Connect with us

News

26 States Lean On FAAC As Wage Bills Outstrip IGR

Published

on

At least 26 state governments could not generate enough internal revenue to cover their personnel costs in 2025, as they continue to depend on allocations from the Federation Account despite a significant improvement in their finances.

An analysis by Daily Voice showed that only eight of the 34 states covered by a new BudgIT report generated Internally Generated Revenue higher than their personnel expenditure during the year. The eight states were Lagos, Enugu, Ogun, Delta, Kaduna, Kwara, Abia and Anambra.

The remaining 26 states generated about N1.16tn internally but spent approximately N1.91tn on personnel, leaving a gap of about N747bn between their combined IGR and wage-related expenditure.

The findings are contained in BudgIT’s 2026 report titled ‘Nigeria’s Economic Reforms: What Has Changed Across Nigeria’s States? An Analysis of State Finances in the Post-Subsidy Years’.

The report analysed actual figures contained in states’ full-year budget implementation reports for 2022 and 2025. Akwa Ibom and Rivers were excluded because of incomplete or unavailable data.

The figures do not imply that states are expected to finance salaries exclusively from IGR because statutory allocations are a legitimate source of government revenue. They, however, show the extent to which many states would struggle to meet even their personnel obligations without revenue distributed by the Federation Account Allocation Committee.

This dependence has persisted despite the sharp rise in revenues available to states following the removal of petrol subsidy, foreign exchange reforms, and higher revenues accruing to the Federation Account.

According to BudgIT, aggregate FAAC allocations increased from N3.43tn in 2022 to N11.38tn in 2025, representing a 232.06 per cent increase and a compound annual growth rate of 50.2 per cent.

IGR also increased substantially, rising from N1.57tn to N4.15tn over the same period, but its 165.01 per cent growth and 38.38 per cent CAGR lagged the expansion in FAAC receipts.

Consequently, states became more dependent on federal transfers despite generating more revenue internally. FAAC accounted for 68.7 per cent of aggregate state revenue in 2022 but increased to 73.3 per cent in 2025. Conversely, IGR’s share fell from 31.4 per cent to 26.7 per cent.

BudgIT said this showed that “despite improvements in domestic revenue mobilisation, many states remained heavily reliant on transfers from the Federation Account.”

It stressed that improving domestic revenue mobilisation would be critical to strengthening states’ long-term fiscal sustainability and reducing their dependence on federal transfers.

The report said, “Although statutory allocations accounted for a larger share of the overall increase in revenues, strengthening domestic revenue mobilisation remains essential for improving long-term fiscal sustainability and reducing dependence on federal transfers.”

A state-by-state comparison by The PUNCH showed wide disparities between personnel expenditure and internally generated revenue. Yobe generated only N15.42bn internally in 2025 but spent N76.34bn on personnel. Its personnel bill was therefore almost five times its IGR, leaving a shortfall of about N60.91bn.

Taraba generated N17.89bn against personnel expenditure of N55.60bn, meaning its personnel costs were more than three times its IGR. Sokoto recorded IGR of N20.58bn but personnel expenditure of N58.65bn, while Adamawa generated N24.14bn internally against a N65.73bn personnel bill.

Jigawa’s personnel expenditure stood at N92.66bn compared with IGR of N35.27bn, while Benue spent N73.94bn on personnel after generating N29.38bn internally.

Similarly, Kogi generated N36.50bn but recorded personnel expenditure of N89.20bn, while Kebbi’s N18.41bn IGR was less than half of its N44.82bn personnel expenditure.

Other states with personnel costs exceeding IGR included Bauchi, Bayelsa, Borno, Cross River, Ebonyi, Edo, Ekiti, Gombe, Imo, Kano, Katsina, Nasarawa, Niger, Ondo, Osun, Oyo, Plateau and Zamfara.

In absolute terms, Oyo recorded the largest gap among the 26 states. The state generated N102.52bn internally but spent N170.04bn on personnel, creating a difference of about N67.51bn.

Yobe followed with a gap of about N60.91bn, while Jigawa recorded N57.39bn. Ondo’s personnel expenditure of N99.58bn exceeded its N45.63bn IGR by N53.94bn, while Kogi recorded a gap of N52.70bn. Bayelsa generated N52.15bn against N98.75bn in personnel expenditure, leaving a difference of N46.60bn.

Some states were much closer to financing their personnel costs internally. Edo generated N98.45bn and spent N99.27bn on personnel, leaving a gap of less than N1bn. Gombe generated N36.36bn compared with personnel expenditure of N53.95bn, while Osun recorded N58.80bn in IGR against N87.46bn in personnel costs.

The data showed that the situation improved slightly compared with 2022, when 28 of the 34 states had personnel expenditure above their IGR. Abia, Delta, Enugu and Kwara moved from having IGR below personnel expenditure in 2022 to generating enough internally to cover their wage-related costs by 2025. However, Ebonyi and Jigawa moved in the opposite direction.

