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Findings based on a review of Q1 and Q2 budget implementation reports of states between January and June 2026 showed that at least 29 states recorded a combined N435.25 billion under the funding window
KaNo —
State governments across Nigeria received no fewer than N435 billion in the first half of 2026 under a special funding window designed to support infrastructure development and strengthen security operations, an analysis of budget performance reports has revealed.
The intervention, disbursed through the Federation Account Allocation Committee (FAAC), is classified in state financial records as “State Infrastructure and Security” under the National Chart of Accounts code 11010313.
It represents a relatively new revenue stream distinct from the conventional statutory allocations shared monthly among the three tiers of government.
Findings based on a review of Q1 and Q2 budget implementation reports of states between January and June 2026 showed that at least 29 states recorded a combined N435.25 billion under the funding window. Notably, no such disbursement was made in the corresponding period of 2025.
The data, sourced from Open Nigerian States, a BudgIT-backed transparency platform that compiles and publishes government fiscal records, underscores the growing role of the special intervention in boosting state finances amid rising economic and security challenges.
The emergence of the funding stream comes at a time when Nigeria is grappling with worsening insecurity and a widening infrastructure deficit. Incidents of banditry, kidnapping, attacks on schools, and deteriorating road networks have placed increasing pressure on sub-national governments to step up investments in security and essential services.
Between March 2024 and May 2026, at least 603 pupils, students and teachers were abducted in seven mass school abduction incidents across the country, despite the Federal Government’s N145 billion Safe Schools Initiative aimed at curbing such occurrences.
FG Intensify Security Measures
In response to the escalating crisis, the Federal Government has intensified security measures, including the expansion of the Nigerian Army from eight to 12 divisions and the approval for the recruitment of 28,000 additional personnel.
It was against this backdrop that President Bola Tinubu approved the Infrastructure Support Fund for the 36 states in July 2023, following the removal of petrol subsidy.
The initiative was designed to enhance states’ capacity to invest in critical sectors such as roads, agriculture, healthcare, education, water supply and power infrastructure.
A previous report had indicated that between March 2024 and May 2025, states and the Federal Capital Territory collectively received about N1.6 trillion under the intervention.
An analysis of available fiscal data covering 32 states showed that 16 states explicitly reported a combined N265.50 billion under the dedicated “State Infrastructure and Security” revenue line.
Another 13 states recorded N169.75 billion as other FAAC-related revenues, though their reports did not specifically categorise the funds under the infrastructure and security heading.
This brought the total identifiable receipts across 29 states to N435.25 billion.
However, the actual amount flowing to states may be higher, as discrepancies in reporting formats and classification suggest that some states may have received additional funds not captured under the specific revenue code.
Three States Recorded Zero Receipts
Three states Adamawa, Anambra and Oyo reported zero actual receipts under the infrastructure and security category during the review period, despite making budgetary provisions for the item.
Oyo State, for instance, had projected an allocation of N8 billion but recorded no inflow within the first six months of the year.
Akwa Ibom State was included in the dataset but did not disclose any figure for the funding component in its half-year report, while Bayelsa, Edo, Osun and Rivers were excluded from the analysis due to the unavailability of their budget performance documents.
Among states that clearly reported the dedicated revenue, Enugu recorded the highest cumulative receipt at N27.02 billion, followed by Gombe with N24.50 billion. Jigawa, Katsina and Ogun each received N19.50 billion, while Cross River and Yobe recorded N17.50 billion apiece.
When states that classified the funds under other FAAC-related revenue heads were considered, Ondo emerged as one of the largest beneficiaries, reporting N31.86 billion, while Lagos recorded N30.30 billion.
Abia received N24.50 billion, Nasarawa N21.24 billion, Niger N15.50 billion, while Benue and Plateau each reported N14 billion. Delta recorded N5.50 billion, Ekiti N5.38 billion, Kaduna N3.83 billion, Kebbi N1.95 billion and Zamfara N1.71 billion.
Further breakdown showed that the 16 states with clearly identified infrastructure and security receipts accounted for approximately 61 per cent of the N435.25 billion total, while the 13 states that reported the funds under other revenue lines accounted for about 39 per cent.
In broader fiscal terms, the N435.25 billion represents nearly 10 per cent of the N4.55 trillion total federation allocation received by the states with available records within the period. It also accounted for about 20.71 per cent of the N2.10 trillion internally generated revenue reported by the same states.
When compared with the combined N6.65 trillion FAAC allocations and internally generated revenues, the special funding window contributed 6.55 per cent.
Gombe State, for instance, recorded N24.50 billion against a full-year budget estimate of N5 billion, representing an extraordginary 490 per cent performance within the first six months of the year.
Bauchi achieved 86.6 per cent of its N16.84 billion annual target, while Jigawa recorded 65 per cent of its N30 billion projection. Yobe posted N17.50 billion, representing 48 per cent of its N36.49 billion budget, leaving a shortfall of N18.99 billion.
Ogun State recorded N19.50 billion, achieving 38 per cent of its N51.28 billion target, while Enugu realised 33.8 per cent of its N80 billion projection, with a deficit of N52.98 billion.
Similarly, Borno recorded 33.2 per cent of its N49.44 billion estimate, while Katsina achieved 32.4 per cent of its N60.27 billion projection.
Experts note that while the intervention provides a critical boost to state finances, transparency in reporting and effective utilisation of the funds will be crucial to achieving the intended objectives.
As insecurity persists and infrastructure gaps widen, the ability of state governments to channel these resources into tangible improvements in safety, economic productivity and public services will remain a key measure of the policy’s success.