Nigeria revenue growth has accelerated significantly over the past three years, with the combined revenues of the Federal Government, states and local governments estimated at N118.8 trillion between 2023 and May 2026. Despite the sharp increase, analysts and civil society organisations have raised concerns that higher revenues have not translated into better public services, infrastructure or improved living standards.
Recent findings by the Revenue Mobilization, Allocation and Fiscal Commission (RMAFC) indicate that the three tiers of government received about N53.3 trillion from the Federation Account Allocation Committee (FAAC) between 2023 and May 2026. In addition, internally generated revenues during the same period are estimated at N65.5 trillion, bringing the total available revenue to approximately N118.8 trillion. Experts project that the figure could rise to about N150 trillion before the end of 2026.
The available estimates do not include loans, meaning total government spending could be significantly higher. FAAC distributions also increased steadily over the period:
- 2022: Average monthly allocation of N758 billion
- 2023: Average monthly allocation of N845 billion
- 2024: Average monthly allocation of N1.3 trillion
- 2025: Average monthly allocation of N1.93 trillion
- January to May 2026: Average monthly allocation of N2.083 trillion
Analysts attribute the increase largely to the removal of petrol subsidy and the liberalisation of Nigeria’s foreign exchange market.
Despite the strong Nigeria revenue growth, experts noted that governments at various levels continue to struggle with contractor payments, pension obligations and capital project implementation.
Reports also indicate that several states have yet to fully implement the national minimum wage despite improved revenues. Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, described the revenue growth as a positive outcome of recent economic reforms but stressed that transparency remains the greater challenge.
“The critical issue is no longer just revenue growth, but how these resources are managed, disclosed, prioritised and accounted for,” Yusuf said. He added that weak accountability mechanisms at state and local government levels continue to limit public scrutiny of government finances.
Country Director of Global Rights Nigeria, Abiodun Baiyewu, said the increased revenue has not produced meaningful improvements in infrastructure or citizens’ welfare.
“From what we know, it has not improved the lives of Nigerians nor significantly improved infrastructure. Mal-governance is palpable on the face of things,” she said.
ActionAid Nigeria Country Director, Dr. Andrew Mamedu, also argued that higher allocations alone cannot drive development without stronger governance.
According to him, governments should prioritise capital investment, improve budget implementation, strengthen procurement systems and make financial information more accessible to citizens. He urged Nigerians to actively monitor public spending and demand accountability from elected officials.
Data reviewed from government budget performance reports show that capital expenditure has consistently fallen below budgeted targets despite increased revenues.
The Federal Government reportedly achieved only about 30 percent capital budget implementation in 2025, forcing about 70 percent of capital projects to be rolled over into the 2026 fiscal year. Analysts say improved fiscal transparency, stronger citizen participation and better prioritisation of public spending will determine whether rising government revenues ultimately translate into meaningful national development.
While Nigeria revenue growth has expanded significantly since 2023, experts maintain that stronger accountability, improved budget execution and transparent management of public resources remain essential to ensure that increased government income delivers measurable benefits for citizens.
