29 Governors Spent ₦1.994 Trillion on Refreshments, Allowances, and Travel in Nine Months

29 Governors Spent ₦1.994 Trillion on Refreshments, Allowances, and Travel in Nine Months

Analysis of Budget Performance Across 29 Nigerian States in 2024

A comprehensive review of budget performance across 29 Nigerian states has exposed significant fiscal challenges, with governors spending an enormous ₦1.994 trillion on recurrent expenditures in the first nine months of 2024.

This figure encompasses costs for refreshments, sitting allowances, travel expenses, and utilities, highlighting a heavy focus on non-productive expenditures.

Key Findings: Revenue Shortfalls and Debt Dependency

The analysis, based on budget performance reports from state websites, revealed that:

  1. Revenue Deficit: States generated ₦1.92 trillion in internally generated revenue (IGR) against a target of ₦2.868 trillion, leaving a shortfall of ₦948.28 billion.
  2. Loan Dependency: These states borrowed ₦533.29 billion to bridge fiscal gaps, allocating ₦658.93 billion to debt servicing during the period.

Despite increased statutory allocations from the Federation Account—partly due to the removal of fuel subsidies and forex unification—many states failed to balance their budgets or improve citizens’ living standards.

Federation Allocation Breakdown

According to data from the Nigeria Extractive Industries Transparency Initiative (NEITI), the Federation Accounts Allocation Committee (FAAC) disbursed ₦3.473 trillion to federal, state, and local governments in Q2 2024, reflecting a 1.42% increase from Q1.

  • Federal Government: ₦1.102 trillion (33.35%)
  • State Governments: ₦1.337 trillion (40.47%)
  • Local Governments: ₦864.98 billion (26.18%)
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Notably, federal allocations declined by 3.76%, while state and local government allocations increased by 4.29% and 3.57%, respectively. However, this improved funding did not translate into better public services or fiscal discipline.

Breakdown of Recurrent Expenditures

Out of the ₦1.994 trillion spent on recurrent expenses, Lagos, Plateau, and Delta states ranked highest, with spending of ₦375.19 billion, ₦144.87 billion, and ₦121.54 billion, respectively. Utility costs included electricity, internet, water, and telephone charges.

State-by-State Analysis: Revenue and Borrowing Trends

  1. Lagos State: Spent ₦375.19 billion but earned ₦912.17 billion in revenue. It paid ₦84.53 billion in debt service without taking new loans.
  2. Niger State: Borrowed the most, securing ₦79.09 billion in loans while spending ₦41.28 billion on operating costs and earning ₦29.22 billion in revenue.
  3. Rivers State: Collected ₦269.17 billion in IGR but spent ₦72.69 billion on recurrent costs.

Highlights of Fiscal Mismanagement

  • Adamawa State: Spent ₦41.45 billion on recurrent expenses but earned only ₦9.16 billion in revenue, necessitating loans of ₦10 billion.
  • Taraba State: Faced a massive revenue deficit, generating just ₦7.84 billion while spending ₦58.39 billion on recurrent expenses. The state borrowed ₦52.63 billion to manage its finances.
  • Plateau State: Allocated ₦144.86 billion to operating expenses while earning only ₦18.03 billion in revenue.
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Underperformance in Key States

Despite relatively high revenues, several states fell short of their fiscal targets:

  • Delta State: Spent ₦121.54 billion on recurrent expenditures but earned ₦97.02 billion, servicing debts worth ₦55.9 billion without additional borrowing.
  • Bayelsa State: Exceeded its revenue target by ₦33.98 billion but still faced a ₦17.38 billion deficit due to high spending of ₦75.23 billion.

Conclusion: A Call for Fiscal Responsibility

The findings underscore a troubling pattern of overspending on recurrent expenses and reliance on debt to bridge revenue gaps. While some states like Lagos demonstrated strong revenue performance, the majority struggled with inefficiency and fiscal mismanagement.

Addressing these issues requires greater emphasis on capital investments, improved IGR collection strategies, and disciplined borrowing practices to ensure sustainable economic growth and enhanced public welfare across Nigeria.

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