Despite states getting almost three times more money from the Federation Account, many Nigerians say life is getting harder, not better.
Since President Bola Ahmed Tinubu removed fuel subsidy and floated the naira on May 29, 2023, FAAC allocations to states have jumped sharply. The 36 states received N3.35tn in 2022, but by 2025, the figure rose to N8.19tn.
States like Kano, Lagos, Taraba, Zamfara, Kogi and Akwa Ibom all recorded huge increases in allocations, yet residents interviewed by Daily Trust said hunger, transport costs and rent have continued to rise.
A Kano civil servant, Musa Abdullahi, said, “Prices of food items have doubled compared to last year. Even with the same salary, what I can buy now is far less. We hear that allocations have increased, but we are not seeing the impact.”
In Lagos, Dayo Oluwa said, “Before, N2,000 was enough to cook stew, but now I may spend N5,000 or even N10,000, and it still doesn’t feel enough.”
The World Bank said poverty in Nigeria climbed to about 140 million people in 2025, representing 63 per cent of the population.
Economic experts blamed inflation, rising fuel prices and poor spending by governments. Prof. Adeola Adenikinju said, “When you remove subsidy, you are supposed to take care of the poor and vulnerable, but are we doing that now?”
