32 states budget N14tn for roads, health, others

Thirty-two of the thirty-six state governments of the federation have budgeted N14.13tn for the construction of roads, health and education projects, payment of salaries and other recurrent and capital expenditures, an analysis of their proposed budgets has shown.

This came as about 29 of these states earmarked N5.26tn of their total budgets for recurrent expenditures such as payment of salaries, trips, and others in 2024.

In 2024, Kebbi plans a N250.13bn budget (with N90.64bn as recurrent), Ekiti’s total budget is N159.57bn (N87.58bn as recurrent), while Anambra’s total budget is N410.13bn (N96.2bn for salaries and other recurrent expenditure).

Nasarawa’s 2024 budget total is pegged at N199.88bn (N112.93bn as recurrent), while Osun expects to spend N273.91bn (N165.66bn for recurrent); Kano estimated spending for 2024 is N350bn (with a recurrent of N134.4bn). Plateau’s budget is pegged at N295bn (with N157.5bn as recurrent), while Ebonyi has a budget proposal of N204bn (with N71.3bn as recurrent).

While Oyo’s total budget proposal is N434.2bn (with N211.8bn for recurrent), Enugu intends to spend N521.5bn (with N107.2bn as recurrent); Delta’s total spending is pegged at N714.4bn (with recurrent of N316.6bn), Sokoto has a budget of N270.13bn (with recurrent expenditure N90.64bn), and Ogun’s total budget is N703.03bn (recurrent expenditure is pegged at N287.37bn).

The government of Imo intends to spend N592.24bn in 2024 (with a recurrent expenditure of N100.99bn), while Gombe has a budget of N208.06bn; Rivers budget is pegged at N80 0.39bn (with a recurrent of N361.59bn), Abia is pegged at N567.24bn (the government intends to spend 84 per cent on capital projects and commit 16 per cent to recurrent expenditure). It also aims to borrow N385.27bn)

While Lagos State intends to spend N2.2tn in 2024 (N1.02tn has been budgeted for payments of salaries and other recurrent expenditure), Edo State is planning a N325.3bn budget (with N146bn as recurrent). Kaduna’s budget proposal amounts to N458.27bn (with recurrent of N139.44bn), while Kwara’s total budget proposal is estimated at N296.4bn (with 39 per cent going to recurrent spending).

Governor Ahmadu Fintiri of Adamawa State recently presented a budget proposal of N225.8bn for the 2024 fiscal year (with N111.3bn devoted to recurrent spending), Akwa Ibom’s total budget proposal amounts to N845.6bn (N352.92bn will be spent on salaries, trips, and others).

Bauchi’s 2024 budget total is N300bn (with N121.3bn for recurrent), Bayelsa intends to spend N154.09bn of its N480.99bn 2024 budget on salaries and others recurrent expenditures. Benue has proposed N225.7bn for its 2024 fiscal year with N115bn for recurrent spending.

Borno’s N340.6bn budget has a recurrent spending of N142.3bn; Cross River’s N250bn has a recurrent spend of N96bn; Jigawa N298.14bn budget has earmarked N111bn for recurrent; Katsina’s N454.31bn has a recurrent estimate of N124.33bn; Kogi’s N258.2bn has recurrent estimate of N145.7bn; and Yobe’s N217bn has a recurrent allocation of N94bn.

States are expected to spend more in 2024 due to hardship caused by fuel subsidy removal and expected increases in revenue. According to the Lagos State Governor, Babajide Sanwo-Olu, the state needs at least N7tn for infrastructure and basic amenities in the 2024 fiscal year. He, however, noted that there isn’t enough for that.

While speaking at the 8th Lagos Corporate Assembly, he said, “The demands from the report gathered from ministries, departments, and agencies show that if we have the resources, at least N7tn will be needed for the 2024 budget to meet the state’s infrastructural challenges and other basic amenities.

“Though we are proposing over N2tn budget size for the year 2024 to be presented to the state House of Assembly soon and we are having a demand of N7trn, our revenue is far from it.”

In its Revised 2024 – 2026 Medium-Term Fiscal Framework, the Federal Government has revealed plans to increase state and local governments’ central revenue by 109.74 per cent to N14.04tn in 2024.

This increase in revenue is expected due to exchange rate effects, higher oil production projections, and the removal of subsidy.

JP Morgan recently said, “Of course, a weaker exchange rate means the government would receive higher naira revenues from oil and gas exports.”

So far, the 36 states of the federation have spent N2.52tn on salaries and other recurrent expenditures. including trips and more. Going by their projections, states are on track to spend more than they spent in 2023 and spent in 2022.

For the whole of 2022, states spent about N8.2tn (on recurrent and capital expenditure) and have spent N4.59tn on recurrent and capital expenditure from January to September 2023. State governments’ spending has come under increased scrutiny in recent times considering worsening economic challenges in the country.

Government spending has come under increased scrutiny, especially considering the worsening economic challenges in the country. The governorship candidate of the Action Democratic Congress in Lagos, Funso Doherty, recently called out the state’s government on its spending pattern.