A recent report revealed that state governments in Nigeria borrowed a significant amount while trying to manage their finances. Despite generating revenue internally, these states still struggled to meet their revenue targets, resulting in budget deficits. The analysis also highlighted the substantial spending on recurrent expenses, such as utilities, travel, and allowances.
The data indicated that some states had challenges meeting their financial obligations, with discrepancies between revenue generated and expenditures incurred. The increase in monthly allocations from the Federation Account has not necessarily translated into improved living standards for citizens.
Various states were assessed based on their financial performance, showcasing areas where fiscal discipline and accountability are needed. The report emphasized the need for more transparency and oversight in managing state finances to ensure economic benefits reach the grassroots level.
Experts, including a professor of Economics, raised concerns about high governance expenses and the lack of accountability in state operations. The Fiscal Responsibility Commission also warned about the sustainability of Nigeria’s fiscal federalism structure in its current state.