How Subsidy Savings Are Utilised – Governors

The removal of substance subsidy and accrued taxation person led to a hike successful the statutory allocations to states.

However, analysts accidental determination has not been commensurate grounds of due utilisation of these funds by authorities governments.

Investigations by LEADERSHIP Sunday showed that national relationship allocation to states and section governments from January to June 2025 indicated that immense amounts of wealth was shared among the states and their section governments.

In the south-south region, states successful the portion and their section authorities received the following: Rivers – ₦374.56 billion, Delta – ₦368.75 billion, Akwa Ibom — ₦309.15 billion, Bayelsa — ₦259.94, billion, Edo — ₦138.34 cardinal and Cross River — ₦106.34 billion.

In the South-West, the states received Lagos — ₦464.51bn, Oyo — ₦196.23bn, Ondo — ₦138.71bn, Osun — ₦133.29bn, Ogun — ₦108.88bn portion Ekiti got ₦97.73bn.

For the 7 states and their section governments successful the northbound west, they got: Kano — ₦250.76 billion, Katsina — ₦182.11 billion, Jigawa — ₦157.29 billion, Kaduna — ₦150.58 billion, Sokoto — ₦141.32 billion, Kebbi — ₦133.11 billion, with Zamfara receiving ₦115.48 billion.

For the North-East, the six states and their section governments received: Borno — ₦161.91 billion, Bauchi — ₦132.87 billion, Adamawa — ₦128.81 billion,  Yobe — ₦115.45 billion, Taraba — ₦112.60 cardinal and Gombe — ₦93.47 billion.

The North-Central states and their section governments got:

Benue — ₦152.67 billion, Niger — ₦148.02 billion, Kogi — ₦134.82 billion,FCT — ₦119.06 billion, Plateau — ₦119.00 billion, Kwara — ₦110.00 cardinal and Nasarawa — ₦102.70 billion.

The 5 states and their section governments successful the South-East received: Imo — ₦151.96 billion, Anambra — ₦150.03 billion, Abia — ₦125.18 billion, Enugu — ₦123.21 cardinal and Ebonyi — ₦99.63 billion.

A elemental arithmetic showed that each portion got the following: South South — ₦1.56 trillion, South West — ₦1.14 trillion, North West — ₦1.13.65 trillion, North Central — ₦799.05 billion, North East — ₦745.11 cardinal and South East — ₦650.02 billion.

This magnitude does not see states’ internally generated gross which successful immoderate states runs into billions of naira each month.

The Federal Account Allocation Committee is liable for the organisation of gross generated by the Nigerian authorities among the federal, state, and section governments.

But contempt a important summation successful gross since the removal of substance subsidies and the unification of the speech rate, authorities governors person mostly failed to construe the windfall into tangible improvements successful the lives of their citizens.

The substance subsidy removal successful May 2023 by President Bola Tinubu was hailed by economists and brought astir an unparalleled summation successful allocations from the Federation Account Allocation Committee (FAAC).

For example, successful 2024, FAAC shared N28.78 trillion to the 3 tiers of government, a 79 percent leap from the N16.28 trillion disbursed successful 2023, and a leap from N12.36 trillion successful 2022, according to information from FAAC and Agora Policy.

Rather than improving Nigerians’ surviving conditions and expanding the level of improvement successful states, a associated study by the World Bank and the National Bureau of Statistics (NBS) recovered that 129 cardinal Nigerians, implicit fractional the population, present unrecorded beneath the nationalist poorness line, up from 104 cardinal successful 2023.

This means that an further 25 cardinal radical fell into poorness wrong a twelvemonth owing to the pressures from subsidy removal, precocious inflation, and unemployment.

Some analysts person blamed governors, saying the immense sums they person each period bash not construe into improvement successful their states.

Our correspondents spoke with authorities officials connected the subject.

NASARAWA: ‘Gov Sule putting accrued allocation to judicious use’

The Nasarawa State Government has insisted that Governor Abdullahi Sule is putting the enhanced allocation from the Federation Account to judicious use.

The Secretary to the State Government (SSG), Dr Labaran Magaji, explained that the monolithic improvement the authorities has experienced is simply a effect of accrued allocations and different incentives accruing from the Federal Government, arsenic good arsenic internally generated revenue.

He noted that Governor Sule’s medication has not taken retired ...