Nigeria’s N6 trillion FAAC disbursement in Q3 2025 marks record high; states urged to use funds for development projects
Nigeria’s Federation Account recorded its highest quarterly disbursement in the third quarter of 2025, with N6 trillion shared among the three tiers of government, according to the Nigerian Extractive Industries Transparency Initiative (NEITI).
The figures, published in NEITI’s Quarterly Review for Q3 2025, represent a 55.6 per cent year-on-year increase compared with the same period in 2024, and more than a twofold rise in allocations over the past two years.
NEITI disclosed that the Federation Account Allocation Committee (FAAC) distributed a total of N9.62 trillion between September and November 2025.
Governor Sheriff Oborevwori of Delta State urged all governors to prioritise the welfare of their people, noting that states now have increased resources to fund development projects.
He made the comments during the flag-off of the N39.3 billion Otovwodo flyover project in Ughelli North Local Government Area.
The N6 trillion disbursement included 13 per cent derivation payments to oil-producing states, underscoring the continued dominance of oil revenues in national allocations.
The federal government received N2.19 trillion, state governments N1.97 trillion, and local governments N1.45 trillion.
NEITI’s analysis indicated that statutory revenue contributed 62 per cent of the total shared receipts, while Value Added Tax (VAT) made up 34 per cent.
The Electronic Money Transfer Levy and non-oil excess revenue each accounted for two per cent.
State allocations varied widely.
Lagos State received the highest share at N179.3 billion, averaging N59.76 billion per month, followed by Kano with N79.2 billion and Rivers State with N78.8 billion.
At the lower end, Nasarawa, Ebonyi, and Ekiti received N42.5 billion, N42.9 billion, and N43 billion respectively, highlighting a N136.8 billion gap between the highest and lowest allocations.
Among oil-producing states, Delta recorded the highest gross allocation at N180.68 billion, with Akwa Ibom, Bayelsa, and Rivers also benefiting significantly from derivation inflows, which totalled approximately N424 billion for the period.
On debt obligations, NEITI reported that deductions from states’ allocations to service debts amounted to N225.89 billion, a 6.5 per cent decline from the previous quarter.
The average debt service ratio stood at 9.4 per cent, with over two-thirds of states recording ratios below 10 per cent, suggesting improving subnational debt sustainability.
Despite the record inflows, NEITI cautioned of potential fiscal risks in the fourth quarter of 2025, citing a decline in average oil prices and crude oil production from 1.64 million barrels per day in Q3 to 1.59 million barrels per day in the first month of Q4.
Fresh concerns have emerged over compliance with a court order issued by the High Court of Kano State on April 8, 2026, restraining key parties—including the Honourable Minister of Education, the Kano State Ministry of Land and Physical Planning, the Kano State Urban Development Authority, and Pluck Global Company Limited—from further actions pending the determination of the matter before the court.
Findings indicate that while all parties—except the concessionaire, Pluck Global Company Limited—were duly served within two days of the order, significant challenges were encountered in effecting service on the company, raising troubling questions about its corporate traceability and regulatory vetting.
A review of the company’s records filed with the Corporate Affairs Commission (CAC) revealed addresses that could not be verified as functional business locations. Notably, documentation submitted to Federal Government College (FGC), Kano, dated June 20, 2024, listed two addresses: 8B, Lalupon Street, off Keffi Street, off Awolowo Road, Ikoyi, Lagos, as its head office, and 3 Bargery Road, Bompai, Kano, as its branch office.
However, a physical visit to the Ikoyi address revealed that the entire property is occupied by a company identified as Golden Alchemy, whose staff категорically denied any knowledge of, or shared occupancy with, Pluck Global Company Limited.
Efforts to trace the Kano address yielded even more unsettling findings. The location—a locked duplex—showed no visible signs of commercial activity. Neighbours, while reluctant to speak on record, alluded to irregular movements at odd hours, casting further doubt on the legitimacy of the premises as a corporate office.
In a twist, after multiple attempts to establish contact, an individual purportedly representing the company surfaced in Kano and agreed to receive and acknowledge the court order on April 11, 2026, at approximately 6:00 pm. Curiously, the Ikoyi address—already discredited—was again listed as the company’s official address in the acknowledgment.
These developments raise critical questions regarding due diligence and Know Your Customer (KYC) protocols on the part of the Federal Ministry of Education. They also cast a spotlight on the Infrastructure Concession Regulatory Commission (ICRC), should a concession agreement indeed have been executed with the company. Stakeholders say it would be instructive to review the addresses contained in all official correspondences and contractual documents linked to the transaction.
Meanwhile, a visit to the premises of Federal Government College, Kano, revealed ongoing construction activity, with workers observed excavating foundations. When approached, the workers declined to disclose the authority under which they were operating—despite the subsistence of a court order restraining further action.
Notably, a previously installed project billboard bearing the insignia of the school authorities and the Federal Ministry of Education had been removed. Sources within the institution suggest that the directive for its removal may have emanated from the Ministry following receipt of the court order.
The unfolding situation presents a complex mix of legal, regulatory, and accountability issues—raising the spectre of possible non-compliance with judicial directives, as well as deeper concerns about transparency in public-private concession arrangements.
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