State Funds on Frivolities: Governors Spend N968.64bn

IN the first quarter of 2024, Nigeria's 30 state governments spent a staggering N968.64 billion on recurrent expenditures, including discretionary items like refreshments, sitting allowances, and travel expenses. This figure was revealed through an analysis of the states' budget implementation reports, which were obtained from Open Nigerian States, a public budget data repository supported by BudgIT.

The analysis covered 30 states, with six states - Benue, Imo, Niger, Rivers, Sokoto, and Yobe - not having available data for the first quarter of 2024. The breakdown of expenditures showed that the 30 state governments collectively spent N5.1 billion on refreshments for guests, N4.67 billion on sitting allowances for government officials, and N34.63 billion on local and foreign travel expenses.

Furthermore, the states spent N5.64 billion on utility bills, which include electricity, internet, telephone charges, water rates, and sewerage fees, among other expenses. This brings the total expenditure on these discretionary items to N50.02 billion in the first three months of 2024. Additionally, the sub-national governments disbursed N405.77 billion in salaries to their workers during the same period.

It is worth noting that these expenditures are recurrent and do not include capital expenditures, which are investments in physical assets and infrastructure. The high level of spending on discretionary items raises questions about the priorities of the state governments and their commitment to fiscal responsibility and efficient resource allocation.

However, in the first quarter of 2024, Nigerian states continued to incur significant recurrent expenditures. Abia State spent N10.92 billion on various items, including N165.38 million on refreshments and feeding, N39.26 million on utilities, and N214.57 million on sitting allowances.

Adamawa State allocated N23.7 billion for recurrent expenditures, with N287.61 million going towards refreshments and feeding, N109.62 million towards utilities, and N768.77 million towards local and foreign travels.

Akwa Ibom State's recurrent expenditures totaled N46.85 billion, including N4.46 million on refreshments and feeding, N223.32 million on utilities, and N214.61 million on local and foreign travel.

Anambra State spent N9.91 billion on recurrent expenditures, with N78.18 million allocated for refreshments and feeding, N32.52 million for utilities, and N188.39 million for local and foreign travel.

Bauchi State's recurrent expenditures amounted to N35.75 billion, with significant allocations for utilities (N397.58 million), refreshments (N50.8 million), allowances (N287.11 million), and travel (N413.56 million).

These expenditures highlight the significant resources allocated towards recurring items, which may impact the availability of funds for capital projects and other development initiatives.

Bayelsa State's recurrent expenditures totaled N35.1 billion in the first quarter of 2024, with allocations including N28.4 million for utilities, N156.14 million for refreshments, and N279.99 million for travel.

Lagos State allocated a significant N189.62 billion for recurrent expenditures, with minor allocations including N1.21 million for refreshments, N383.12 million for utilities, N52.79 million for sitting allowances, and N633.37 million for travel.

Other states' recurrent expenditures were notable, with Borno spending N18.79 billion, Cross Rivers N17.44 billion, Delta N68.68 billion, Ebonyi N14.95 billion, Edo N32.32 billion, Ekiti N32.8 billion, Enugu N7.51 billion, and Gombe N20.89 billion. Jigawa allocated N15.52 billion, Kaduna spent N34.69 billion, Kano N34.41 billion, Katsina N21.87 billion, Kebbi N11.67 billion, Kogi N37.4 billion, Kwara N24.34 billion, Nasarawa N18.61 billion, Ogun N47.12 billion, Ondo N31.12 billion, Osun N24.39 billion, Oyo N40.12 billion, Plateau N24.70 billion, Zamfara N13.46 billion, and Taraba N20.93 billion.

These expenditures have come under scrutiny given the country's current economic challenges, with many calling for increased transparency and accountability in government spending.

Financial experts have repeatedly expressed concerns about the high levels of recurrent expenditures by state governments, stressing the need for fiscal innovation and responsibility. According to development economist Aliyu Ilias, many states have failed to strategically position themselves as attractive investment destinations, hindering their ability to draw in investors and drive economic growth.

Ilias advises governors to identify their states' unique strengths and develop them as a competitive advantage to lure foreign investments. By doing so, states can reduce their dependence on recurrent expenditures and create a more sustainable economic future. This requires a shift in focus from short-term spending to long-term investment in economic development.