
News
Insecurity: Govs disagree on need for regional outfits


Governor Gboyega Oyetola of Osun State, and his colleagues in the South-South, yesterday, disagreed over the need to set up regional security structures to checkmate the rising wave of insecurity in the country.
While Oyetola urged other geo-political zones to emulate the South-West by setting up structures such as Amotekun to rid their regions of crime, insisting that the centralised policing system is not working, chairman of South-South Governors Forum and governor of Delta State, Ifeanyi Okowa, said it is better to have a centralised police system that should be strengthened for effectiveness.
Similarly, Chairman of South-East Governors Forum and governor of Ebonyi State, Dave Umahi, who spoke through the Secretary to the State Government, SSG, Dr. Ugala Kenneth, said the issue will have to be discussed at a meeting of governors of the region.
The governors spoke on a day Vice-President Yemi Osinbajo tasked acting Inspector-General of Police, Alkali Baba Usman, to restore dignity to the force and rebuild broken bridges of trust with the public.
Why Amotekun became inevitable — Oyetola
Governor Oyetola, who threw the challenge at the 2nd Annual Colloquium of the Sultan Maccido Institute for Peace, Leadership and Development Studies, University of Abuja, also blamed worsening insecurity in the country on poverty and illiteracy.
He identified the sources of insecurity as “poverty which creates a gulf between the rich and the poor; inequitable allocation of resources which pits one region against the other; and injustice which makes offended parties resort to self-help and consequently take up arms against the state.”
The governor also identified “illiteracy which makes innocent citizens willing tools at the hands of unscrupulous elites and elements; youth unemployment which makes able-bodied and educated youths susceptible to crime, among others.”
He said the inability of the central police to tackle insecurity effectively led to the creation of Amotekun, the regional security network in the South-west.
“The nation’s conventional security agencies are overstretched and sorely under-funded. The Police once confirmed the sorry state of its manpower when it said the Force needs 155,000 additional hands to effectively police the nation.
“The nation’s security agencies as currently constituted are too centralised and too far from the grassroots to adequately provide the required security for the nation.
“Worse still, they are unfamiliar with the terrains where crimes take place. It is our belief that our people understand the topography of their communities more and can govern them better.
“The nation’s expansive forests have unfortunately become the hideouts of bandits, kidnappers, and other criminals. With the establishment of Amotekun, the forests of the South-West are now better policed.
‘Let other regions emulate S-West’
“The issues that make Amotekun inevitable in the South West are the same in other regions of the nation. Other regions may wish to emulate the South West to put structures in place to rid their regions of crime.
“Our recent experience where the attempts to confront armed banditry headlong in the North resulted in their incursion into the South-West and other regions that were erroneously perceived to be immune from the insecurity challenge is proof that each region has to be adequately policed for the region to know peace,” the governor said. He also called for collective and concerted efforts to deliver the security that “we desire as a nation as a people.”
His words: “Our recent experience in which insecurity has challenged education, peace, economy and other spheres of life has lent credence to Abraham Maslow’s emplacement of security as one of the foremost in the hierarchy of needs.
“This realisation underscores the need for our leaders and professionals, including traditional rulers, political leaders, academics, religious leaders and corporate leaders, to constantly collaborate to brainstorm on ensuring peace in the nation.
“Security breeds peace, economic and other developments, political stability and good governance. The converse of this is that insecurity is a destroyer of these desirable indices.
“As a people, we must realise that it is only in a safe and secure environment that optimal local commercial activities can take place; foreign investors can be attracted; goods and services can be provided; infrastructure can be built and maintained; public service can be delivered, and social and political activities can take place peacefully. “Therefore, the quest for a sustainable peaceful society must be prioritised as the collective responsibility of all citizens.
“Delivering security is not a task for the government alone. Corporate bodies and Non-Governmental Organisations need to partner with the government to achieve success. Business thrives in an atmosphere of peace. Business concerns must join the government to restore peace to the regions of the country.
“For proper security of lives and property of our people and the prompt containment of growing challenges, we must inevitably now engage our traditional institutions. Governors, particularly, cannot afford not to look in the direction of the traditional institution.
