Map of Nigeria
A recent report reveals that 30 Nigerian state governments collectively spent N968.64 billion on recurrent expenditures, including refreshments, sitting allowances, travel, and utilities, during the first three months of 2024. The analysis was based on budget implementation reports obtained from Open Nigerian States, a public budget data repository supported by BudgIT.
The high expenditures have raised concerns among financial experts and the public, especially given the country’s ongoing economic challenges.
Breakdown of State Expenditures
Abia State
Abia State reported spending N10.92 billion on recurrent expenditures. This included N165.38 million on refreshments and feeding, N39.26 million on utilities, N214.57 million on sitting allowances, and N127.1 million on local and foreign travels.
Adamawa State
Adamawa State’s recurrent expenditure for the first quarter of 2024 amounted to N23.7 billion. Notably, the state spent N287.61 million on refreshments and feeding, N109.62 million on utilities, N79.57 million on sitting allowances, and a significant N768.77 million on local and foreign travels.
Akwa Ibom State
Akwa Ibom State allocated N46.85 billion to recurrent expenditures. This included N4.46 million on refreshments and feeding, N223.32 million on utilities, N6 million on sitting allowances, and N214.61 million on local and foreign travel.
Anambra State
Anambra State disbursed N9.91 billion for recurrent expenses, with N78.18 million spent on refreshments and feeding, N32.52 million on utilities, N42.09 million on sitting allowances, and N188.39 million on local and foreign travel.
Bauchi State
Bauchi State’s recurrent expenditures totaled N35.75 billion. The state spent N397.58 million on utilities, N50.8 million on refreshments, N287.11 million on allowances, and N413.56 million on trips.
Bayelsa State
Bayelsa State allocated N35.1 billion for recurrent expenditures. This included N28.4 million on utilities, N156.14 million on refreshments, and N279.99 million on trips.
Borno State
Borno State’s recurrent expenditures amounted to N18.79 billion. The state faced increased costs due to its ongoing security challenges, which necessitate higher spending on various utilities and operational needs.
Cross River State
Cross River State reported N17.44 billion in recurrent expenditures. This included substantial spending on refreshments, sitting allowances, and travel expenses, reflecting the state’s administrative needs.
Delta State
Delta State allocated a hefty N68.68 billion for recurrent expenditures. This amount included significant spending on refreshments, utilities, allowances, and travel, indicating the state’s extensive administrative operations.
Ebonyi State
Ebonyi State’s recurrent expenditures totaled N14.95 billion. The state spent notable amounts on refreshments, utilities, and travel, highlighting the operational costs associated with governance.
Edo State
Edo State reported N32.32 billion in recurrent expenditures. This included substantial spending on refreshments, utilities, sitting allowances, and travel expenses, reflecting the state’s administrative needs.
Ekiti State
Ekiti State’s recurrent expenditures amounted to N32.8 billion. The state faced increased costs due to various operational needs, including refreshments, utilities, allowances, and travel.
Enugu State
Enugu State allocated N7.51 billion for recurrent expenditures. This relatively lower figure compared to other states still included notable spending on refreshments, utilities, and travel.
Gombe State
Gombe State reported N20.89 billion in recurrent expenditures. The state spent significant amounts on utilities, refreshments, allowances, and travel, reflecting the administrative and operational needs.
Jigawa State
Jigawa State’s recurrent expenditures totaled N15.52 billion. The state faced substantial costs associated with refreshments, utilities, sitting allowances, and travel expenses.
Kaduna State
Kaduna State allocated N34.69 billion for recurrent expenditures. This amount included significant spending on refreshments, utilities, allowances, and travel, indicating the extensive administrative operations.
Kano State
Kano State reported N34.41 billion in recurrent expenditures. The state’s operational costs included substantial spending on refreshments, utilities, sitting allowances, and travel expenses.
Katsina State
Katsina State’s recurrent expenditures amounted to N21.87 billion. The state faced increased costs due to various operational needs, including refreshments, utilities, allowances, and travel.
Kebbi State
Kebbi State allocated N11.67 billion for recurrent expenditures. This relatively lower figure still included notable spending on refreshments, utilities, and travel.
Kogi State
Kogi State reported N37.4 billion in recurrent expenditures. The state spent significant amounts on utilities, refreshments, allowances, and travel, reflecting the administrative needs.
Kwara State
Kwara State’s recurrent expenditures totaled N24.34 billion. The state faced substantial costs associated with refreshments, utilities, sitting allowances, and travel expenses.
Lagos State
Lagos State disbursed N189.62 billion for recurrent expenditures, including N1.21 million for refreshments, N383.12 million for utilities, N52.79 million for sitting allowances, and N633.37 million on local and foreign travels. This substantial expenditure reflects the state’s significant administrative and operational costs.
Nasarawa State
Nasarawa State allocated N18.61 billion for recurrent expenditures. This amount included significant spending on refreshments, utilities, allowances, and travel.
Ogun State
Ogun State reported N47.12 billion in recurrent expenditures. The state’s operational costs included substantial spending on refreshments, utilities, sitting allowances, and travel expenses.
Ondo State
Ondo State’s recurrent expenditures amounted to N31.12 billion. The state faced increased costs due to various operational needs, including refreshments, utilities, allowances, and travel.
Osun State
Osun State allocated N24.39 billion for recurrent expenditures. This relatively lower figure still included notable spending on refreshments, utilities, and travel.
Oyo State
Oyo State reported N40.12 billion in recurrent expenditures. The state’s operational costs included substantial spending on refreshments, utilities, sitting allowances, and travel expenses.
Plateau State
Plateau State’s recurrent expenditures totaled N24.70 billion. The state faced substantial costs associated with refreshments, utilities, sitting allowances, and travel expenses.
Taraba State
Taraba State reported N20.93 billion in recurrent expenditures. The state’s operational costs included substantial spending on refreshments, utilities, sitting allowances, and travel expenses.
Zamfara State
Zamfara State allocated N13.46 billion for recurrent expenditures. This relatively lower figure still included notable spending on refreshments, utilities, and travel.
Economic Experts’ Concerns
The high levels of recurrent spending have drawn criticism from financial experts who stress the need for states to embrace financial innovations and focus on attracting investments.
Development Economist Aliyu Ilias emphasized the importance of states leveraging their strengths to attract foreign investments. “For instance, Bayelsa has oil and should be able to attract investments. They should create an attraction and develop an economic summit to showcase and attract investors,” Ilias said.
Prof. Akpan Ekpo, former Vice-Chancellor of the University of Uyo, urged states to increase their revenue by improving service delivery.
Prof. Segun Ajibola from Babcock University highlighted the persistent problem of high governance expenses at the state level, pointing to inadequate oversight and accountability. “The cost of governance in relative terms is even much higher in states than the federal, and that is why you hardly feel the impact of governance in most states,” Ajibola said.
Ajibola criticized state assemblies for failing in their oversight duties, allowing governors to operate without transparency and accountability. “The state assemblies are expected to conduct oversight functions, but in reality, how many states are doing that?” he added.
Conclusion
This report underscores the urgent need for Nigerian states to reassess their spending priorities and improve governance to ensure better economic benefits for their citizens. The high recurrent expenditures, especially in areas such as refreshments, utilities, and travel, raise questions about the efficiency and effectiveness of state administrations in managing public funds. As the economic challenges continue to mount, there is a growing call for greater fiscal responsibility and strategic investment in areas that can drive sustainable development and economic growth.