Official records from the Office of the Accountant-General of the Federation (OAGF) show that the Federal Government disbursed a total of N2.45 trillion to state governments and the Federal Capital Territory between March 2024 and August 2025 to support infrastructure development and security operations.
The funds, released over a 17-month period, were intended to strengthen subnational capacity in addressing insecurity and closing critical infrastructure gaps nationwide. The details are contained in internal OAGF documents presented at the December 2025 Federal Accounts Allocation Committee (FAAC) meeting, which were obtained on Friday.
According to the records, the disbursements were made under a special intervention programme funded from non-oil revenue savings, designed to reduce fiscal pressure on states and speed up project execution at the grassroots level.
A document titled “Ledger of Savings on Intervention to States Infrastructure and Security” indicates that the entire N2.45tn paid out during the period was sourced from non-oil savings. However, it did not specify how much each state or the FCT received, nor whether the payments were separate from regular monthly FAAC allocations.
The ledger shows that total inflows into the intervention account matched total disbursements, leaving a zero balance as of August 25, 2025. In 2024 alone, states received N1.184tn, released through four transactions: N259bn in April, N222bn in May, N370bn in September, and N333bn in December.
In 2025, intervention payments increased to N1.266tn, spread across six transfers — N216bn in February; N200bn in April; N250bn each in May, June, and July; and N100bn in August — reflecting a sustained funding pattern over the two years.
Each transaction was recorded as a “Payment for Intervention to States and FCT”, with corresponding inflows labelled “Transfer from Non-Oil Savings.”
The intervention framework traces its origin to July 20, 2023, when President Bola Tinubu approved the establishment of an Infrastructure Support Fund (ISF) for the 36 states to cushion the effects of petrol subsidy removal.
At the time, former presidential spokesperson Dele Alake explained that the fund would enable states to invest in priority areas such as transportation, agriculture, healthcare, education, power, and water resources, while also creating jobs and improving economic competitiveness.
He also noted that a portion of monthly revenues would be saved to moderate inflationary pressures arising from subsidy removal and exchange rate unification, adding that the savings would complement other fiscal measures aimed at improving living standards.
A closer look at the transaction history shows a structured savings-and-disbursement pattern, punctuated by major intervention payouts. In March 2024, the Federal Government saved N300bn without disbursing funds. This was followed by a N259bn payout in April, despite only N100bn being saved that month.
Similar mismatches occurred in May 2024, when N222bn was disbursed against N100bn in savings. From June to August 2024, savings continued at N100bn monthly, with no payments to states. A major intervention occurred in September 2024, when N370bn was disbursed after only N100bn in inflows.
Savings later rose to N200bn in November 2024, before another large payout of N333bn in December. In 2025, the pattern shifted toward closer alignment between savings and disbursements, with several months recording equal inflows and payouts, particularly between May and July, when N250bn was saved and distributed monthly.
The Federal Government’s consistent N100bn monthly savings point to a deliberate intervention strategy aimed at supporting states in tackling infrastructure deficits and security challenges. However, concerns persist regarding transparency and the actual utilisation of the funds.
In an earlier interview, Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre, criticised both federal and state authorities over what he described as poor accountability in the use of more than N1.6tn disbursed for infrastructure and security between March 2024 and May 2025.
Rafsanjani argued that despite the scale of funding, insecurity remains widespread, suggesting that public resources are being diverted toward political interests ahead of the 2027 elections, rather than people-focused development.
Beyond the intervention funds, the Federal Government has continued to finance large-scale infrastructure projects. One notable example is the N1tn Kano Metropolitan Rail Service, approved to modernise urban transport, boost economic activity, and reduce traffic congestion.
Kano State Governor Abba Yusuf announced the approval while addressing participants at the 2025 National Qur’anic Recitation Competition in Borno State, describing the project as a transformative investment that would enhance mobility, trade, and investment within the metropolis.
