‘Nigerians not enjoying benefits of increased allocation to states’
09 September 2024 |
7:22 am
In the wake of the fuel subsidy removal by President Bola Tinubu, the monthly disbursement to the three tiers of government by the Federal Account Allocation Committee (FAAC) increased significantly. However, a survey conducted by the News Agency of Nigeria
In the wake of the fuel subsidy removal by President Bola Tinubu, the monthly disbursement to the three tiers of government by the Federal Account Allocation Committee (FAAC) increased significantly. However, a survey conducted by the News Agency of Nigeria (NAN) in Bauchi, Jigawa, and Gombe states reveals that citizens have yet to feel the impacts of the increased allocation, especially in mitigating the effects of fuel subsidy removal.
Based on the statutory sharing formula, the Federal Government receives 52.68 per cent of the total sum, while the states and local government areas (LGAs) receive 26.72 per cent and 20.6 per cent respectively. The monthly allocation, particularly to states and local governments, is meant to fast-track the execution of viable economic and social infrastructure development projects at the grassroots.
The allocation, which is readily available monthly, is expected to cushion the impact of the economic crunch and promote people-oriented programmes to improve the overall well-being of the people.
With the jettisoning of fuel subsidies, which had cost the nation’s treasury over $10 billion annually, more funds are made available by FAAC to the states.
However, the 2023 States’ Annual Report of FAAC, obtained by NAN, reveals that from January 2023 to May 2023, pre-subsidy removal, the 36 states received a total net allocation of N1.19 trillion.
The reports, obtained from Nigeria Governors’ Forum Repository, show that from June to December of the same year, when President Tinubu removed fuel subsidy, the FAAC disbursement to the 36 states doubled.
Specifically, the net allocation received by the 36 states from June 2023 to December 2023 rose from N1.19 trillion to N2.31 trillion, an increase of about N1.12 trillion. Similarly, between January 2024 and June 2024, FAAC disbursed a total sum of N2.16 trillion to the 36 states. The funds captured above excluded the 20.6 per cent federal allocation to the 774 LGAs, which was also paid to the states via a joint account of the two tiers.
Some residents of the three states, who spoke to NAN in separate interviews in Bauchi, Dutse and Gombe decried poor management of the funds by the respective state government. They said the increased funds were yet to translate into meaningful results in mitigating the impacts of the fuel subsidy removal and alleviating their sufferings.
Rambi Ayala, chairman of the New Nigeria Peoples Party (NNPP) in Gombe State, said the citizens were passing through untold hardship despite the increased federal revenue allocation to the state running into billions of naira.
He said although FAAC allocation to Gombe had doubled since the new administration came into power, there were no enhanced social services across the state.
Gombe State, which received the least among the 37 states, got a gross allocation of N78.72 billion from FAAC for the year 2023. Deduction from the statutory was N17.28 billion bringing its net allocation for the year to N61.43 billion.
From the N61.43 billion net allocation to the state for the year, the pre-subsidy removal months of January to May 2023 accounted for N20.46 billion. With subsidy removal, the net allocation to the state from June to December of the same year doubled to N40.97 billion, an increase of N20.51 billion.
On year-on-year comparison, from January to June 2023, the net FAAC allocation to Gombe was N25.6 billion which rose to N42.8 billion within the same period in 2024, an increase of N17.2 billion.
Ayala alleged a lack of transparency and prudent management of the funds by the government, stressing that people are being impoverished even amid plenty.
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