A detailed analysis of Nigeria’s finances reveals a stark paradox: while statutory allocations to the Federal, State, and Local Governments have more than doubled in less than four years, the poverty rate among citizens has significantly worsened.
Data shows that total FAAC distributions jumped from N9.18 trillion in 2022 to N18.54 trillion in just the first ten months of 2025. States have been the biggest beneficiaries, with their share soaring from N3.58 trillion in 2023 to N7.54 trillion by October 2025.
However, this massive inflow of funds has not translated into public welfare. The World Bank reports that 139 million Nigerians, or 61% of the population, now live below the national poverty line, up from 93.8 million in 2023. The surge follows economic reforms, including fuel subsidy removal and naira devaluation, which triggered inflation and hardship.
President Bola Tinubu has urged state governors to “wet the ground” and deliver more dividends of democracy. Economists note that while nominal revenue has grown, its real value is diminished by inflation, and question how effectively the funds are being deployed at the state level.
Disclaimer:
This report is based on a Vanguard newspaper analysis of official FAAC data and World Bank poverty estimates. The views on resource deployment reflect the opinions of quoted economists.
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