By Olakunle Olafioye (Lagos), Noah Ebije (Kaduna), George Onyejiuwa (Owerri), Aniekan Aniekan (Calabar), Lateef Dada (Osogbo), Ighomuaye Lucky (Benin), Jude Chinedu (Enugu), Okey Sampson (Umuahia)

Right from 2015, when the All Progressives Congress (APC) became the ruling party at the centre, the governors complained of not having enough funds to meet their state obligations, hence some of them started owing several months of salary and pension arrears. 

To alleviate the problem, the Muhammadu Buhari administration released funds to state governments both as loans from the Central Bank of Nigeria and statutory allocations from the Federation Account.

Yet they continued to seek more allocations just as most of them took huge loans from commercial banks.

Following the removal of subsidy, the quantum of funds shared to the federal, state and local governments at the monthly meetings of the Federation Account Allocation Committee, FAAC, jumped from about N600 billion to over N1 trillion. 

Now, the question is what have the state governors done with the humongous statutory allocations released to them from 2023 to date?

In this special report, we are presenting the blow by blow account of the current situation in the states.

LAGOS

Like every other state in the country, Lagos State, which prides itself as the Centre of Excellence, has enjoyed increased FAAC allocations. 

In a report,  BudgIT stated that the state’s allocation rose significantly to N208.87 billion in 2023 from N194.70 billion in 2022, the highest accrual to the state from the federation account in the pre-Tinubu era. 

The nation’s commercial nerve centre would later receive its biggest allocation ever from the federation account last year, when it earned a whopping N474.68 billion. The amount surpassed the total accruals to the state from the federation account between 2019 and 2021, when the state received a total of N356.84 billion. 

Already, the state had been disbursed N123.72 billion in the first quarter of 2025, giving indication of the possibility of getting a much bigger allocation from the federation account at the end of this year. 

But despite the remarkable improvement in the allocations received by the state, popular opinion shows that the state government still needs to do more to justify the improved accrual to the state. 

A resident of the state, Rev. Olatoye Samuel, observed that while there has been a major focus on infrastructural development in the state, the state government has not demonstrated enough commitment to impact the rural communities in the state with the improved allocation to the state. 

“I want to urge the state government to extend its work to remote parts of the state and allow those in rural areas in the state to feel its impact more. There are signs that the government is working to raise the infrastructure in the state, but the people at the grassroots must not be neglected. If you go to most rural communities in the state, the song they are still singing is about Ambode because the visible and conspicuous development they can point to, which former governor Akinwunmi Ambode did for them,” he said.

But a civil servant in the state, who craved anonymity, said the Lagos State government’s favourable disposition to the welfare of civil servants in the state is a sign that the state is justifying the robust allocation it gets from the Federation Account. 

“Lagos State is paying the highest minimum wage in the country. Last year, the minimum wage was raised twice, first in January and later in October. Apart from this, civil servants in the state also receive their salaries promptly and regularly. So, the state government is justifying the increased allocation to the state,” he stated.

While attempts to get the state government to throw more light on how it has been able to impact on residents of the state with the increased statutory allocations proved abortive, a government official who spoke on the condition of anonymity, told Sunday Sun that the state government under the leadership of Governor Babajide Sanwo-Olu, has demonstrated sufficient commitment to improving the lives of the residents of the state by embarking on major projects and programme of actions that are aimed at improving the lives of the residents.

 The source said that Governor Babajide Sanwo-Olu’s administration has recorded monumental strides in line with its second term THEMES+ Agenda with numerous projects which cut across all major sectors, including transportation, health, education, environment, and security with several other ongoing projects.

“The government is not resting on its laurels as people can see and feel its impact in all sectors, namely, transportation, health, education, environment, security, workers’ welfare and so on. The government is aware that infrastructure development is a key driver of economic growth. That is why the emphasis has been on strategic infrastructure development in line with the administration’s agenda. The agenda is a roadmap that promises continuity and expansion across major sectors in Lagos. The last two weeks being a period of stocktaking and midterm assessment of this administration, the feedback has been awesome,” the source said.

