Fatter allocations, less impact

The relative passivism that characterised the disposition of most Nigerians to the withdrawal of oil subsidy at the inception of the present administration was informed by the legitimate expectation that the savings made therefrom would be channelled into the critical sectors of the national economy. President Ahmed Bola Tinubu’s assurance in this regard, and the […]

The relative passivism that characterised the disposition of most Nigerians to the withdrawal of oil subsidy at the inception of the present administration was informed by the legitimate expectation that the savings made therefrom would be channelled into the critical sectors of the national economy. President Ahmed Bola Tinubu’s assurance in this regard, and the resultant remarkable increase in the statutory financial allocations for state and local governments, have raised the hope of the citizens for enhanced socio-economic wellbeing.

Details of monthly releases by the Federal Account Allocation Committee (FAAC) have indicated that the monies for states and local governments have almost tripled since the withdrawal of the subsidy. While, for example, the total amount for the entire 36 states stood at N3.35 trillion in 2022, the figure rose to N8.19 trillion, representing far more than a 200 percent increase.

Correspondingly, each of the states has continued to receive a much bigger allocation, which is expected to be utilised for the uplift of the living conditions of its residents. The higher accruals will be useful to the people only if the performances of the state governments, in terms of the execution of capital projects and the delivery of quality social services, become more evident.

Even with the numerous challenges competing for the attention of the state governments in terms of expenditure, the rise in the allocations each one of them receives should enable them to execute impactful projects and programmes. Having suffered deprivation for too long, ordinary citizens appropriately considered the allocation of more monies to the states and local governments as a measure that could guarantee relief for them.

However, the prevailing socio-economic realities across the states have not yet signified improvement, as the living conditions of the people have remained unfavourable. Rather than serve as a succour, the approach of many state governments to the issues of people’s survival, security and welfare has only aggravated the situation.

This newspaper is in no doubt that the majority of Nigerians are experiencing severe stress as a result of the continuous decline in their purchasing power. Even in those states that are supposedly commercially viable and therefore economically strong, and which are beneficiaries of increased allocations, the residents have continued to suffer hardship.

Farmers are still struggling to buy fertilisers and other farming inputs as their prices skyrocket beyond their reach. Patients going to government hospitals are confronted with high medical bills, ranging from the cost of diagnosis to drugs, while civil servants and other commuters daily struggle to pay transport fares to and from their workplaces.

In, for instance, Kano and Lagos states, whose allocations jumped from N99.31 billion and N161.29 billion in 2022 to N279.69 billion and N531.51 billion in 2025 respectively, the complaints of the residents over the crippling effects of low service delivery and inflation are both loud and persistent. Either as civil servants or owners of private businesses, the residents of the two states are noticeably bitter over the perennial erosion of their financial capabilities by the prevailing circumstances.

The situation is even worse in many other states where the economy is comparatively weaker and cannot, therefore, provide the required support for the growing populations. In many states, citizens believe that only those people close to the corridors of power benefit from the poverty reduction programmes of the state governments.

In Zamfara, Katsina and some other northern states where violent attacks are rampant, the condition is most challenging for the residents. The severity of the situation seemingly confirms the allegation that the state governments are not channelling enough funds to mitigate the effects of insecurity and the widespread socio-economic predicaments.

Although some of the state governments have shown prudence and accountability in the management of the funds through the execution of viable projects, provision of incentives to farmers, supply of hospital equipment and provision of educational materials, the situation in most of the states indicates improper utilisation of the monies. This is the basis of the conclusion that while the allocations are now much fatter, their impact on the lives of the citizens is much less than it should be.

Daily Trust understands the frustration of Nigerians over this matter and therefore strongly supports the call by the President of the Nigerian Economic Society, Professor Adeola Adenikinju, for strict monitoring of the utilisation of the allocations to ensure that state governments make adequate investment in the lives of the people. Having ballooned so significantly, the financial allocations for the states should be a source of joy and fulfilment, not a reason for dissatisfaction and complaints.