Only Lagos, Rivers and Akwa Ibom can function properly without federal allocation – Report

Date:

Thirty-three state governments cannot finance their recurrent expenditure without allocation from the federation account, a report prepared by BudgiT has said.

Thank you for reading this post, don't forget to subscribe!

The federation account, according to nigerianstat.gov.ng, is the central pocket through which the three tiers of governments maintain their respective workforce and fund their developmental projects.

BudgiT said in the report released in Abuja on Wednesday that going by its findings, many states would be in jeopardy if the federal allocation were to reduce owing to oil price fluctuations.

The report titled, ‘State of states 2019’, explained that only three state governments could finance their recurrent expenditure independently, without funds from the federal allocation.

It gave the three states as Lagos, Rivers and Akwa Ibom.

Speaking on the outcome of its findings, the Lead Researcher, BudgiT, Orji Uche, said only 19 states could meet their expenditure with internally generated revenue and federal allocation.

The report wondered why a state such as Delta was running huge recurrent expenditure reaching up to N200bn.

It also wondered why despite the size of its population, Bayelsa State still had recurrent bill as high as N137bn, compared with Ebonyi, which had a recurrent bill of N30bn; Sokoto, N38bn; Jigawa, N43bn; and Yobe, N35bn.

The report said it was a recurring development to see states in the South-South region running high recurrent bills, mainly driven by the high revenues earned as a result of the 13 per cent derivation principle.

In its analysis, the firm said it was also interesting to see states such as Cross River with a bogus budget of N1.04tn spend less than N93bn on an annual basis.

Uche said with the current uncertainties facing the oil market, state governments should not continue to rely heavily on federal allocation.

She said, “The implication of looking at this index is to enable us to understand without federal allocation, how many states can sustain themselves.

“And by sustaining themselves, we are looking only at recurrent expenditure. Are you going to meet your operating obligations? Are you able to pay salaries so that anything coming from broad federal allocation would go to investments in the key sectors of the economy?

“When we look at the index, we can see that those states that can meet their expenditure only with IGR are only three stages out of 36 states.”

Bisi Adele
Bisi Adelehttps://naija247news.com/
Bisi Adele: Illuminating Stories with Insight and Precision Senior Correspondent | Naija247news.com Overview: Bisi Adele is a seasoned Senior Correspondent at Naija247news.com, renowned for her skillful storytelling and comprehensive coverage of diverse news topics. With a passion for investigative journalism, Bisi navigates the intricate landscapes of current affairs with a commitment to delivering accurate, thought-provoking, and engaging news pieces. Professional Journey: Bisi's journalistic journey is marked by a dedication to uncovering untold stories and providing in-depth analyses. Joining Naija247news.com, she has consistently demonstrated a keen awareness of the pulse of current events, ensuring that her reporting reflects a deep understanding of the socio-political landscape. Areas of Expertise: Specializing in investigative reporting, Bisi Adele is adept at unraveling complex narratives. Her expertise spans a wide range of topics, including politics, social issues, and human-interest stories, making her a versatile and valued Senior Correspondent. Contributions: Bisi's contributions to Naija247news.com go beyond the surface, offering readers nuanced perspectives and insights. Her thought-provoking articles and in-depth analyses contribute significantly to the platform's reputation for reliable and informative news coverage. Educational Background: Bisi holds a degree in Journalism, complemented by continuous learning in investigative reporting techniques. Her educational foundation equips her with the skills needed to delve deep into stories and present them in a compelling manner. Health and Meds Journalism: Adding a unique dimension to her expertise, Bisi collaborates with Akinlabi Bisola, a distinguished health and meds journalist with a deep background in Public Health Education. Akinlabi holds a B.Sc in Health Education and a Masters in Public Health Education. Readers can explore their health-related articles on Akinlabi's website [thelbybisola.com](#). Innovation and Engagement: In an era of evolving media dynamics, Bisi Adele embraces innovation and audience engagement. Leveraging digital platforms and emerging storytelling techniques, she ensures that her stories resonate with a diverse audience, fostering meaningful conversations. Awards and Recognition: Bisi's dedication to journalistic excellence has earned her recognition in the form of awards. Her notable contributions to reporting have not only enriched Naija247news.com but have also left a lasting impact on the journalism landscape. Vision for the Future: Looking ahead, Bisi Adele envisions a future where journalism continues to be a catalyst for positive change. Her commitment to uncovering truth, amplifying unheard voices, and contributing to a more informed society underscores her vision for the evolving landscape of news reporting. Connect with Bisi Adele: - LinkedIn: [Bisi Adele](#) - Twitter: [@BisiAdele_N247](#) In the vibrant world of journalism, Bisi Adele stands as a beacon of journalistic integrity, combining experience, expertise, and a forward-looking vision to illuminate the path of understanding for a global audience.

Share post:

Subscribe

Popular

More like this
Related

Access Holdings to pay N1.80 as final dividend to shareholder

March 28, 2024. Azonuchechi Chukwu. Access Holdings has revealed plans to...

Police gun down two notorious bandits in Benue

March 28, 2024. Azonuchechi Chukwu. Men of Operation Zenda, a Joint...

Army declares eight wanted in connection with the k!lling of its officers in Okuama

March 28, 2024. Azonuchechi Chukwu. The Nigerian Army has declared eight...

Naira Appreciates Against Dollar at the NAFEM Window

March 28, 2024. Azonuchechi Chukwu. The Naira’s euphoric appreciation against the...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading