In the wake of fuel subsidy removal by President Bola Tinubu, the monthly disbursement to the three tiers of government by the Federal Account Allocation Committee (FAAC) increased significantly. Based on statutory sharing formula, the Federal Government receives 52.68 per cent of the total sum while the States and Local Government Areas (LGAs) receive 26.72 per cent and 20.6 per cent respectively.
The monthly allocation, particularly to states and local governments, is meant to fast track execution of viable economic and social infrastructure development projects at the grassroots.
The allocation, which is readily available monthly, is expected to cushion the impact of the economic crunch and promote people-oriented programmes to improve overall wellbeing of the people.
With the jettisoning of fuel subsidies which had cost the nation’s treasury over 10 billion dollar annually, more funds are, thus, made available by FAAC to the states.
A survey conducted by the News Agency of Nigeria (NAN) in Bauchi, Jigawa and Gombe states, however, reveals that the citizens are yet to feel the impacts of the increased allocation, especially in mitigating the effects of fuel subsidy removal.
The 2023 States’ Annual Report of FAAC, obtained by NAN reveals that, from January 2023 to May 2023, pre subsidy removal, the 36 states received a total net allocation of N1.19 trillion.
The reports, obtained from Nigeria Governors’ Forum Repository, shows that from June to December of the same year, when President Tinubu removed fuel subsidy, the FAAC disbursement to the 36 states doubled.
Specifically, the net allocation received within the period of June 2023 to December 2023, by the 36 states rose from N1.19 trillion to N2.31 trillion, an increase of about N1.12 trillion. Similarly, between January 2024 and June 2024 FAAC disbursed a total sum of N2.16 trillion to the 36 states.
It is worthy of note that the funds captured above, excluded the 20.6 per cent federal allocation to the 774 LGAs, which was also paid to the states via joint account of the two tiers.
Some residents of the three states, who spoke to NAN in separate interviews in Bauchi, Dutse and Gombe decried poor management of the funds by the respective state government.
They said the increased funds were yet to translate into meaningful results in mitigating impacts of the fuel subsidy removal and alleviating their sufferings.
Mr Rambi Ayala, Chairman, New Nigeria Peoples Party (NNPP) in Gombe State, said the citizens were passing through untold hardship in spite of the increased federal revenue allocation to the state running into billions of Naira.
He said although FAAC allocation to Gombe had doubled since the new administration came into power, there were no enhanced social services across the state.
NAN reports that Gombe state, which received the least among the 37 states, got gross allocation of N78.72 billion from FAAC for the year 2023. Deduction from the statutory was N17.28 billion bringing its net allocation for the year to N61.43 billion.
From the N61.43 billion net allocation to the state for the year, the pre-subsidy removal months of January to May 2023 accounted for N20.46 billion. With subsidy removal, the net allocation to the state from June to December, same year doubled to N40.97 billion an increase of N20.51 billion.
On year over year comparison, from January to June 2023, the net FAAC allocation to Gombe was N25.6 billion which rose to N42.8 billion within the same period in 2024, an increase of N17.2 billion.
Ayala alleged lack of transparency and prudent management of the funds by the government stressing that people are being impoverished even in midst of plenty.
“A lot needs to be done in the state. For example, in my own area, Billiri LGA, I haven’t seen any significant projects since the ending of fuel subsidy.
“The general hospital in Billiri is in terrible condition, with critical facilities in disrepair, and people have no idea how the funds are being used.
“Also, we are in the farming season, yet, there aren’t enough inputs and equipment being provided to improve production and livelihood of farming communities,” he said.
Ayala also alleged that palliatives meant for all Nigerians were often used to reward party loyalists.
“In Gombe state, there is no clear formula for distributing the palliatives, to include the opposition. This is particularly troubling because hunger doesn’t discriminate base on party or religion,” he said.
Rabiu Babayo, a commercial motorcyclist, accused the state government of insensitivity and lack of commitment to addressing the challenges of the people.
Babayo said government increased taxes on trades and services without recourse to the impacts on the people and businesses.
Also, Ibrahim Yusuf, Chairman, Gombe Network for Civil Societies (GONET), said the state government has not initiated programmes and projects that would directly impact the people and ameliorate their sufferings.
“What we want the government to focus on is, human capital development and empowerment that will yield quick results,” he said.
The situation is not different in Jigawa, where citizens alleged that the state government initiated white elephant projects at the detriment of the citizens.
They alleged that the billions on Naira accruing to the state monthly from FAAC is not being used for people oriented projects and programmes.
NAN reports that Jigawa state’s gross allocation from the Federation Account for the year 2023 amounted to N95.03.billion. Deduction from statutory was N3.39 billion bringing its net allocation for the year to N91.64 billion.
From the N91.64 net allocation to the state for the year, the pre-subsidy removal months of January to May 2023 accounted for N32.86 billion.
With the removal of subsidy, the net federal allocation to Jigawa from June 2023 to December 2023 rose to N58.68 billion, an increase of N25.72 billion. From January 2024 to June 2024, Jigawa received total net allocation of N60.14 billion, an increase of N20.11 billion when compared to N40.03 billion received within the same period in 2023.
Yau Garba, a resident of Dutse said the citizens expected the increased allocation to be deployed to agricultural projects, the economy mainstay of the the state.