Enugu

Enugu State has been among the first group of states to turn the resulting increase in federal allocation into visible and far-reaching development.

With more money flowing into its coffers monthly, the state government under Governor Peter Mbah has embarked on an aggressive infrastructure push that is beginning to reshape the face of the state.

In just two years, the Mbah administration has constructed and rehabilitated over 314 kilometres of roads across Enugu State.

In the urban centre alone, 71 roads were repaired simultaneously, an unprecedented move that tackled years of neglect in one sweep. 

The administration also began the dualisation of the Enugu Airport Flyover to Eke Obinagu Road, while work has continued on the Enugu–Eha-Amufu–Ikem–Obollo-Afor Road, a critical road connecting the Southeast to the North.

To sustain this momentum, the government established a new asphalt plant capable of producing over 1,000 tons of asphalt daily, ensuring road projects aren’t stalled due to lack of materials.

Water supply, which has been a long sore point in Enugu urban life, has seen a dramatic turnaround. 

The administration raised the city’s water production capacity from a meagre 2 million litres per day to a staggering 120 million litres. 

This was achieved through the rehabilitation of the Oji, Ajali, and Iva Valley water schemes, alongside extensive work on pipelines, reservoirs, and pumping stations. Though there are still challenges with proper reticulation.

Education has also felt the impact of the new funding reality. Through the Smart Green Schools Initiative, the state government is building 260 modern schools, one in every electoral ward.

These are not ordinary classrooms. They feature smartboards, digital labs, solar power, ICT hubs, and modern water and sanitation systems, giving students an environment that rivals private institutions.

In the health sector, the government has delivered 60 new Type-2 primary healthcare centres, with the goal of reaching 260, one per ward. These facilities come with staff quarters, functional laboratories, and solar energy systems, making healthcare more accessible and reliable for residents in both urban and rural communities.

Another bold initiative is the creation of a new city – the New Enugu City project, which spreads across 10,000 hectares, and designed as a smart and sustainable urban centre. 

Its plan is ambitious and includes a monorail system, central sewage and water infrastructure, fibre optic Internet, solar-powered lighting, and mixed-use residential and business districts.

Meanwhile, the once-abandoned Enugu International Conference Centre has been completed and now operational, while the state government is working with private sector investors to renovate and relaunch the Enugu Presidential Hotel.

Sports infrastructure are not left out as the iconic Nnamdi Azikiwe Stadium is undergoing major reconstruction, including new terraces and VIP sections. Rangers International FC, Enugu’s beloved club, is also seeing renewed government support.

In security, despite renewed herdsmen attacks in agrarian communities across the state, the government has invested heavily in security with the deployment of N10 billion toward the purchase and installation of CCTV surveillance system across the Enugu metropolis.

The state government has also set up a Distress Response Squad (DRS), which helped in stopping the once notorious Monday sit-at-home order by the Indigenous People of Biafra (IPOB) in the Southeast.

Indeed, the governor’s performance is drawing praise from residents across the state.

Ikechukwu Abugu, a lecturer and resident of Nsukka, said that he has not seen this level of development in decades.

“Governor Mbah is proving that governance can work. We no longer just talk about problems, we’re seeing real solutions on the ground. The roads are being fixed and schools are getting transformed. It’s impressive,” he said.

Agnes Onoh, a retired civil servant, who lives in Abakpa area of the metropolis, expressed joy at the return of steady water supply in her neighbourhood. 

“We used to suffer to buy water every week. Now, we’re seeing water in our taps again. It feels like a miracle. I’m happy I lived to see this kind of leadership in Enugu,” she happily said.

Also reacting, Sunday Nnamani, commended the governor for extending development to rural areas. 

“Many governors focus only on the cities, but Peter Mbah is spreading the projects everywhere. One of the new healthcare centres was built in my ward, same with a smart school. That shows he’s not just talking, he’s working,” he said.

However, there are still some residents in the Alulu Nike area of the state who have been cut off from the sweeping transformation and totally forgotten by Governor Mbah as they are still having deplorable roads starring them in the face.

