News
States spend N1.7tn on trips, meals, others, borrow N988bn
This is according to an analysis of their budget performance reports sourced from Open Nigerian States, a budgIT-backed website that serves as a repository of government budget data. 24 states analysed had budget implementation data covering the first three quarters of the year while 12 states had data for the first two quarters of the year.
The states cumulatively spent N802.43bn on salaries across the data period available, but we isolated this data set to focus on other recurrent spending items. If salaries were added, total recurrent spending would have been N2.52tn.
Other recurrent spending items covered in this report include the amount spent on foreign and domestic travel, Internet access fees, entertainment, foodstuff, honorarium/ sitting allowance, wardrobe allowances, telephone bills, electricity charges, stationery, anniversaries/special days, welfare, aircraft maintenance, and more.
Of the 36 states, only 30 states have disbursed security votes (N87.45bn) so far. Also, the total borrowings of the states grew to N988bn as of the third quarter of 2023.
In the first nine months of 2023, Abia spent N17.61bn on housing/rent allowance, meal subsidy, entertainment allowance, wardrobe allowance, social benefits, pension, gratuity, internet access charge, telephone charges, local and international travels, office stationeries, maintenance services, consulting and professional services, fuel, financial charges, miscellaneous expenses, and others.
In the first two quarters, Akwa Ibom spent N92.54bn on allowances and social contributions, social benefits, travel and transport, utilities such as electricity chargers, Internet access charges, and more, materials and supplies such as office stationery, drugs, laboratory and medical supplies, maintenance, training, and more. So far, the state has spent N10 million on hosting/mobilisation of political associations and interest groups, N841.83m on entertainment at meetings, and more.
Adamawa has so far spent N40.90bn on non-salary expenditure as of the end of Q3, 2023. Part of its recurrent expenditure which includes allowances and social contribution includes N1.29bn on furniture allowance, N1.19bn on travel and training including domestic and foreign, N214.37m on office stationery and consumables, and N413.32m on refreshments and meals.
Anambra’s non-salary spend was N15.17bn as of the end of Q2, 2023; Bauchi was N70.25bn. By the end of Q2, 2023, Bayelsa had spent N58.26 on non-salary recurrent expenditure. These expenses include N2.18bn on training and travel, N1.81bn on welfare packages, N78.60m on burial logistics, N1.48bn on town hall meetings expenses, N48.20m on praise night/thanksgiving expenses, N17.70m on marriage ceremony support, and more.
Benue’s non-salary spend was N34.44bn. It spent N387.55m on special day celebrations, N434.17m on welfare packages, N7.06bn on security votes, N1.23bn on materials and supplies such as office stationery, books, and more.
Borno’s non-salary spend as of the end of Q3, 2023 was N32.63bn, Cross Rivers was N43.71bn, Delta was N152.15bn, Ebonyi was N30.91bn, and Edo was N41.11bn. As of the end of Q2, 2023, Ekiti’s non-salary spend was N31.33bn. Part of this expense includes N2.74bn on local and international travel and transport, and N1.97bn on miscellaneous such welfare packages, refreshments, honorarium and sitting allowances, and more.
Enugu’s non-salary spend as of the end of Q3, 2023 amounted to N33.36bn, Gombe was N24.73bn (for Q1 and Q2). Imo was N58.21bn, where N1.21bn was spent on refreshments and meals, N866.81m on welfare packages, N3.26bn on allowances and more. Jigawa’s non-salary spend was N49.64bn which included allowances of N22.07bn, N1.18bn on transport and travelling, N1.83bn on materials and supplies including drugs, vaccines, medical supplies, stationaries, and more.
Total non-salary spend in Kaduna was N27.87bn as of the end of Q3, Kano was N17.79bn (Q1 and Q2), Katsina was N40.49bn, Kebbi was N24.51bn, Kwara was N41.19bn, Kogi was N58.02bn. Lagos’s non-salary spend was N289.49bn. These expenses include N741.34m as severance pay for political office appointees, N340.95m on aircraft maintenance, N8.07bn on plant and generator costs, N1.13bn on special days/celebrations, N107.79bn on special duties, servicing of meetings N11.45bn, N2.53 on welfare packages for the public, N3.69 on enforcement expenses, and more.
Nasarawa’s non salary spend as of Q3, 2023 was N28.13bn, Niger was N23.43bn (as of Q2), Ogun was N49.27bn (as of Q2), Ondo was N59.70bn, Osun was N42.59bn, Oyo was N24.52bn, Plateau was N7.99bn as of Q2, Rivers was N51.96bn (as of Q2), Sokoto was N20.89bn, Taraba was N24.73bn, Yobe was N25.07bn (as of Q2, 2023), and Zamfara was N29.14bn.
