State governments and the Federal Capital Territory received a total sum of ₦1.6 trillion from the Federal Government between March 2024 and May 2025 as financial support for infrastructure and security projects, official records from the Office of the Accountant-General of the Federation (OAGF) have shown.
The disbursement, which spanned over 15 months, was aimed at bolstering infrastructure development and strengthening security operations at the subnational level, as part of ongoing efforts to address widespread insecurity and bridge critical infrastructure gaps across the country.
These details were contained in internal documents from the OAGF, submitted at the May 2025 Federal Accounts Allocation Committee meeting, obtained on Sunday.
During the meeting, the committee distributed a total of ₦1.659 trillion to the Federal Government, state governments, and local councils, a decrease of ₦22 billion compared to the ₦1.681 trillion shared in April.
The disbursements were made under a special intervention programme funded through non-oil revenue savings, as part of efforts to ease fiscal pressure on subnational governments and accelerate project execution at the grassroots.
The document, titled “Ledger of Savings on Intervention to States Infrastructure and Security,” showed that the payments were drawn from non-oil revenue savings, totalling ₦1.7 trillion within the 15 months.
However, the document did not disclose how much each state received or whether the funds were disbursed separately from the monthly revenue allocation.
Details of the transactions indicated that the total receipts by the Federal Government over the period stood at ₦1.7 trillion, from which ₦1.6 trillion was paid out to state governments and the Federal Capital Territory, leaving a balance of ₦100 billion as of 16 May 2025.
Each payment is recorded as a “Payment for Intervention to States and FCT,” while corresponding inflows are titled “Transfer from Non-Oil Savings.”
On July 20, 2023, President Tinubu approved the Infrastructure Support Fund (ISF) for all 36 states to help offset the impact of petrol subsidy removal. The ISF lets states invest in key areas like roads, agriculture, healthcare, education, power, and water, aiming to boost jobs and economic growth.
A portion of monthly revenue is saved to manage inflation and exchange rates, with these savings supporting the ISF and other fiscal measures. For example, in March 2024, the FG received ₦300 billion in non-oil savings and paid ₦100 billion to states; in April, both receipts and disbursements were ₦100 billion each.
The PUNCH