Nigeria's Local Governments Get N4.3 Trillion in 2026

Between January and August 2026, Nigeria's 774 local governments received a total net allocation of N4.3 trillion from the Federation Account, as reported by Nairalytics, the research arm of Nairametrics. This allocation is projected to reach N6.5 trillion for the year, marking a 22.7% increase from the N5.3 trillion in 2025.

The allocations have more than tripled compared to pre-reform years, with N2.01 trillion in 2022 and N3.76 trillion in 2023 following significant economic reforms. Notably, all ten local governments with the highest allocations were in Lagos State, which collectively received N404.7 billion, accounting for 9.3% of the total.

The distribution of funds is based on a revenue-sharing framework that considers factors such as population size and internal revenue generation. The EFCC will monitor the release and utilization of these funds, focusing on potential financial irregularities, as announced by the President on 28 October 2026.