Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has attributed the rise in monthly Federation Account Allocation Committee (FAAC) disbursements to more than N2 trillion to economic reforms introduced under President Bola Ahmed Tinubu.
Oyedele said the reforms have significantly increased the revenue available for distribution among the Federal Government, states and local governments.
According to recent reports, FAAC allocations have crossed the N2 trillion mark, representing a substantial increase from previous levels.
The Minister linked the increase to reforms including the removal of the petrol subsidy and changes to the foreign exchange system.
He said the reforms have strengthened government revenues and created greater resources for distribution across the three tiers of government.
The Federal Government has consistently argued that the reforms introduced under Tinubu are intended to improve Nigeria’s fiscal position and reduce the financial burden associated with fuel subsidies.
Official data from the Ministry of Finance shows that FAAC distributed ₦2.036 trillion in Federation Account revenue in March 2026, marking the second time in that year that monthly disbursements exceeded the N2 trillion threshold.
More recent reporting indicated that FAAC disbursement reached a record N2.8 trillion in June 2026.
Oyedele has urged state governments to use the increased revenue to fund projects and programmes capable of improving the welfare of Nigerians.
The increase in FAAC allocations remains one of the key arguments advanced by supporters of the administration’s economic policies.
However, the higher allocations also come amid continuing public debate over inflation, living costs and the broader impact of the government’s reforms on households and businesses.
The government maintains that the reforms are necessary to place Nigeria’s public finances on a more sustainable footing.