FG Releases ₦2.45tn to States, FCT to Boost Infrastructure and Security
The Federal Government of Nigeria has disbursed a cumulative ₦2.45 trillion to the 36 states of the federation and the Federal Capital Territory (FCT) over a 17-month period from March 2024 to August 2025 to support infrastructure development and security operations nationwide, according to official records from the Office of the Accountant-General of the Federation and presidential communications.
This intervention is part of a special fiscal support programme funded entirely from non-oil revenue savings, designed to ease fiscal pressures on subnational governments and accelerate project execution where critical gaps persist.
The entire ₦2.45tn was paid out, leaving a zero balance as of 25 August 2025, though the accounts did not disclose how much each state individually received or whether the funds were disbursed on top of regular statutory revenue allocations.
However, the disbursements reflect a deliberate strategy by the federal government to strengthen local capacity to respond to persistent infrastructure deficits and rising insecurity that have long hindered economic activity and public service delivery across the country.
Officials say the funding is helping states and the FCT rehabilitate roads and critical transport links, upgrade basic education and health facilities, and boost security operations in communities where improved safety and connectivity are most needed.
Records show that ₦1.184tn was disbursed in 2024 through four separate tranches carried out in April, May, September and December as part of the intervention programme, and ₦1.266tn was released in 2025 across six tranches between February and August. Each payment transaction was recorded as a “Payment for Intervention to States and FCT,” while the inflows were logged as “Transfer from Non-Oil Savings,” underscoring the distinct nature of this support mechanism from regular revenue sharing.
The intervention traces its policy roots to President Bola Ahmed Tinubu’s approval in July 2023 of the Infrastructure Support Fund (ISF) for the 36 states, a measure intended to cushion the impact of the petrol subsidy removal and align fiscal support with strategic development outcomes.
Under this framework, resources are earmarked for transportation improvements (including rural roads and bridges), enhancements in basic healthcare and education, and investments in power and water resources to stimulate economic competitiveness, create jobs and deliver tangible improvements in living standards.
The Presidency has linked the disbursements to the broader 2025 Budget of Restoration, Securing Peace, Rebuilding Prosperity, saying the focus remains on strengthening security, accelerating infrastructure delivery, and improving public services with an emphasis on transparency, job creation and inclusive growth.
The Special Adviser to the President on Policy Communication highlighted that providing federal support to states aligns with global practices where central governments routinely grant funds to subnational entities for major projects and essential services.
Overall, this ₦2.45tn support represents one of the largest direct fiscal interventions by the federal government to subnational governments outside of regular Federation Account Allocation Committee (FAAC) revenue sharing, underscoring a renewed focus on collaborative investment in infrastructure and security as pillars for Nigeria’s socio-economic development.
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