CSOs seek transparency over N10.45tn FAAC disbursements

Civil society organisations have called for greater transparency and accountability in the use of Federation Account Allocation Committee disbursements, following a 25.85 per cent increase in allocations to the three tiers of government from N8.30tn to N10.45tn between January and May 2026. They warn that the rising public revenue has yet to translate into improved living conditions for Nigerians.

The calls come amid growing public concern over worsening hardship and recent backlash against the Special Adviser to the President on Information and Strategy, Bayo Onanuga, following his comments that he did not personally see the level of hunger often highlighted by Nigerians.

Earlier, The PidomNigeria reported that the Federal Government, the 36 states, the Federal Capital Territory, and the 774 Local Government Areas received N10.45tn from FAAC between January and May 2026, compared with N8.30tn in the corresponding period of 2025.

Civil society and public welfare leaders note that the sharp rise in allocations should be seen as an opportunity to improve citizens’ welfare rather than as an achievement.

In separate telephone interviews with Sunday PidomNigeria, CSO leaders, including the Country Director of ActionAid Nigeria, Andrew Mamedu, welcomed the 26 per cent jump in FAAC disbursements, from N8.3tn in the first five months of 2025 to N10.45tn in the same period this year, as “a significant increase by any measure.”

He stressed that the consequential issues surrounding the disbursements centre on the inflationary pressures and the devalued naira that Nigerians are forced to contend with, stating, “The more important number sits quietly behind it: gross government revenue only grew by about 4.3 per cent over the same period. That gap between a 26 per cent rise in what was shared and a 4 per cent rise in what was actually generated tells its own story,” Mamedu said.

He explained that much of the increase resulted from naira devaluation, exchange rate gains, and one-off items rather than genuine economic expansion.

“A large part of the increase in disbursable revenue is coming from naira devaluation effects, exchange rate gains, and one-off items like the N250bn augmentation in March, rather than from a genuine expansion in the productive base of the economy. That distinction matters a great deal for ordinary Nigerians because money that flows from currency depreciation does not translate into more purchasing power for households,” Mamedu said.

He lamented that the country lacked the transparency framework needed to determine whether the additional funds were being used effectively, particularly by state governments.

“We do not yet have the transparency architecture in Nigeria to answer that with confidence, and that itself is part of the problem. States receive these allocations and there is no consistent, publicly accessible system tracking how each kobo translates into wells drilled, classrooms staffed and resourced, primary health centres stocked with personnel and medicine, or security presence extended into rural and farming communities,” Mamedu stated.

He added that communities across the country continued to experience poor access to water, healthcare, education, and security despite the increased allocations.

“The constitutional responsibility for primary healthcare, basic education, and a good deal of security infrastructure sits with states and local governments, the tiers of government closest to where poverty and exclusion are actually experienced, and there is currently no binding mechanism requiring them to publish or account for how FAAC receipts are spent, line by line,” the public welfare advocate noted.

He called for accountability infrastructure, noting, “Until that accountability architecture exists, increases in disbursement, wherever they sit across tiers of government, will keep outpacing improvements in the welfare of the people who need that money to reach them most.”

He urged governments to channel a significant portion of the windfall into expanded social protection programmes and allow citizens to participate meaningfully in budget defence processes.

Also reacting, the Chief Executive Officer of the Public and Private Development Centre, Lucy Abagi, said Nigerians deserved visible improvements in public services and infrastructure following the higher allocations.

“With these huge disbursements, the citizens need to see a tangible shift in capital projects that will ultimately benefit the states in terms of welfare, availability of basic amenities, and security for all. The government owes the people transparent processes on how these resources are utilised, and we demand an accountable procurement process,” Abagi said.

The calls come as labour unions and private sector stakeholders continue to express concern over worsening living conditions, rising insecurity, and the high cost of living despite increased government revenues.

According to Sunday PidomNigeria analysis, the Federal Government received N3.72tn from the five-month allocation, the states received N3.56tn, local governments got N2.51tn, while the 13 oil-producing states shared N673.17bn as derivation revenue.