The three tiers of government in Nigeria have received an estimated N118.8 trillion in revenue over the past three years, but analysts and civil society organisations say the massive inflow has yet to translate into meaningful improvements in infrastructure, public services or living standards.

Recent findings by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) show that the Federal Government, 36 states and 774 local governments shared about N53.3 trillion from the Federation Account Allocation Committee (FAAC) between 2023 and May 2026.

In addition, independently generated revenue (IGR) by the three tiers of government during the same period is estimated at N65.5 trillion, bringing total public revenue available for spending to about N118.8 trillion. The figure excludes domestic and external borrowings, suggesting that total government spending within the period could be significantly higher.

Experts project that total public revenue could rise to about N150 trillion by the end of 2026, driven largely by sustained growth in FAAC allocations and internally generated revenues.

The sharp increase in government revenue marks a significant departure from the pre-reform era. In 2022, before the economic reforms introduced by the current administration, average monthly FAAC distribution stood at N758 billion.

Monthly allocations increased to about N845 billion in 2023 before rising sharply to N1.3 trillion in 2024, the first full fiscal year under the current administration.

The upward trend continued in 2025, with average monthly FAAC distributions climbing to N1.93 trillion, while allocations averaged N2.083 trillion in the first five months of 2026.

The figures do not include the Federal Government’s independent revenues or the internally generated revenues of state and local governments.

Financial analysts attribute the surge in public revenue largely to the removal of petrol subsidy and the liberalisation of the foreign exchange market.

Despite the unprecedented revenue growth, Financial Vanguard findings indicate that governments at all levels continue to struggle with several financial obligations, including unpaid contractor debts, pension arrears and poor implementation of the new national minimum wage in many states.

The situation has intensified concerns over transparency, accountability and the effectiveness of public spending.

Civil society organisations noted that although Nigerians have borne the hardship associated with the economic reforms, the increased revenues have not translated into significant improvements in public infrastructure or service delivery.

At the federal level, concerns persist over rising debt service obligations, outstanding liabilities to contractors and unpaid pension arrears.

Contractors have repeatedly protested at the Federal Ministry of Finance headquarters in Abuja over unpaid verified contracts. The protests, which began during the tenure of former Minister of Finance Wale Edun, have continued under the current Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.

While the ministry disclosed that about N700 billion had been processed for payment in recent months, indigenous contractors disputed the claim.

Spokesman of the All Indigenous Contractors Association of Nigeria (AICAN), Rotimi Raheem, said only about N40 billion had been paid to members of the association out of the N280 billion expected.

Budget implementation data also indicate persistent weaknesses in capital expenditure.
According to the 2023 Budget Performance Report of the Budget Office of the Federation, total expenditure stood at N8.6 trillion by July against a pro-rata spending target of N12.29 trillion.

Out of the amount spent, N3.94 trillion went to debt servicing, while N2.68 trillion was used for personnel costs, including pensions. Only N857.08 billion, representing about 25 per cent of the pro-rata capital budget, had been released to Ministries, Departments and Agencies (MDAs) for capital projects.

In 2024, the Federal Government appropriated N35.055 trillion, with N13.773 trillion earmarked for capital expenditure. However, the Budget Office reported actual capital spending of N6.17 trillion during the fiscal year.

Data from the Office of the Accountant-General of the Federation showed that by June 30, 2024, only N211.81 billion had been released and cash-backed for capital projects.

By September 30, total capital releases had increased to N4.253 trillion, including first, second and third tranche releases alongside service-wide interventions.

Capital budget implementation remained weak in 2025, with government officials admitting that only about 30 per cent of the capital budget was implemented.

Consequently, the Federal Government rolled over about 70 per cent of the 2025 capital budget into the 2026 fiscal year through the 2026 budget call circular.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, described improved government revenue as one of the positive outcomes of the administration’s economic reforms but argued that accountability had become the more pressing issue.

“The critical issue is no longer just revenue growth, but how these resources are managed, disclosed, prioritised and accounted for,” he said.

Yusuf observed that transparency and public scrutiny remain significantly weaker at state and local government levels, where budget information is often inaccessible or poorly disclosed.

He called for greater publication of budget allocations, internally generated revenues, procurement records, audit reports and project implementation updates to enable citizens to demand accountability.

He also urged Nigerians to engage more actively with elected officials beyond election periods by monitoring budgets, projects and service delivery.

Country Director of Global Rights Nigeria, Abiodun Baiyewu, said the huge revenue inflows had not improved the lives of ordinary Nigerians.

“From what we know, it has not improved the lives of Nigerians nor significantly improved infrastructure. Mal-governance is palpable on the face of things,” she said.

Baiyewu commended organisations such as BudgIT for making public finance data more accessible, urging citizens to organise and collectively demand greater transparency and accountability.

She added that government finances remain largely opaque despite advances in digital technology and called on citizens to intensify demands for openness, inclusion and accountability.

Similarly, Country Director of ActionAid Nigeria, Dr. Andrew Mamedu, said the challenge was not the size of public revenue but the integrity and efficiency with which it is deployed.

According to him, much of the increased allocations continue to be absorbed by recurrent expenditure, including salaries, political office costs, overheads and debt servicing, leaving insufficient resources for development projects.

He noted that weak planning, poor budget implementation, inflation, exchange rate volatility, governance challenges and corruption continue to undermine the impact of increased public spending.

Mamedu called for stronger public awareness of monthly FAAC allocations, improved access to fiscal information and greater citizen participation in monitoring public projects.

He urged governments to reduce non-productive recurrent expenditure, align budgets with measurable development priorities, prioritise investments in agriculture, infrastructure and social services, strengthen whistleblower protection and improve transparency across all levels of government.

According to him, with the scale of public resources currently available, governments must adopt a more disciplined, transparent and outcome-driven approach to public spending to ensure that increased revenues translate into tangible improvements in the lives of Nigerians.