Statutory federal allocations to the coffers of the state governments will increase by 69 per cent to N5.54tn in 2024, Checks by The PUNCH have shown.
According to figures obtained from the 2024 approved budget, states are projected to receive N2.24tn more than the N3.3tn disbursed in 2023.
The bulk of the revenue shared at FAAC meetings by the federal, state, and local governments are earnings from oil exports, taxes, and other statutory allocations.
Under the current revenue-sharing formula, the Federal Government gets 52.68 per cent of the revenue, states 26.72 per cent, and local governments 20.60 per cent.
The fund is to ensure development at different levels of government and also to enable the states and LGs to meet their obligations.
A breakdown of projected revenue showed that Lagos State will get the highest revenue of N596.63bn, followed by Delta and Akwa Ibom with N564.29bn and N510.02bn respectively.
Other states such as Adamawa will get N141.62bn, Anambra (199.52bn), Bauchi (196.12bn), Benue (120bn), Borno (201.87bn), Ebonyi (N108.32bn), Edo (N185.35bn), Ekiti (N81.85bn), Gombe (N99.6bn), Enugu (N120bn), Imo (N136bn), Jigawa (N107.5bn), Kogi (N138.17bn), Kwara (N125.45bn), Nasarawa (N96.95bn), Niger (N236.9bn)
Also, the document indicated that Kaduna would get a revenue injection of N84.39bn, Katsina will get N148.06bn while Kebbi will receive N145.02bn.
Other states include Ondo (N45.36bn), Osun (N99.09bn), Oyo (N201.27bn), Taraba (N112bn), Plateau (N151.42bn), Sokoto (N108bn) Yobe (N87.94bn) and Zamfara (N107.93bn).
Despite this improved funding, no fewer than 32 states have indicated plans to borrow N2.78tn from domestic and external institutions to fund their 2024 budget.
The states, according to an analysis of their 2024 approved budget sourced from Open Nigerian States, a budgIT-backed website that serves as a repository of government budget data, plan to fund their budget deficit by borrowing from domestic financial institutions and external financiers.
Although there are 36 states in Nigeria, Cross River, Abia, Rivers, and Ogun State were yet to upload their 2024 approved as of the time the report was filed.
Last year, governors got the most FAAC allocations in at least seven years after the petrol subsidy removal and currency reform reportedly delivered a 40 percent boost to income.
An analysis of the 2023 FAAC monthly allocation revealed 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.
Though the approved budget borrowing may not be followed through, experts believe the projected revenue increase should have reduced the state government’s appetite for more borrowings, raising more concerns about the state’s rising debt profile.
Meanwhile, The PUNCH investigations revealed Adamawa State government intends to fund its budget deficit of N59.28bn with domestic loans of N51.52bn and external loans of N16.94bn. In Anambra State, the government plans to obtain loans of N122.94bn through financial institutions, government and capital market loans of N166.94bn, and N6bn external loans.
Bauchi State’s N59.08bn budget deficit will be funded by domestic borrowings of N30.8bn and N28.28bn of external sources while Bayelsa government plans to borrow N64bn-domestic loans of N60bn and foreign debts of N4bn.
In Benue State, the government said it would borrow a total of N34.69bn in domestic loans. For Borno State, the government plans to borrow N41.71bn via external loans of N16.21bn and domestic loans of N25.5bn.
The document further noted that the Ebonyi state government plans to focus more on foreign loans of N15.5bn and N5bn domestic debt. Edo state government approved an external loan of N23.45bn and borrowings of N19.27bn from financial institutions making a total of N42.71bn while Ekiti State government intends to obtain an external borrowing of N27.15bn.
Gombe is planning to rely on domestic loans of N50bn and N23.75bn external borrowing to fund its N73.75bn budget deficit while Enugu state plans a N103bn borrowing through domestic loans of N71bn and N32.75bn external loans. Imo State plans to fund its deficit of N271.34bn through domestic funding of N132.6bn and external loans of N138.7bn.
In Jigawa State, the government plans to borrow the least amount of N1.78bn through local sources. However, Kaduna State indicated plans to use international lending of N150.1bn to fund its budget. Also, the Kebbi State government said it would borrow N36.7bn.
On its part, Katsina said it would borrow N75bn from domestic institutions and N88.87bn from external financiers.
Other states like Kogi indicated plans to use N22.52bn domestic funding and N14.59bn external loans making a total of N37.08bn. For Kwara State, its government provisioned a total sum of N30.76bn as borrowings in the 2024 budget.
Also, Osun State plans an international borrowing of N12.36bn for its budget while Oyo State said it would borrow N133.4bn through domestic funding of N104bn and international receipts of N29.79bn.
Similarly, Nasarawa State approved a borrowing of N16.97bn in domestic loans and international loans of N15.95bn making a total of N32.93bn.
SOURCE: PUNCHNG
