Many Nigerians are currently being misled by the Federal Government regarding the revenue shared with states each month. While some governors have failed to deliver significant progress, it is inaccurate to blame them entirely for poor performance. Aside from a few notable states like Lagos, Abia, Adamawa, and Zamfara, most state governments are struggling to cover their basic expenses despite receiving larger federal allocations.
Economic reality, which ignores political narratives, shows that increased allocations do not equate to actual wealth. Like ordinary citizens, state governments are grappling with severe inflation. The cost of goods, services, and infrastructure projects has skyrocketed, rendering higher nominal payments less effective in real terms. While the Federal Government suggests states should be doing more with their increased funds, they ignore the fact that the government itself is the largest consumer of these inflated goods and services.
Furthermore, debt servicing costs—dictated by the Central Bank of Nigeria—have risen, and the need to address nationwide insecurity has placed additional burdens on state budgets. The Federal Government’s attempt to shift blame onto state leadership is a calculated distraction from the broader failure of current economic reforms. Even as the federal center collects more revenue, its own service delivery has faltered, mirroring the struggles faced at the local level. Poverty continues to rise, forcing more families to rely on state-funded public services, which further strains already exhausted regional finances.
