duty.
More than 24 feared dead in suspected poisoning incident in Ondo
More than 24 people have reportedly died following a suspected poisoning incident in Odigbo Local Government Area of Ondo State.
The deaths were recorded in Araromi-Obu, Orita New Town and Odigbo communities, while several other residents affected by the incident are receiving treatment at various hospitals.
The Chairman of Odigbo Local Government Area, Taiwo Adegoroye, confirmed the incident but said he could not provide further details until medical experts conduct a professional assessment and determine the cause of the deaths and illnesses.
As a precaution, the local government has restricted the sale and consumption of sachet herbal concoctions and similar drinks being hawked in the affected communities.
Residents have been advised to avoid suspicious herbal mixtures, unverified sachet products and other substances of uncertain origin pending the outcome of medical examinations and laboratory tests.
Authorities are expected to carry out further investigations to establish the source of the suspected poisoning and confirm the exact cause of the deaths.
By Okey Maduforo, Awka
Residents of Umudimishi Village, Umuoru, in Aguata Local Government Area of Anambra State, have petitioned Governor Chukwuma Soludo over the worsening menace of gully erosion allegedly caused by illegal and unregulated sand mining activities in the community.
The villagers said about 120 buildings are currently threatened by the expanding gully, with some residents already making arrangements to relocate for fear of losing their homes to the erosion.
In the petition addressed to Governor Soludo and copied to the state Ministries of Environment and Works, the villagers alleged that the activities of sand miners posed a serious threat to human lives, property and the continued existence of the community.
The petition, signed by the Chairman of Umudimishi Development Union, Nze Ibeabuchi Umeugochukwu, stated that several homes in the area were located only a few metres from the mining sites and had consequently become vulnerable to erosion.
The villagers said: “Many homesteads in Umudimishi are close to and along the line of mining by few metres and, as a result, stand eroded in the course of this ecological problem fueled by unregulated sand mining.”
They further alleged that the erosion menace was largely triggered by human activities, particularly unregulated sand mining along the Aguata-Orumba axis, where they said the soil structure was highly susceptible to erosion.
According to them, “Erosion menace is being triggered by human factor of unregulated sand mining, especially as it is in Aguata-Orumba Axis where the sand structure is prone to erosion, which is the major environmental hazard in the region.”
The community also claimed that sand mining had become the major source of environmental crises affecting Umudimishi Quarter, Umuoru Village and Uga generally.
Beyond the environmental consequences, the villagers expressed concern that the availability of quick money from sand mining was discouraging youths from learning vocational skills.
They said many youths now preferred sand mining to acquiring skills, while the worsening erosion had also discouraged residents and prospective investors from establishing businesses in the area.
The villagers therefore appealed to Governor Soludo to permanently shut down the mining sites in Umudimishi to prevent further deterioration of the already deplorable environmental situation.
They also urged the governor to direct the appropriate agency of the Anambra State Government to conduct an on-the-spot assessment of the erosion sites and produce a comprehensive report with recommendations on how to tackle the problem and reclaim lands already lost to erosion.
The petitioners said urgent intervention by the state government was necessary to protect lives, homes and the remaining land in the community from further destruction.
News
Major Generals to Receive Up to ₦25.91m Yearly as Tinubu Approves New Military Pension Structure
The Federal Government has approved a new pensionable salary structure for personnel of the Nigerian Army, Nigerian Navy and Nigerian Air Force, effective September 1, 2026.
The approval was communicated in a circular issued on September 3 by the National Salaries, Incomes and Wages Commission.
Under the new structure, the highest-ranking officers—Generals, Admirals and Air Chief Marshals—have annual pensionable salaries ranging from ₦21.9 million to ₦29.75 million, depending on their salary steps. The highest figure is equivalent to about ₦2.48 million monthly when divided by 12.
Other approved pensionable salary ranges include:
Lieutenant Generals, Vice Admirals and Air Marshals: ₦16.99m–₦25.91m annually.
Major Generals, Rear Admirals and Air Vice Marshals: ₦14.98m–₦23.9m.
Brigadier Generals, Commodores and Air Commodores: ₦13.86m–₦16.39m.
Colonels, Captains and Group Captains: ₦8.31m–₦9.49m.
Lieutenant Colonels, Commanders and Wing Commanders: ₦7.55m–₦8.74m.
Majors, Lieutenant Commanders and Squadron Leaders: ₦5.99m–₦7.01m.
Captains, Lieutenants and Flight Lieutenants: ₦5.28m–₦6.42m.
Second Lieutenants, Midshipmen and Pilot Officers: ₦4.92m–₦5.59m.
The new schedule also covers non-commissioned personnel. Warrant Officers have pensionable salaries ranging from ₦4.53 million to ₦5.17 million annually, while Privates, Ordinary Seamen and Aircraftmen fall within the range of ₦2.28 million to ₦2.49 million.
The government, however, clarified that the figures are pensionable salaries used to calculate retirement benefits and should not be interpreted as the actual monthly salaries or take-home pay of serving military personnel.
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