In the first nine months of 2024, 29 state governors in Nigeria spent a total of N1.994 trillion on recurrent expenditures, including refreshments, sitting allowances, travel, and utilities, according to findings by The PUNCH.
Additionally, these states secured loans amounting to N533.29 billion and spent N658.93 billion on debt servicing for local, foreign, and multilateral creditors.
However, these states did not meet their revenue targets, generating N1.92 trillion in internally generated revenue, which fell short of the N2.868 trillion target by N948.28 billion. It is important to note that this recurrent expenditure data excludes personnel costs.
An analysis of the fiscal performance of each state, based on Q1 to Q3 budget performance reports from their respective websites, highlighted a need for stringent fiscal discipline, particularly amid calls to reduce the costs of governance. This analysis comes despite a 40 percent increase in statutory allocations from the Federation Account.
In examining the budget implementation data from twenty-nine states, data for six states (Borno, Gombe, Kaduna, Kano, Kwara, and Sokoto) was not available for the period from January to September 2024.
Since the start of the current administration, state governments have benefited from improved monthly allocations, primarily due to the elimination of fuel subsidies and the unification of the foreign exchange market.
The Nigeria Extractive Industries Transparency Initiative reported that the Federation Accounts Allocation Committee disbursed N3.473 trillion to the three tiers of government in the second quarter of 2024, an increase of N46.77 billion (1.42 percent) compared to the first quarter.
The Federal Government received N1.102 trillion (33.35 percent of the total allocation), while 36 states received N1.337 trillion (40.47 percent), and 774 local government councils shared N864.98 billion (26.18 percent).
Comparing the previous quarter, the Federal Government’s allocation decreased by N41.44 billion (3.76 percent), while state governments saw an increase of N58.13 billion (4.29 percent), and local government councils experienced a rise of N30.82 billion (3.57 percent).
Despite this increased funding, there has not been a corresponding improvement in the standard of living for citizens.
A breakdown revealed that the 29-state governments spent N1.994 trillion on recurrent expenditures, including refreshments, sitting allowances, travel expenses, and utility bills (electricity, internet, telephone charges, water rates, and sewerage charges).
Lagos, Plateau, and Delta States incurred the highest operating expenses, spending N375.19 billion, N144.87 billion, and N121.54 billion, respectively. Ondo and Bauchi followed, with expenses of N107.34 billion and N99.31 billion.
Niger State, under Governor Mohammed Umar Bago, was the highest borrower during the review period, securing loans worth N79.09 billion. Katsina followed with N72.89 billion, and Oyo State borrowed N62.48 billion.
In terms of revenue, Lagos State collected the highest amount, N912.17 billion, followed by Rivers State with N269.18 billion and Delta with N97.02 billion.
A state-by-state analysis showed various fiscal performances:
- Abia State: Spent N17.91 billion on operating expenses, generated N22.15 billion in revenue, fell short of the N32.14 billion target, borrowed N3.901 billion, and allocated N10.91 billion for debt servicing.
- Adamawa State: Spent N41.45 billion on recurrent expenditure, earned N9.16 billion out of N22.24 billion revenue target, borrowed N10 billion, and paid N22.68 billion for debt servicing.
- Akwa-Ibom State: Recurrent spending of N85.45 billion, generated N41.47 billion, paid N34.47 billion for debt service, did not borrow.
- Anambra State: Generated N28.296 billion, spent N12.70 billion on recurrent expenses, allocated N4.56 billion for debt service, did not borrow.
- Bauchi State: Spent N99.31 billion on operating expenses, generated N15.92 billion out of N37.03 billion target, borrowed N33.64 billion, paid N27.54 billion for debt service.
- Bayelsa State: Generated N57.85 billion, spent N75.23 billion on operating costs, allocated N30.54 billion for debt service.
- Benue State: Spent N29.45 billion on operating expenses, generated N8.71 billion out of N23.91 billion target, did not borrow, allocated N5.48 billion for debt service.
- Cross Rivers State: Spent N55.73 billion on recurrent expenses, generated N32.42 billion, borrowed N20.67 billion, allocated N19.99 billion for debt service.
- Delta State: Spent N121.54 billion on recurrent expenses, generated N97.02 billion out of N110.3 billion target, allocated N55.9 billion for debt service, did not borrow.
- Ebonyi State: Spent N37.73 billion on recurrent expenses, generated N15.67 billion, borrowed N15.65 billion, allocated N8.46 billion for debt service.
- Edo State: Spent N75.78 billion on recurrent expenses, generated N52.68 billion, borrowed N12.84 billion, allocated N27.5 billion for debt service.
- Ekiti State: Spent N74.73 billion on recurrent expenses, generated N23.16 billion, borrowed N11.75 billion, allocated N12.93 billion for debt service.
- Enugu State: Spent N10.88 billion on operating expenses, generated N39.98 billion, borrowed N1.39 billion, allocated N6.93 billion for debt service.
- Imo State: Spent N42.75 billion on operating expenses, generated N15.24 billion, allocated N15.94 billion for debt service, did not borrow.
- Jigawa State: Spent N35.69 billion on operating expenses, generated N18.41 billion out of N50.65 billion target, borrowed N744.75 million, allocated N2.17 billion for debt service.
- Katsina State: Spent N40.73 billion on recurrent expenses, generated N29.95 billion, borrowed N72.89 billion, allocated N12.78 billion for debt service.
- Kebbi State: Spent N22.42 billion on recurrent expenses, generated N7.86 billion, borrowed N24.59 billion, allocated N3.42 billion for debt service.
- Kogi State: Spent N84.48 billion on operating expenses, generated N19.86 billion, borrowed N51.68 billion, allocated N18.12 billion for debt service.
- Lagos State: Spent N375.19 billion on recurrent expenses, generated N912.15 billion, allocated N84.53 billion for debt service, did not borrow.
- Nasarawa State: Spent N42.63 billion on operating expenses, generated N22.78 billion.
- Niger State: Spent N41.28 billion on recurrent expenses, generated N29.22 billion.
- Ondo State: Spent N107.34 billion on recurrent expenses, generated N24.43 billion.
- Osun State: Spent N48.87 billion on recurrent expenses, generated N28.86 billion.
- Oyo State: Spent N51.24 billion on recurrent expenses, generated N45.79 billion.
- Plateau State: Spent N144.86 billion on recurrent expenses, generated N18.03 billion.
- Rivers State: Spent N72.69 billion on operating costs, generated N269.17 billion.
- Taraba State: Spent N58.39 billion on recurrent expenses, generated N7.84 billion, borrowed N52.63 billion, allocated N21.19 billion for debt service.
- Yobe State: Spent N51.29 billion on recurrent expenses, generated N8.14 billion.
- Zamfara State: Spent N36.34 billion on recurrent expenses, generated N18.46 billion.
This thorough analysis underscores the pressing need for more stringent fiscal discipline and efficient revenue generation measures across the states.
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