₦airaland Forum

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.

Richtaiwo:
What's happening in kogi state? All the 10 states are almost done with repayment but kogi has not paid a dime. And it favourably competes with Abia as the highest borrowers.

Exousiang01:
Great job.

If this were to be in the east.
The headliner would have been " The largest Pig farm in Nigeria Owned by an Igbo man, richest Pig Farmer in Africa"

Then the comments that would follow would be
Igbo Amaka
Igbos the China of Africa
If not for Igbos Nigeria will never progress
Etc.....

Just chilling tho.
Good to be back in the country, everything na cruise....

“She explained to me that she was battling hunger arising from loss of patronage of her business as customers were no longer coming to her office.

“She said she had to borrow the uniform her son, El-Amin wore to school and that she could not even complete the payment of her children’s school fees totalling N15,000.

“I requested for her bank account number and paid the money into the account so she could defray the fees.

“She also explained that she had no foodstuff at home and that she would need my assistance. I promised that I would send her some money for foodstuff and left her office.

“She had a row with a young PoS operator beside her office and I settled the matter for them and urged her to be friendly with her neighbour.

“The following day, I learnt that she was still keeping malice with the girl, and when I demanded an explanation for her recalcitrance, she rained curses on me.

“Out of anger, I told her that I could eject her from the office she was using for business since I was the one that paid for it.

“I asked her to refund the money that I gave her the previous day. She said she had spent the money and I left.

"She told me that she dated a man after she fell out with me and that she took pepper soup with the man, not knowing that the meal was laced with poison that made her to stool uncontrollably for hours at night.

“How did your girl of 15 years get ready for university now? If she is law-abiding as she claimed. The law today is that you must spend six years before primary school, six years in primary school and six years in secondary school. By that time, you are 18.

JAMO84:
The director thought him a few words, he couldn't speak the language.

NaijaCoverBlog:
The indigenes eventually agreed to spare his life, but told him that the community will take steps to appease the god of the land to avoid repercussions.

yarimo:
Oni of ife went there to mock Alex otti with style as worst Governor in Nigeria