Total spending by states, including capital expenditure, amounted to N4.59tn in the period under review. States may not match their 2022 spending (N8.2tn) due to reduced revenues and macroeconomic challenges. However, there is growing concern that states are spending a lot on irrelevant items.
In a letter to the government, he wrote, “I have had the opportunity to go through the register of public procurement awards by LASG, its ministries, and Department Agencies for the second and third quarters of 2023, as reported by the Public Procurement Agency.
“This attached schedule highlights selected awards which, in my opinion, require greater scrutiny.”
In the period under review, state governments increased their borrowing to N988.48bn to augment their FAAC allocations and internally generated revenue. 29 states now owe financial institutions and other government enterprises N536.01bn while borrowings from short and long-term borrowing from multilateral lenders such as the World Bank, the International Monetary Fund, Afrexim, and African Development Bank by 33 sub-nationals increased to N452.47bn.
Similarly, Delta state is the highest borrower from multi-lateral lenders with N71.45bn in debts, followed by Lagos with N51.36bn, Akwa-Ibom (N27.04bn) and Ogun (N22.82bn).
Recently, it was reported that state governments borrowed about N46.17bn from three banks to pay salaries between January and June 2023.
Borrowing for recurrent expenditures is a growing concern to economists. An economist and former Vice-Chancellor of the University of Uyo, Prof Akpan Ekpo, recently said, “The situation is bad, but most states do not have enough in terms of internally generated revenue. A lot of the states, even their federal government allocation, cannot pay salaries, which is very dangerous. You should not borrow to pay salaries.
“You should borrow to finance capital projects. States have to think of new ways of increasing their IGRs. If they continue borrowing to pay salaries, it is not good for the economy.”
A development economist, Dr Aliyu Ilias, further noted, “With the current hardship we have in the country, they may not have an alternative than to resort to borrowing. But borrowing to pay salaries is becoming a problem. We must stop borrowing for recurrent expenditure. We can borrow for capital expenditure; that is okay. The consequence is that we are digging ourselves into more trouble.”
Meanwhile, the Ondo State Government has denied media reports that the state governor, Mr Rotimi Akeredolu spent the sum of N7.3bn without the approval of the state House of Assembly.
The Chief Press Secretary to the governor, Mr Richard Olatunde, in a statement on Tuesday said, “It is important to state unequivocally that the referenced N7.3bn constituted the cumulative amount of palliative funds received from the federal government.
“These funds were allocated under the contingency sub-heading to address unforeseen expenses not initially budgeted for but deemed necessary during the fiscal year.
“While the original contingency fund in the 2023 budget was N1.07bn, the additional N7bn represents funds received from the federal government labelled as ‘Infrastructure Support Fund,’ specifically for palliatives meant to cushion the effects of fuel subsidy removal.”
“If You Have Evidence Against Stanley Mbam, Charge Him; Otherwise, Release Him” — Oganiru Izzi
A socio-cultural organisation of Izzi extraction, Oganiru Izzi, has challenged Ebonyi State Governor, Chief Francis Ogbonna Nwifuru, to either release the state’s sacked Commissioner for Works, Mr Stanley Mbam, or charge him before a competent court if the government has credible evidence of wrongdoing against him.
The group said the continued detention of the former commissioner without a formal charge raises concerns about due process, constitutional rights and the rule of law.
The leader of Oganiru Izzi, Mr Godwin Mbam, made the demand while speaking with correspondents of National Issue Newspapers at the Crack Department of the Ebonyi State Police Command in Abakaliki.
Mbam condemned what he described as the prolonged detention of Stanley Mbam without allowing a court to determine whether he had committed any offence.
He challenged the state government to produce evidence if it believes the former commissioner committed a criminal offence.
“If there is credible evidence against him, charge him to court and let the court decide. If there is no case against him, he should be released,” Mbam said.
He also appealed to the Ebonyi State Police Command to uphold the Constitution and resist any pressure that could result in unlawful detention.
Vanco Flyover: “We Will Reveal the Full Details”
Mbam also issued a three-day challenge to Governor Nwifuru, declaring that if the former commissioner was not released or charged to court, his organisation would make public what it described as the “full details” of the Vanco Flyover project.
According to him, the proposed disclosure would address issues surrounding the project, including its funding, payments, contractual arrangements and other financial details.
