Most of the Federal Accounts Allocation Committee funds for Osun, Ondo, Kaduna and Cross Rivers states will be used in servicing debts this year, findings by The PUNCH have shown.

The states, as indicated in their 2024 budget may have to rely on Internally Generated Revenue or borrow from domestic/external sources to finance payment or possibly seek alternative solutions to settle their civic obligations to their workers throughout this year.

This is because these states currently have a deficit of N10.94bn, N27.72bn, N15.83bn, N10.02bn respectively following debt servicing deductions by the Federal Allocations Account Committee.

This latest development comes amidst a revelation by the Kaduna State governor, Uba Sani that inherited debt from previous administrations had stopped the prompt payment of salaries and more borrowings in the last nine months of his government.

The governor who made this known while addressing a Town Hall Meeting at the late Umaru Musa Yar’Adua Hall, on Saturday stated that his administration inherited a total of $587m, N85bn, and 115 contract liabilities.

He said, “Despite the huge debt burden of $587m, N85bn, and 115 Contractual Liabilities sadly inherited from the previous administration, we remain resolute in steering Kaduna State towards progress and sustainable development. We have conducted a thorough assessment of our situation and are sharpening our focus accordingly.”

Nigerians had hoped that with an increased statutory allocation of 40 per cent from the central government following the fuel subsidy removal, state governors should have more than enough to fulfil their statutory obligations.

In 2023, state governors got the most Federal Account Allocation Committee funds in at least seven years. The rise in FAAC allocations to the three tiers of government, especially the states, followed the removal of subsidy on petrol and currency reforms by the Tinubu administration.

However, according to an analysis using deductions for debt servicing and salaries from FAAC allocations, the four states may have a tough time embarking on quality infrastructural projects, including providing quality education and other benefits for their citizens/residents.

A cursory look at the external debt deductions showed that the federal government through the Debt Management Office have deducted N34.4bn in two months (January and February).

Meanwhile, the 36 state governments of the federation have earmarked a total sum of N849.28bn as payment for debt management this year.

A further breakdown of the data revealed that Lagos, Akwa-Ibom, Delta, Ogun, Zamfara, Plateau and Sokoto will be the highest debt-paying subnationals.

Penguin2:
See how they used debt and rendered Adeleke incapable of doing any reasonable thing in Osun.

By the time debt is deducted, the poor man will have nothing left for infrastructure except for salaries.

After you will see idiots asking what Adeleke is doing in Osun.

mrvitalis:
I don't really know why states are crying

The back bone of any government around the world is property tax

There are over 250,000 houses in each of these stated in city n towns

Valued at a minimum of 10 million to 500 million

Say average of 35 million

A property tax of 1% value of house is not bad 3% is ideal.. So let's go to 1.5%



That's easy 131 billion

But once u do this know u must work,
Know street have to be paved
Streets have to be clean
Roads must work
Know propaganda of tribe and religion won't work

Maybe these are the reason they don't go for it since they have enough to steal but not to work

Christistruth00:



You cannot Tax people out of existence

Penguin2:
See how they used debt and rendered Adeleke incapable of doing any reasonable thing in Osun.

By the time debt is deducted, the poor man will have nothing left for infrastructure except for salaries.

After you will see idiots asking what Adeleke is doing in Osun.

mrvitalis:
I don't really know why states are crying

The back bone of any government around the world is property tax

There are over 250,000 houses in each of these stated in city n towns

Valued at a minimum of 10 million to 500 million

Say average of 35 million

A property tax of 1% value of house is not bad 3% is ideal.. So let's go to 1.5%



That's easy 131 billion

But once u do this know u must work,
Know street have to be paved
Streets have to be clean
Roads must work
Know propaganda of tribe and religion won't work

Maybe these are the reason they don't go for it since they have enough to steal but not to work

mrvitalis:
I don't really know why states are crying

The back bone of any government around the world is property tax

There are over 250,000 houses in each of these stated in city n towns

Valued at a minimum of 10 million to 500 million

Say average of 35 million

A property tax of 1% value of house is not bad 3% is ideal.. So let's go to 1.5%



That's easy 131 billion

But once u do this know u must work,
Know street have to be paved
Streets have to be clean
Roads must work
Know propaganda of tribe and religion won't work

Maybe these are the reason they don't go for it since they have enough to steal but not to work

mrvitalis:

You are only taxing house owners

Penguin2:
See how they used debt and rendered Adeleke incapable of doing any reasonable thing in Osun.

By the time debt is deducted, the poor man will have nothing left for infrastructure except for salaries.

After you will see idiots asking what Adeleke is doing in Osun.