Nigerian States Receive N435bn Special FAAC Funds for Security, Infrastructure

Nigerian state governments have significantly boosted their finances, collectively recording at least N435 billion in revenue for infrastructure and security initiatives between January and June 2026. This substantial sum comes from a relatively recent intervention by the Federation Account Allocation Committee (FAAC).

This specific funding stream, categorized as “State Infrastructure and Security” under the National Chart of Accounts code 11010313, is distinct from the conventional statutory FAAC allocations. However, it is distributed to states in the same manner as regular FAAC revenue. It is noteworthy that no funds were disbursed for this particular purpose during the corresponding period in 2025. The data, compiled from the Q1 and Q2 budget performance reports of various states for January to June 2026, was sourced from Open Nigerian States—a BudgIT-supported platform providing government budget information—and subsequently analyzed by our correspondent on Thursday.

The introduction of this intervention coincides with Nigeria's ongoing struggles with escalating insecurity and a profound deficit in infrastructure. The nation continues to grapple with widespread banditry, kidnappings, attacks on educational institutions and communities, alongside dilapidated roads and other critical infrastructure gaps, all of which place immense pressure on state administrations. Between March 2024 and May 2026, a staggering 603 pupils, students, and teachers were abducted across seven major school kidnappings, despite the government's N145 billion Safe Schools Initiative. While the government has intensified its efforts to tackle the security crisis, including expanding the Nigerian Army from eight to twelve divisions and approving the recruitment of an additional 28,000 soldiers, the sheer scale of insecurity compels state governments to increase their investments in both security and vital infrastructure.

In response to these challenges and following the removal of the petrol subsidy, President Bola Tinubu approved the Infrastructure Support Fund for all 36 states in July 2023. This fund was established to enhance states' capacity to invest in critical sectors such as roads, agriculture, health, education, power, and water. A report by The PUNCH in June 2025 revealed that between March 2024 and May 2025, state governments and the Federal Capital Territory collectively received N1.6 trillion for various infrastructure and security projects. Three years after its pronouncement, this funding mechanism has solidified its position as an additional, crucial revenue source for sub-national governments to meet their obligations.

Our correspondent's review encompassed data from 32 states where information was accessible. Among these, 16 states explicitly reported a combined N265.50 billion under the dedicated 'State Infrastructure and Security' revenue line. Another 13 states disclosed a combined N169.75 billion as other FAAC-related revenue, although their reports did not directly classify these funds for infrastructure and security. Consequently, the total identifiable amount from these 29 states reached N435.25 billion.

Conversely, three states—Adamawa, Anambra, and Oyo—recorded zero actual receipts under the infrastructure and security line during this period. This occurred despite Adamawa and Anambra having made budgetary provisions for the item, and Oyo anticipating an N8 billion allocation. Akwa Ibom, though part of the 32 states reviewed, did not disclose a figure for the infrastructure and security revenue component in its available half-year report. Furthermore, four states—Bayelsa, Edo, Osun, and Rivers—were not included in the calculations due to the unavailability of data in the dataset.

While states such as Bauchi, Borno, Cross River, Ebonyi, Enugu, Gombe, Imo, Jigawa, Kano, Katsina, Kogi, Kwara, Ogun, Sokoto, Taraba, and Yobe clearly reported the dedicated infrastructure and security revenue, several other states recorded substantial sums simply under general FAAC revenue distributions. This suggests that the total amount flowing to states through this special revenue window might potentially be larger than the N435.25 billion identified in the available accounts.

A state-by-state analysis showed that Enugu received the highest cumulative amount, N27.02 billion, among states that separately reported a dedicated infrastructure and security revenue line. Gombe followed with N24.50 billion. Jigawa, Katsina, and Ogun each secured N19.50 billion, while Cross River and Yobe recorded N17.50 billion apiece. Borno received N16.41 billion, Bauchi N14.58 billion, and Ebonyi, Imo, Kano, Kwara, and Taraba each reported N14 billion. Sokoto received N12.50 billion, with Kogi recording the lowest amount among the 16 states with actual dedicated receipts at N7 billion.

When states that classified the money under other FAAC-related revenue heads were included, Ondo emerged as one of the biggest beneficiaries, reporting N31.86 billion, while Lagos received N30.30 billion. Abia reported N24.50 billion, Nasarawa N21.24 billion, and Niger N15.50 billion. Benue and Plateau each recorded N14 billion. Delta received N5.50 billion, Ekiti reported N5.38 billion, Kaduna N3.83 billion, Kebbi N1.95 billion, and Zamfara N1.71 billion.