“We will let the world know the full details of the Vanco Flyover and how the funds were utilised,” he warned.
He further challenged the state government to demonstrate transparency by making relevant documents concerning the project available to the public.
“What About the Alleged ₦1.5 Billion Forfeiture?”
The Izzi group also questioned what it described as the selective application of the state government’s anti-corruption campaign.
Mbam referred to allegations involving an account reportedly frozen by the Economic and Financial Crimes Commission (EFCC) and an alleged ₦1.5 billion forfeiture to the Federal Government.
He questioned why, according to him, the governor had allegedly not taken similar action if the facts surrounding the matter warranted it.
Mbam stressed that he was not opposed to the fight against corruption but insisted that any anti-corruption campaign must be comprehensive, transparent and applied equally.
“If Governor Nwifuru wants to fight corruption, let him fight it holistically. Nobody should be targeted while other serious allegations are ignored,” he said.
“If Nwifuru Says He Knows Nothing, We Will Produce the Facts”
Mbam further challenged Governor Nwifuru to publicly state whether he was aware of alleged corruption issues within the Ministry of Works.
“If Nwifuru publicly claims that he is unaware of corruption in the Works Ministry, I will make public the facts available to me. The facts will shock the state,” he declared.
He insisted that the matter should not degenerate into a political vendetta, arguing that the appropriate place to determine criminal liability is a court of law.
According to him, the people of Ebonyi State deserve clear answers concerning the Vanco Flyover and other issues involving public funds.
“Everybody Should Be Subject to the Law”
The Oganiru Izzi leader maintained that the controversy should be resolved through transparency, documentary evidence and due process.
“If there is a case, charge him. If there is no case, release him. The government cannot claim to be fighting corruption while abandoning the principles of justice and the rule of law,” he said.
Mbam warned that failure to address the issues could compel the organisation to make further disclosures concerning the Vanco Flyover and other matters it considers to be in the public interest.
By Our Correspondent
As Nigeria celebrates its 66th Independence Anniversary, the candidate for the House of Representatives seat representing the Ezza South/Ikwo Federal Constituency, Hon. Chief Kevin Tobias Chukwu, has called on Nigerians to remain hopeful and committed to building a better country.
Chukwu, also known as Ochiri Ozua 1 of Amagu Ikwo, made the call in an Independence Day message to Nigerians, particularly the people of Ezza South/Ikwo Federal Constituency and Ebonyi State.
He described the anniversary as not only a moment for celebration but also an opportunity to reflect on the state of the nation and the responsibilities of leaders in building a Nigeria that meets the aspirations of its citizens.
According to him, Nigeria’s journey since independence has been marked by significant challenges, with millions of citizens currently facing economic hardship, while young people continue to search for opportunities and many communities contend with insecurity and uncertainty.
Despite these challenges, the Ebonyi politician said the resilience of Nigerians remained a source of hope for the country’s future.
“I believe in the resilience of our people. I believe in the ingenuity of our youths, the strength of our women, the wisdom of our elders and the determination of ordinary Nigerians who wake up every morning and refuse to give up on this country,” he said.
Chukwu, however, stressed that hope must be matched by responsible leadership, arguing that public office should be viewed as a responsibility rather than a privilege.
He called for leadership that prioritises the protection of lives, creation of economic opportunities, provision of infrastructure, strengthening of institutions and responsible management of national resources.
The candidate also emphasised the need to create an environment where young Nigerians can pursue successful lives within the country and where hard work, merit and enterprise are rewarded.
He said Nigeria had “come too far to surrender to hopelessness,” urging citizens and leaders alike to remain committed to the country’s progress.
“A better Nigeria is still possible, but it will require responsible leadership, accountable institutions and citizens who refuse to give up on their country,” he said.
Chukwu concluded by expressing optimism about Nigeria’s future, declaring: “Nigeria will rise. Nigeria must rise. And together, we must build the Nigeria we deserve.”
He also paid tribute to the nation’s past heroes, praying that their sacrifices would continue to inspire the country.
“May the labour of our heroes past never be in vain,” he said, as he wished Nigerians a happy 66th Independence Anniversary.
By Okey Maduforo, Awka
As Nigeria celebrates its 66th anniversary of independence from colonial rule, democracy in the country has continued to evolve and deepen, the Anambra State Chairman of the All Progressives Congress (APC), Senator Emma Anosike, has said.
Anosike made the observation in a message to mark Nigeria’s Independence anniversary, noting that despite the challenges the country had encountered since 1960, its democratic system had continued to improve under successive administrations.
