A 130 per cent surge in federal account allocations to states under President Bola Tinubu has prompted the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to double down on its push for fiscal accountability.

While the windfall offers significant financial relief, the Commission insisted on strict adherence to transparency guidelines, warning that the additional revenue must be judiciously utilised to foster grassroots development and curb wastage.

The surge in federal allocations to states was revealed in Lagos yesterday when the RMAFC and the House Committee on Finance held a stakeholders’ retreat.

In her presentation, Dr Victoria Hauwa Ibrahim, an economist and public policy expert at the Department of Economics, Nasarawa State University, compared Nigeria’s revenue performance across two distinct political eras.

The comprehensive analysis revealed an unprecedented 130 per cent surge in yearly allocations to states and local governments, flipping the narrative on the country’s economic potential but amplifying demands for radical transparency.

According to the data, total allocations to states and local governments during the last four years of the former administration stood at approximately N17 trillion, or an average of N4.25 trillion per year.

In stark contrast, under the current administration, the figure skyrocketed to N29.4 trillion in just three years or an average yearly disbursement of N9.8 trillion.

This puts the average yearly differential at N5.55 trillion, representing a 130 per cent increase.

A deeper breakdown of the historical timeline highlighted the volatile journey of Nigeria’s fiscal landscape.

She presented: “Plagued by the economic paralysis of COVID-19, 2020 was recorded as the worst year for the previous administration, with allocations bottoming out at N3.76 trillion.

“The prior peak (2022): The previous administration reached its zenith in 2022, distributing N5.41 trillion to sub-national governments.

“The transition dip (2023): The current administration hit its own baseline low of N6.57 trillion in 2023, a dip widely attributed to initial economic shocks following the implementation of three major fiscal reforms within the administration’s first 60 days.

“The new paradigm: In a striking paradox, the ‘worst’ performing year of the current administration (N6.57 trillion in 2023) comfortably eclipsed the absolute best performing year of the previous era (N5.41 trillion in 2022).”

The presentation revealed that federal revenue has grown exponentially, expanding from N29.07 trillion to N88.91 trillion. She noted that all 36 states have recorded growth, ensuring that no constituency or local government has been left behind.

Stressing that systemic vulnerabilities threaten sub-national wealth, she emphasised that increased generation means nothing if administrative leakages remain unaddressed.

Chairman of the House Committee on Finance, James Faleke, was unyielding regarding accountability, stressing that patriotism is measured by vigilance, not pride alone.

“Every naira mobilised must be a naira that contributes to inclusive economic growth. We must leave this hall not with piles of paper, but with a concrete roadmap of how we will stop looking at revenue as an end in itself, and instead view it as the fuel for our national development,” he said.