Sh**cking Revelations: Nigerians Astonished By The Huge Amount Spent By 29 Governors On Refreshments, Sitting Allowances, And Travel Over Nine Months Details Emerge!

Sh**cking Revelations: Nigerians Astonished By The Huge Amount Spent By 29 Governors On Refreshments, Sitting Allowances, And Travel Over Nine Months Details Emerge!

29 Governors Spent ₦1.994 Trillion On Refreshments, Sitting Allowances, Travel, And More In Nine Months

An analysis of the budget performance of 29 Nigerian states has unveiled that governors collectively expended an eye-popping ₦1.994 trillion on recurrent costs, encompassing refreshments, sitting allowances, travel, and other expenses during the first nine months of 2024…REWADMORE…

As reported by Punch, this assessment, drawn from the Q1 to Q3 budget performance reports available on state websites, also indicated that these states obtained loans totaling ₦533.29 billion and allocated ₦658.93 billion for debt servicing within the same timeframe.

Despite a 40% increase in statutory allocations from the Federation Account—thanks to the removal of fuel subsidies and the unification of the foreign exchange market—these states struggled to balance their budgets while underperforming in revenue generation. They collected ₦1.92 trillion in internally generated revenue (IGR) against a target of ₦2.868 trillion, resulting in a shortfall of ₦948.28 billion.

The Nigeria Extractive Industries Transparency Initiative (NEITI) reported that the Federation Accounts Allocation Committee (FAAC) disbursed ₦3.473 trillion to federal, state, and local governments in Q2 2024, representing a 1.42% rise from Q1.

However, the budget performance data for seven states—Borno, Gombe, Kaduna, Kano, Kwara, Sokoto, and Ogun—were not included in this review, leaving gaps in the overall analysis.

In this fiscal landscape, the Federal Government received ₦1.102 trillion (33.35% of the total allocation), while the 36 states shared ₦1.337 trillion (40.47%), and local governments received ₦864.98 billion (26.18%).

A contrasting evaluation of allocations between quarters showed the Federal Government’s allocation decreased by ₦41.44 billion (3.76%), whereas state governments experienced a rise of ₦58.13 billion (4.29%), and local government councils benefited from an increase of ₦30.82 billion (3.57%).

Notably, the uptick in funding has yet to translate into improved living standards for citizens. A detailed review indicates that the 29 states’ recurrent spending, primarily for guest refreshments, government officials’ sitting allowances, travel expenses, and utilities, was as follows:

Lagos, Plateau, and Delta states had the highest operational costs, with expenditures of ₦375.19 billion, ₦144.87 billion, and ₦121.54 billion respectively. Ondo and Bauchi followed closely with spending of ₦107.34 billion and ₦99.31 billion.

Among the states, Niger State, led by Governor Mohammed Umar Bago, was the biggest borrower, taking on loans of ₦79.09 billion, with Katsina and Oyo states borrowing ₦72.89 billion and ₦62.48 billion, respectively.

Lagos State led in revenue generation with ₦912.17 billion, trailed by Rivers State at ₦269.18 billion, and Delta State at ₦97.02 billion.

State-specific analyses highlighted that Abia State, under Governor Alex Otti, spent ₦17.91 billion on operating costs and collected ₦22.15 billion in revenue, falling short of its ₦32.14 billion target. The state borrowed ₦3.901 billion and allocated ₦10.91 billion for debt servicing.

Meanwhile, Adamawa State’s recurrent expenses reached ₦41.45 billion against an income of ₦9.16 billion, leading it to take out a ₦10 billion loan for debt servicing at a cost of ₦22.68 billion.

Other states showcased similar discrepancies between heavy spending and inadequate revenue generation, indicating a worrying pattern of financial mismanagement across the region.

As the analysis proceeds, it becomes evident that despite substantial allocations and loans, fiscal responsibility remains unaddressed in many states, leading to growing economic challenges and deficits in service delivery to the populace.

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