₦airaland Forum

This topic surfaced briefly but didn’t get the attention it deserved. I’d like to bring it back to the forefront.

Using Lagos State as a reference:
Budget in 2000: ₦40B
NGN/USD exchange rate: ₦105/$
Budget in USD: ~$380M

Budget in 2026: ₦4.237T
NGN/USD exchange rate: ₦1,450/$
Budget in USD: ~$2.93B

In USD terms (excluding US CPI inflation), Lagos State’s budget has structurally grown by nearly 8× from 2000 to 2026.

Now let’s look at Enugu State:
Budget in 2000: ₦13B
NGN/USD exchange rate: ₦105/$
Budget in USD: ~$125M

Budget in 2026: ₦1.62T
NGN/USD exchange rate: ₦1,450/$
Budget in USD: ~$1.12B

Again, in USD terms (excluding US CPI inflation), Enugu State’s budget has grown by roughly 9× between 2000 and 2026.

A significant portion of this growth has occurred from 2023 to now, driven largely by:

1. FX unification and a more market-reflective exchange rate
2. Increased allocations to states following fuel subsidy removal
3. An expanded federal revenue base, with higher downstream transfers to states

Questions for Nigerians (You and I)

1) Governors now control materially more resources on a structural basis. Where is the corresponding accountability? It is time to more aggressively demand results at the state level.

2) There has clearly been a rotation of resources, away from federal subsidies (fuel, electricity, FX defense) toward direct fiscal capacity at the federal and state levels.
a) Do we want these resources returned to citizens via subsidies?
b) Or routed through states and governors, ultimately returning to citizens through infrastructure, services, and long-term development?

Either path has implications, but pretending nothing has changed is no longer intellectually honest. Until we answer these questions and enforce real accountability at the state level, the sheer growth in budgets will not automatically translate into better living conditions.

Let’s discuss

Good observation. I also did. Development needs to be faster now. Thank goodness we are becoming more productive.

All the states are construction sites now.

They are even competing among themselves now.

The money is definitely being spent on infrastructure.

Do before and after subsidy removal.

Kemetian:
All the states are construction sites now.

They are even competing among themselves now.

The money is definitely being spent on infrastructure.

Do you honestly believe this or you just want to type something so all of us can think that you're educated and know what we are talking about here?

Kemetian:
All the states are construction sites now.

They are even competing among themselves now.

The money is definitely being spent on infrastructure.

pls which of the infrastructure?

Nicklee:
This topic surfaced briefly but didn’t get the attention it deserved. I’d like to bring it back to the forefront.

Using Lagos State as a reference:
Budget in 2000: ₦40B
NGN/USD exchange rate: ₦105/$
Budget in USD: ~$380M

Budget in 2026: ₦4.237T
NGN/USD exchange rate: ₦1,450/$
Budget in USD: ~$2.93B

In USD terms (excluding US CPI inflation), Lagos State’s budget has structurally grown by nearly 8× from 2000 to 2026.

Now let’s look at Enugu State:
Budget in 2000: ₦13B
NGN/USD exchange rate: ₦105/$
Budget in USD: ~$125M

Budget in 2026: ₦1.62T
NGN/USD exchange rate: ₦1,450/$
Budget in USD: ~$1.12B

Again, in USD terms (excluding US CPI inflation), Enugu State’s budget has grown by roughly 9× between 2000 and 2026.

A significant portion of this growth has occurred from 2023 to now, driven largely by:

1. FX unification and a more market-reflective exchange rate
2. Increased allocations to states following fuel subsidy removal
3. An expanded federal revenue base, with higher downstream transfers to states

Questions for Nigerians (You and I)

1) Governors now control materially more resources on a structural basis. Where is the corresponding accountability? It is time to more aggressively demand results at the state level.

2) There has clearly been a rotation of resources, away from federal subsidies (fuel, electricity, FX defense) toward direct fiscal capacity at the federal and state levels.
a) Do we want these resources returned to citizens via subsidies?
b) Or routed through states and governors, ultimately returning to citizens through infrastructure, services, and long-term development?

Either path has implications, but pretending nothing has changed is no longer intellectually honest. Until we answer these questions and enforce real accountability at the state level, the sheer growth in budgets will not automatically translate into better living conditions.

