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State governments received at least N435.25 billion in special Federation Account Allocation Committee (FAAC) funding for security and infrastructure projects in the first half of 2026, according to an analysis of budget implementation reports.
The intervention, classified as "State Infrastructure and Security" under the National Chart of Accounts, is separate from the conventional statutory FAAC allocation and was not available during the corresponding period in 2025.
Data compiled from budget performance reports of 32 states showed that 29 states recorded receipts under the special funding window between January and June 2026.
Of the total, 16 states received N265.5 billion under the dedicated infrastructure and security revenue line, while another 13 states reported N169.75 billion under other FAAC-related revenue heads believed to be linked to the intervention.
Enugu emerged as the highest beneficiary among states that separately reported the fund, receiving N27.02 billion, followed by Gombe with N24.5 billion. Jigawa, Katsina and Ogun each received N19.5 billion.
Ondo and Lagos, which classified the funds under other FAAC revenue categories, reported receipts of N31.86 billion and N30.30 billion respectively.
The funding was introduced after President Bola Tinubu approved the Infrastructure Support Fund for states in 2023 following the removal of petrol subsidy to enable sub-national governments invest in roads, healthcare, education, agriculture, power, water supply and security.
The intervention comes amid growing security challenges, including banditry, kidnappings and attacks on communities, as well as mounting pressure on states to bridge infrastructure gaps.
While some states recorded significant receipts, Adamawa, Anambra and Oyo reported no inflows under the dedicated funding line during the review period despite making budgetary provisions.
Economic experts welcomed the increased allocations, describing them as a step towards fiscal decentralisation, but stressed the need for transparency and accountability in the utilisation of the funds.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, said the additional resources could accelerate development if properly managed, urging citizens to monitor how state governments spend the money.
Similarly, economic analyst Aliyu Ilias called for stronger public oversight, saying the intervention should translate into improved infrastructure, enhanced security and greater investment in agriculture and other productive sectors.
Several governors, including those of Enugu, Delta, Bayelsa and Nasarawa, have acknowledged that increased federal allocations and fiscal reforms have strengthened the financial capacity of state governments to execute development projects and improve security.