“This is because every conflict is local and as such, traditional institutions cannot be left out of the scheme. Traditional rulers know their people and also have better strategies for engaging them. Therefore, we must ride on this to be able to protect our nation from implosion.”
Governor Okowa reacts
Reacting to Governor Oyetola’s call yesterday, chairman of the South-South Governors Forum and governor of Delta, Senator Ifeanyi Okowa, who spoke through the State Commissioner for Information, Mr Charles Aniagwu, said: “Our leaders in the South-South are very much concerned about the spate of insecurity in the country and are determined to put heads together to forge a common front and possibly reduce the challenges of insecurity in the region.
“Of course, you know insecurity in the country is no longer news to anybody, and then the South-South is not spared in that insecurity which has become the bane of development across the 36 states and the Federal Capital Territory, FCT.
“But, we are also concerned that it would have been better for us to have a national security outfit and at the moment we do have them. We just pray that they are possibly equipped and empowered to be able to deal with the issues of insecurity so that we move away from tokenism of everybody having to be on their own.
“We will not shy away from addressing the challenges as it affects our people but we believe that the Federal Government needs to step up action to deal with these dare-devil criminals; that way everybody is safe.
‘BRACED Commission tasked on security outfit’
On whether the South South Governors are prepared to set up their own security outfit like Amotekun, he said: “The South-South governors have handed that over to the Bayelsa, Rivers, Akwa-Ibom, Cross Rivers, Edo and Delta, BRACED Commission which is a body that deals with issues of common interest in the region to work out the modalities so that we don’t just jump into setting up an outfit that is just in the name and not be able to do what it ought to do.
“But beyond that, you do know that when an outfit is set up, there are some constitutional inhibitions that will still make it impossible for some of these issues to be addressed the way we like it to. And it’s important that Nigerians begin to look at these issues rather than mounting pressure in the wrong quarters.
“For instance, you can’t have some of the heavy weapons other than small arms and light weapons. Some of those heavy weapons that are in the hands of those criminals, you cannot have them without the Federal Government giving you the license to so do. So, even if you set up your outfit, what are you going to be using to equip those outfits?
“When the ability to equip them to be able to confront these dare-devil criminals is largely still being determined by the approval to be given by the Federal Government, that tells you that where everybody should channel their energy, including the other geo-political zones, is how to make the Federal Government secure all of us and for individuals to move away from whatever will divide us.
“Let us look at what will unite us the more. Recall, I did say we will not shy away from the need to protect our people in the region. Much as we desire to do so, we are much more interested in the common good of our country where our common patrimony lies, the nation, Nigeria.”
Rebuild broken bridges of trust with the public, Osinbajo tasks Ag. IGP
Meanwhile, Vice-President Yemi Osinbajo yesterday asked acting Inspector General of Police, IGP, Usman Baba Alkali, to restore dignity to the force and rebuild the broken bridges of trust with the public.
Speaking during the decoration of the acting IGP with his new rank at State House, Abuja, Osinbajo told the new Police boss he is assuming office at a turbulent time in the history of the country.
Urging him to implement community policing in order to curb growing insecurity in the land, Osinbajo said: “Let me once again, offer my congratulations to you as new Inspector-General of Police on your appointment. Your selection by Mr. President follows a rigorous process where all eligible Deputy Inspectors-General of Police and Assistant Inspectors-General of police were considered. The president then appointed you as the most senior qualified and eligible officer.
“IG, you are assuming office at a very turbulent time in the life of our people. There are multiple threats to law, order and public safety. The role of law enforcement and particularly that of the police force as primary agency charged with maintaining law and order has never been more important. The police is our institution of first resort, the first line of defence against crime and anarchy and the first sign of the strength of the state.
“The challenges before you are indeed onerous and will test your mettle, the organisation you are leading is one that is itself facing several challenges. Your officers work still in extremely difficult conditions. And some face the threat of physical harm by terrorists, hostile non-state actors while in the line of duty but they have lived up to expectations.
“There is no question at all that there is a lot that needs to be done. There is a lot of work that needs to be done. Under your leadership, the police must now rebuild in some ways also the broken bridges of trust to the public and regain the confidence of the citizenry.