He said the government also failed to prioritise road and other infrastructure development for sustainable social and economic development of the state.
“In the last one-year, Gov. Umar Namadi has travelled to many countries on the claim of understudying modern agricultural transformation methods.
“His administration, however, has not justified the benefits of his adventures,” he said.
A farmer in Kiyawa, Mohammed Aliyu said feeder roads leading to farm settlements in the states are in deplorable condition.
“The fertilisers and seedlings distributed by the state government did not get to farmers, the direct beneficiaries.
“The tractors brought to rural farmers are old and our people cannot afford to pay for the services.
“Is this the agricultural transformation?
“It is important for the government to embark on projects that will have direct impacts on the lives of the people,” he said.
The resentment is not different in Bauchi, where Sabo Mohammed, a Chieftain of the All Progressives Congress (APC), said the government was economical with the truth on the actual amount that accrued to it from the federation account.
He stressed the need for the state government to keep people informed on the amount being received from the federation account on monthly basis.
According to him, such disclosure would ensure transparency, accountability and probity in the management of the funds towards achieving good governance.
NAN reports that Bauchi state’s gross allocation from the Federation Account for the Year 2023 amounted to N98.422 billion. Deduction from statutory was N23.99 billion, bringing its net allocation for the year to N74.42 billion.
From January to May of same year, which was subsidy regime, the net allocation to Bauchi state was, N25.26 billion.
With the removal of subsidy, the net allocation to Bauchi state from FAAC between June and December 2023 rose to N49.16 billion, an increase of N24.10 billion.
Also, from January 2024 to June 2024, Bauchi state received total net allocation of N46.80 billion, an increase of N15.08 billion when compared to N31.72 billion received within the same period in 2023.
Mohammed queried what the state government was doing with the increased accrual from the federation account courtesy of subsidy removal.
“In Bauchi state, there seem to be dis-connect on engagement between the government and its citizens.
“We were told that the ongoing roads and flyover projects in the state were being financed with N100 billion World Bank loan.
“We were also told that the Rural Access and Agricultural Marketing Projects (RAAMP) that will fast track the construction of 115km access road were also being funded by the World Bank and French Development Agency with a total cost of N23.3 billion.
“What then has the state done with the humongous allocations received from the federal government?” he queried.
It would be recalled that the Bauchi State government announced that the state secured N100 billion loan for infrastructure development.
The state’s Commissioner for Information and Communication, Mr Usman Garba had said that the N100 billion loan was earmarked for the construction and rehabilitation of 200 kilometres of roads across the state.
The commissioner had also said that two flyovers at the busiest areas of Wunti and Central Market in Bauchi metropolis were part of the projects.
The APC chieftain, however, said that the state government must come out clean to explain to the citizens what they were using the huge allocation from FAAC for.
In defense of the allegations, however, Ibrahim Galadima, the Commissioner for Works and Transportation, said the state is investing heavily on infrastructure and other laudable projects and programmes touching the lives of the citizens.
According to him, Gov. Bala Mohammed approved the rehabilitation of 29km Adamami – Disina -Jama’are road at N6.8 billion and the Bayara township road at a cost of N737 million.
He said the upgrading of the Emirs’ palaces in Bauchi, Jama’are, Ningi and Dass were undertaken at the cost of N2.2 billion.
Equally, he said the Bauchi government planned to spend N25 billion on the upgrade of the Special Hospital, Bauchi, to enhance access to quality healthcare service delivery in the state.
Galadima said the construction of the Sharia Court of Appeal in Bauchi metropolis would gulp N606 million.
‘This is the first time in the history of the Bauchi state that the rural areas are receiving an unprecedented attention in road construction to the tune of over N23 billion,” he said.
On his part, Mr Ismail Uba-Misili, Director-General, Press Affairs, Government House, Gombe, said the administration of Gov. Inuwa Yahaya has been utilising funds accruing from the federal allocations to deliver good governance and lessen the burden of economic hardship on the people.
He said that funds received from the federation account were being channeled to services that have direct bearing on the lives of the residents of the state.
The governor’s aide said the state government expanded various programmes to ease the burden on the citizens and drive inclusive development.
“The projects and programmes being implemented by Gombe state government are not only helping to alleviate current economic pressure, but also laying the groundwork for sustainable development and long-term prosperity in the state.
“We have also rolled out palliative measures, including the distribution of food and non-food items to the most vulnerable segments of the population.
“This effort is targeted at providing immediate relief to the hardest hit by the economic challenges” he said.
Uba-Misili added: “Understanding the critical role of agriculture in the state’s economy, the government made subsidised fertiliser available to farmers at a 50 per cent discount.
“This initiative not only supports food security but also helps farmers to reduce production costs, thus boosting agricultural productivity and profitability,” he said.
He listed other interventions to include payment of wage award to civil servants, gratuity arrears to pensioners, bursary awards, youths and women empowerment, and support to people with special needs.
When contacted for the state’s position, the Jigawa state’s Commissioners for Budget and Economic Planning, Alhaji Babangida Umar declined comment.
Alhaji Auwalu Sankara, the state’s Commissioner for Special Duties, who is also in charge of distribution of palliatives also declined talking to the media.
Sankara neither answered calls placed to him by our correspondent nor responded to sms messages, on how the 20 trucks of rice palliative from the federal government were distributed to the people.(NAN)
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