The Federal Accounts Committee (FAAC) has disbursed the July 2024 monthly allocations to Nigeria’s three tiers of government, but the familiar silence from state governors persists, even as the nation buckles under the yoke of nationwide protest.
Departure from the Past
Unlike the previous administration, which saw monthly allocations fluctuate wildly, the current government has consistently ensured a steady and incremental increase in allocations over the past 13 months.
For example, in April 2023, the total allocation of N655bn to the Federal Government, States, and Local Government Areas (LGAs) represented a decrease of N58bn, as reported by The Cable.
This decline was consistent with the allocation trends of the previous administration, which experts observe was marked by frequent fluctuations and shortfalls.
A Different Approach
In a recent nationwide broadcast, President Bola Tinubu highlighted the significant progress made in improving allocations, stating: “We have come far. Coming from a place where our country spent 97% of all our revenue on debt service; we have been able to reduce that to 68% in the last 13 months.”
He underscored the impact of this achievement, noting that the country now has more financial freedom and flexibility to allocate resources, resulting in the highest-ever allocations to state and local governments from the Federation Account.
Not Yet a Magic
During President Tinubu’s first six months in office, Nigeria experienced a notable increase in monthly allocations to federal, state, and local governments, despite facing numerous socioeconomic challenges. This upward trend marked a significant improvement in the distribution of funds to various tiers of government.
Experts noted that such a breathtaking increment was the first in the history of modern-day Nigeria. The Vanguard newspaper report published on December 2, 2023, revealed an astronomic increase in the allocation shared, asserting that the three tiers of government shared N5.57 trillion in the President’s six months in office, as allocation from the Federal Accounts Committee, FAAC showed.
One out of Many
While other governors have kept mute over increased allocation, Abdullahi Sule of Nasarawa has taken a swipe. He said that people should ask their state governors what they were doing with the improved revenues from the federal government. “We want to thank President Ahmed Bola Tinubu that all the states, including Nasarawa state, are receiving improved revenue every month”. He said with improved revenue, and seriousness about work, all the projects are achievable.
Too Much. Never Enough?
For instance, in July 2024, Lagos had the highest share of the monthly allocation with a staggering 26.93 billion. It was followed by Kano, with 15.36 billion, Rivers, with 12.37 billion, and Oyo 11.92 billion. FCT had the lowest with 3.62 billion, followed by 3.66 billion, and Gombe at 3.95 billion. Anambra, for example, shared 5.29 billion, Adamawa, 6.96 billion, and Akwa Ibom, 8.94 billion among others.
For experts, the dramatic turnaround both in improved revenue generation and increased allocations to all the tiers of government has been nothing short of astonishing. As posited, the drastic increase has been due to careful planning and methodic execution. “The question of hardship and suffering must be directed at the state government and not the President”, Kunle Adesola asserted, “an astronomic increase in allocation ought to bring down dividends of democracy to the people, but the reverse has been the case”.