Let’s discuss

Instead of comparing with 2000 (over 25 years ago), it will be make more sense to compare with more recent years, perhaps the last 5 years, so we can better appreciate the progress (or otherwise) being made.

Why start from year 2000 just start from 2022

The real truth we need to tell ourselves is our governors are not doing enough. The revenue they gets is not translating to development in real life.
We need to ask them questions irrespective of party affiliations. The huge revenues they gets from federal allocations where are the corresponding developments?
Our lawmakers are also not doing well, the constituency allowances they gets what are they doing with it? Is there corresponding developments?
@gov. ademola adeleke
@sen. Ajagunla osun central
@sen. fadahunsi osun east
@sen. lere oyewumi osun west
@all our 9 honourable members
Where are the real developments you all promised?

Here is the part nobody is saying,

The road that cost you 2 Billion naira to construct in 2000 may cost you about 150billion naira to construct in 2025 . So inflation cancels out the gain. Hence the trillions these states are budgeting now will do almost same number of project their previous billions were doing cos projects now cost way more

[quote author=Host78 post=137986958]Do you honestly believe this or you just want to type something so all of us can think that you're educated and know what we are talking about here? [/quote

This is brutality

Host78:
Do you honestly believe this or you just want to type something so all of us can think that you're educated and know what we are talking about here?

LOL, this one offed me... Good question

Nicklee:
This topic surfaced briefly but didn’t get the attention it deserved. I’d like to bring it back to the forefront.

Using Lagos State as a reference:
Budget in 2000: ₦40B
NGN/USD exchange rate: ₦105/$
Budget in USD: ~$380M

Budget in 2026: ₦4.237T
NGN/USD exchange rate: ₦1,450/$
Budget in USD: ~$2.93B

In USD terms (excluding US CPI inflation), Lagos State’s budget has structurally grown by nearly 8× from 2000 to 2026.

Now let’s look at Enugu State:
Budget in 2000: ₦13B
NGN/USD exchange rate: ₦105/$
Budget in USD: ~$125M

Budget in 2026: ₦1.62T
NGN/USD exchange rate: ₦1,450/$
Budget in USD: ~$1.12B

Again, in USD terms (excluding US CPI inflation), Enugu State’s budget has grown by roughly 9× between 2000 and 2026.

A significant portion of this growth has occurred from 2023 to now, driven largely by:

1. FX unification and a more market-reflective exchange rate
2. Increased allocations to states following fuel subsidy removal
3. An expanded federal revenue base, with higher downstream transfers to states

Questions for Nigerians (You and I)

1) Governors now control materially more resources on a structural basis. Where is the corresponding accountability? It is time to more aggressively demand results at the state level.

2) There has clearly been a rotation of resources, away from federal subsidies (fuel, electricity, FX defense) toward direct fiscal capacity at the federal and state levels.
a) Do we want these resources returned to citizens via subsidies?
b) Or routed through states and governors, ultimately returning to citizens through infrastructure, services, and long-term development?

Either path has implications, but pretending nothing has changed is no longer intellectually honest. Until we answer these questions and enforce real accountability at the state level, the sheer growth in budgets will not automatically translate into better living conditions.

Let’s discuss

For those who don't understand what you hid with mischief should ask you why you didn’t state that in that 2000 till 2023, USD was being heavily subsidized with monumental corruption.


The reason is because you probably benefited massively from that era of the locust.

It is now that naira exchange to a dollar is appropriately priced.

A good example is MTN
What was mtn's service quality like last year and what was their revenue
Compared to this year,their revenue went up but quality went dramatically down

The people who put subsidies there in the first place are not stupid,they know thats the only direct way for individuals to benefit from government
So why did you remove them
Government sgould have one its damn job and administwr those subsidies properly not removing them wholesale

Should i go and arrest my governor
And you also excluded dollar inflation on its own

The states are also like mtn , what is the value of their budgets last 5 years compared to now
That 2000 is far too long, the value from 5 yeats is down thats why they are all still borrowing including even the federal government

How can any government remove the most meaningful subsidies within 3 nonths of each other and claim to care about its citizens
Definitely not !
Almost a murderous government

Nothing significant as changed, as a lagosian I will tell whatever has changed is below my expectations.