“This is an ongoing challenge, an ongoing task the police force and all of the senior members of the police force must take on as a responsibility, that of the continual process of building trust to the Nigerian people. One of the ways you can do this is by implementing the community policing policy which had already taken off and re-conceptualising policing as a task carried out in partnership with local communities and by officers who are members of these localities.
“Under your leadership, the force must live up to all of the highest standards of professional conduct and compliance with the rule of law. It must significantly improve the welfare and working conditions of its officers.”
Osinbajo also tasked the new IGP to stamp out the excesses, abuses and culture of impunity from the police force.
What to expect from me, by Alkali
Speaking with journalists after his decoration, the new IGP promised to put into practice community policing to tackle the worsening security situation in the country.
Asked what Nigerians should hope for, he said: “Hope to see improvement on where my predecessor has left. I came in at a very challenging time, I know it, I recognize it and I will work on how to improve from where my predecessor has left.
“I have been a member of the management team and we have been trying to do our best but it is not enough, there is room for improvement.
“With all the inadequacies we have, we still require everybody to be part of policing in this country. And that is why the emphasis on community policing will continue and the emphasis of collaborating with all other sister agencies will continue and we hope to have a better situation very soon.”
On whether he was coming with any change in strategy, the Acting IGP said: “Definitely, we are going to rejig our operational strategies.”
On issues of equipment and manpower, the IGP said he had the blessings of President Buhari, adding that he was optimistic that he would get more of what the police had requested through the Police Trust Fund very quickly.
On community policing, he said: “We will continue to practicalize it. My predecessor left at the theoretical stage, we have started practicalising it but we have not gone far and, therefore, all the methods of practicalising it have been put in place and we are going to continue with it, in collaboration with other stakeholders.”
Vanguard
News
Chief Imam 81 Division charges Nigerians to emulate peaceful life-style of Prophet Muhammad

The Chief Imam of 81 Division of the Nigerian Army, Lt.-Col. Husein Eleje, has charged Nigerians emulate and imbibe Prophet Muhammad’s peaceful, truthful and just lifestyle in order to build a progressive nation.
Eleje gave the charge in an interview on Tuesday from Abakaliki, Ebonyi State to commemorate Eid-el-Maulud celebration being the celebration of the birth of the Holy Prophet Muhammad (may Allah’s peace be upon Him).
He said that Muhammad, who was born at Middle-East in Saudi Arabia in the year 570 AD, displayed worthy character among all people and was known as “a trustworthy, honest and simple person”.
According to him, so the celebration of the Maulud is done to emulate the good life-style, which Prophet Muhammad lived.
“The Holy Prophet lived peaceful and humble life and always mediate among disputing parties. He never cheated anyone nor shy away from speaking the truth.
“Prophet Muhammad associated freely, traded, worked together with the common people to establish a city (Medina) where people of different faiths lived together and practiced their faith and had freedom of worship.
“He stood against any oppression and injustice and he always say ‘your bloods are sacred, and your wealth and property are sacred’.
“To Him, it is prohibited for any one to harm his brother or take his property unjustly,” he said.
The cleric urged Nigerians to tolerate one another and protect the interest of one another as the Prophet had exemplified.
Eleje said that the Prophet humbled Himself to even those who followed and accept Islam as well as participated equally with them in any communal work to build the society.
“We must be a people who advocate for peaceful co-existence among others and our neighbours,” he added.
News
Why Restoring Subsidy Would Set Nigeria Back – Former Abia Speaker Chinedum Orji Backs Tinubu


When Alhaji Atiku Abubakar recently said he would restore petroleum subsidy if elected president, he tapped into a familiar frustration. Fuel prices are high, transport costs bite, and households are feeling the squeeze. That pain is real. But the promise to bring back the old subsidy regime is not relief. It is a return to a policy that bled the treasury, starved the states, and kept Nigeria dependent on borrowing to buy fuel.
For decades the subsidy was sold as a welfare program for the poor. In practice it became the most expensive welfare program for smugglers, marketers, and a handful of importers. The Nigerian National Petroleum Company would claim billions monthly, and no one could audit where the product actually went. That was not social protection. That was fiscal leakage at scale.
