.. Urges FG to Monitor Increased LG Allocations

A Professor of Monetary Economics at Ignatius Ajuru University of Education, Port Harcourt, Prof. Williams Nzijee, has said that the approval of the 2026–2028 Medium-Term Expenditure Framework (MTEF) by the Rivers State House of Assembly would revive the State economy, stimulate economic growth and accelerate development in the state.

Nzijee said the framework would provide the fiscal direction needed for the implementation of key government projects that had been delayed due to the absence of an approved budget.

According to him, the MTEF serves as the financial blueprint that guides government revenue and expenditure, making it indispensable for effective governance.

Recall that that State Assembly on June 25 received the MTEF from Governor Siminalyi Fubara and barely 24 hours later, on June 26, the lawmakers passed the document, describing the framework as people-oriented, saying that it is focus on diversifying the state’s economy through the development of the non-oil sector and sustained investment in human capital.

Speaking further, Prof Nzijee said, “Every responsible government works with a budget because it is the financial document that guides income and expenditure. Government cannot spend public funds without an approved budget. The MTEF creates room for economic growth and development and provides the foundation for implementing both ongoing and proposed projects,” he said.

He noted that the document would pave the way for the presentation of the state’s 2026 Appropriation Bill, adding that it would also facilitate planned recruitment by the state government.

“The delay in having a budget has slowed economic activities in the state. With the MTEF in place, government programmes, including the proposed employment of workers, can now be accommodated in the budget and implemented. This will ultimately boost the state’s economy,” he added.

The economist also reacted to comments by the Minister of the Federal Capital Territory (FCT), Nyesom Wike, that the removal of fuel subsidy had increased allocations to states and local governments.

While acknowledging that allocations had indeed increased, Nzijee argued that the benefits had yet to translate into improved living conditions for Nigerians.

“There is no doubt that subsidy removal increased allocations to states and local governments. However, the real issue is whether those funds are being utilised to improve the lives of the people. So far, the impact has not been visible,” he said.

He urged the Federal Government to strengthen oversight of local government finances to ensure that the increased allocations were channelled towards development projects and job creation.

According to him, many local governments now receive significantly higher monthly allocations but have little to show in terms of infrastructure, economic development or employment generation.

Citing the Rivers State Government’s recent recruitment exercise for 5,000 teachers, which attracted about 85,000 applicants, Nzijee said the development underscored the alarming rate of unemployment in the country.

He recommended that the Federal Government should direct each of the country’s 774 local governments to employ at least 300 additional workers, arguing that such a policy would substantially reduce unemployment and poverty.

“The Federal Government should monitor local government finances, review their monthly wage bills and ensure that the increased allocations are used productively.

Nzijee maintained that increased statutory allocations would only be meaningful if they translated into tangible development and improved welfare for citizens.