Use data from last 5 years ago not barely when we escaped from military rule

Mynd44:
Do before and after subsidy removal.

Exactly. Better still, he should do 2019 to 2026 (Buhari's second term and Tinubu's first term). That 2000 to 2026 is 25 years period which is too wide for such comparison to be objective.

FreeStuffsNG:
For those who don't understand what you hid with mischief should ask you why you didn’t state that in that 2000 till 2023, USD was being heavily subsidized with monumental corruption.


The reason is because you probably benefited massively from that era of the locust.

It is now that naira exchange to a dollar is appropriately priced.

Oga which monumental corruption subsidized the USD in year 2000? Haba FreestuffsNG when will uou stop this misinformation. Even at that the OP failed to address the fact that the two disasterous policies triggered massive inflation that renders the increased budget allocation useless.

AlbertNewton:
Instead of comparing with 2000 (over 25 years ago), it will be make more sense to compare with more recent years, perhaps the last 5 years, so we can better appreciate the progress (or otherwise) being made.

I took my time to do that sir.
In 2020 , Lagos state budget was 902billion naira. The exchange rate was 356-380naira to a dollar so we can use midway figure which will be around 365 naira to a dollar.
Dividing 902 billion naira by 365 exchange rate will be around 2.5Billion dollars budget by Lagos in 2020.
Our Budget no really too make sense Sha comparing it to our Southern brother ( South Africa) Our national Budget in 2014 was 4.9 trillion naira (27.7 billion dollars) while that of 2025 was 54 trillion naira(37billion dollars) compare it to south Africa 172billion Dollars in 2025.Their expected revenue to be generated was 148billion dollars .
We have a long way to go my chief.
So we shouldn't expect what countries like South Africa will enjoy as regards social investment programs and infrastructure.And our political class and the pen thieves in office will still steal from that meager 37billion dollars ooo meant for 200M people
That

Kemetian:
All the states are construction sites now.

They are even competing among themselves now.

The money is definitely being spent on infrastructure.

Go to the ants and learn, you have still learnt nothing in 2025.

Spent on which infrastructure?

What is the logic behind budget comparism of over 20years apart? You can do better

lightuplightup:
Here is the part nobody is saying,

The road that cost you 2 Billion naira to construct in 2000 may cost you about 150billion naira to construct in 2025 . So inflation cancels out the gain. Hence the trillions these states are budgeting now will do almost same number of project their previous billions were doing cos projects now cost way more

Government is complicit in the ridiculously high cost of road construction in Nigeria. We have quarry, tar and cheap labour in Nigeria. How come it costs X10 more to construct 1km of road in Nigeria than anywhere else in west Africa? Are the construction companies importing soil and rocks or are the government officials embezzling money though the construction projects?

Budgets are unrealistic monetary plans in Nigeria. You achieved 50% of your budget when it was N800 billion. You increased it to N1.2 trillion the next year. This is what Rochas Okorocha calls iberiberism

Tinubu and FGN is there headache, because he's closer to them!

ozo13:
I took my time to do that sir.
In 2020 , Lagos state budget was 902billion naira. The exchange rate was 356-380naira to a dollar so we can use midway figure which will be around 365 naira to a dollar.
Dividing 902 billion naira by 365 exchange rate will be around 2.5Billion dollars budget by Lagos in 2020.
Our Budget no really too make sense Sha comparing it to our Southern brother ( South Africa) Our national Budget in 2014 was 4.9 trillion naira (27.7 billion dollars) while that of 2025 was 54 trillion naira(37billion dollars) compare it to south Africa 172billion Dollars in 2025.Their expected revenue to be generated was 148billion dollars .
We have a long way to go my chief.
So we expect more inf social investment programs but
That

You can see how slim our budget is compared so southafrica.WE ARE SO POOR.

But Nigerians don't know that we are very poor.

You mumuishly removed subsidy because of a supposed cabal stealing our money and created a governors cabal, handing them several billions to loot

Subsidy Cabal- group of few persons
Governors- group of few persons

Under the supposed cabal life was better and cheaper

Under the governors, life is HARD

Who is foolish here?