The first and most immediate benefit of subsidy removal is fiscal breathing room. In 2022 alone, subsidy gulped over 4 trillion naira. That was more than we spent on education, health, and capital projects combined. When that money stopped going to fuel, it did not disappear. It stayed in government coffers, and a large share of it flows directly to the sub nationals through FAAC.
The sub nationals are where the difference is being felt most. States and local governments now receive significantly higher monthly allocations. Governors in Rivers, Lagos, Kano, and others have reported FAAC receipts nearly doubling compared to pre-removal levels. That is money that can pay teachers, fix primary health centers, and clear pension arrears without waiting for Abuja bailouts.
In Rivers State, for example, the additional resources have allowed the state government to accelerate road projects, expand the school feeding conversation, and invest in water and sanitation. Across the country, states are using the windfall to clear salary backlogs and to fund security. That is the direct link between subsidy removal and better services at your doorstep.
Beyond recurrent needs, the removal unlocked capital spending. With subsidy gone, the federal government and states are no longer borrowing just to keep petrol cheap. Instead, we are seeing commitments to CNG buses, mass transit, student loans, and conditional cash transfers. These are targeted interventions. They reach the vulnerable without subsidizing a businessman in Cotonou who drives across the border to buy cheap fuel.
One of the quietest but biggest wins is the end of the subsidy-driven smuggling economy. When Nigerian petrol was artificially cheap, an estimated 30 to 40 percent was leaving our borders daily. That drained our forex and rewarded criminal networks. With prices aligned to market, the incentive to smuggle collapsed almost overnight. That saves dollars and restores integrity to our supply chain.
Sub nationals also gained policy space. Before, states were trapped. They could not raise IGR fast enough to match their responsibilities because the center was spending all its revenue on fuel. Now, with more money coming from FAAC and with subsidy no longer a federal albatross, states can plan medium-term budgets. They can borrow for infrastructure knowing their revenue base is real, not propped up by a phantom fuel bill.
The macroeconomic case is just as strong. Subsidy removal freed up foreign exchange that was being used to import and “subsidize” fuel. That pressure contributed to naira volatility. With the drain gone, the CBN has more room to stabilize the market, and investors see a government willing to make hard choices. Confidence matters for FDI, and FDI builds factories, not just fuel stations.
Let us be honest about the counterargument. Atiku and others argue that Nigerians cannot afford the current prices and that government should cushion the pain by restoring subsidy. The compassion is understandable. But the method is wrong. A blanket subsidy is the bluntest tool possible. It subsidizes the rich who own three cars, it subsidizes generators in malls, and it subsidizes our neighbors.
Targeted support is both cheaper and fairer. The savings from subsidy removal are already funding student loans, nano-grants, and public transport reforms. Those programs can be scaled. If we put 1 trillion naira directly into transport, health insurance, and food support, the impact on the poor will be ten times what the same 1 trillion did when spread thinly across every liter of petrol.
International experience backs this. Indonesia, India, and Ghana all removed fuel subsidies and redirected the savings to health, education, and cash transfers. In each case there was short-term pain, followed by stronger public services. Countries that reversed course and brought subsidies back, like Egypt in 2014 before its second reform, ended up in deeper debt crises.
Restoring subsidy now would also reverse private sector investment. Since the removal, private companies have begun investing in refineries, CNG conversion centers, and logistics. Dangote Refinery, modular refineries, and gas infrastructure are viable only because prices reflect costs. If we announce that subsidy will return, those investors pause. That means fewer jobs in Port Harcourt, Warri, and Lagos.
For the sub nationals, a return to subsidy is a direct pay cut. FAAC would shrink again. States would go back to borrowing to pay salaries. Projects started with the new revenues would stall. Local governments, which depend almost entirely on federal transfers, would be the first to feel it. That is not theoretical. We lived it for 20 years.
Atiku’s argument rests on the idea that the timing was wrong and the palliatives were insufficient. Fair critique. But the solution to poor implementation is better implementation, not abandoning the reform. We should demand faster rollout of CNG buses, more transparency in how FAAC windfalls are spent, and stronger monitoring of state budgets. We should not demand a return to the policy that caused the weakness.