Alulu Nike community though close to town and a stone-throw to Abakpan T-Junction after Another Level Junction, part of the neighbourhoods the dualisation of the Abakpa-Nsukka road is passing through, has been locked up because of bad roads. Currently, the residents can only access their homes from the Enugu East Local Government Area headquarters road.

The residents have, therefore, appealed to Governor Mbah to come to their rescue by doing their road at least to Another Level junction so as to make them smile like the other residents of the state. 

ABIA 

From what is on ground, the Abia State government appears to be using the enhanced statutory allocation to the benefit of the people.

In the two years of Dr. Alex Otti’s administration, the state government has provided true and verifiable things spanning infrastructure, health, education, social amenities, safety and security which have combined to push up the economy of the state.

Recently, the government commenced the commissioning and flagging off of various projects across the state which the Commissioner for Information, Okey Kanu, said was part of the massive infrastructural transformation agenda of the governor.

In less than two weeks, 55 of such projects were either commissioned or flagged off. A breakdown as provided by Kanu showed that 42 projects were commissioned, while 13 new projects were flagged off. 

The projects include 17 primary health centres across 17 LGAs of the state, 14 road projects, and additional projects executed by the various MDAs, namely, the Ministry of Power and Public Utilities, Lands and Housing, Ministry of Trade and Commerce, the Public Private Partnership Office, Greater Ohafia Development Authority, and Greater Aba Development Authority.

Some of the roads rehabilitated and commissioned by the governor include Umuode, Bakassi, Isu ihiteukwa, Asa and Isieketa-Obikabia Roads. Others are Enyimba Junction-Ariaria gate; Market Road from Asa to Eziukwu Road, Tenant Road from Asa Road to Eziukwu; Cameroun Road from Asa Road to Eziukwu; Ehi Road from Queens Road to Eziukwu Road; Clifford Road from Asa Road to Eziukwu Road; School from Asa to railway crossing; Afikpo Road from Eziukwu Road to School Road and Afikpo Road to School Road, all in Aba. 

In the health sector, some of the health centres commissioned include Owerrinta Primary Health Centre, Isiala Ngwa South LGA; Amigbo Primary Health Centre in Umuahia South LGA and Ekeoba Oriendu Primary Health Centre, in Umuahia North LGA.

Of the road projects, the most outstanding is the popular Port Harcourt Road, Aba, which gulped over N35 billion. Another is the Umuahia-Uzuakoli-Abiriba Highway connecting four local governments which was commissioned by former President Olusegun Obasanjo.

It used to be said there is no route to Arochukwu that is short, but Governor Otti has erased that assertion with the construction of the Ndi Okereke-Arochukwu Highway that has shortened the distance to that ancient town by more than half. This is in addition to the reconstruction of the Omenuko Bridge connecting the Ndi Okereke-Arochukwu Road.

Although the opposition in the state are picking holes with the cost of some of these projects, which they claimed are on the high side, but residents are not bothered so far they are getting dividends of democracy which was not the case some years back.

Outside infrastructural development, the present administration has looked into the way of workers in the state. 

Prior to the coming of the present administration, workers were owed several months of arrears of salary and pensioners were owed upwards of 34 months unpaid pensions.

The government has made spirited efforts in the payment of the pension arrears and has cleared the arrears owed workers. In addition, workers are paid on the 28th of every month thereby restoring workers confidence in government.

KADUNA

Governor Uba Sani of Kaduna State is pleased that about one million people in the state have benefited from the palliative programme funded by the allocation it got from subsidy savings.

Back in August 2023, Governor Sani had confirmed the state received N2 billion petrol subsidy funds from the Federal Government out of the N5 billion promised the state. 

However, as at the time of filing this report, the state government had not given further information on whether it eventually received the balance of N3 billion or not. The palliative was meant to cushion the effects of fuel subsidy removal on residents of the state.

Meanwhile, a group under the auspices of Uba Sani Legacy Projects Solidarity Assembly (USLEPSA) has noted that under the administration of the governor, Kaduna State has now become a benchmark for transparency and purposeful leadership in delivering dividends of democracy to the people.

