Nigeria’s State Allocations: Analysis Reveals Discrepancies in Development Despite Trillions in Funds
A recent analysis of Nigeria’s state allocations has shed light on significant disparities in development across the country, despite the disbursement of trillions of naira in federal funds. Between June 2019 and December 2022, the 36 states in Nigeria shared a total of approximately N9.3tn in federal allocation. However, the findings indicate that the level of development achieved by each state does not correlate with the funds received.
According to data sourced from the National Bureau of Statistics (NBS), Delta State received the highest allocation during the period under review, totaling approximately N843.8bn. This was followed by Akwa Ibom and Rivers states, with allocations of approximately N643.2bn and N642bn respectively. On the other end of the spectrum, Sokoto State received the least allocation, totaling N119.1bn, followed by Osun State with N126.4bn, and Cross River State with N141.71bn.
The analysis also revealed the allocations received by other states during the 43-month period. States such as Abia, Adamawa, Anambra, Bauchi, and Bayelsa received allocations ranging from N188.75bn to N543.6bn. Benue, Borno, Ebonyi, Edo, Ekiti, Enugu, and Gombe received allocations ranging from N148.4bn to N247.5bn. Additionally, Imo, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kogi, Kwara, and Lagos states received allocations ranging from N154.1bn to N457.4bn. The remaining states received allocations ranging from N147.8bn to N267.9bn.
Despite these substantial allocations, economic analysts and experts have expressed concern about the lack of development in the states. They argue that state governments, particularly those in oil-producing regions, have failed to utilize the funds effectively to drive development. Some experts attribute this failure to corruption, with many governors allegedly embezzling funds intended for development projects.
Dr. Sam Nzekwe, a former President of the Association of National Accountants of Nigeria, emphasized the need for civil society and anti-corruption groups to scrutinize state governments’ financial expenditures. He criticized the governors for mismanaging funds and called attention to reports of large sums of money being hoarded by some officials.
Dr. Muda Yusuf, the Director of the Centre for the Promotion of Private Enterprises, highlighted the issue of accountability and transparency in public expenditure. He stressed the importance of scrutinizing government personnel and digitizing processes to promote transparency and reduce corruption.
Professor Adeola Adenikinju from the University of Ibadan drew attention to the poverty and lack of infrastructure in the oil-producing communities, despite their states receiving significant allocations. He emphasized the responsibility of state governments to ensure that these communities benefit from oil production.
However, Professor Sheriffdeen Tella from Olabisi Onabanjo University pointed out that while the development progress in Rivers State is visible, other states like Delta and Akwa Ibom receive less media attention regarding their development efforts. He questioned whether these states have comprehensive development plans in place to guide their expenditure and prioritize development projects effectively.
In summary, the analysis of Nigeria’s state allocations has highlighted inconsistencies in the level of development across the country. Experts have raised concerns about corruption and mismanagement of funds among state governments, urging accountability, transparency, and citizen participation to drive development effectively. The disparity in development outcomes despite substantial allocations underscores the need for improved governance and resource utilization.
