Nigeria’s three tiers of government have collectively received and spent an estimated N118.8 trillion between 2023 and May 2026 yet contractors remain unpaid, pension arrears mount, and millions of Nigerians have seen little improvement in their living conditions.
Data from the Revenue Mobilization, Allocation and Fiscal Commission shows that N53.3 trillion came through the Federation Account Allocation Committee over the period, while independently generated revenues added roughly N65.5 trillion more. Analysts project total government revenue could reach N150 trillion before the end of 2026.
The growth has been dramatic. Monthly FAAC distributions averaged N758 billion in 2022, the year before President Tinubu’s reforms took effect. By 2025, that figure had climbed to N1.93 trillion, and hit an average of N2.08 trillion monthly in the first five months of 2026 — driven largely by petrol subsidy removal and foreign exchange liberalisation.
Yet the windfall has not translated into results on the ground.
The federal government has struggled to meet debt service obligations and clear contractor debts. Members of the All Indigenous Contractors Association of Nigeria say they have received only N40 billion of the N280 billion owed to them, despite the Finance Ministry announcing that N700 billion had been processed in recent months. Workers in several states are still waiting for minimum wage implementation, and pension arrears remain unresolved at both federal and state levels.
Capital budget performance tells a similar story. In 2023, only N857 billion — 25 percent of the pro-rata target — was released for capital expenditure by July. In 2024, actual capital spending reached N6.17 trillion against a N13.77 trillion allocation. The 2025 capital budget fared worst of all, with government officials conceding that only about 30 percent was achieved, forcing a 70 percent rollover into 2026.
Civil society groups and economic analysts say the problem lies not in the size of revenues but in how they are managed.
“The critical issue is no longer just revenue growth, but how these resources are managed, disclosed, prioritised and accounted for,” said Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise. He called the accountability framework at the sub-national level “weak,” noting that budget information in many states and local governments remains poorly detailed and largely inaccessible to citizens.
Abiodun Baiyewu, Country Director of Global Rights Nigeria, was more blunt: “It has not improved the lives of Nigerians nor significantly improved infrastructure. Mal-governance is palpable.”
ActionAid Nigeria’s Country Director, Dr. Andrew Mamedu, pointed to structural problems compounding the crisis — from inflation eroding the real value of allocations, to weak procurement systems, political interference in project selection, and outright leakages. He called on governments to shift spending away from recurrent costs toward capital and social investment, align budgets with measurable development targets, and protect whistleblowers who report misuse of public funds.
All three analysts stressed the need for citizens to move beyond elections and actively demand accountability — tracking allocations, engaging elected officials, and monitoring project delivery in their communities.
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