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An emerging report has confirmed that in the first quarter of 2024, at least 30 state governments in Nigeria spent N986.64bn on recurrent expenditures, which included costs for refreshments, sitting allowances, travel, utilities, and more.
These figures were derived from the states’ budget implementation reports, available on Open Nigerian States, a platform supported by BudgIT that provides public budget data.
According to Punch, the reviewed budget implementation data was for 30 states; however, data for Benue, Imo, Niger, Rivers, Sokoto, and Yobe States was not available for Q1 2024.
The analysis revealed that these 30 states spent ₦5.1bn on refreshments, N4.67bn on sitting allowances for government officials, ₦34.63bn on travel expenses (both local and foreign), and ₦5.64bn on utility bills, totalling ₦50.02bn in the first three months of 2024.
Utility expenses included electricity, internet, telephone, water, and sewerage charges. Additionally, the states spent ₦405.77bn on salaries for their workers.
The report also covered other recurrent expenditures such as foreign and domestic travel, internet access fees, entertainment, food supplies, honorarium/sitting allowances, wardrobe allowances, telephone bills, electricity charges, stationery, special anniversaries/days, welfare, aircraft maintenance, and more.
Breakdown of expenditure for refreshments, others
In the first quarter of 2024, Abia State allocated ₦10.92bn to recurrent expenses, which included N165.38m for refreshments and feeding, ₦39.26m for utilities, ₦214.57m for sitting allowances, and ₦127.1m for local and international travel, among other costs.
During the same period, Adamawa State spent ₦23.7bn on recurrent expenses, with ₦287.61m on refreshments and feeding, ₦109.62m on utilities, ₦79.57m on sitting allowances, and ₦768.77m on local and foreign travel.
Akwa Ibom State’s recurrent expenditures reached ₦46.85bn, including ₦4.46m for refreshments and feeding, ₦223.32m for utilities, ₦6m for sitting allowances, and ₦214.61m for travel.
Anambra State’s recurring expenses totalled ₦9.91bn, covering ₦78.18m for refreshments and feeding, N32.52m for utilities, N42.09m for sitting allowances, and N188.39m for travel.
Bauchi State Government’s recurrent expenses amounted to ₦35.75bn, with ₦397.58m for utilities, ₦50.8m for refreshments, ₦287.11m for allowances, and ₦413.56m for travel.
Bayelsa State spent ₦35.1bn on recurrent expenses, including ₦28.4m on utilities, ₦156.14m on refreshments, and ₦279.99m on travel.
Lagos State’s recurrent expenditures were ₦189.62bn, which included ₦1.21m for refreshments, ₦383.12m for utilities, ₦52.79m for sitting allowances, and ₦633.37m for travel.
Other states’ recurrent expenditures included Borno (₦18.79bn), Cross River (₦17.44bn), Delta (₦68.68bn), Ebonyi (₦14.95bn), Edo (₦32.32bn), Ekiti (₦32.8bn), Enugu (₦7.51bn), and Gombe (₦20.89bn).
Additionally, Jigawa State spent ₦15.52bn, Kaduna ₦34.69bn, Kano ₦34.41bn, Katsina ₦21.87bn, Kebbi ₦11.67bn, Kogi ₦37.4bn, Kwara ₦24.34bn, Nasarawa ₦18.61bn, Ogun ₦47.12bn, Ondo ₦31.12bn, Osun ₦24.39bn, Oyo ₦40.12bn, Plateau ₦24.7bn, Zamfara ₦13.46bn, and Taraba ₦20.93bn on recurrent expenses.
Financial expert review
The scrutiny over government spending has intensified recently, especially given the country's deepening economic woes.
Financial experts have echoed concerns about states' recurrent expenditure, emphasising the importance of adopting financial innovations.
Aliyu Ilias, a development economist, noted that numerous states still lack the industrialisation and marketability necessary to entice investors.
He urged governors to focus on enhancing specific strengths to attract foreign investments.
He said, “Going forward, what they could do is identify one area of strength. For instance, Bayelsa has oil and should be able to attract investments. I think it is about policy. They should give the policy a chance that would allow people to come and invest. They should also create an attraction and develop an economic summit that will make sure they showcase and attract investors.”
Economist Prof. Akpan Ekpo, a former University of Uyo Vice Chancellor and renowned expert in his field, advised states to enhance their income streams by improving service quality.
Meanwhile, Prof. Segun Ajibola of Babcock University pointed out the ongoing issue of excessive governance expenses at the state level, attributing it to insufficient oversight and accountability, which ultimately fail to bring significant economic advantages to local communities.
Additionally, the former president of the Chartered Institute of Bankers expressed concern that state assemblies have neglected their oversight responsibilities, allowing governors to operate without transparency or accountability.
He said, “The first issue is the perennial complaint about the high cost of governance in Nigeria and at all levels. When you look at these issues, attention is often concentrated on the Federal Government, so the searchlight is always more on the central government. Most often, nobody cares about what is happening in the states and local government, and that is where the problem is.
“There are so many institutional frameworks in place to look at what is happening at the federal level, but who cares about the states? 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.
“Only a few states can boost a significant presence in the lives of their people in our states. The state assemblies are expected to conduct oversight functions on the activities of the executives in their respective states, but in reality, how many states are doing that, leaving the executives to be all in all in incurring high costs.”