The Internally Generated Revenue of Nigerian states rose by 34 per cent to N2.43tn in the first half of 2026, up from N1.815tn recorded in the comparable period of 2024, as sub-national governments gained access to more funds despite worsening economic pressures on households.Findings by The PUNCH showed that 35 states, excluding Rivers State, generated a combined N2.43tn in IGR during the six-month period. Data for H1 2025 IGR for many states are not available.The IGR growth underscores the expanding revenue base of state governments at a time when they face mounting financial obligations, including infrastructure development, social services, workers’ salaries and other recurrent expenditures.However, the increase in revenue has intensified questions about how state governments are deploying the additional funds, particularly as they benefit from higher Federation Account allocations and savings from the removal of petrol subsidies.The scrutiny has also shifted to the estimated N10.4tn in subsidy savings allocated to states and local governments, with stakeholders demanding evidence of how much of the additional resources is being converted into projects and programmes that improve citizens’ welfare.Despite stronger revenue inflows, analysts said many states continue to grapple with inadequate infrastructure, weak social services, widespread poverty and limited economic opportunities.A World Bank report cited showed that the proportion of Nigerians living below the poverty line rose from 56 per cent in 2023 to 61 per cent in 2024 and further to 63 per cent in 2025, representing about 140 million people.The widening gap between increased government revenues and citizens’ living conditions has consequently raised concerns over the spending priorities of governors and local government chairmen. Analysts have accused some political office holders of maintaining lavish lifestyles while residents struggle with elevated living costs and declining purchasing power.Experts argued that higher public revenue must be matched by greater transparency, stronger fiscal accountability and a significant increase in productive capital investment.They said states should channel the additional resources into projects and programmes that expand economic activity, create jobs, improve productivity and reduce the financial burden on households.According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Findings by The PUNCH showed that 35 states, excluding Rivers State, generated a combined N2.43tn in IGR during the six-month period. Data for H1 2025 IGR for many states are not available.The IGR growth underscores the expanding revenue base of state governments at a time when they face mounting financial obligations, including infrastructure development, social services, workers’ salaries and other recurrent expenditures.However, the increase in revenue has intensified questions about how state governments are deploying the additional funds, particularly as they benefit from higher Federation Account allocations and savings from the removal of petrol subsidies.The scrutiny has also shifted to the estimated N10.4tn in subsidy savings allocated to states and local governments, with stakeholders demanding evidence of how much of the additional resources is being converted into projects and programmes that improve citizens’ welfare.Despite stronger revenue inflows, analysts said many states continue to grapple with inadequate infrastructure, weak social services, widespread poverty and limited economic opportunities.A World Bank report cited showed that the proportion of Nigerians living below the poverty line rose from 56 per cent in 2023 to 61 per cent in 2024 and further to 63 per cent in 2025, representing about 140 million people.The widening gap between increased government revenues and citizens’ living conditions has consequently raised concerns over the spending priorities of governors and local government chairmen. Analysts have accused some political office holders of maintaining lavish lifestyles while residents struggle with elevated living costs and declining purchasing power.Experts argued that higher public revenue must be matched by greater transparency, stronger fiscal accountability and a significant increase in productive capital investment.They said states should channel the additional resources into projects and programmes that expand economic activity, create jobs, improve productivity and reduce the financial burden on households.According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” The IGR growth underscores the expanding revenue base of state governments at a time when they face mounting financial obligations, including infrastructure development, social services, workers’ salaries and other recurrent expenditures.However, the increase in revenue has intensified questions about how state governments are deploying the additional funds, particularly as they benefit from higher Federation Account allocations and savings from the removal of petrol subsidies.The scrutiny has also shifted to the estimated N10.4tn in subsidy savings allocated to states and local governments, with stakeholders demanding evidence of how much of the additional resources is being converted into projects and programmes that improve citizens’ welfare.Despite stronger revenue inflows, analysts said many states continue to grapple with inadequate infrastructure, weak social services, widespread poverty and limited economic opportunities.A World Bank report cited showed that the proportion of Nigerians living below the poverty line rose from 56 per cent in 2023 to 61 per cent in 2024 and further to 63 per cent in 2025, representing about 140 million people.The widening gap between increased government revenues and citizens’ living conditions has consequently raised concerns over the spending priorities of governors and local government chairmen. Analysts have accused some political office holders of maintaining lavish lifestyles while residents struggle with elevated living costs and declining purchasing power.Experts argued that higher public revenue must be matched by greater transparency, stronger fiscal accountability and a significant increase in productive capital investment.They said states should channel the additional resources into projects and programmes that expand economic activity, create jobs, improve productivity and reduce the financial burden on households.According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” However, the increase in revenue has intensified questions about how state governments are deploying the additional funds, particularly as they benefit from higher Federation Account allocations and savings from the removal of petrol subsidies.The scrutiny has also shifted to the estimated N10.4tn in subsidy savings allocated to states and local governments, with stakeholders demanding evidence of how much of the additional resources is being converted into projects and programmes that improve citizens’ welfare.Despite stronger revenue inflows, analysts said many states continue to grapple with inadequate infrastructure, weak social services, widespread poverty and limited economic opportunities.A World Bank report cited showed that the proportion of Nigerians living below the poverty line rose from 56 per cent in 2023 to 61 per cent in 2024 and further to 63 per cent in 2025, representing about 140 million people.The widening gap between increased government revenues and citizens’ living conditions has consequently raised concerns over the spending priorities of governors and local government chairmen. Analysts have accused some political office holders of maintaining lavish lifestyles while residents struggle with elevated living costs and declining purchasing power.Experts argued that higher public revenue must be matched by greater transparency, stronger fiscal accountability and a significant increase in productive capital investment.They said states should channel the additional resources into projects and programmes that expand economic activity, create jobs, improve productivity and reduce the financial burden on households.According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” The scrutiny has also shifted to the estimated N10.4tn in subsidy savings allocated to states and local governments, with stakeholders demanding evidence of how much of the additional resources is being converted into projects and programmes that improve citizens’ welfare.Despite stronger revenue inflows, analysts said many states continue to grapple with inadequate infrastructure, weak social services, widespread poverty and limited economic opportunities.A World Bank report cited showed that the proportion of Nigerians living below the poverty line rose from 56 per cent in 2023 to 61 per cent in 2024 and further to 63 per cent in 2025, representing about 140 million people.The widening gap between increased government revenues and citizens’ living conditions has consequently raised concerns over the spending priorities of governors and local government chairmen. Analysts have accused some political office holders of maintaining lavish lifestyles while residents struggle with elevated living costs and declining purchasing power.Experts argued that higher public revenue must be matched by greater transparency, stronger fiscal accountability and a significant increase in productive capital investment.They said states should channel the additional resources into projects and programmes that expand economic activity, create jobs, improve productivity and reduce the financial burden on households.According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Despite stronger revenue inflows, analysts said many states continue to grapple with inadequate infrastructure, weak social services, widespread poverty and limited economic opportunities.A World Bank report cited showed that the proportion of Nigerians living below the poverty line rose from 56 per cent in 2023 to 61 per cent in 2024 and further to 63 per cent in 2025, representing about 140 million people.The widening gap between increased government revenues and citizens’ living conditions has consequently raised concerns over the spending priorities of governors and local government chairmen. Analysts have accused some political office holders of maintaining lavish lifestyles while residents struggle with elevated living costs and declining purchasing power.Experts argued that higher public revenue must be matched by greater transparency, stronger fiscal accountability and a significant increase in productive capital investment.They said states should channel the additional resources into projects and programmes that expand economic activity, create jobs, improve productivity and reduce the financial burden on households.According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” A World Bank report cited showed that the proportion of Nigerians living below the poverty line rose from 56 per cent in 2023 to 61 per cent in 2024 and further to 63 per cent in 2025, representing about 140 million people.The widening gap between increased government revenues and citizens’ living conditions has consequently raised concerns over the spending priorities of governors and local government chairmen. Analysts have accused some political office holders of maintaining lavish lifestyles while residents struggle with elevated living costs and declining purchasing power.Experts argued that higher public revenue must be matched by greater transparency, stronger fiscal accountability and a significant increase in productive capital investment.They said states should channel the additional resources into projects and programmes that expand economic activity, create jobs, improve productivity and reduce the financial burden on households.According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” The widening gap between increased government revenues and citizens’ living conditions has consequently raised concerns over the spending priorities of governors and local government chairmen. Analysts have accused some political office holders of maintaining lavish lifestyles while residents struggle with elevated living costs and declining purchasing power.Experts argued that higher public revenue