Many Nigerians are currently being misled by the Federal Government regarding the monthly funds distributed to states. Because numerous state governors struggle with their own records, they have allowed the federal administration to unfairly scapegoat them for broader governance failures. While exceptions like Lagos, Abia, Adamawa, and Zamfara exist, most states have little to show for the higher revenue they receive. However, blaming them entirely ignores the fundamental laws of economics.
Proponents of the administration’s narrative are distorting reality. While President Tinubu’s reforms may eventually yield long-term gains, the immediate benefits are nonexistent. States and the FCT are collecting larger shares of the national cake, but with the possible exception of Lagos, they are not wealthy. They are struggling to meet financial obligations because inflation has decimated the purchasing power of the Naira.
The Federal Government is using public ignorance to turn citizens against local leaders, while the governors remain too timid to defend themselves with the truth. Many who argue that states have become rich because of higher allocations are either misinformed or intentionally deceptive. For example, some claim that Nigeria is better off because it no longer owes the IMF, ignoring the fact that the government simply replaced low-interest IMF debt with far more expensive domestic borrowing, pushing total debt to N160 trillion.
Purchasing power is the true measure of wealth, not the nominal amount of currency. Price hikes in fuel, electricity, and basic services have effectively negated the increases in federal allocations. As the largest consumer of goods and services, state governments are just as vulnerable to inflation as the average citizen. Furthermore, states have no control over rising debt-servicing costs or the surge in security expenditures required to combat instability. The Federal Government is shifting blame onto state entities for consequences directly tied to federal policy decisions. Ultimately, the federal government itself has seen increased revenue yet failed to show improved service delivery, proving that the economic strain is a national crisis, not a failure isolated at the state level.