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<p>Despite a dramatic increase in federal allocations to states and local governments in recent years, millions of Nigerians continue to grapple with worsening poverty, inflation and a declining standard of living.</p><div class="4rGttuJl" style="clear:both;float:left;width:100%;margin:0 0 20px 0;"><script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>

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<p>Across markets, offices, motor parks and homes, many citizens say the rising government revenues have done little to improve their daily realities. While states now receive significantly higher allocations through the Federation Account Allocation Committee (FAAC), families are struggling to afford food, transportation, housing and healthcare.</p>
<p>The growing concern has raised questions about how public funds are being managed and whether the benefits of economic reforms are reaching ordinary Nigerians.</p>
<p>The Rise In FAAC Allocations</p><div class="PWdHOTcw" style="clear:both;float:left;width:100%;margin:0 0 20px 0;"><script async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>

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<p>Over the years, allocations from the Federation Account have steadily increased. In May 2022, FAAC shared N680.78 billion among the three tiers of government, representing a 6.94 per cent increase over the previous month. By July 2022, the amount had risen to N954.1 billion, while N990.19 billion was shared in December 2022.</p>
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<p>The trend continued after the removal of fuel subsidy and the floating of the naira in May 2023. According to available data, the 36 states collectively received N3.35 trillion in 2022. By 2025, that figure had increased to N8.19 trillion, nearly tripling within three years.</p>
<p>Several states recorded substantial increases:</p>
<p>&#8211; Kano State: N99.31 billion in 2022 to N279.69 billion in 2025-</p>
<p>&#8211; Lagos State: N161.29 billion to N531.51 billion</p>
<p>&#8211; Taraba State: N51.74 billion to N157.56 billion</p>
<p>&#8211; Zamfara State: N56.62 billion to N167.20 billion</p>
<p>&#8211; Kogi State: N60.78 billion to N176.24 billion</p>
<p>&#8211; Akwa Ibom State: N314.18 billion to N497.98 billion</p>
<p>In March 2026 alone, FAAC distributed N2.04 trillion among the federal, state and local governments, reflecting a further increase in government revenue.</p>
<p>Analysts attribute the growth to tax reforms, improved revenue collection by agencies such as the Federal Inland Revenue Service (FIRS), higher crude oil earnings and policy changes directing more revenue into the Federation Account.</p>
<p>A Different Reality for Nigerians</p>
<p>While government revenues continue to rise, many Nigerians say their living conditions are moving in the opposite direction.</p>
<p>In Kano, civil servant Musa Abdullahi says his monthly salary can no longer sustain his family.</p>
<p>“Food prices have doubled. We hear that allocations are increasing, but we are not seeing the impact in our daily lives,” he said.</p>
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<p>For traders, the story is much the same. Zainab Sani, a petty trader, said customers now buy less because household incomes have been stretched beyond their limits.</p>
<p>In Lagos, many families have been forced to make difficult adjustments. Dayo Oluwa, a resident, explained that items such as meat and fish have become luxury goods in many homes.</p>
<p>“Before, N2,000 could cook a decent pot of stew. Today, even N5,000 may not be enough,” she said.</p>
<p>Workers say transportation costs have also become unbearable. Some civil servants now limit their movement or seek additional jobs just to meet their basic needs.</p>
<p>In Kogi State, several workers have reportedly taken up commercial transportation, farming and small-scale businesses to supplement their incomes. Similar stories have emerged from Taraba, Zamfara and Akwa Ibom states, where residents describe an economy that continues to squeeze the average citizen.</p>
<p>Poverty Amid Rising Revenue</p>
<p>The contradiction between increasing government revenue and growing hardship has become one of Nigeria’s most pressing economic concerns.</p>
<p>According to the World Bank, about 140 million Nigerians were living in poverty by 2025, representing approximately 63 per cent of the population. Earlier reports by the National Bureau of Statistics also showed that millions of Nigerians lacked adequate access to food, healthcare and decent housing.</p>
<p>Economic experts argue that while subsidy removal boosted government earnings, inflation and currency depreciation have significantly weakened the purchasing power of citizens.</p>
<p>As prices continue to rise, salary increases and government interventions have struggled to keep pace with the cost of living.</p>
<p>The Accountability Question</p>
<p>The increase in allocations has also renewed calls for transparency and accountability.</p>
<p>Experts insist that the issue is no longer about whether governments have enough money, but whether those resources are being effectively utilised.</p>
<p>Development economists have repeatedly argued that increased revenue should result in better roads, improved healthcare services, stronger educational systems, job creation and targeted support for vulnerable populations.</p>
<p>Civil society groups have also urged citizens to take a greater interest in how public funds are spent. They argue that taxpayers have a right to know how government revenues are allocated and utilised.</p>
<p>The editorial position expressed by several policy analysts is clear: rising allocations should not merely exist as figures on paper; they should translate into measurable improvements in people’s lives.</p>
<p>Beyond the Numbers</p>
<p>The growing FAAC allocations represent a positive development for Nigeria’s public finances. They demonstrate that revenue generation has improved and that the country is gradually diversifying beyond its traditional dependence on oil earnings.</p>
<p>However, for millions of Nigerians struggling to afford daily necessities, the true measure of success is not how much money enters government accounts, but how effectively those funds improve the quality of life of citizens.</p>
<p>As governments continue to receive larger allocations, expectations will continue to rise. Nigerians increasingly want evidence that public resources are being invested in meaningful development, economic opportunities and social welfare.</p>
<p>Until the benefits of rising revenues are reflected in households, communities and businesses across the country, many citizens will continue to ask the same question: if government allocations are increasing, why is life becoming more difficult?</p>
<p>Written By: Mfe Mesuur Perpetual (Abuja),<br />
200 level student of Development and strategic communication, University of Abuja.</p>
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