must be matched by greater transparency, stronger fiscal accountability and a significant increase in productive capital investment.They said states should channel the additional resources into projects and programmes that expand economic activity, create jobs, improve productivity and reduce the financial burden on households.According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Experts argued that higher public revenue must be matched by greater transparency, stronger fiscal accountability and a significant increase in productive capital investment.They said states should channel the additional resources into projects and programmes that expand economic activity, create jobs, improve productivity and reduce the financial burden on households.According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” They said states should channel the additional resources into projects and programmes that expand economic activity, create jobs, improve productivity and reduce the financial burden on households.According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” According to the analysts, higher FAAC allocations and IGR would have limited impact on citizens unless governments strengthen fiscal discipline and ensure that public funds are deployed efficiently towards sustainable development.Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Rising states’ earningsThe 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” The 35 states earned N2.43tn from IGR from January to June 2026, representing a 34 per cent increase from N1.815tn obtained in H1 2024.FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” FAAC allocations jumped 26 per cent to N4.54tn in the first half of 2026 from N3.61tn obtained in the corresponding period of 2025. In the first half of 2026, about 11 oil-producing states shared a total of N321.90bn under the 13 per cent derivation formula. Funds were heavily concentrated, with Delta, Bayelsa, and Akwa Ibom receiving roughly 75.4 per cent or N242.63bn of the total pool.Related NewsDangote raises petrol to N1,200/l despite crude price declineFuel subsidy proposal may scare investors, IMPI warns‘Tax compliance vital for infrastructure, social services’Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Between June 2023 and December 2025, states and local governments received about N10.4tn out of N15.8tn in total cumulative subsidy savings, lifting combined state revenues significantly. The PUNCH reported that 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025.Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Abandoned projects in statesThe BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” The BudgIT service delivery monitoring platform, Tracka, uncovered widespread cases of unexecuted, abandoned and fraudulently delivered public projects across several states in Nigeria in February 2026, amounting to about N24bn.The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” The report showed that Benue State (40 per cent), Ondo State (32.4 per cent), Kwara State (30.4 per cent), Akwa Ibom State (27.3 per cent), and Sokoto State (25.6 per cent) recorded the highest proportions of projects that were not executed at all.Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Chief Executive Officer of Centre for the Promotion of Private Enterprise, Muda Yusuf, said the effect of states’ rising revenues must be felt at the subnational level by the citizens.“States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” “States have more to do with all the resources going to them now. We should hold them more accountable. The reforms have significantly expanded the fiscal space of state governments through higher statutory allocations and, in many cases, stronger internally generated revenues.“This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” “This should translate into a much larger development role for the states. Citizens should demand measurable outcomes in roads, healthcare, public transportation, education, agricultural infrastructure, security, power and enterprise support.”Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Yusuf noted that higher revenues must produce visible development and welfare dividends, rather than simply finance higher recurrent expenditure and prestige projects.Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Director of Deals Advisory at PwC, Wale Olusi, said states must begin to pull their weight to reduce the rising level of hardship across the nation.“Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” “Local governments, in particular, are doing little or nothing. We should be making them do more. States should invest the money they are getting in infrastructure, in transport to move farm produce from rural areas to urban centres, in security to protect the people. A state like Lagos should invest in beneficiation: plant trees and flowers.”He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” He said subnational governments should be propelled to drive growth, noting that now is the right time to deploy their resources from subsidy removal and taxes to give the people a good life.Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Professor of International Economics, Jonathan Aremu, however, cautioned that though states are earning more money in nominal terms, the value of what is earned has depreciated.“What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” “What they were using N1m to get before costs N3m today. The exchange rate has gone up, and things are very expensive, especially when imported content is part of what they consume. We need to appreciate that the value of what they are getting has actually gone down. When you look at the purchasing power parity, you will see that the value of what they get has actually gone down.”Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.” Nevertheless, he agreed that the lifestyles of governors must change. “States are extravagant. Not everything they are buying has substantial import content. As a result, people should feel the impact of what they are doing. Currently, people are not feeling the impact, and it is sad.”