Has there been commensurate increase in our quality of life?

So what's really going on?

Where's this money going to?

Iamzik:
Government is complicit in the ridiculously high cost of toad construction in Nigeria. We have quarry, tar and cheap labour in Nigeria. How come it costs X10 more to construct 1km of road in Nigeria than anywhere else in west Africa? Are the construction companies importing soil and rocks or are the government officials embezzling money though the construction projects?

Exactly.
The cancer called 'contracting' and lately 'consultancy' will forever lead to deficit budgeting because it feeds an endless cycle of corruption and an insatiable need for more white elephant projects.

It is a culture that has to change for this country to make it out of the economic doldrums.

lightuplightup:
Here is the part nobody is saying,

The road that cost you 2 Billion naira to construct in 2000 may cost you about 150billion naira to construct in 2025 . So inflation cancels out the gain. Hence the trillions these states are budgeting now will do almost same number of project their previous billions were doing cos projects now cost way more

You dey mind them with their yeye talk

Yesterday "the ball stops at the table of GEJ and he is the cause of all the problem in Nigeria".

Today in the face of hyper inflation it is "Hold your govornors accountable"

Shior it

Nicklee:
This topic surfaced briefly but didn’t get the attention it deserved. I’d like to bring it back to the forefront.

Using Lagos State as a reference:
Budget in 2000: ₦40B
NGN/USD exchange rate: ₦105/$
Budget in USD: ~$380M

Budget in 2026: ₦4.237T
NGN/USD exchange rate: ₦1,450/$
Budget in USD: ~$2.93B

In USD terms (excluding US CPI inflation), Lagos State’s budget has structurally grown by nearly 8× from 2000 to 2026.

Now let’s look at Enugu State:
Budget in 2000: ₦13B
NGN/USD exchange rate: ₦105/$
Budget in USD: ~$125M

Budget in 2026: ₦1.62T
NGN/USD exchange rate: ₦1,450/$
Budget in USD: ~$1.12B

Again, in USD terms (excluding US CPI inflation), Enugu State’s budget has grown by roughly 9× between 2000 and 2026.

A significant portion of this growth has occurred from 2023 to now, driven largely by:

1. FX unification and a more market-reflective exchange rate
2. Increased allocations to states following fuel subsidy removal
3. An expanded federal revenue base, with higher downstream transfers to states

Questions for Nigerians (You and I)

1) Governors now control materially more resources on a structural basis. Where is the corresponding accountability? It is time to more aggressively demand results at the state level.

2) There has clearly been a rotation of resources, away from federal subsidies (fuel, electricity, FX defense) toward direct fiscal capacity at the federal and state levels.
a) Do we want these resources returned to citizens via subsidies?
b) Or routed through states and governors, ultimately returning to citizens through infrastructure, services, and long-term development?

Either path has implications, but pretending nothing has changed is no longer intellectually honest. Until we answer these questions and enforce real accountability at the state level, the sheer growth in budgets will not automatically translate into better living conditions.

Let’s discuss

I like this topic. And it’s because you didn’t post it to support anyone but to state facts as they currently are and what we need to next.

I’ve always said I support the removal of subsidy whether rightly or wrongly removed, and I don’t want it back.

But we seem to be failing in demanding accountability for where the saved resources is being channeled to which in this case is the state governments.

One of the reorientation that needs to happen in Nigeria is how to get citizens to take their eyes off Abuja sometimes and question what their governors are doing at state level.

What do the governors have to show for the increase in allocation? Because apart from governors like Otti, Mbah, others are just paying salaries and nothing more.

It’s not about quoting trillions in their budgets, do those funds trickle down to the common man in the streets?

Factor in dollar devaluation and you will see states are far poorer than what they were before .

Just 10 years ago the average Lagos budget was equivalent to 4 billion dollars, today its about 2.9 biilion dollar.

Going to make comparison from 30 years ago is not only misleading but mischievous..

Go back and compare the budget of today with the budget in 2022 and come back

Penguin2:
I like this topic. And it’s because you didn’t post it to support anyone but to state facts as they currently are and what we need to next.

He didn't state any fact , he is deliberately trying to mislead people..Lagos budget for example is a lot less than what it was 10 years ago if you factor devaluation