Despite receiving about N15.8 trillion from the Federation Account Allocation Committee (FAAC) in less than four years, most states in Nigeria are grappling with significant debts, poor infrastructure funding, and financial stress. The Nigeria Extractive Industries Transparency Initiative (NEITI) report reveals that between 2020 and 2021, states shared about N8.8 trillion, and as of 2022, the total amount disbursed was N15.58 trillion.<\/p>\n
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While states depend heavily on FAAC allocations, their internally generated revenue (IGR) potentials are often ignored. In 2020 to 2021, states’ combined IGR was N3.46 trillion, less than 40% of their FAAC allocations. Despite these substantial allocations, states continue to accumulate debts, with domestic debts rising from N4.18 trillion in 2020 to N5.815 trillion in the first half of 2023.<\/p>\n
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The opaque salary bailout funds from the Central Bank of Nigeria (CBN) to states have also raised concerns. Some banks referenced outstanding balances on state salary bailout facilities, highlighting the lack of transparency and accountability in the process.<\/p>\n
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States are urged to explore their IGR potentials, reduce profligacy, and prioritize infrastructural development to alleviate financial stress and promote sustainable economic growth. Despite substantial monthly allocations, the states’ performance in various indices, such as healthcare, education, and infrastructure, remains unsatisfactory, contributing to the country’s high poverty rates.<\/p>\n","protected":false},"excerpt":{"rendered":"
Despite receiving about N15.8 trillion from the Federation Account Allocation Committee (FAAC) in less than four years, most states in Nigeria are grappling with significant debts, poor infrastructure funding, and financial stress. The Nigeria Extractive Industries Transparency Initiative (NEITI) report reveals that between 2020 and 2021, states shared about N8.8 trillion, and as of 2022, […]<\/p>\n","protected":false},"author":14,"featured_media":9657,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[],"class_list":["post-9656","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/9656","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=9656"}],"version-history":[{"count":2,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/9656\/revisions"}],"predecessor-version":[{"id":9667,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/9656\/revisions\/9667"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/9657"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=9656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=9656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=9656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}