According to him, since the return to democratic rule in 1999, Nigeria has witnessed relatively smooth transitions from one administration to another, while citizens have continued to exercise their fundamental rights to hold governments accountable for their performance.
“Before the return of the democratic process, it was indeed difficult and near taboo to challenge the leadership of the country, and those who may have attempted it in the past faced grave consequences.
“Similarly, we have had smooth transitions from one dispensation to another, producing five presidents through the ballot and not through the barrel of the gun. These elected presidents were produced by different political parties.”
Anosike said the administration of President Bola Ahmed Tinubu had sustained the country’s democratic principles and created an avenue for Nigerians, irrespective of tribe, race or religion, to express their views on government policies and programmes.
“Under the stewardship of President Bola Ahmed Tinubu, Nigerians have been enjoying the freedom to express themselves over issues, policies and programmes of government, and those expressions have been shaping and guiding the administration of Mr President,” he said.
The APC chairman said Nigeria’s 66th independence anniversary provided an opportunity for citizens to reflect on the country’s journey as a nation and the progress made since independence.
He said President Tinubu’s Independence Day broadcast had offered another opportunity for Nigerians to renew their hope for a greater and more prosperous country.
Anosike also commended what he described as the “enormous infrastructural development” taking place across the country under the Tinubu administration.
He urged Nigerians to continue to support and have faith in the administration as the country approaches the 2027 general elections.
An Elder Statesman, Chief Hycienth Ngwu, has called on political leaders and policies formulators to ensure governmental policies and programmes directly touch lives of the people and reduce hardship in the country.
Ngwu, who is a prominent community leader in Enugu, urged Nigerians to maintain peace within neighbourhoods and communities, as no meaningful development can take place without peace.
The statesman made the call on Thursday in Enugu while reacting to the developmental efforts of Nigeria at its 66th Independence.
He said that previous and present administrations had put in place policies and programmes to reset the socioeconomic fabric of the nation.
Ngwu said that while the removal of fuel subsidy, and unification of the foreign exchange had good intentions, their impact is yet to reflect on the lives and livelihoods of vast majority of Nigerians.
He urged leaders to ensure that public resources were properly managed while citizens remained patient with reforms aimed at improving the socioeconomic status of the country.
The elder statesman noted that at 66th independence, the country was still struggling on keeping its peace and co-existence as a country; adding that the founding leaders of Nigeria envisaged a closely united, bonded and peaceful country.
He called for return to policies that promote local production, indigenous industries and entrepreneurship, arguing that excessive dependence on imports had continued to weaken the country’s productive capacity.
According to him, we are yet to achieve economic independence even as we needed to do more on non oil revenue earns as the greater part of the world is moving towards greener and clean energy.
“Greater emphasis should be on skills acquisition, creativity and entrepreneurship education system, as academic qualifications without practical skills could leave graduates dependent on scarce white collar jobs.
“We ought to be economically productive nation capable of producing and exporting goods while developing its human capital,” he said.
Ngwu noted that current insecurity and social instability could be partly attributed to poverty and ignorance, while calling for greater honesty and trust between leaders and citizens.
“Corruption, tribalism and selfishness must be addressed if Nigeria is to achieve peace and lasting progress,” he added.
He also called for the scrapping of state electoral commissions as they have not helped in deepening democracy at that level. The National Election body should take over that responsibility.
As Nigeria marks its 66th Independence Day, Macmaduson Concepts Limited, a leading provider of HVACR,industrial parts, sensors, electrical and plumbing materials, has extended warm Independence Day greetings to its customers, clients and business partners across the country.
In a goodwill message to mark the occasion, the company expressed appreciation to its valued customers for their continuous support, trust and partnership over the years.
Macmaduson Concepts Limited, which specialises in HVACR,Industrial Materials, sensors, air-conditioners, refrigerators, cold rooms, chillers, refrigerants, electrical materials and plumbing materials, said the occasion provides an opportunity to celebrate Nigeria and reflect on the nation’s journey.
The company wished Nigeria continued growth, unity, peace and prosperity, while expressing hope for a brighter future for all Nigerians.
The message from the company reads in part:
At Macmaduson Concepts Limited, we celebrate our great nation, Nigeria, and appreciate our valued clients for their continuous support, trust and partnership. May Nigeria continue to grow in unity, peace and prosperity.”
The company concluded its Independence Day message with the theme: “One Nation, One People, A Brighter Tomorrow.”
Happy Independence Day, Nigeria!
Happy 66th Independence Anniversary from Macmaduson Concepts Limited.
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