GOVERNORS UNDER FIRE AS STATES GET N9TN FAAC WINDFALL WITH LITTLE IMPACT

State governors in Nigeria are facing intensifying criticism over their handling of an estimated N9 trillion windfall from the Federation Account Allocation Committee (FAAC) in 2025, with labour unions, civil society organisations and opposition parties arguing that the large inflows have produced “small impact” on citizens’ welfare and development. The concerns were highlighted in a report by Punch Newspapers, which analysed FAAC disbursement data and reactions from key stakeholders. 

FAAC allocations to states surged dramatically in 2025, rising by more than N2 trillion compared with the previous year, according to data compiled by The PUNCH from the National Bureau of Statistics. State governments received N7.315 trillion directly from FAAC in 2025, up from N5.186 trillion in 2024, and when the constitutionally mandated 13 per cent derivation revenue is included, total inflows reached about N8.934 trillion. 

Despite the substantial increase in revenue, critics led by the Nigeria Labour Congress (NLC) have questioned the translation of funds into tangible improvements in education, healthcare, infrastructure, and overall citizen wellbeing. The NLC’s Assistant Secretary-General, Onyeka Christopher, told The PUNCH that higher allocations have not resulted in meaningful welfare gains due to poor governance, misplaced priorities and corruption at the state level. 

Civil society voices, including leaders of accountability groups, echoed these concerns, arguing that the spike in FAAC receipts has largely benefitted state elites without visible positive outcomes for the wider populace. Some analysts also pointed to the heavy reliance on federally shared revenue, warning that it discourages states from developing robust internal revenue sources and undermines long-term sustainable development. 

Opposition parties across several states joined the chorus of criticism, asserting that increased FAAC inflows have not eased economic hardship or delivered critical services. In states such as Sokoto and Bauchi, opposition leaders said vast federal allocations have failed to translate into improved living conditions, while in other regions parties cited weak transparency and a lack of clear development indicators despite large revenue shares.