The Federal Government has disbursed a total of ₦1.6 trillion to Nigeria’s 36 states and the Federal Capital Territory (FCT) between March 2024 and May 2025, as part of a special intervention programme aimed at boosting infrastructure and addressing security challenges at the subnational level. This is according to official records obtained from the Office of the Accountant-General of the Federation (OAGF).
The disbursement, made over a 15-month period, was sourced from non-oil revenue savings and implemented under the Infrastructure Support Fund (ISF), a programme approved by President Bola Tinubu in July 2023 to cushion the impact of petrol subsidy removal and support development initiatives across the country.
Internal documents presented at the May 2025 meeting of the Federal Accounts Allocation Committee (FAAC) show that the total savings accrued stood at ₦1.7 trillion, from which ₦1.6 trillion was disbursed to the states and FCT, leaving a balance of ₦100 billion as of May 16, 2025. The records indicate 21 separate payments were made during the period, typically averaging ₦100 billion monthly, with a peak disbursement of ₦222 billion in May 2024.
The intervention fund targeted critical sectors such as transportation, agriculture, health, education, power, and water resources, with the goal of accelerating economic development, job creation, and security improvements. Payments were recorded under the ledger entry “Payment for Intervention to States and FCT,” while inflows were titled “Transfer from Non-Oil Savings.”
Despite the scale of support, details regarding the individual amounts received by each state remain undisclosed, raising questions about the transparency and accountability of the disbursement process. Notably, the documents did not clarify whether the funds were issued in addition to or in place of monthly revenue allocations.
The intervention fund was designed to ease fiscal pressure on subnational governments and enable them to execute priority projects. However, concerns are growing about the actual impact of the programme, with critics pointing to persistent insecurity and underdeveloped infrastructure across many parts of the country.
Civil society groups have raised alarm over what they describe as a lack of accountability in the use of the funds. Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), condemned the handling of the ₦1.6 trillion, describing it as a case of “financial recklessness” and mismanagement by both the Federal and state governments.
“Infrastructure, insecurity, healthcare, and basic amenities are still lacking,” Rafsanjani said “Instead, we are witnessing a scramble for public resources without accountability. Political actors are more focused on the 2027 elections than on meaningful development.”
He argued that if the funds had been judiciously utilised, the country would be seeing tangible improvements in infrastructure and public services. “There is no manifestation of benefits to Nigerians. The funds were not judiciously spent — that’s why their impact is invisible,” he said.
While the federal government has positioned the ISF as a critical tool to foster inclusive development, stakeholders are calling for greater transparency and independent audits to verify how the funds are being deployed across the states.
With ₦100 billion remaining in the account, pressure is mounting for the government to demonstrate concrete results from the intervention, as citizens continue to grapple with economic hardship and deteriorating public infrastructure.