The group commended the governor for delivering “no-excuses governance,” thereby transforming the state within a short span of 21 months despite a backdrop of national economic turmoil and insecurity.

The group’s spokesperson, Hadiza Mohammed, said Sani had demonstrated bold leadership rooted in fiscal discipline, transparency, and measurable results. 

She said that Kaduna State is no longer a story of abandoned dreams, but a living proof that good governance is possible, even in tough times.

“Governor Uba Sani didn’t come to make excuses. He came to make a difference. Kaduna has become a benchmark for transparency and purposeful leadership, and the results speak for themselves.

“Among the administration’s landmark achievements is the injection of N100 billion into the state’s water sector, with N35 billion committed in 2025 alone and a target of 100 per cent water access set for December this year. The state also cleared a N1.3 billion electricity debt that had long crippled water treatment plants, while an N800 million salary backlog for Water Corporation staff was also paid.

“Infrastructure development is also on the rise, with 78 new road projects covering 775 kilometers initiated across all 23 local government areas, and 21 key roads already completed and operational. The long-abandoned Kaduna Bridge linking Kabala Costain to Aliyu Makama Road has been revived to decongest the ever-busy Ahmadu Bello area.

“In education, 62 new secondary schools have been built, alongside the construction of 2,326 new classrooms and the recruitment of 2,000 teachers. Over 30,000 pupils desks and 3,700 teachers chairs have been distributed, while tuition across tertiary institutions was slashed by 50 per cent to ease student burdens. In health, 12 General Hospitals are undergoing major reconstruction, while primary health centres across the state have received equipment upgrades, bringing them to Level 2 standard.

“On the agricultural front, 41,693 farmers have benefitted from input support, including 240,000 bags of fertilizer distributed via 500 trucks, and the deployment of modern farm equipment. Agriculture now contributes 42 per cent of Kaduna’s GDP and received 9.5 per cent of the 2025 state budget.

“The administration has also addressed pensioners and workers welfare by clearing N6.9 billion in outstanding arrears and launching a N500 million revolving loan scheme for civil servants at a five per cent interest rate. Between 2023 and 2024, Kaduna attracted $503 million in foreign investments, signing deals with global players like Huawei and Qatar Charity. Diplomatic discussions with the United States of America, Italy, and Cuba are also underway, with interest in investing in agriculture, health, and industrial sectors.

“Social empowerment has been tackled through the Hausa programme, ‘A Kori Talauci’, which has supported nearly 5,000 underserved women with grants ranging from N50,000 to N300,000. Vocational cities are under construction, while the Panteka Innovation Centre is taking shape. Victims of insecurity and natural disasters are also receiving targeted assistance. The Executive Order on Financial Inclusion has opened over two million new bank accounts for rural dwellers, helping bridge the financial access gap,” the group noted.

Also,  Ambassador Yusuf Mamman, a veteran journalist and Nigeria’s former envoy to Spain in the 90s, in his assessment of Kaduna State since Governor Sani assumed office, noted that Sani’s greatest achievement in the last two years was in uniting the people and ushering peace in Kaduna State and not just bridging infrastructural deficit and enhancing human capital.

Ambassador Mamman who is the proprietor of JKD 360 Television and Multimedia Services, equated the prevailing peace in Kaduna State to the Second Republic during the ‘’ideologically-driven administration of Alhaji Balarabe Musa.”

Mamman noted that Governor Sani inherited a divided state where ‘’the people were spilt into two opposing ethno-religious lines that hardly agree on issues of governance.’’ 

Interestingly, Governor Sani revealed that under his watch so far, the state has not taken any loan from any local or international financial institution.

He said that several banks had approached him under different guises, urging him to take loans, but he refused to accede to their requests, to avoid burdening the state with more debts.

He disclosed that he cut the allowances and some perks of the Secretary to the State Government and Commissioners, in order to run an efficient and prudent administration.

‘’The Secretary to the State Government is a retired federal Permanent Secretary, who is also a former consultant with Food and Agriculture Organisation(FAO). Some of my Commissioners were receiving big salaries in their former places of work.

