Recent findings revealing state expenditures totaling two trillion naira in Nigeria have exposed a troubling pattern of fiscal mismanagement among state governments, underscoring the urgent need for accountability and reform.
Development Diaries reports that Punch’s findings have shown that 29 states spent nearly N2 trillion in just nine months on recurrent expenditures like refreshments, allowances, and travel, while struggling to meet their revenue targets.
Shockingly, these expenditures did not even include personnel costs.
This paints a troubling picture of states prioritising luxuries and operational costs over essential investments that could directly improve citizens’ lives.
Despite increased federal allocations due to subsidy removal and foreign exchange reforms, the funds have not translated into better living conditions for Nigerians.
The worrying difference between how much money is made and how much is spent shows that the cost of government needs to be drastically reduced.
According to the report, states borrowed over N533 billion, yet many failed to meet their revenue targets, plunging into deeper debt while using significant portions of their income for debt servicing.
For instance, Niger State borrowed over N79 billion but still fell short of meeting its revenue targets, spending a substantial part on recurring expenses rather than developmental projects.
This unsustainable approach increases the financial burden on states and limits their ability to provide essential services to citizens.
Governors and public officials cannot continue to prioritise luxury and allowances over developmental projects that improve healthcare, education, and infrastructure.
The fact that some states, like Lagos and Plateau, spent exorbitantly on recurrent expenses while others, like Taraba, experienced massive revenue deficits, calls for better oversight and transparency in public financial management.
States must learn to live within their means and prioritise spending on initiatives that directly impact citizens.
Excessive borrowing to fund recurrent expenses increases debt burdens and also leaves little room for meaningful development.
For example, while Akwa Ibom spent over N85 billion on recurrent expenses, it generated just N41 billion, showing how poor financial planning affects progress.
Citizens must demand fiscal discipline and accountability from their leaders.
Development Diaries urges Nigerians to hold governors, state assemblies, and local government leaders accountable, demanding public funds be directed toward initiatives that truly enhance lives.
Also, we call on state assemblies, tasked with ensuring accountability, to rise to their oversight responsibilities and stop rubber-stamping executive decisions.
Without these measures, the cycle of debt, poor governance, and limited development will persist, further deepening the economic challenges faced by everyday Nigerians.
Photo source: Nigeria Governors’ Forum
