State governments cornered over N23tn LGs’ allocation in 16 years

State governments have collected over N23.14 trillion meant for the local government areas in their states within the last 16 years, leaving the grassroot tier far underdeveloped, the Federal Accounts Allocation Committee (FAAC) data reveals.

The data sourced from the National Bureau of Statistics (NBS) is now available on a live dashboard designed by the Centre for Journalism Innovation and Development (CJID).

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Further analysis reveals that every month, the three tiers of government receive allocations from the federation account according to a sharing formula drawn up by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

While the federal government keeps 52.68 percent of federal revenue, the 36 states and the Federal Capital Territory share 26.72 per cent, leaving 20.60 per cent to be shared amongst the 774 LGAs.

Nine oil-producing states also receive 13 percent of Nigeria’s federal revenue, namely: Delta, Akwa-Ibom, Bayelsa, Rivers, Edo, Ondo, Imo, Lagos and Abia.

State governments controlled over N23 trillion in LGA allocations.

CJID’s analysis revealed that between 2007 and 2023, state governments received N39.01 trillion in federal allocations. Within this period, five oil-producing states received the highest disbursements: Akwa Ibom (N3.38 trillion), Rivers (N3.29 trillion), Delta (N3.19 trillion), Bayelsa (N2.31 trillion) and Lagos (N1.79 trillion).

At the other end of the list are Osun (N569.70 billion), Edo (N624.30 billion), Gombe (N663.96 billion), Ebonyi (N671.95 billion) and Ogun (N687.34 billion), five states with the least allocations.

Similarly, N23.14 trillion was shared amongst the 774 local government areas, within the same period, with the following LGAs receiving the highest allocations: Mushin (N89.5 billion), Alimosho (N81.5 billion), Kosofe (N80.3 billion), Abuja Municipal (N80.1 billion) and Oshodi/Isolo (N73.6 billion).

The least allocations within the same period went to these LGAs: Ilejemeji (N20.9 billion), Ede South (N20.89 billion), Ola-Oluwa (N20.79 billion), Ijebu North-East (N20.66 billion), Ifedayo (N20.51 billion).

While this funding was disbursed to assist governments at various levels in fulfilling their responsibilities, it has not translated to any tangible developments, especially at the grassroots where the local governments are directly responsible.

Across the country, public primary schools and primary health centres, which are part of the statutory responsibilities of local governments, are largely in ruins.

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Ill-equipped, understaffed and lacking the basic infrastructure required to function effectively, these facilities have denied citizens access to quality basic education and effective healthcare services, over the years.

The Supreme Court declared it unconstitutional for state governments to receive and control funds allocated to local government areas (LGAs) in their states on July 11.

The ruling provided a fillip to the financial autonomy of LGAs, and put to rest a controversy that had dominated political discourse in Nigeria for years.

Before the judgement, state governors exerted absolute control over federal allocations to LGAs, a practice which subverted fiscal federalism as enshrined in section 162 of the Nigerian constitution.