• Decries non-utilisation of N16.04 trillion FAAC allocations
Independent Media and Policy Initiative (IMPI) has said the ineffective usage of over N16.04 trillion by the 36 states and 774 local councils of the Federation should be blamed for the excruciating hardship faced by Nigerians.
The policy group, led by Mr Niyi Akinsiju, argued that having benefitted from higher revenue inflows from the federation account as a result of the removal of fuel subsidy, the state governments have to do more for the people in their respective domains.
The group maintained that the subnationals were shirking their constitutional responsibility by expecting the Federal Government to solely carry the burden of easing the current economic situation.
“To put this in perspective, the National Bureau of Statistics (NBS) reports that in 2023, state governors got the most cash in FAAC allocations in at least seven years. This was after the petrol subsidy was removed and the currency reform availed a 40 per cent increase to the country’s revenue.
“According to NBS, FAAC shared a total of N16.04 trillion to the three tiers of government in 2023, a 37.3 per cent increase from N11.7 trillion in 2022. From this, the states and their local governments received a total FAAC allocation of N6.57 trillion, twice the N3.16 trillion they received in 2022. The NBS particularly notes that the amount shared by the federation surged in June 2023 following President Tinubu’s removal of the petrol subsidy and liberalisation of the foreign exchange market.
“However, the increased revenue shared has not reflected in the lives of Nigerians residing in the states. While we acknowledge the feverish efforts being made by the Federal Government to manage inflation through providing more food and enhancing the supply of dollars to the foreign exchange market, except for Lagos State and a few other states, we have not seen a replication of the Federal Government’s commitment to assuaging the challenged economic circumstances of citizens at the sub-national level.”
Using available data on FAAC allocations to the subnationals in recent months, the policy group questioned why they have not reflected on the lives of the citizenry.
IMPI said Delta State, a PDP-controlled state received the highest FAAC allocation of N214.74 billion between June and December 2023.
“Rivers State, another PDP-controlled state, followed with N179.81 billion, Akwa Ibom State, yet another state with a PDP governor, got the third highest sum of N145.57 billion, and Bayelsa, a PDP state with only eight council areas, received the fourth highest revenue allocation at N128.5 billion,” he said, lamenting that despite this hugely increased revenue, a PCL State Performance Index (PSPI) released by Phillip Consulting Ltd in December 2023 ascribed a poverty rate of 13.1 per cent to Delta State as well as an unemployment rate of 31.10 per cent and an inflation rate of 24 per cent.
“According to the PSPI, Delta State faces significant challenges in the effective management of public institutions, provision of public transportation, and access to potable water.
“While poverty rate is 7.3 per cent in Rivers State, its unemployment rate is stated at 41.60 per cent and inflation rate at 31 per cent. These figures are way above the national average of 33 per cent unemployment rate and the 28.9 per cent inflation rate respectively.”