The subsidy was also a corruption magnet. It created a system where claims were king and verification was optional. Removing it broke that cycle. Bringing it back without fixing the governance structure is inviting the same fraud, only now with higher global oil prices and a weaker naira.
There is also a climate and energy angle. Cheap petrol discouraged gas adoption and kept us locked into generators. With market pricing, CNG, electric tricycles, and solar become economically sensible. States can lead this transition because they now have the funds to subsidize conversion kits, not fuel itself.
Politically, the promise to restore subsidy sounds popular in the short term. But governance is about trade-offs. The trade-off here is clear: cheap fuel for a few months versus hospitals, roads, and jobs for years. Sub nationals have already shown what they can do with the extra money. To take it away is to punish the very level of government closest to the people.
Finally, debt. Subsidy was financed largely by borrowing and by unpaid arrears to NNPC. That debt was crowding out everything else. Every naira we do not spend on subsidy is a naira we do not have to borrow. That lowers interest payments, which in turn frees more money for states and local governments.
Nigeria does not need a return to the past. We need to finish the work of this reform. That means plugging leakages, auditing state spending, and scaling targeted support so no family is left behind.
Alhaji Atiku is a respected Nigerian, but on this point he is wrong. Restoring subsidy would undo the single most important fiscal correction we have made in a generation. It would hurt the states, weaken the naira, and put us back on the borrowing treadmill.
The better path is forward. Keep the subsidy gone. Let the sub nationals keep the resources. And let government prove that the savings can translate into tangible relief. That is how we turn pain into progress, and that is how we build a Nigeria that works beyond election cycles.
CHINEDUM ENYINNAYA ORJI writes from Amaokwe Ugba, Umuahia Ibeku and the All Progressives Congress Candidate for Ikwuano Umuahia Federal Constituency.
News
Seven Killed, Seven Injured In Bida-Kutigi Road Crash

Seven people have died and seven others sustained injuries in a fatal road crash on the Bida-Kutigi road in Niger State, the Federal Road Safety Corps (FRSC) has confirmed.
The FRSC Niger Sector Commander, Corps Commander Aishatu Sa’adu, confirmed the incident to the News Agency of Nigeria (NAN) on Sunday.
Sa’adu said the crash occurred on Sunday afternoon at Shebe village, a few kilometres from Kutigi town.
According to her, the accident involved a Mazda vehicle and a Siena bus travelling along the Bida-Kutigi road.
“Seven people lost their lives, seven others were injured while four were rescued without injuries, bringing the total involved to 18,” she said.
The sector commander said the seven victims who died were confirmed dead at the scene, while the injured victims sustained injuries of varying degrees.
She said the injured were evacuated to Kutigi General Hospital for medical attention, while the remains of the deceased were deposited at the hospital’s mortuary.
The FRSC official did not immediately disclose the identities of the victims or provide further details on the circumstances surrounding the collision.
The crash involved a total of 18 people, comprising seven fatalities, seven injured persons and four uninjured survivors.
Authorities are expected to investigate the cause of the accident and determine the circumstances that led to the fatal collision.
News
Donald Duke: Nigeria Is One of Africa’s Poorest Countries

The presidential candidate of the People’s Redemption Party (PRP), Donald Duke, has described as a “lie” the claim that Nigeria is Africa’s wealthiest country, arguing that the country remains one of the poorest on the continent when measured by per capita income.
Duke, a former governor of Cross River State, stated this during an interview with journalists in Lagos.
He said Nigeria’s position as Africa’s largest economy by Gross Domestic Product (GDP) did not necessarily reflect the living standards of its citizens.
“It is embarrassing that a country that was considered one of the wealthiest in Africa still thinks today that it is the largest economy in Africa. That is not true.
“We are living a lie. It is a nice sound bite, though, to say that Nigeria is the largest economy in Africa. No. Nigeria is just one of the poorest when you take per capita income into consideration,” he said.
Duke said productivity remained critical to economic development, noting that several countries Nigerians considered smaller had higher per capita incomes.
On insecurity, the PRP presidential candidate said he preferred not to describe terrorists operating in Nigeria as “Islamic terrorists”, arguing that their activities were not driven by Islam.
He attributed part of the security challenges, particularly in Northern Nigeria, to the collapse of Libya, which he said contributed to the movement of arms into Nigeria through its land borders.
