Subsidy: Allocations To States And LGAs Increase To N3.34tn In 2nd Half Of 2023

Statutory allocations from the Federal Account Allocation Committee to the 36 states and 774 local government areas from July to December 2023, increased to N3.34tn  post-fuel subsidy era.

Figures obtained from the National Bureau of Statistics indicate an increase of N545bn or 19.5 per cent from the N2.79trn distributed to states and local government areas in the first half of the year (January-June).

A monthly breakdown reveals that the sub-national and LGs got the highest allocation of N627.73bn in September, followed by N610.5bn in December, N555.75bn in August, N533bn in November, N514bn in July and N497.97bn in October.

In the first six months of 2023, states and local government areas got N520.87bn in January, N432.21bn in February, N410.4bn in March, N403.39.

It further increased to N504.38bn  in the month of May and N521.71 in June, making a total of N2.79tn.

The report shows that compared with the corresponding period in 2022, allocations to the state government and LGs grew by an increase of N740bn or 22 per cent from N2.6trn on a year-on-year basis.

The Nigeria Labour Congress spokesman, Benson Upah, said Nigerians had not experienced a better quality of life despite the marked increase in allocations to states and LGAs.

“This matter speaks for itself. We have not seen a quality of life commensurate with the resources available to the government. If anything, things are getting getting worse. The quality of life is degenerating at an alarming rate. There is clear and present danger ahead except government changes trajectory,’’ he said.

Spokesperson for the Nigerian Union of Pensioners, Bunmi Ogunkolade, noted that the FAAC allocations and the manner of disbursements were constitutionally captured, explaining that the Constitution had also allowed state governments to dominate the control of resources.

Ogunkolade noted, “The issue of federal allocation is a constitutional matter. The generation of the fund, the sharing formula, and the distribution are settled in law unless an Act of Parliament will do an amendment anywhere necessary.

“However, to say whether it is impacting the lives of the local people or the masses is another different issue on its own. Why? I insist, the type of administration that we run cannot bring out such dividends, both now, and even in the near future if it continues the way it is.’’

“There is no clear separation of powers in the states. Deliberately the governors do not allow the constitution to work, and you see, in Nigeria, the moment the government does not want to do something, they set up a committee; A situation where the local governments are not allowed to

“Is it the duty of the state governor to commission markets? Is that his job; A state governor commissioning a borehole? Then why do we have local governments? So, the federal allocation to the states, if we like, it may increase to the high heavens, we won’t see the benefits, it can never trickle down”,