Increased Allocations In Nigeria: A Departure from the Past

Unlike the previous administration in Nigeria, which saw monthly allocations fluctuate wildly, the current government in Nigeria has consistently ensured a steady and incremental increase in allocations over the past 13 months. For instance, 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, marked by frequent fluctuations and shortfalls, leading to financial instability at various governmental levels in Nigeria.

The new Nigerian administration’s approach marks a significant shift in fiscal policy. In a recent nationwide broadcast, President Bola Tinubu of Nigeria highlighted the substantial progress made in improving allocations. He stated, “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.” This reduction in debt servicing has provided the Nigeria with more financial freedom and flexibility, resulting in the highest-ever allocations to state and local governments from the Federation Account.

Unmet Expectations Amidst Increased Allocations

Despite the increased allocations, the silence from state governors persists, even as the nation grapples with widespread protests. The public’s expectations remain unmet, raising questions about the effective utilization of these funds. Critics argue that while the federal government has made strides in increasing the financial resources available to states, the impact on the ground has been negligible. This has led to growing discontent among the populace, who feel that the increased funds have not translated into tangible improvements in infrastructure, healthcare, and education.

Moreover, the protests highlight a deeper issue of accountability and transparency at the state level. Citizens are increasingly demanding that state governors justify how the increased allocations are being spent. There is a growing call for greater scrutiny of state budgets and for governors to be more transparent about their expenditure. This call for accountability is essential to ensure that the increased funds are used effectively to address the pressing needs of the population.

Time to Focus on Governors: Enhancing Accountability in Nigeria

As the nation faces mounting pressure from protests and public dissatisfaction, it is imperative to shift the focus towards the governors. Enhanced accountability and transparency measures are necessary to ensure that the increased allocations lead to meaningful development. One potential solution is the implementation of stricter auditing processes for state finances. By ensuring that state budgets are thoroughly reviewed and that there is clear documentation on how funds are spent, governors can be held accountable for their financial management.

Additionally, fostering a culture of transparency can help build public trust. State governments should consider regular public briefings and detailed reports on their expenditures. This will not only improve transparency but also allow citizens to see the direct impact of increased allocations on their communities. Engaging with civil society organizations and involving them in the auditing process can further enhance accountability and ensure that the funds are used to address the most urgent needs of the population.

while the Nigeria federal government’s efforts to increase allocations are commendable, the focus must now shift to ensuring that these funds are effectively utilized at the state level. By enhancing accountability and transparency, state governors can address public dissatisfaction and ensure that the increased funds lead to real, tangible improvements in the lives of Nigerians.

Not Yet a Magic

During President Bola Ahmed Tinubu’s first six months in office, Nigeria saw a remarkable increase in monthly allocations to federal, state, and local governments. This increase occurred despite numerous socioeconomic challenges, marking a significant improvement in the distribution of funds across the various tiers of government. The upward trend in allocations has been unprecedented in the history of modern-day Nigeria.

A report by Vanguard newspaper, published on December 2, 2023, revealed this astronomical rise in allocations. The report highlighted that in President Tinubu’s initial six months, the Federal Accounts Allocation Committee (FAAC) distributed a total of N5.57 trillion. This is a record-breaking amount, underscoring the administration’s efforts to bolster government finances at all levels.

One Out of Many

While many governors remained silent about the increased allocations, Nasarawa State Governor Abdullahi Sule was vocal in his gratitude and critique. He urged citizens to question their state governors on the utilization of the improved revenues from the federal government. Governor Sule expressed appreciation for President Tinubu’s administration, noting that all states, including Nasarawa, received enhanced revenue each month.

He emphasized that with improved revenue and a serious approach to governance, all projects are achievable. His comments serve as a reminder of the responsibilities of state governments in ensuring that the increased funds translate into tangible benefits for their constituents.

Too Much, Never Enough?

In July 2024, the distribution of monthly allocations highlighted significant disparities among states. Lagos received the highest share with a staggering N26.93 billion, followed by Kano with N15.36 billion, Rivers with N12.37 billion, and Oyo with N11.92 billion. Conversely, the Federal Capital Territory (FCT) received the lowest share with N3.62 billion, followed by Ekiti with N3.66 billion, and Gombe with N3.95 billion. States like Anambra, Adamawa, and Akwa Ibom received N5.29 billion, N6.96 billion, and N8.94 billion, respectively.

Experts have noted that the dramatic turnaround in revenue generation and allocation is due to meticulous planning and execution by the federal government. However, Kunle Adesola pointed out that the increased allocations should translate into visible improvements in citizens’ lives. He argued that the persistent hardships and suffering experienced by many Nigerians indicate that state governments may not be effectively utilizing the funds. The question of accountability and effective governance at the state level remains critical in ensuring that the benefits of increased allocations reach the people