Bandits’ Attacks: FG Sets Up N500bn Emergency Security Fund as Insecurity Worsens

The Federal Government has established a N500bn national security emergency fund to strengthen efforts against insurgency, banditry, kidnapping and other security threats across the country.

Multiple sources familiar with proceedings of the Federation Account Allocation Committee disclosed that the fund was deducted from the May 2026 Federation Account revenue before the monthly sharing of allocations to the Federal Government, states and local government councils.

According to the sources, the deduction formed part of broader adjustments made to federation revenues ahead of distribution and was aimed at supporting urgent security interventions nationwide.

One source confirmed that the deduction was discussed at the FAAC meeting and was known to commissioners of finance from the 36 states, who are members of the committee.

Official FAAC documents obtained after the meeting showed that N250bn was allocated to a Military Intervention Fund, while another N252bn was earmarked as an Infrastructure Development Fund for states. In addition, N450bn was transferred to the Non-Oil Excess Revenue Account, bringing the total value of major deductions to N952bn.

Despite the deductions, FAAC distributed N2.30tn as May 2026 revenue to the three tiers of government. The Federal Government received N818.68bn, state governments received N759.14bn, while the 774 local government councils shared N534.28bn. Oil-producing states also received N188.13bn as 13 per cent derivation revenue.

The move comes amid growing security concerns across Nigeria, including insurgency in the North-East, banditry and mass kidnappings in the North-West, farmer-herder clashes in the North-Central, separatist violence in the South-East and crude oil theft in the Niger Delta.

Economists have welcomed the initiative, describing security as critical to economic growth and investment. Chief Executive Officer of Economic Associates, Dr Ayo Teriba, said additional funding was necessary to address existing security gaps, improve troop welfare, procure equipment and recruit more personnel.

Professor of Economics and Public Policy at the University of Uyo, Prof. Akpan Ekpo, also supported the fund, stressing that effective security is essential for national development. However, both experts emphasised the need for transparency and accountability in managing the resources to ensure the fund delivers meaningful results.