An analysis of government budget data has unveiled that Nigeria’s 36 states collectively disbursed a staggering N1.71 trillion on recurrent expenditures between January and September 2023. These expenses encompassed various recurring costs, including allowances, foreign trips, office supplies, and aircraft maintenance.
The breakdown revealed that 24 states provided comprehensive budget implementation data for the first three quarters of the year, while the remaining 12 states had data limited to the first two quarters. Notably, a significant portion, amounting to N802.43 billion, was allocated solely to salaries. If included, the total recurrent expenditure figure would balloon to a staggering N2.52 trillion.
The spending spanned across a broad spectrum, including costs related to foreign and domestic travel, Internet access fees, entertainment, honorarium/sitting allowance, telephone bills, electricity charges, stationery, welfare, aircraft maintenance, and more.
Delving into individual state expenditures, the detailed breakdowns highlighted various spending patterns:
Abia allocated N17.61 billion for a myriad of expenses, from housing/rent allowance to social benefits and more. Similarly, Akwa Ibom spent N92.54 billion, covering allowances, social contributions, travel, utilities, and political association hosting, among other costs. Adamawa utilized N40.90 billion, covering allowances, furniture, travel, office supplies, and refreshments. Meanwhile, Anambra and Bauchi respectively spent N15.17 billion and N70.25 billion on non-salary recurrent expenses by the end of Q2, 2023.
However, while these breakdowns provide insights into state spending patterns, concerns have emerged regarding the allocation of funds, especially on items perceived as extraneous or less critical.
Government spending, amidst prevailing economic challenges, has faced heightened scrutiny. Recent criticisms by a gubernatorial candidate in Lagos State and ensuing public outcry underscore the growing concerns about transparency and appropriateness in state spending.
Amidst these concerns, states have resorted to significantly increasing borrowing to supplement their revenues. Economists have cautioned against borrowing for recurrent expenditures, emphasizing the imperative need to bolster internally generated revenues (IGRs) instead.
Attempting to clarify misconceptions, the Ondo State Government refuted claims of unauthorized spending by Governor Rotimi Akeredolu. They clarified that the disbursed funds were allocated for unforeseen expenses, particularly palliatives aimed at mitigating the effects of fuel subsidy removal.
The escalating reliance on borrowing for recurrent expenditures has drawn criticism from economists. They advocate for a shift towards borrowing for capital projects and stress the urgency of enhancing revenue generation for sustainable financial stability.
