N435bn security fund: How States are Spending the New FAAC Cash
By: Abudu Olalekan
Imagine checking your account and suddenly seeing billions of naira extra. That is exactly what happened to 29 Nigerian state governments recently. Between January and June 2026, they quietly recorded at least N435 billion in a relatively new Federation Account Allocation Committee (FAAC) window.
It’s a lot of money.
This cash wasn’t the usual monthly statutory allocation. In state financial records, it is classified under the National Chart of Accounts code 11010313 as “State Infrastructure and Security”. Interestingly, no amount was disbursed for this exact purpose during the same period in 2025.
So, where did this data come from? Reportersroom dug into the fiscal performance of each state. We utilized Q1 and Q2 budget performance reports from Open Nigerian States, a BudgIT-backed website. The numbers tells a very interesting story.
Let’s be real for a second. Nigeria is battling a massive infrastructure deficit and worsening insecurity. Banditry, attacks on communities, and terrible roads are putting governors under intense pressure. Between March 2024 and May 2026, over 600 pupils, students, and teachers was abducted in seven mass school kidnappings. This happened despite the government’s N145bn Safe Schools Initiative. Makes you wonder where that money went, right?
The federal government tried to step up. They expanded the Nigerian Army from eight to 12 divisions and approved 28,000 new soldiers. But the scale of the crisis just kept growing. State governments had to step in.
Against this backdrop, and right after the petrol subsidy removal, President Bola Tinubu approved the Infrastructure Support Fund in July 2023. The goal? To help states fix roads, agriculture, health, and power. A June 2025 publication by Reportersroom actually disclosed that states and the FCT got a total of N1.6tn for these projects between March 2024 and May 2025. Now, three years later, this funding has become a major lifeline for sub-nationals.
Out of the 32 states our correspondent reviewed, 16 clearly reported a combined N265.50bn under the dedicated security and infrastructure line. Another 13 states got N169.75bn, though they classified it under other FAAC-related revenue. Put them together, and you get N435.25 billion.
Not everyone got a slice of the pie, though. Adamawa, Anambra, and Oyo recorded zero receipts under this line. Oyo was actually expecting N8bn. Akwa Ibom’s report didn’t even disclose a figure. And Bayelsa, Edo, Osun, and Rivers were left out entirely because their data was missing.
When you look at who got what, Enugu took the lead among states that reported the dedicated line, raking in N27.02bn. Gombe followed closely with N24.50bn. Jigawa, Katsina, and Ogun got N19.50bn each.
But wait. If you include the states that hid the cash under “other revenue”, Ondo actually emerged as the biggest beneficiary with N31.86bn. Lagos got N30.30bn, which show they are definitely not playing. Abia got N24.50bn, while Zamfara trailed with just N1.71bn.
Here is the funny part. Even with all this cash, most states are missing their budget targets.
Take Gombe, for example. They received N24.50bn against a tiny N5bn budget. That is 490% of their annual estimate in just six months. Crazy, right? Bauchi got 86.6% of its budget.
On the flip side, Sokoto recorded one of the widest gaps. They got N12.50bn out of a revised N90bn budget. Adamawa and Anambra had it worse. They got absolutely nothing by June, leaving a 100% funding gap.
So, what do the experts think about all this?
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, called it a positive step toward decentralization. But he gave a strong warning. “For impact to be felt, the more revenue you have at the subnationals, the better the prospect of an impact, if they spend it well,” he said. He noted that transparency is a huge issue because sometimes monies are spent on unnecessary things, like unprofitable state airlines. He think citizens need more power to hold governors accountable.
Economic analyst Aliyu Ilias agreed. He said attaching funds to specific purposes is great, but people must monitor them. “The finance minister said States have collected N6tn from subsidy savings, so it has to show,” he pointed out. He also suggested tying some of the money to agriculture to fight food inflation, noting that over 60 per cent of income goes to food.
The governors themselves? They are definitely feeling the financial relief.
During a Presidential Media Tour in June 2026, Enugu Governor Peter Mbah credited the rapid expansion of projects in his state to Tinubu’s policies. He said it would have been impossible to achieve such scale without the bold moves freeing up resources for the periphery.
Delta State Governor Sheriff Oborevwori was even more direct. At a groundbreaking ceremony in January, he just said it out loud. “More money is coming to the states. I am not a governor who will hide it… Some people want to hide that their is no money; there is money.”
Bayelsa’s Douye Diri praised the interventions for helping their 60-megawatt power project. Nasarawa’s Abdullahi Sule noted that states are now sharing four times the revenue they got in 2019. “Every state now has the resources to secure its people. We should stop blaming anybody for our security,” Sule said.
At the end of the day, the N435bn security fund are a game-changer on paper. The cash is flowing. But the real test isn’t just how much they get. It is whether this money actually translates into safer streets, better roads, and a breath of fresh air for everyday Nigerians.
Olalekan A. Abudu is a seasoned and dedicated News Journalist at REPORTERS ROOM, with over eight years of experience. He specializes in politics, climate change, health, and education, while also covering security, economic, and judicial issues. Committed to accuracy and balanced reporting, Olalekan exemplifies the principles of public-interest journalism.
