ABUJA, Nigeria — Gross revenue allocations to local governments across Nigeria have witnessed a remarkable surge since 2023, reaching N1.48 trillion in the first quarter of 2026, according to data obtained by TheCableIndex from the National Bureau of Statistics and FAAC reports.
The data reveals a steady upward trajectory in allocations to the third tier of government over the past six years. In Q1 2021, local governments received N392.62 billion, which increased to N440.40 billion in Q1 2022 and N528.43 billion in Q1 2023. The most significant jump occurred in Q1 2024, when allocations surged to N833.88 billion, followed by N1.23 trillion in Q1 2025 and N1.48 trillion in Q1 2026.
The consistent growth in allocations reflects the combined effect of improved revenue generation by the federal government, increased oil prices, and the implementation of reforms aimed at enhancing transparency and efficiency in the collection and distribution of federation revenue. The surge from 2023 onwards, in particular, coincides with the removal of fuel subsidies and the unification of the foreign exchange market, both of which contributed to increased government revenues.
Local governments are critical to grassroots development, as they are responsible for delivering essential services to communities, including primary healthcare, basic education, sanitation, and rural infrastructure. The increased allocations provide local councils with greater financial resources to address the needs of their residents and execute development projects.
However, despite the significant increase in allocations, concerns remain about the capacity of local governments to effectively utilise these funds. Civil society organisations and development experts have repeatedly called for greater accountability, transparency, and capacity building at the local government level to ensure that the increased funding translates into tangible improvements in the lives of ordinary Nigerians.
The data also highlights the importance of the Federation Account Allocation Committee (FAAC) in ensuring the equitable distribution of revenue among the three tiers of government. The FAAC disbursements are derived from various revenue sources, including oil and gas proceeds, taxes, and other earnings, which are shared according to a statutory formula.
The trend of rising allocations to local governments is expected to continue as the government implements policies to boost non-oil revenue and improve fiscal management. The ongoing reforms in the oil and gas sector, including efforts to curb crude oil theft and increase production, are also likely to contribute to higher revenues in the future.
As local governments receive more funding, the focus is likely to shift to how effectively these resources are being managed and the impact of the increased allocations on grassroots development. For now, the data provides a clear picture of the upward trend in allocations to local governments, with N1.48 trillion in Q1 2026 marking a significant milestone.
