At least 29 Nigerian states recorded a combined N435.25 billion in N435bn state funding for infrastructure and security between January and June 2026, according to an analysis of available half-year budget performance reports. The funding was recorded through a relatively new Federation Account Allocation Committee (FAAC) intervention classified as “State Infrastructure and Security” under the National Chart of Accounts code 11010313.
The funding stream is separate from conventional statutory FAAC allocations, although it is distributed as regular FAAC revenue. No allocation was recorded under the category during the corresponding period of 2025. The analysis, based on Q1 and Q2 budget performance reports obtained from Open Nigerian States, a BudgIT-backed government budget data repository, covered 32 states with available information.
Of those states, 16 explicitly reported N265.50 billion under the dedicated infrastructure and security revenue line. Another 13 states recorded N169.75 billion under separately disclosed FAAC-related revenue categories without directly identifying the funds as infrastructure and security allocations. Together, the identifiable receipts amounted to N435.25 billion.
Enugu recorded the highest dedicated receipt among the 16 states, with N27.02 billion, followed by Gombe with N24.50 billion. Jigawa, Katsina and Ogun each recorded N19.50 billion, while Cross River and Yobe received N17.50 billion each. Borno recorded N16.41 billion, while Bauchi received N14.58 billion. Ebonyi, Imo, Kano, Kwara and Taraba each reported N14 billion. Sokoto received N12.50 billion, while Kogi recorded N7 billion.
Among states that classified the funds under other FAAC-related revenue headings, Ondo recorded N31.86 billion, followed by Lagos with N30.30 billion. Abia reported N24.50 billion, Nasarawa N21.24 billion and Niger N15.50 billion. The amount represented about 10 percent of the N4.55 trillion federation allocation received by states with available half-year records. It was also equivalent to 20.71 percent of their combined N2.10 trillion internally generated revenue.
The implementation figures varied considerably across states. Gombe recorded N24.50 billion against an annual budget provision of N5 billion, representing 490 percent of its full-year estimate within six months. Bauchi received N14.58 billion against N16.84 billion budgeted, while Enugu received N27.02 billion of its N80 billion projection.
Sokoto recorded N12.50 billion against a revised N90 billion budget, representing 13.9 percent performance. Ebonyi received N14 billion against N88.41 billion, while Taraba recorded N14 billion against N80.70 billion. Adamawa and Anambra recorded no actual receipts under the dedicated line despite budgeting approximately N35.23 billion and N10 billion respectively.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, described the increased flow of funds to states as positive for fiscal decentralisation but stressed that the benefits would depend on how the money was used.
“That amount is high, but for me, I think it is a good development because that means we are gradually moving towards decentralisation, which is what a federation should be,” Yusuf said.
He called for greater transparency and citizen oversight, warning that states could spend additional resources on projects with limited economic value. Economic analyst Aliyu Ilias similarly welcomed the earmarking of funds for specific purposes but urged citizens and civil society organisations to monitor their utilisation.
“First and foremost, it is a good one that the government has started attaching money given to states for something specific. But citizens must monitor them to see what they are actually doing,” Ilias said.
The intervention dates back to President Bola Tinubu’s July 2023 approval of the Infrastructure Support Fund for the 36 states following the removal of petrol subsidy. The fund was designed to strengthen state capacity to invest in roads, agriculture, health, education, power, water and other critical infrastructure.
The latest figures come amid heightened security pressures, including kidnapping, banditry and attacks on communities and schools. Between March 2024 and May 2026, at least 603 pupils, students and teachers were abducted in seven mass school abductions despite the N145 billion Safe Schools Initiative.
Several governors have acknowledged improved fiscal capacity following federal reforms. Enugu Governor Peter Mbah said increased resources had enabled his administration to undertake projects at a scale that would previously have been difficult.
Nasarawa Governor Abdullahi Sule also said states were receiving unprecedented federation allocations, while Delta Governor Sheriff Oborevwori acknowledged that increased revenues had strengthened states’ ability to execute projects. However, the ultimate value of the special funding will depend on transparent reporting, effective expenditure and whether the additional resources produce measurable improvements in infrastructure, public services and security across the states.
