In the first nine months of 2024, 29 Nigerian states collectively expended nearly ₦1.994 trillion on recurrent expenses, including travel, refreshments, sitting allowances, and utilities. This lavish spending comes despite these states generating ₦1.92 trillion in internally generated revenue (IGR), falling short of their combined target of ₦2.868 trillion by ₦948.28 billion.
According to a detailed analysis of budget performance reports, the expenditure excluded personnel costs and underscores the urgent need for fiscal discipline amid rising calls to cut the cost of governance. While statutory allocations from the Federation Account increased by 40% during this period—thanks to the removal of fuel subsidies and exchange rate unification—the expected improvements in citizens’ welfare remain absent.
Lagos State led in operating expenses, spending ₦375.19 billion, followed by Plateau at ₦144.87 billion and Delta at ₦121.54 billion. On the borrowing front, Niger State topped the list with ₦79.09 billion, while Katsina and Oyo states borrowed ₦72.89 billion and ₦62.48 billion, respectively.
Revenue generation painted a varied picture, with Lagos recording the highest IGR at ₦912.17 billion, followed by Rivers with ₦269.18 billion and Delta with ₦97.02 billion. However, several states fell far short of their targets, exposing gaps in fiscal planning and accountability.
This financial snapshot calls for a serious reevaluation of spending priorities. States must boost their internally generated revenues to reduce reliance on federal allocations and channel resources toward sustainable development that directly impacts citizens’ lives.
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