The subsidy removal on petroleum, which was intended to lift more Nigerians out of poverty by generating increased revenue for both the federal and state governments, appears to have had little impact. Nearly all states in the country have shown minimal or no tangible results despite the significant revenues received since President Bola Tinubu announced the subsidy removal on May 29th.
Between July 2023 and February 2024, the combined revenues accrued to the states from the Federal Account Allocation Committee (FAAC) totaled more than N5.108 trillion, largely attributed to the initiation of subsidy removal payouts.
The total earnings of N5.1 trillion acquired by the states encompass funds such as N2.69 trillion received directly from the federation account, N1.975 trillion channeled to local government accounts under state governance, and an additional N441.929 billion from solid minerals derivation revenues allocated to select states.