‘’I persuaded them to forfeit their performance bonuses and to use the old cars that their predecessors used in the last administration. This is how we have been running the administration without collecting a single loan,’’ he explained.

IMO

In the almost five years of the administration of Senator Uzodimma, one area that has stood out is what has been  termed “Road Revolution” which is being executed by his administration across the state, particularly Federal Government abandoned roads.

Former Imo State governor, Dr Ikedi Ohakim, commended Uzodimma, saying: “The road revolution going on needs not to be over emphasized because it is there for all to see. Before now, it took more than one hour to move from Orlu to Owerri. Today, it takes just 30 minutes. It is the same between Okigwe and Owerri just as it takes the same time to reach the boundary between Imo and Abia.

“Beyond roads, the Uzodimma administration is undertaking an electricity project under the Orashi Electricity joint venture, which is expected to guarantee 24/7 power supply to all the 27 council areas of the state before August 2027. When this happens your guess will be as good as mine as the economy of the state will take a quantum turnaround,” Ohakim said.

On his part, Chief Onuoha Okechukwu said that the governor should tackle alarming insecurity in the state. Commenting on the ugly situation, he said: “Insecurity remains a pressing matter in the state, with the recent attacks by Fulani herdsmen in Agwa community in Oguta Council Area. The rise in the incidents of kidnapping and tales of organ harvesters have created the atmosphere of fear in the state. The governor should address it squarely.”

Similarly, Mr Uchenna Eke noted that while the governor has improved the roads within the state capital, he should extend the same to the rural communities which have no passable roads with the majority of the roads being in deplorable condition and require urgent attention.

Also, the news from the local government areas are not cheering as allocations to the third-tier of government in the state cannot yet be accounted for, leading to most of them not being able to do anything. 

CROSS RIVER

In the course of the two years under review, Cross River State Commissioner for information, Erasmus Ekpang said that the People-First administration of Governor Bassey  Otu has executed veritable infrastructural projects with the extra allocations disbursed to the state from savings that accrued from the removal of fuel subsidy.

Some of the projects enumerated by the commissioner include the renovation of the Governor’s Office Complex, construction of the Local Government Service Commission Complex, as well as the ongoing renovation works on buildings of the Cross River State Newspaper Corporation, sinking of solar powered borehole and landscaping of the premises.

“The other projects include acquisition of new digital printing machines for Cross River State Printing Press, dualisation of the Esuk utang-NNPC Depot road with street lights and cement-based  pavement of Nyong-Edem Street.

“Reconstruction of Yellow Duke failed Bridge has been completed. Also, construction work is progressing in respect of the following road projects – Adiabo-Ikoneto road, Nsan-Obo-Oban road, Yache-Aliforkpa road Phase1, Yahe-Ebo-Izekwe-Wanokom-Wanikade-Wanihem-Benue Border Road phase 1,” he said.

The commissioner said that the state procured two airplanes to boost the fleet of Cally Air just as the government renovated buildings and premises of all military and para-military formations in the state and also reconstructing and remodeling the Cross River Cultural Centre, Calabar.

His words: “Cross Riverians and residents of the state are very happy with how Governor Otu is using their money. There are visible changes in the state, which the people are seeing. The potholes have all disappeared, our streets are looking clean and green again. Government buildings are wearing new looks and much more.”

However, the State Chairman, Social Democratic Party, SDP, Cross River State Chapter, Dr Ekpenyong Ambo, berated the government, saying that in two years it had not done well in four critical areas despite the huge allocations it had received.

Dr Ambo listed the areas to include economic growth and VAT/IGR performance, fiscal prioritization, debt and financial strategy, SME support and private investment as well as maximizing tourism and concessions.

“Several public critiques highlight lavish spending on elite projects such as the renovation of Governor’s Office and the First Lady’s Office – which is a non-essential use of public funds,” he pointed out. 

OSUN

Osun State governor, Ademola Adeleke, in October 2023, promised to construct five flyovers and deliver the projects within a year without borrowing money to fund them.

Though the projects have not been completed yet, but works are still ongoing at Okefia and Lameco in Osogbo as well as Ile-Ife flyovers.

