By Zachariah C. Hyellamada
When President Bola Ahmed Tinubu removed fuel subsidy in May 2023, it wasn’t just an economic reform, it was a fiscal revolution. For the first time in decades, state governments began receiving record allocations from the Federation Account.
According to the Nigeria Extractive Industries Transparency Initiative (NEITI), FAAC disbursements rose from ₦9.18 trillion in 2022 to ₦10.14 trillion in 2023, representing a 66% increase. In simple terms, governors now have more money at their disposal than ever before.
By June 2025, monthly FAAC hit a record ₦1.818 trillion. Of that, states received ₦607.42 billion, closely trailing the federal government’s ₦645.38 billion. Similarly, in May 2025, states collected ₦577.84 billion, surpassing the federal government’s ₦538 billion. This marked a historic moment — states, for the first time in decades, got more money than Abuja.
Yet, despite these inflows, Nigerians still wake up to the same realities: collapsing schools, underfunded hospitals, unpaid salaries, and broken infrastructure. Citizens feel the pain daily, but the money meant to ease their suffering is no longer tied up in Abuja, it is sitting in state capitals.
This is why the national conversation must shift. The President has done his part by dismantling subsidy rackets and freeing up revenue. Now governors must do theirs. Nigerians must start asking harder questions at the state level:
- Where is the money going?
- Why are schools still dilapidated?
- Why are roads still impassable?
- Why is healthcare still a luxury for the poor?
The truth is simple: the money is with the governors.
If Nigerians apply the same energy used in holding Abuja accountable to their state capitals, things will change faster. Real development — in agriculture, jobs, education, and healthcare will only happen when governors deploy these unprecedented allocations transparently and effectively.
President Tinubu has shifted the financial power closer to the people. It is now the duty of Nigerians to demand accountability from their governors.
Zach C. Hyellamada -ZAH
•PA to the Chairman NSITF Management Board.
•Northeast Coordinator, BAT Vanguard
•Author of “Secrets to Winning Elections in Nigeria“
