By Abba Hamisu Sani
Africa-Press – Nigeria. The predictions and expectation of Nigerian government ,the total revenue to be shared between the three tiers of government will be increased by 109.74 percent equivalent to 14 .04 trillion Naira(17,717,714000.00 dollars ) in 2024 as against 8,352,636,600.00 dollars in the outgoing 2023.
This projection indicates that more funds will enter into state governments account ,but many public ,and economic affairs commentators in Nigeria attributed Nigeria’s underdevelopment to public funds embezzlement by state governors.
The governors are the financial controllers of their respective states and has powers to executive projects that will change the life of their citizens in all sectors such as education,health ,Agriculture, Industries ,employment generation and infrastructure but the reverse is the case as most of them prefer to engage in jamborees and not prioritising to what will make meaningful impacts.
States and Local government areas Federal allocation expectations in 2024
Federal allocation to 36 States ,Federal Capital Territory-FCT and 777 Local government areas which remain the major source of fund to the Federation sub-units is expected to increase by 109 .74 percent in 2024 .
This is according to the Federal government’s revenue projection in its revised 2024 -2026 Medium -Term Fiscal Framework.
Based on these projections , disbursement of the funds to be shared between Federal government ,states and Local governments will automatically increase if the projection materialises.
Revenue available in the Federation Account is expected to reach 124.43 percent which is 26.6 trillion Naira in 2024 from 11.86 trillion Naira in 2023.This projected rise in revenue is supposed to happen because of exchange rates effects ,higher oil production projection and the removal of subsidy.
Revenue generated from first to third quarter in 2023
Available data shows that from January to September 2023 ,the revenue available in the Federation Account was 7 48 trillion Naira ,out of this states and Local governments have received 2 . 00 trillion Naira and 1 .54 trillion Naira respectively.
It could be recalled that,in the 2024 budget presentation to the National Assembly by President Tinubu recently,he noted about the revenue review.
“We are currently reviewing our tax and fiscal policies .Our target is to increase the ratio of revenue to GDP from less than 10 percent currently to 18 percent within the term of this administration .Government will make efforts further contain financial leakages through effective implementation of key public financial management reforms” President Tinubu said.
Meanwhile , while presenting the budget breakdown ,the minister of budget planning Abubakar Bagudu highlighted that revenue generation remained the major fiscal constraint to the country’s fiscal viability.
Bagudu added that the government is reviewing the current tax and fiscal policies ,with the intention of improving revenue generation.
On the development ,the Minister of Finance Wale Edun who was represented by the Ministry’s permanent Secretary ,Mr. Okonko Udo ,at a Federal Account Allocation Committee meeting held in Delta State recently ,noted that allocation to States has improved from an average of 650 billion Naira monthly before subsidy removal to over 1 trillion monthly.
“The economic reforms which this administration has undertaken since its inception in May 2023 clearly outlined the right steps to transformation of the country’s economy.
In less than six months of the administration ,we have witnessed the introduction of important reforms ,such as petroleum subsidy removal ,fiscal and monetary policies reforms aimed at removing multiple taxation among others.The Federation Account in particular is witnessing improved revenue inflow inflow since the removal of subsidy from a average of 650 billion monthly to over 1 trillion in the last four months” the minister of finance said.
Wale Edun noted that the Federal government is ready to restore government revenue ,promote fiscal balance and prudent management of government expenditure.
However with this development Nigeria’s 36 state governments and 777 Local government areas need to intensify efforts and face the real development programmes and projects by using the expected resources judiciously.
8,352,636,6000.00 dollars projected for the sub-Federating units are enough funds to transform the country’s infrastructural deficit and make states to be more attractive to investors that will provide employment to the teaming Nigerians at state level.
But the most painful thing about the governors of the 36 states is that ,they put more interest in unnecessary expenditures such as regular foreign trips ,Ceremonies,and heavy recurrent expenditures instead of developmental projects that will yield positive results in changing the lives of their citizens by extension the progress of the country that have so much infrastructure deficit, Unemployment and abject poverty as a result of the mismanagement of the state governors.
Another aspect of the state governments misappropriation that need to be addressed is the
issue of local governments’ funds hijacked by the states,this is a strong reason that puts rural areas into poverty and poor provision of basic facilities which lead backwardness at the grassroots .
Going by this,there is a need for the National Assembly to enact a law that will mandate state governments not to hold the local government monthly allocations again by ensuring that their Federal allocation goes directly to their respective accounts.
On the other hand there is an urgent need for Civil Society organisations to be up and doing as pressure groups to ensure there is accountability, openness, and prompt disbursement of resources to finance the most important segments of the budget on time instead of delaying budget allocation disbursement at states and Local governments level.
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