₦28.78trn Shared In 2024, Lives Unchanged

…Governors Focus On Luxury SUVs While Civil Servants Battle Inflation

Despite the huge allocations accruing to the 36 state governments following the removal of fuel subsidies by President Bola Ahmed Tinubu in May 2023, many Nigerians are still groaning under the pains of rising living costs. Stakeholders and experts say governors have largely squandered the fiscal windfall rather than investing in people-oriented development.

The removal of petrol subsidies in May 2023, hailed by economists as a necessary step to restore fiscal stability, significantly boosted allocations from the Federation Account Allocation Committee (FAAC). In 2024, FAAC shared ₦28.78 trillion to the three tiers of government—up 79% from ₦16.28 trillion in 2023, and more than double the ₦12.36 trillion shared in 2022.

In May 2025 alone, ₦1.681 trillion was disbursed, compared to ₦976 billion in May 2023—an increase of 72.17%. While state coffers are swelling, the lives of ordinary Nigerians remain marred by inflation, poor infrastructure, unpaid salaries, and weak public services.

Economist and Egmont Group member Dr. Alex Ufedo described the trend as “a squandered once-in-a-generation opportunity,” warning that unprecedented revenues are not an achievement but “a test of leadership.”

Experts say many governors are repeating Nigeria’s old mistakes spending on luxury and patronage rather than investment.

Simon Samson, economics lecturer at Baze University, lamented that governors have focused on luxury SUVs, needless travels, and grandiose government houses while rural clinics lack medicines and schools remain dilapidated.

He noted that despite huge inflows, 10 states collectively increased their domestic debt by ₦417.7 billion between Q1 2024 and Q1 2025. “Sharing instead of investing subsidy savings means putting the present ahead of the future,” he said.

Public affairs commentator Uche Okori added that only 10 out of 36 governors have implemented the new ₦70,000 minimum wage, leaving civil servants and their families to battle inflation with stagnant salaries. She said billions have been wasted on “vanity projects” renovation of government houses and needless flyovers while health care, education, and rural development remain neglected.

While some analysts acknowledged the impact of inflation and exchange rate fluctuations on state budgets, they insist this does not fully explain the absence of transformation.

Dr. Charles Iyorha, of the University of Nigeria, Nsukka, observed that although Lagos and Borno states have made progress in infrastructure and reconstruction efforts, “for every such example, there are multiple states where extra funds are swallowed by opaque contracts and politically connected consultancies.”

Legal practitioner Barr. Ovey Yakubu blamed the lack of checks and balances for reckless spending. He accused state assemblies of acting as extensions of governors’ offices, saying constitutional powers to probe finances and initiate impeachment are rarely exercised.

“Without independent oversight or citizen pressure, windfalls will continue to disappear into a fog of ‘capacity building’ retreats and inflated administrative costs,” Yakubu warned.

Dr. Ufedo urged reforms on three fronts: fiscal transparency, stronger internally generated revenue, and greater citizen engagement at the subnational level.

He stressed that detailed expenditure data must be published alongside FAAC receipts and that governors must be pressured to focus on classrooms, clinics, and clean streets rather than white-elephant projects.

Similarly, Dr. Iyorha called on the Nigerian Governors’ Forum (NGF) to lead reforms, warning that “reckless spending, overseas junkets, and laundering of state funds” only deepen poverty.

COURTESY: thenigerialawyer