The Subnational Question: How States Can Turn the FAAC Surge into Devt

THISDAYLIVE | 02-09-2026 09:22pm |

The article discusses how Nigerian states can use a significant increase in government funding to improve development and reduce poverty. It highlights that a large portion of Nigeria's population, about 133 million people, are living in poverty, with rates varying greatly across different states. From 2022 to 2025, the money allocated to states and local governments increased dramatically, rising from ₦5.14 trillion to ₦13.22 trillion. This increase provides a unique opportunity for states to invest in essential services like healthcare and education, which are crucial for tackling poverty. However, the article warns that past experiences show that simply receiving more money does not guarantee development. In previous years, states often spent the extra funds on salaries and administrative costs rather than on projects that would benefit the public. As a result, many states still struggle with high poverty rates despite receiving significant funding. To truly make a difference, states need to focus on productive spending. This means investing in infrastructure like schools and clinics, as well as supporting local economies by creating jobs and improving services. Successful examples include Lagos, which built a large rice mill to boost local agriculture, and other states that developed their unique resources to generate revenue. The article emphasizes the importance of accountability and effective management of funds. States should ensure that local governments receive their fair share of funding and that there is transparency in how money is spent. The goal is to see real improvements in education, healthcare, and poverty reduction, rather than just increasing government size without tangible benefits. In summary, the article calls for Nigerian states to use the recent surge in funding wisely to create lasting development and improve the quality of life for their citizens.

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