Nigeria sets aside $4.8 billion for states and Abuja
By the AFREEQUE newsroom, based on Business Day Nigeria
President Bola Tinubu’s proposed $21.7 billion borrowing plan would set aside $4.8 billion for Nigerian states and the Federal Capital Territory, including $3.3 billion for their projects. The plan is intended to fund strategic infrastructure and support the goal of a $1 trillion economy by 2030, according to Business Day Nigeria.
The $21.7 billion borrowing plan proposed by Nigerian President Bola Tinubu provides $4.8 billion for the federated states and the Federal Capital Territory (FCT). This allocation includes $3.3 billion for state projects and about $1.5 billion for the FCT, according to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, quoted by Business Day Nigeria.
Bola Tinubu defended the borrowing on Thursday 29 October, saying Nigeria needed to maintain its investment in infrastructure to achieve its goal of a $1 trillion economy by 2030. He cited the Lagos-Calabar coastal highway, the Sokoto-Badagry and Trans-Saharan routes, the modernisation of the electricity grid and the upgrading of Lagos’s main commercial ports, Business Day Nigeria reports.
The resources distributed by the Federation Account Allocation Committee (FAAC), the mechanism for sharing public revenue between the federal government, the states and local authorities, rose from 9.23 trillion naira in 2021 to 35.81 trillion in 2025, an increase of 288%, according to a report by Agora Policy. They reached 31.46 trillion naira in the first nine months of 2026.
This increase followed the removal of the petrol subsidy and foreign-exchange market reforms introduced in 2023. Analysts are nevertheless questioning whether these additional revenues are being translated into infrastructure and public services, Business Day Nigeria reports.
