Nigerian Governments Spent N118.8 Trillion in Three Years as Experts Question Impact on Citizens

Nigeria’s federal, state and local governments have spent an estimated N118.8 trillion between 2023 and May 2026, yet analysts say the unprecedented revenue has failed to produce corresponding improvements in infrastructure, public services and the quality of life of ordinary Nigerians.

Fresh findings by the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) show that the three tiers of government received about N53.3 trillion from the Federation Account Allocation Committee (FAAC) during the period. Their combined internally generated revenue (IGR) is estimated at N65.5 trillion, pushing total available revenue to roughly N118.8 trillion. Experts believe the figure could climb to N150 trillion by the end of 2026, excluding loans and other borrowings.

The sharp rise in government revenue followed major economic reforms introduced by the Tinubu administration, particularly the removal of petrol subsidy and the liberalisation of the foreign exchange market. Monthly FAAC allocations have grown significantly, rising from an average of N758 billion in 2022 to N845 billion in 2023, N1.3 trillion in 2024, N1.93 trillion in 2025, and N2.08 trillion monthly between January and May 2026.

Despite the revenue boom, many governments continue to struggle with unpaid contractor debts, pension arrears and delayed implementation of the national minimum wage. At the federal level, contractors have staged repeated protests at the Ministry of Finance over unpaid verified contracts, insisting that only a fraction of approved payments has reached them. The All Indigenous Contractors Association of Nigeria (AICAN) recently claimed its members had received just N40 billion out of an expected N280 billion, despite government assurances that N700 billion had been processed.

Budget implementation has also remained weak. Official reports from the Budget Office of the Federation and the Office of the Accountant-General show that capital expenditure consistently fell below expectations. In 2024, only N6.17 trillion of the N13.77 trillion capital budget was spent, while government officials admitted that the 2025 capital budget achieved only about 30 per cent implementation, forcing the rollover of roughly 70 per cent into the 2026 fiscal year.

Economic experts argue that rising revenues alone do not guarantee development. The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, described the revenue growth as one of the positive outcomes of recent reforms but stressed that transparency and accountability remain the bigger challenge.

“The critical issue is no longer just revenue growth, but how these resources are managed, disclosed, prioritised and accounted for,” Yusuf said, adding that many state and local governments still provide limited public access to budget information and expenditure reports, making effective scrutiny difficult.

Similar concerns were raised by Global Rights Nigeria Country Director, Abiodun Baiyewu, who said the increased public revenue has not translated into visible improvements in infrastructure or living standards. She urged Nigerians to become more active in demanding accountability and greater participation in budget decisions, noting that organisations such as BudgIT have played an important role in helping citizens understand public finances.

Also speaking, ActionAid Nigeria Country Director, Dr. Andrew Mamedu, said the volume of government revenue should ordinarily transform Nigeria’s development landscape but warned that weak planning, excessive recurrent spending, corruption, inflation and poor procurement systems continue to undermine public spending. He called for stronger public oversight, better project monitoring, improved whistleblower protection and greater investment in sectors such as agriculture, education, healthcare and infrastructure that deliver long-term economic benefits.

With government revenues expected to rise even further before the end of the year, analysts say Nigerians will increasingly judge the success of the reforms not by record FAAC allocations but by visible improvements in roads, schools, hospitals, jobs and the overall standard of living.