Rising State Allocations Fail to Alleviate Hardship in Nigeria

Nigerian states are facing a paradox of rising allocations and increasing hardship. The Federal Account Allocation Committee (FAAC) reported that disbursements rose from ₦8.21 trillion in 2022 to ₦10.14 trillion in 2023, with projections of ₦15.26 trillion for 2025.

However, despite this financial influx, poverty and debt pressures are intensifying. In 2024, states are expected to spend ₦2.11 trillion on debt servicing, which constitutes 45% of total expenditures.

The total debt stock for 35 states increased from ₦10.01 trillion in 2023 to ₦10.57 trillion in 2024, with a significant portion held in foreign currency, exposing states to exchange rate volatility. The World Bank estimates that 61% of Nigerians live on less than ₦3,000 per day, with projections suggesting this rate may rise.

The average per capita healthcare spending is just ₦3,483, and no state reaches ₦10,000 per person, indicating a dire need for improved public services and infrastructure.