By Ali Elias
A recent report reveals that 30 states spent a staggering N968.64 billion on recurrent expenditures in just three months (January-March 2024). This includes N5.1 billion on refreshments, N4.67 billion on sitting allowances, and N34.63 billion on local and foreign travel expenses.
The states also shelled out N5.64 billion on utility bills, including electricity, internet, and telephone charges. Salaries accounted for N405.77 billion, while other recurrent spending items like entertainment, honorarium, sitting allowances, and wardrobe allowances added up to millions more.
Some key takeaways from the report:
- Abia State spent N10.92 billion on recurrent expenditures, including N165.38 million on refreshments and feeding.
- Adamawa State shelled out N23.7 billion, with N287.61 million going towards refreshments and feeding.
- Lagos State spent a whopping N189.62 billion, including N1.21 million on refreshments and N633.37 million on travels.
Economic experts like Aliyu Ilias and Prof. Akpan Ekpo are calling for states to develop areas of strength, attract investors, and improve service delivery.
According Aliu Ilias, a development economist, “Going forward, what they could do is identify one area of strength. For instance, Bayelsa has oil and should be able to attract investments. I think it is about policy. They should give the policy a chance that would allow people to come and invest. They should also create an attraction and develop an economic summit that will make sure they showcase and attract investors.”
Prof. Akpan Ekpo, an economist and former Vice-Chancellor of the University of Uyo, is calling the states to increase their revenue by improving service delivery.
On his part, Prof. Segun Ajibola, a Professor of Economics at Babcock University, highlights the need for increased oversight and accountability, citing the high cost of governance and inadequate transparency at the state level.
“The first issue is the perennial complaint about the high cost of governance in Nigeria and at all levels. When you look at these issues, attention is often concentrated on the Federal Government, so the searchlight is always more on the central government. Most often, nobody cares about what is happening in the states and local government, and that is where the problem is.
“There are so many institutional frameworks in place to look at what is happening at the federal level but who cares about the states? The cost of governance in relative terms is even much higher in states than the federal and that is why you hardly feel the impact of governance in most states.
“Only a few states can boost a significant presence in the lives of their people in our states. The state assemblies are expected to conduct oversight functions on the activities of the executives in their respective states, but in reality, how many states are doing that, leaving the executives to be all in all in incurring high costs.”
You may wish to read the full details of the report in Punch