Duke said the government needed short-, medium- and long-term measures to tackle kidnapping, banditry and terrorism.
“Right now, you have got to deal with the security problems as they exist today — kidnapping, banditry, terrorism and all that.
“But even beyond that, those things are consequences of other things. They are consequences of a very poor economy and, of course, the failure to properly manage our borders,” he said.
He also called for measures to improve citizens’ productivity through increased local production and the use of modern technology to strengthen border security.
On the economic development of Northern Nigeria, Duke said that, if elected president, he would restructure mining activities in the region to ensure that local and state governments, as well as host communities, benefited from the sector.
He said the region’s mineral deposits, rather than oil in the Chad Basin, represented a major economic opportunity.
“There must be a structured way of mining. Today, it is artisanal, and the broader community, the border communities, society and the nation itself do not adequately benefit from those resources,” Duke said.
He cited gold deposits in Zamfara State as an example, saying insecurity had affected mining activities in the area.
Duke proposed that each state should be treated as an economic entity, with the Federal Government working with state governments to assess mineral deposits and establish proven reserves capable of attracting investors.
He said mining development should involve a partnership between the Federal and state governments, with revenues shared between both levels of government.
However, Duke stressed that security remained essential to attracting investment into the mining sector.
“Nobody is going to invest if there is no security,” he said, citing the experience of the Niger Delta, where insecurity had contributed to oil companies moving their operations to offshore locations.
News
FAAC bonanza: Govs face questions as payouts hit N47tn

This scrutiny follows the revelation that the Federation Account disbursed about N47tn to the three tiers of government in the three years since the removal of petrol subsidy.
This was as the Federal Government, 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025, with more than half of the amount distributed in the three years following the economic reforms introduced by the Federal Government in 2023.
These figures were disclosed in a document obtained by our correspondent from the Federal Ministry of Finance on Sunday.
It showed that N47.25tn, representing about 50.7 per cent of the N93.13tn shared during the period, was distributed between 2023 and 2025 alone, highlighting the sharp expansion in revenues following the removal of petrol subsidy, exchange rate reforms and increased revenue mobilisation.
But policy analysts, civil society groups and other critics say the increase in revenue has not translated into a corresponding improvement in the living conditions of Nigerians facing rising living costs, unemployment, poverty and inadequate public services.
In an interview, a policy analyst, Adebayo Abubakar, said the removal of subsidy had increased government revenues but argued that the additional funds had not always translated into spending that reflected the economic hardship facing Nigerians.
“Roads, bridges, drainage and other infrastructure remain important, but some governments appear to favour conspicuous projects while schools, healthcare facilities, water supply and other basic services receive inadequate attention,” he said.
The removal of petrol subsidy and other economic reforms introduced by the Federal Government in 2023 have triggered an unprecedented surge in revenue flowing into the Federation Account, with the 36 states and 774 local government areas receiving significantly higher allocations amid growing questions over how the windfall has translated into improved infrastructure, security and public services.
The sharp increase in Federation Account Allocation Committee payouts has, however, placed state governors under renewed scrutiny, as many Nigerians continue to grapple with high living costs, poor infrastructure and worsening insecurity despite the substantial growth in revenues available to subnational governments.
While some governors have linked higher FAAC receipts to road construction, bridges, healthcare, education, workers’ welfare and other projects, residents in some states said the increased revenue had not resulted in improved public services or reduced economic hardship.
Findings by The PUNCH showed that the Federal Government, states and local governments received about N47tn from the Federation Account in the three years following the reforms, exceeding the amount shared in the preceding six-year period and reigniting the debate over the benefits and consequences of the subsidy removal policy.
FAAC disbursements
The document showed that FAAC distributions rose from N5.64tn in 2017 to N21.90tn in 2025, representing an increase of about 288 per cent over the nine-year period.
Year-by-year, net FAAC stood at N5.64tn in 2017, N7.98tn in 2018, N7.85tn in 2019, N7.11tn in 2020, N8.12tn in 2021 and N9.18tn in 2022. It subsequently rose to N10.09tn in 2023, N15.26tn in 2024 and a record N21.90tn in 2025.
The development highlights the dramatic transformation in Nigeria’s federation revenue following the removal of petrol subsidy, reforms in the foreign exchange market and efforts to improve revenue mobilisation.
It also exposes the limits of measuring Nigeria’s revenue growth in naira terms alone. While the removal of petrol subsidy, foreign exchange reforms and improved revenue mobilisation helped to push FAAC allocations sharply higher, a significant part of the increase reflects the devaluation of the naira.
For instance, Nigeria shared N7.98tn through FAAC in 2018, which, at the Central Bank of Nigeria exchange rate at the time, was equivalent to about $26bn. By 2025, the amount shared had risen almost threefold to N21.9tn. However, when converted at the CBN exchange rate for 2025, the allocation was worth only about $14.4bn.
In other words, while FAAC distribution increased by about 174 per cent in naira terms between 2018 and 2025, its dollar value fell by roughly 45 per cent, or about $11.6bn.
The comparison suggests that the apparent surge in federation revenue was driven not only by increased revenue generation and reforms, but also by the weaker naira, which translated dollar-denominated oil and other foreign currency earnings into substantially larger amounts of naira.
The document showed that net FAAC allocations stood at N5.64tn in 2017 and rose to N7.98tn in 2018, representing a 29 per cent increase. However, growth was not sustained in the following two years.
The distributable revenue fell by two per cent to N7.85tn in 2019. It declined further by 10 per cent to N7.11tn in 2020, reflecting the economic disruptions associated with the COVID-19 pandemic and developments in the oil market.
The distributable revenue, however, recovered to N8.12tn in 2021 and increased to N9.18tn in 2022. The document put the average annual growth rate for the pre-reform period at eight per cent. But the sharpest increase came after the reforms introduced in 2023.
Net FAAC rose to N10.09tn in 2023, representing a nine per cent increase. It then jumped by 34 per cent to N15.26tn in 2024 and expanded by another 30 per cent to a record N21.90tn in 2025.
This means the average annual growth rate accelerated from eight per cent in the pre-reform period to 24 per cent between 2023 and 2025. In effect, the pace of growth in distributable federation revenue was three times higher in the post-reform period than the average recorded before the reforms.
The figures also showed the extraordinary weight of the last three years in Nigeria’s federation revenue history. Of the N93.13tn shared between 2017 and 2025, the N47.25tn distributed between 2023 and 2025 alone exceeded the combined allocations recorded in several earlier years, meaning that every N2 shared over the nine-year period contained more than N1 distributed after the reforms.
Finance ministry speaks
The Federal Ministry of Finance, in its assessment of the reforms, said states and local governments had received substantially higher allocations, increasing the resources available to subnational governments for salaries, pensions, infrastructure and other public responsibilities.
The ministry said, “States and local governments received significantly higher allocations through the Federation Account, increasing the resources available to meet salaries, pensions, infrastructure and other responsibilities at the subnational level that benefit the people.”
It added that, compared with the monthly run-rate before the removal of petrol subsidy, “states received about N9.17tn in additional allocations from June 2023 to December 2025,” while local governments received about N6.66tn in additional allocations during the same period.
Further analysis of tier-by-tier annual distribution figures for 2022 to 2025 showed that the Federal Government received N1.996tn in 2022, N3.749tn in 2023, N4.570tn in 2024 and N7.024tn in 2025, bringing its four-year allocation to about N17.34tn.
The figures showed that the states emerged as the biggest beneficiaries of the post-reform expansion in FAAC receipts. Their annual allocation jumped from N4.18tn in 2023 to N8.93tn in 2025, more than doubling within two years. In 2024, states received N6.53tn, exceeding the Federal Government’s N4.57tn allocation in the figures contained in the document.
A World Bank analysis similarly identified 2024 as a turning point when state governments received more from FAAC distributable revenues than the Federal Government, reflecting a structural shift in the pattern of federation revenue distribution.
The expansion in FAAC receipts has been linked largely to the fiscal reforms introduced by President Bola Tinubu’s administration after it assumed office in May 2023.
The reforms included the removal of petrol subsidy and changes to the foreign exchange regime, alongside efforts to improve tax collection and revenue remittances.
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