The Nigeria Labour Congress (NLC) and private sector stakeholders have launched a fierce criticism against governments at all levels, accusing them of failing to translate surging revenues into better living conditions for citizens.
Despite a massive influx of public funds, labor leaders and economists warn that worsening poverty, severe infrastructure decay, and unchecked insecurity continue to push Nigerians to the brink, leaving workers completely detached from the nation’s fiscal growth.
The NLC Assistant General-Secretary, Chris Onyeka, stated directly that the massive increase in government revenue has not improved the welfare of ordinary Nigerians. He argued that it is not the sheer quantum of revenue available that changes lives, but rather the willingness of political leaders to use those resources for public good.
Onyeka accused all three-tiers of government of failing to channel public wealth into impactful projects, pointing to the significant deterioration of infrastructure across the country as clear evidence of neglect.
While acknowledging that one or two states have shown improvement due to leadership choices, the labor leader emphasized that widespread insecurity remains the ultimate indicator of government failure. He stressed that talking about welfare or development is meaningless when citizens cannot travel safely without fear.
Onyeka warned that the security crisis has triggered severe multiplier effects on the economy, leaving Nigerians scared to farm or travel, and forcing families to save money for ransom payments instead of investments. With soaring transportation, housing, and food costs, he declared that workers do not feel better off, adding flatly that the nation is simply not working.
This sharp public pushback comes on the heels of data showing that Nigeria’s 3-tiers of government received a total of ₦10.45trillion from Federation Account Allocation Committee (FAAC) between January and May 2026. This represents a 25.85% increase from the N8.30tn shared during the same period in 2025.
An analysis of the data shows that the allocations to the federal government, 36 states, the Federal Capital Territory, and 774 Local Government Areas were distributed from a gross government revenue of ₦13.76tr realized during the five-month window. This gross figure is up by 4.32% from the ₦13.19tr recorded in the first five months of 2025. The spike in distributable funds was driven by stronger Value-Added Tax (VAT) collections, higher oil-related tax receipts, and an aggressive revenue drive by the Nigeria Revenue Service (NRS).
Federal Government emerged as the largest beneficiary of the 5-month pool, securing ₦3.72tr; State governments received ₦3.56tr, while local governments were allocated ₦2.51tn. The 13 oil-producing states shared ₦673.17bn as derivation revenue.
The significant expansion in state allocations follows the implementation of a new VAT sharing formula under tax reforms signed into law by President Bola Tinubu.
The policy reduced the federal government’s VAT share from 15% to 10%, while lifting the states’ share from 50% to 55%. Consequently, states pulled in ₦1.18tr from VAT revenue in the first quarter of 2026, marking a ₦214.78bn or 22.35% increase over Q1 2025. Notably, Federal Capital Territory also made history in January 2026 by receiving its first-ever direct allocation of ₦15.8bn from the VAT pool.
Despite these gains, overall collections have lagged behind state targets. NRS generated ₦7.44tr in the first quarter of 2026 against a projected target of N9.68tr, leaving a shortfall of ₦2.24tr.
