BudgIT has reported how states in Nigeria squander funds on overhead costs to the detriment of capital projects as the debate over the high cost of governance in the country continues.
Development Diaries reports that in the report, titled State Fiscal Transparency League SFTL’, the civil society organisation (CSO) reported that the cumulative actual expenditure for all 36 states grew by 2.73 percent from N5.12 trillion to N5.26 trillion between 2018 and 2019 fiscal years.
It also stated that actual recurrent expenditure and loan repayments grew by 4.75 percent from N3.17 trillion to N3.33 trillion within the period.
The report suggested that if the recurrent expenditure component is optimised while the spending component going to capital infrastructure, especially in the economic and social sectors is prioritised, Nigeria’s desired economic growth can be achieved.
It noted that the federal government and even the private sector have roles to play, but clearly, state governments need to do better.
This new report further brings to light the fact that Nigeria is facing a serious problem of misallocation of public funds.
It is widely acknowledged that Nigeria’s cost of governance has significantly increased.
The unnecessary expansion of government agencies, the acquisition of luxury goods and services, and the lavish salaries given to politicians in order to support their luxurious lifestyles are examples of factors that contribute to the high cost of governance.
There is no denying that public employees are wasting taxpayers’ money on extravagant lifestyles.
In spite of this outcry, the National Assembly recently amended the N819.5 billion 2022 supplementary budget and approved N70 billion to support the ‘working conditions’ of new lawmakers, as reported in the media.
Furthermore, recent reports have revealed that lawmakers in the Senate and the House of Representatives are set to spend N40 billion on Sports Utility Vehicles (SUVs).
Development Diaries reiterates its call on President Bola Tinubu and state governors to make conscious efforts in reducing the cost of governance.
They should pay attention to restructuring recurrent spending and increasing spending on capital projects. This will make it possible to invest in assets and infrastructure that will assist the economy while also enhancing the quality of life for the citizens.