He also promised to construct 45 roads across the 30 local government areas in the state and work has commenced on the projects.

Nothing significant has been noticed in other sectors of the state as the recruitment of teachers has been suspended and no recruitment has been done in the health and civil service in the state.

But the Spokesperson to Governor Adeleke, Olawale Rasheed, stated that the Five-Point Plan of the administration covering  education, security, job creation, agriculture, infrastructure, debt management and other germane issues are being pursued and achievements have been recorded.

However, the Executive Director of The Osun Masterminds, Prof Wasiu Oyedokun-Alli who spoke with Sunday Sun said that Osun State government should wake up and prioritize healthcare of the people which he said is in shambles.

His words: “We particularly note the parlous state of the Uniosun Teaching Hospital. The hospital being a foremost tertiary healthcare institution in the state is daily retrogressing and putting the lives of the people at risk while they seem to be at the mercy of whatever service is rendered to them for want of choices.

“A visit to the hospital reveals that the hospital lacks adequate manpower in all areas. The Osun State government needs to be intentional in the recruitment of healthcare providers, ranging from first responders, nurses, doctors, and other categories of health practitioners,” he said.

On agriculture, Governor Adeleke announced procurement of 114 tractors to boost agriculture and 31 tractors were received in August 2024. Nothing has been heard about it again, he said.

Continuing, Oyedokun-Alli said: “We note the humongous amount of money being collected from the Federal Government, and this should be utilized to better the lives of the people while infrastructural development should not suffer.”

On education, the university lecturer said the continued delay of the recruitment process does not augur well for the development of the education sector in the state, saying, “pupils and students are turned out of our schools every year, having passed through a short-staffed education system that clearly could not have delivered quality education to them.

 “The delay in recruitment of critical manpower also currently affects the health sector in the state, whereas shortage of manpower in the education and health sectors slow down, not just the development of our society, but the growth and development of the humans who people the society.”

EDO

The Edo State governor, Monday Okpebholo, through his Chief Press Secretary, Fred Itua, said the state government has been able to judiciously use the funds received from the Federal Government as its share from the fuel subsidy removal.

He pointed out that the ongoing Benin City flyover bridge, the various road construction works in the state, building and renovation of primary healthcare, investment in agricultural projects and the purchase of security vehicles to assist the security agencies to help fight crime and criminality in the state are some of the areas where the funds have been judiciously used.

Mr Itua said that the state government also invested in the transportation sector by revamping the Edo Line Transport Company.

But an Edo State resident, Mr. Dada Ayokhai, said that two years after President Tinubu removed subsidy on petrol and began releasing the funds saved to governors as part of the enhanced statutory allocations to states, there has not been any meaningful improvement on the lives of the citizens of Edo State.

He said that the Presidency which gave the extra funds and the governors who received the funds are complicit in misappropriation, citing examples of excessive vehicle purchases for convoys by governors.

Ayokhai said that since the funds were released, it has been on the issue of unpaid minimum wage and continued classroom renovations instead of new projects.

He said in Edo State, the State House of Assembly protested the non-payment of their minimum wage which ought not to be despite all the money received by the state as statutory allocation..

 Ayokhai claimed that the removal of the subsidy has negatively impacted the poor, with no clear plan for improvement.

Also, Mr Samuel Ogbasi said two governors, Mr Godwin Obaseki and Monday Okpebholo, have presided over the state since the removal of the subsidy.

He said during Obaseki’s administration, the subsidy removal funds were used to build the High Court, ShopRite, Ministry of Education and other infrastructural developments in the state.

Mr Ogbasi said for the present government of Okpebholo, which is just barely seven months old, he has begun by building the Benin City flyover and other road networks in the state.

Ogbasi pointed out that in the real sense, the impact of the subsidy removal has not trickled down to the poor masses as the cost of living has gone beyond the reach of the common man in the country

Also speaking, another resident in the state, Hassan Alabidun, said that since the president announced the removal of fuel subsidy, things have gone from bad to worse for the Nigerian populace.

He said that none of the sectors, ranging from the healthcare sector, education, roads, security have been positively impacted.