₦airaland Forum

Amid weak social services, states stake nearly N200b on renovations


State governors are facing public backlash for prioritising multi-billion-naira state house face-lifts at the expense of essential services –healthcare, education and infrastructure –which the country is in dire need of turning around the economy.

The country is grappling with an infrastructure deficit estimated at $30 trillion by Moody’s. Budgetary allocations, even when consistent, do not bridge the deficit gap.

A total neglect of infrastructure spending could widen the gap, increase the cost of business operations and slow down the pace of economic growth.

From Northwest to Southwest and Southeast to Northeast, almost all states are throwing big budgets into office renovation projects. If the Oyo State Government, which is seeing its fair share of controversy over a big office renovation project damns the consequence of its plan and goes ahead, three states across the country would have spent N122.7 billion on the opulence in three years. Oyo state plans to spend N63.5 billion while Gombe and Bauchi spent N43.1 billion and N16.1 billion respectively in 2023.

Going by the accounts of other state governments, many of which are shrouded in secrecy, expenses on renovations may have hit N200 billion in the last three years, including the proposal for new renovations.

Health and education are also taking the back seat in spending priority. The two sectors are critical for the long-term sustainable growth of an economy. They play a crucial role in determining the productivity of the future generation, who are saddled with enormous debt, in the case of Nigeria.

While state governments fritter away scarce resources on frivolities, allocations to the growth sectors are scanty. This year, the 36 states earmarked N6.05 trillion for education and health. The amount is 21.7 per cent of the aggregate state budgets for the year, estimated at N27.87 trillion.

Education allocation, according to data analysis by The Guardian is N3.83 trillion or 13.74 per cent of the entire spending envelope for the year. Health, a sector known for obsolete equipment and poor remuneration, a reason many personnel have fled the country for greener pastures, will get N2.22 trillion from states’ spending in the year. The amount translates to a mere eight per cent of the total budget.

But the situation is even worse. With both the federal and state governments facing a revenue crisis, funds would be moved from capital projects, where both education and health are partly categorised, to recurrent expenditure. In many cases, most states record less than 50 per cent budget performance in the critical areas of spending.

The Guardian reported that the Federal Government budgets for both 20224 and 2025 have been bungled by poor funding with most ministries, departments and agencies (MDAs) awaiting funds release to start the execution of this year’s budget almost mid-way into the year.

There is scanty information on the progress of the state budgets. But with both tiers of government feeding from the Federal Account Allocation Committee (FAAC), the state of the states may not be significantly better.

Over the past three years, governors across various states have embarked on extravagant construction and renovation of their offices, often at the expense of critical sectors.

In some states, even pension payments have suffered while billions are committed to the rehabilitation of government houses.

The Oyo State Government, for one, recently approved N63.5 billion for the reconstruction of its government house, drawing strong criticism from political groups and civil society organisations.

The amount surpasses the state’s allocations for health (N59.41 billion), agriculture (N18.76 billion) and pension payments (N25.9 billion).

The Socialist Party of Nigeria (SPN) condemned the move describing it as “fiscal irresponsibility”, calling on Gov. Seyi Makinde to redirect the funds to sectors that directly impact citizens’ welfare.

“This is a gross misplacement of priority,” SPN declared, dismissing Makinde’s rationalisation rooted in exchange rate volatility and debt servicing pressure.

The All Progressives Congress (APC) in the state also lambasted the decision. In a communiqué issued after its quarterly meeting, the APC stakeholders criticised the government for what they called “wasteful spending” and “financial recklessness”, citing Makinde’s alleged disregard for due process.

They also decried the government’s payment of N14.3 billion for instrument landing system (ILS) equipment at the Ladoke Akintola Airport, in addition to previously paid N42 billion for the project and an additional N10 billion.

“For the avoidance of doubt, Oyo state cannot be said to be rich. Despite receiving over N22 billion monthly from federal allocations and nearly N10 billion in internally generated revenue (IGR), the administration’s rising debt – estimated at N500 billion – and continued profligacy betray poor planning and governance.”

In Gombe state, the Muhammadu Yahaya-led administration approved N43.1 billion in 2023 for a new governor’s residence, High Court and House of Assembly complex. The amount is 360 per cent of about N12 billion yearly earnings of the state, with a huge debt overhang.

