Big money, small impact: Governors face fire over N9tn FAAC windfall

Despite receiving nearly ₦9tn in Federation Account Allocation Committee inflows, Nigerian state governors are facing intense criticism from labour unions, civil society groups, economists, and opposition parties over poor governance and limited improvements in citizens’ welfare.

Data show that direct allocations to states rose by over 40 per cent from 2024, boosted further by higher derivation revenue, easing liquidity pressures, and expanding states’ fiscal space. However, critics argue that the increased funds have not translated into visible development, improved social services, or better living standards, with many states still heavily dependent on federal allocations and accused of mismanaging resources, prioritising politics over development, and failing to strengthen accountability.

Written by Adeyemi Adewale