Twenty one states of the federation are seeking loans amounting to N1.65 trillion to fund their 2024 budget deficits despite the increase in the allocations they have received from the Federation Account Allocation Committee (FAAC) in the last one year.From June 2023 to June this year, all the 36 states and the 774 local governments received a total of N7.6 trillion from FAAC. This increase in revenue is largely due to the removal of petrol subsidy by the federal government on May 29, 2023.
Findings by Daily Trust show that the 36 states are projected to receive N5.54 trillion from FACC for this year as against the N3.3 trillion disbursed to them last year.Under the current revenue-sharing formula, the federal government receives 52.68 percent; while states and local governments get 26.72 percent and 20.60 percent respectively. Such federation revenues, in addition to internally generated revenues of each tier, are expected to facilitate development across the three tiers of government, and also ensuring that the governments fulfill their financial obligations.The FAAC allocations to local governments for June were paid directly to the state governments.
The Supreme Court had, on July 11, affirmed financial autonomy for the local governments. The apex court directed that the financial allocations meant for all the 774 local government areas in the country be paid to them directly. It said it is unconstitutional for state governments to keep and manage allocations on behalf of the local governments.States’ borrowing patterns.
Investigations by Daily Trust show that 21 states have expressed intentions to borrow a total sum of N1.650 trillion from both internal and external sources to fund their 2024 budget deficits.Other states are yet to upload their borrowing plans.
According to details of the borrowing plans made public,Adamawa State Government is to borrow N68.46 billion; Anambra N245 billion; Bauchi, N59.08 billion;Bayelsa, N64 billion;Benue, N34.69 billion;Borno, N41.71 billion;Ebonyi, N20.5 billion;Edo, N42.71 billion;Ekiti State, N27.15 billion;Jigawa, N1.78 billion;Kaduna, N150.1 billion,Kebbi, N36.7 billion;Katsina, N163.87 billion;Kogi, N37.08 billion;Kwara, N30.76 billion;Osun, N12.36 billion;Oyo, N133.4 billion;Nasarawa, N32.93 billion;Gombe, N73.75 billion;Enugu, N103 billion andImo, N271.34 billion.
get huge allocations to develop their various states.“In the last one year, revenues have grown by almost 50 per cent, yet the governors can’t improve welfare of their workers and the people in general.
For instance, the president signed the national minimum wage of N70,000 and some of the governors are kicking that they can’t pay despite increase in revenues. This indicates that something is wrong.
“What is more disturbing is that the same issue will now be encountered in the local governments now that their allocations will be paid directly. There is need for more awareness from civil society to ensure that development at the grassroots is implemented now that revenues have increased,” he said.
+ There are no comments
Add yours