The opposition People’s Democratic Party (PDP) condemned the move, stating: “It is outrageous that while the government cannot fund the University of Science and Technology in Kumo or meet basic education needs, it commits N43.1 billion to luxury.”

In Bauchi state, N16.1 billion was allocated towards renovating the government house and annexes in Abuja and Kaduna in 2023, while gratuity arrears since 2012 have ballooned to N24 billion. The state’s debt profile has also surpassed N200 billion.

A former APC governorship candidate, Abubakar Sadique, berated the government’s priorities, saying: “Pregnant women are dying in ill-equipped hospitals while several children are out of school. Yet, elite comfort is taking precedence.”

Renovation of the government house of Kano State has been a continuous exercise. This year, over N335 million was set aside for government house renovation while N258 billion was set aside for health and education.

The state approved a total budget of N719.76 billion in the 2025 fiscal year. Out of the total, N457.08 billion (64 per cent) is allocated to capital expenditure, while N262.67 billion (36 per cent) is earmarked for recurrent spending.

Education is N168.35 billion (31 per cent), health is N90.6 billion (16.6 per cent) and agriculture is N21.04 billion (3.83 per cent).

Despite the emphasis on social investment, the government also earmarked more than N335 million for various renovation and security upgrades at the government house. Renovation of the family wing will cost N100 million while furnishing of the presidential villa is allocated N35 million. Installation of the automated intelligence surveillance system is to attract N200 million.

While the allocations to health and education suggest a human capital focus, the significant spending on government house upgrades has sparked a conversation about the state’s spending priorities amid economic challenges.

In Osun state, secrecy surrounds what Gov. Ademola Adeleke spent to renovate the government house between 2022 and 2024. Though the facility was completed in April 2024, nearly a year and a half after Adeleke’s inauguration, he had been living in his private residence in Ede.

When asked for financial details, the governor’s spokesperson directed inquiries to the Ministry of Works, which Adeleke himself oversees.

Zamfara state has also drawn public ire. In 2023, Gov. Dauda Lawal approved over N14 billion for the renovation of the government house and lodges amid the insecurity crisis and unpaid salary arrears.

In Cross River state, the Bassey Otu administration faces public protests after approving millions for government house refurbishments at a time pensioners demonstrated against unpaid entitlements .
In Niger state, former Gov. Abubakar Bello spent nearly N2.9 billion upgrading the government house, even as rural schools lacked desks, toilets and other basic amenities.

Across other states – Zamfara, Taraba, Anambra, Benue and Abia – a similar pattern of elite-centric investment continues. Zamfara has N11 billion spent on government house construction. Taraba in 2015 spent N14 billion for a similar purpose.

Three years ago, Anambra state spent N6 billion on government house renovation in 2022.

In Benue and Abia states, controversial spending on government buildings continues to raise concern, with Abia’s former government house now being considered for conversion into a five-star hotel.

The previous administration of Abia spent over N5 billion on government lodges in Umuahia and Abuja while public hospitals were denied basic facilities like electricity and gloves.

The trend has drawn criticisms from stakeholders across disciplines. Dr Adebukola Ayoola, a political scientist from the University of Ilesa, described the fixation on governor offices’ face-lifting renovation as “a waste and misplaced priority”, citing the urgent need to fund agriculture, roads and education. He suggested the governors’ decision may be tied to political ambitions.

SoftSport:
Some of the high costs for renovations may not be because of waste, but because inflation is making everything more expensive. It’s good that President Tinubu is working to control spending, and states should follow his lead by putting more money into health and education.

BlackViper:
In Cross River state, the Bassey Otu administration faces public protests after approving millions for government house refurbishments at a time pensioners demonstrated against unpaid entitlements

BlackViper:
https://guardian.ng/news/amid-weak-social-services-states-stake-nearly-n200b-on-renovations/

SoftSport:
Some of the high costs for renovations may not be because of waste, but because inflation is making everything more expensive. It’s good that President Tinubu is working to control spending, and states should follow his lead by putting more money into health and education.

NaijaNaWaa:
Granted that the governors (like their Chicago boss in Abuja) are uber-corrupt, but N2b isn't too much for meaningful renovation of a single building not to talk of several buildings.

There are more serious looting going on and begging to be exposed. This one no follow.