Without prejudice to the efforts of a few of you, Mr Governors, a lot needs to be done to address the current hardship in the land.
So far in the year, states have received N379.41 billion, N366.950 billion, N398.689 billion and N403 billion as statutory allocations from FAAC for January, February, March and April respectively, amounting to a total of N1.548 trillion disbursement to state governors alone in the first four months of the year. Similarly, the local government areas (LGAs), which operate more like states appendixes, have received N278.04 billion, N267.153 billion, N288.688 billion and N293 billion, amounting to N1.126 trillion...
Every other month, for those of us who have keenly followed the activities of the Federation Account Allocation Committee (FAAC), not less than a trillion naira is being announced to have been generated and disbursed among the three tiers of government in Nigeria, at least since the removal of fuel subsidy, which has significantly improved the revenues of governments across the country. In fact, The PUNCH newspaper had reported that statutory federal allocations to the coffers of the state governments alone is expected to increase by 69 per cent, from N3.3 trillion in 2023 to N5.54 trillion in 2024, on the basis of the approved budget and revenue projection.
So far in the year, states have received N379.41 billion, N366.950 billion, N398.689 billion and N403 billion as statutory allocations from FAAC for January, February, March and April respectively, amounting to a total of N1.548 trillion disbursement to state governors alone in the first four months of the year. Similarly, the local government areas (LGAs), which operate more like states appendixes, have received N278.04 billion, N267.153 billion, N288.688 billion and N293 billion, amounting to N1.126 trillion as allocations for the first four months of the year respectively. With the lack of fiscal federalism, especially at the subnational level, which has seen the state governments assuming near absolute control of local government resources and expenditures in most of the states, one would not get into any trouble to claim that the state governors have had access to over N2.6 trillion as statutory allocation alone in the last four months.
This is besides the internally generated revenue, 13 per cent derivation revenue (for the benefitting states) and others. For instance, it is unclear what has happened to the $299.99 million of the $800 million World Bank loan released for the National Social Safety Net Programme. One cannot determine the number of citizens who have directly or indirectly benefited from this intervention and other Federal Government palliatives to states to cushion the impact of the removal of subsidy.
Mr Governors, the last time we checked, fifteen states were yet to domesticate the N30,000 minimum wage that was signed in 2019, with only Edo State known to have made public announcements in recent time about an increment in staff wages, to cushion the impact of the current hardship. Yet, we have not seen any move to cut down the cost of governance in your respective states, rather, with more cash from FAAC, the cost of governance continues to shoot up...
Despite increased allocation to the state and local government areas, year-on-year, the last four months have arguably been the most biting for Nigerians across the societal spectrum. From the increased cost of living (with inflation at 33.69 per cent as of April) to high cost of transportation and the recent hike in electricity tariff, the rich and the poor alike have had their taste of hardship as a result of government policies.
Mr Governors, the last time we checked, fifteen states were yet to domesticate the N30,000 minimum wage that was signed in 2019, with only Edo State known to have made public announcements in recent time about an increment in staff wages, to cushion the impact of the current hardship. Yet, we have not seen any move to cut down the cost of governance in your respective states, rather, with more cash from FAAC, the cost of governance continues to shoot up, while ordinary citizens are left to fend for themselves. It is no longer news that the prices of basic commodities are beyond the reach of the ordinary people in your respective states. The food inflation figure for April reached 40.53 per cent, signifying a whopping 15.92 per cent increase, year-on-year, from 24.61 per cent in April 2023. For instance, a bag of local rice, which cost between N30,000 to N35,000 twelve months ago, now costs between N60,000 to N67,000. The prices of some commodities have more than doubled within the period, yet the income streams of citizens have either vanished, diminished, or remain the same due to unfavourable economic conditions.
Without prejudice to the efforts of a few of you, Mr Governors, a lot needs to be done to address the current hardship in the land. While we acknowledge that the so-called increase in FAAC may, in real economic sense, be insignificant, giving the general inflation, it is time to think outside the box, and deploy strategies that will push more money towards capital projects that will benefit the greater majority in the medium-long term, top of which will be to introduce austerity measures.
...in its 2023 assessment, the Center for Fiscal Transparency and Public Integrity (TII), through its Transparency and Integrity Index (TII), assessed the compliance of 774 LGAs with access to information laws that promote transparency, accountability and citizens engagement, it was surprising to find that only seven LGAs have functional websites. This makes it difficult for LGA administrators to be held accountable by the people, as they are mostly subservient to the Governors, who most times "appoint" them into offices. This has to change.
Mr Governors, in the short term, your citizens need an emergency food intervention to address the biting food inflation. This will bring immediate succour to the "angry" population who are hungry. Instead of spending scarce foreign currency on the so-called Peace and Security Summits overseas, like some of your blocs did recently, for instance, how about paying more attention to investing massively in food production and job creation, perhaps? Idle populations are just the devil's workshop. While it's true that the current insecurity is beyond hunger, one cannot overstate the fact that hardship has made many susceptible and driven a lot into the hands of the enemies of the state.
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On a final note, Mr Governors, can we let the LGAs "breath" so they can operate like an autonomous tier of government, which they really are? From earlier stated figures, the LGAs have collectively received N1.126 trillion from FAAC in the first four months of the year, yet government presence in rural communities, which houses about 52 per cent of the population, is next to nothing. The sheer lack of corporate governance, that is, a defined structure through which the LGAs are directed, controlled, and held accountable independently, is alarming, and should not be encouraged to continue. For instance, in its 2023 assessment, the Center for Fiscal Transparency and Public Integrity (TII), through its Transparency and Integrity Index (TII), assessed the compliance of 774 LGAs with access to information laws that promote transparency, accountability and citizens engagement, it was surprising to find that only seven LGAs have functional websites. This makes it difficult for LGA administrators to be held accountable by the people, as they are mostly subservient to the Governors, who most times "appoint" them into offices. This has to change.
Remember, Mr Governors, Nigerians elected you to fix the problems and not to complain about how insurmountable they have become. Get to work!
Victor Agi is the Public Relations Lead at the Center for Fiscal Transparency and Public Integrity and writes from Abuja.
