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FG disburses ₦1.6tn to states for FCT for infrastructure, security projects

FG deducts N256.5bn for gas projects in six months

The federal government has disbursed a total of ₦1.6 trillion to the 36 states and the Federal Capital Territory between March 2024 and May 2025 to support infrastructure development and security projects, documents from the Office of the Accountant-General of the Federation have revealed.

The funds, released under a special intervention programme, were drawn from non-oil revenue savings as part of efforts to ease fiscal pressure on subnational governments and accelerate the delivery of key projects. The disbursements were recorded in a document titled “Ledger of Savings on Intervention to States’ Infrastructure and Security”, submitted at the May 2025 meeting of the Federation Accounts Allocation Committee.

The intervention fund was introduced following President Bola Tinubu’s July 2023 approval of the Infrastructure Support Fund, designed to help states mitigate the effects of fuel subsidy removal and invest in critical sectors such as transportation, agriculture, healthcare, education, power, and water resources.

According to the FAAC document, 21 separate payments were made over the 15-month period, mostly in tranches of ₦100 billion monthly. The largest single disbursement, ₦222 billion, was recorded in May 2024. By mid-May 2025, ₦1.6 trillion had been paid out, leaving a balance of ₦100 billion from the ₦1.7 trillion saved under the programme.

While the disbursements were consistent, the report did not specify the exact amounts allocated to each state or whether the funds were issued alongside the regular monthly FAAC allocations. The payments were categorised as “Payment for Intervention to States and FCT,” with the inflows labelled as “Transfer from Non-Oil Savings.”

Despite the massive outlay, concerns have been raised over transparency and impact. Civil society organisations have criticised the utilisation of the funds, citing persistent infrastructure deficits and widespread insecurity.

The Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, expressed disappointment at what he described as the mismanagement of the intervention funds.

“We are witnessing an era of financial recklessness and the collapse of responsible governance. These funds, meant to alleviate the suffering of Nigerians through improved infrastructure and security, have not achieved their intended purpose,” Rafsanjani told The PUNCH in an interview.

He attributed the poor performance to political preoccupations ahead of the 2027 elections, alleging that public officials were diverting resources for electoral advantage rather than development.

“If the ₦1.6 trillion had been judiciously spent, Nigerians would have felt the impact. Unfortunately, what we see is a scramble for public resources without accountability,” he said.

While the federal government continues to tout the intervention as a strategic response to national challenges, the lack of clarity around fund allocation and usage at the state level continues to fuel public skepticism.

Observers have called for increased scrutiny of state-level spending and greater transparency in the administration of the ISF to ensure the funds translate into tangible improvements in infrastructure, security, and public services.