FAAC Allocation Surges to ₦20 Trillion in 6 Months of 2025, Marking Historic Fiscal Growth Under President Tinubu
The Federation Account Allocation Committee (FAAC) has disbursed an unprecedented ₦20 trillion to the three tiers of government in just the first half of 2025, signaling a new peak in Nigeria’s fiscal distribution under President Bola Ahmed Tinubu’s administration.
The figure represents a sharp rise compared to previous years. In 2022, total FAAC disbursement stood at ₦9.18 trillion. This increased to ₦10.9 trillion in 2023, and surged further to ₦15.26 trillion in 2024. The current half-year total for 2025 already exceeds the full-year allocation of any prior year, marking a significant milestone in federal revenue performance.
Economic analysts attribute this growth to sweeping economic and fiscal reforms implemented by President Tinubu, many of which mirror his strategies as former governor of Lagos State — a tenure widely credited for transforming Lagos into Nigeria’s most economically vibrant state.
Presidency officials have pointed to improvements in revenue generation from non-oil sectors, aggressive tax reforms, tighter enforcement by federal agencies, and strategic investments in mining and infrastructure as key drivers of the increased allocation pool.
The removal of fuel subsidies and the floating of the naira though controversial have also freed up revenue and improved foreign exchange inflows, contributing to the upward trend.
“These numbers are not just statistics; they reflect a renewed fiscal strength and a robust economic direction that is clearly delivering,” said an individual @osazenoo on his X (formerly twitter) handle.
“President Tinubu is doing what he did in Lagos building a sustainable economy with the right reforms and bold decisions.”
The allocation windfall is expected to bolster capital and recurrent spending across federal, state, and local governments, potentially accelerating infrastructure projects, debt servicing, and social investments across the country.
Despite the positive revenue trend, some experts have cautioned on the need for fiscal discipline and transparency in the management of the funds to ensure they translate to tangible benefits for citizens.
As the year progresses, all eyes will be on whether the trend continues in the second half of 2025, potentially pushing FAAC disbursements beyond ₦40 trillion an achievement that would mark a turning point in Nigeria’s economic history.
