FG Releases N2.45trn from Non-Oil Savings to Support States’ Infrastructure, Security
- The federal government disbursed N2.45tn to states and the FCT between March 2024 and August 2025
- The funds were drawn entirely from non-oil revenue savings under a special intervention programme
- The intervention followed Tinubu’s approval of the Infrastructure Support Fund after fuel subsidy removal
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria’s state governments and the Federal Capital Territory (FCT) received a total of N2.45 trillion from the federal government between March 2024 and August 2025 to support infrastructure development and security interventions, official records have shown.
Source: UGC
According to internal documents from the Office of the Accountant-General of the Federation (OAGF), the funds were disbursed over a 17-month period under a special intervention programme financed through non-oil revenue savings.
The documents were presented at the December 2025 Federal Accounts Allocation Committee (FAAC) meeting, PUNCH reported.
Intervention meant to ease fiscal pressure
The records indicate that the intervention was designed to alleviate fiscal pressure on subnational governments while accelerating infrastructure projects and enhancing security efforts nationwide.
The document, titled “Ledger of Savings on Intervention to States Infrastructure and Security,” showed that the total amount drawn from non-oil revenue savings within the period stood at N2.45tn. The entire sum was paid out to states and the FCT, leaving a zero balance as of August 25, 2025.
However, the records did not provide a breakdown of how much each state received, nor did they clarify whether the payments were made separately from the regular monthly revenue allocations.
A closer look at the figures showed that N1.184tn was disbursed in 2024 through four transactions carried out in April, May, September, and December. In 2025, total disbursements increased to N1.266tn, driven by six separate payments made between February and August.
Each transaction was recorded as a “Payment for Intervention to States and FCT,” while the inflows were described as “Transfer from Non-Oil Savings.”
The intervention funding followed the approval by President Bola Tinubu in July 2023 for the establishment of the Infrastructure Support Fund (ISF) for the 36 states, following the removal of petrol subsidy.
FG urges states to invest in critical areas
At the time, the then Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, said the fund would enable states to invest in critical areas such as transportation, agriculture, healthcare, education, power, and water resources.
Alake also explained that a portion of monthly distributable revenues would be saved to reduce inflationary pressure and stabilise the economy, adding that the savings would complement other fiscal measures aimed at improving living standards.
The OAGF documents further showed that monthly savings and disbursements followed a largely consistent pattern, with occasional spikes reflecting major intervention payments. In several months, higher amounts were disbursed than saved, while later periods showed a closer alignment between inflows and payouts.
Questions raised over states’ implementation of funds
Despite the scale of the intervention, concerns have continued to grow over how the funds are being used by state governments.
Source: Getty Images
In an earlier interview, Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), criticised what he described as poor accountability in the use of intervention funds.
Speaking to The PUNCH, Rafsanjani said the funds disbursed for infrastructure and security had not delivered the expected results, citing the persistent insecurity across the country. He warned that increasing political focus on the 2027 elections had weakened accountability and shifted attention away from people-centred development.
Nigeria earns N55.5tn from crude oil sales in 2025
Legit.ng earlier reported that Nigeria generated an estimated N55.5 trillion from crude oil sales in 2025, up from N50.88 trillion in 2024.
The estimate was based on official production data from NUPRC and crude price figures from the CBN.
Analysts noted that the figure does not reflect actual government earnings due to costs and other deductions.
Source: Legit.ng
