Nigeria’s federal, state and local governments generated an estimated ₦118.8 trillion in combined public revenue between 2023 and May 2026, yet analysts and civil society groups say the sharp increase has not translated into significant improvements in infrastructure, public services or citizens’ welfare.
The Government Revenue Growth recorded during the period is based on findings from the Revenue Mobilisation, Allocation and Fiscal Commission (RMAF), which showed that ₦53.3 trillion came from Federation Account Allocation Committee (FAAC) distributions, while internally generated revenue (IGR) across the three tiers of government was estimated at ₦65.5 trillion.
The report noted that government earnings rose sharply after the implementation of major economic reforms, particularly the removal of petrol subsidy and the liberalisation of Nigeria’s foreign exchange market. Monthly FAAC allocations increased steadily over the period:
- 2022: Average of ₦758 billion
- 2023: About ₦845 billion
- 2024: Around ₦1.3 trillion
- 2025: Approximately ₦1.93 trillion
- January to May 2026: Average of ₦2.083 trillion monthly
Financial analysts expect the Government Revenue Growth to push total public revenue close to ₦150 trillion before the end of 2026, excluding loans and other borrowings.
Despite the revenue increase, reports indicate that governments at different levels continue to struggle with outstanding obligations. According to available data, delayed payments to contractors, unpaid pension arrears and incomplete implementation of the national minimum wage remain major concerns. Several contractors have staged protests at the Federal Ministry of Finance over unpaid verified contracts.
The All Indigenous Contractors Association of Nigeria (AICAN) recently claimed that although government officials said ₦700 billion had been processed for payments, only about ₦40 billion had reached its members out of roughly ₦280 billion expected. Budget implementation records also point to weak capital expenditure performance.
In 2023, only about ₦857.08 billion, representing roughly 25 per cent of the prorated capital budget, had been released by July. In 2024, actual capital expenditure stood at ₦6.17 trillion out of an approved ₦13.773 trillion capital allocation. Government officials also acknowledged that only about 30 per cent of the 2025 capital budget was implemented, resulting in approximately 70 per cent being rolled over into the 2026 fiscal year.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said stronger accountability mechanisms are now more important than revenue growth itself. “The critical issue is no longer just revenue growth, but how these resources are managed, disclosed, prioritised and accounted for,” Yusuf said.
He urged state and local governments to improve transparency by publishing detailed budget allocations, procurement records, audit reports and project implementation updates. Country Director of Global Rights Nigeria, Abiodun Baiyewu, said the increased earnings have not significantly improved the lives of ordinary Nigerians.
“From what we know, it has not improved the lives of Nigerians nor significantly improved infrastructure. Mal-governance is palpable on the face of things,” she stated.
Similarly, ActionAid Nigeria Country Director, Dr. Andrew Mamedu, argued that the effectiveness of public spending depends on integrity, planning and accountability rather than the size of government revenues. He said larger allocations should prioritise infrastructure, agriculture, healthcare, education and other sectors capable of delivering measurable development outcomes while encouraging citizens to monitor government spending more actively.
Analysts believe the sustained Government Revenue Growth provides an opportunity for governments at all levels to improve service delivery. However, they insist that stronger transparency, citizen participation and prudent fiscal management will determine whether the increased revenue ultimately benefits Nigerians.