The PUNCH further observed that the weakness in state-level fiscal independence is partly obscured by the enormous size of Lagos’ revenue base. Lagos generated N1.85tn in IGR in 2025, up from N656.35bn in 2022. Its IGR alone accounted for about 44 per cent of the N4.15tn generated by the 34 states covered by the report.

The state spent N333.67bn on personnel, meaning its IGR was more than five times its personnel expenditure. Enugu generated N406.77bn compared with personnel expenditure of N56.40bn, while Ogun generated N237.65bn against N151.27bn in personnel costs. Delta recorded N206.44bn in IGR and N197.81bn in personnel expenditure.

Other states whose IGR exceeded their personnel bills were Kaduna, which generated N86.72bn against N77.63bn; Kwara, N85.21bn against N65.22bn; Abia, N66.86bn against N62.26bn; and Anambra, N54.24bn against N39.95bn.

Lagos’ dominance also means the aggregate IGR position appears considerably stronger than that of the typical state. Excluding Lagos, the remaining 33 states generated about N2.30tn internally in 2025. Their combined personnel expenditure stood at roughly N2.56tn, meaning personnel costs exceeded IGR by about N254bn.

Enugu also recorded an exceptional increase that boosted the overall IGR figure. Its IGR jumped from N25.12bn in 2022 to N406.77bn in 2025, an increase of N381.66bn and a CAGR of 153.01 per cent, the highest among the states.

BudgIT, however, noted that the increase was largely attributable to proceeds collected by the Enugu State Housing Development Corporation from the government’s intervention in the landed property market.

The organisation expressed reservations about the classification and noted the potentially cyclical nature of the receipts. Niger recorded the second-fastest IGR growth, with collections rising from N12.11bn to N66.37bn, while Abia increased from N14.67bn to N66.86bn.

But not every state benefited from the IGR expansion. Three states recorded lower IGR in 2025 than in 2022. Jigawa suffered the biggest decline, falling from N59.40bn to N35.27bn. Sokoto’s IGR dropped from N23.60bn to N20.58bn, while Ebonyi declined marginally from N23.89bn to N23.25bn.

Jigawa’s position was particularly significant because its personnel expenditure rose from N52.37bn in 2022 to N92.66bn in 2025, while its IGR declined, substantially increasing its dependence on other revenue sources.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, recently called for stronger fiscal federalism, improved revenue generation and economic diversification to strengthen Nigeria’s resilience to economic shocks. The minister spoke in Owerri, the Imo State capital, at the 2026 National Council on Finance and Economic Development Retreat.

Speaking on the theme ‘Strengthening Fiscal Federalism for Equity, Sustainable Development and Economic Resilience in a Volatile Global Economy,’ Oyedele insisted on the retreat interrogating the current allocation and derivation principles, even as he called for greater fiscal responsibility, accountability and cooperation among Nigeria’s three tiers of government to achieve sustainable economic growth.

The minister urged state governments nationwide to strengthen their Internally Generated Revenue, attract investments and create jobs rather than rely heavily on federal allocations.

Also speaking, the Imo State Governor, Hope Uzodimma, who was represented at the event by his Deputy, Chinyere Ekomaru, said that states must be empowered to generate more revenue and efficiently manage available resources, pointing out that continued dependence on oil revenue was no longer sustainable.

An economist and former Vice-Chancellor of the University of Uyo, Prof Akpan Ekpo, recently stressed that “states have to think of new ways of increasing their IGRs.” He urged the states to increase their revenue by increasing service delivery, which will attract more revenue.

A renowned economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, earlier said that a majority of states were not financially sustainable and were at risk of insolvency without a boost in investment.

He said, “This issue is a fiscal sustainability problem, showing that many states are not fiscally sustainable and need to work towards it; and that the states need to do a lot more to attract more investments to their states so that their level of dependence on the Federal Allocation Accounts Committee would reduce.

He also said that the state governors should reduce their bloated staff and political appointees. “Most of these states have heavy overhead and they have very bloated bureaucracy, political appointees and they are putting a lot of pressure on their resources, so they have to do some rationalisation on their staff, many of them don’t need more than 50 per cent of their workforce but for political reasons, they put all manner of characters on their payroll including the local government,” he said.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

2027 Presidential Election Will Be An Easy Ride For Tinubu – Says Wike’s Aide, Olayinka

Published

on

The spokesman for the Minister of the Federal Capital Territory (FCT), Nyesom Wike, Lere Olayinka, has asserted that President Bola Tinubu will face a much easier battle in the 2027 presidential election than he did in 2023.

Olayinka said Tinubu’s political alliances and what he described as his performance in office had put the president in a stronger position ahead of the next election.

Speaking on TVC Breakfast on Monday, the Peoples Democratic Party (PDP) chieftain noted that Tinubu had succeeded in bringing some influential opposition politicians closer to his administration.

According to him, the development had weakened the opposition and made the 2027 presidential contest less difficult for Tinubu.

“The reason this election of 2027 will be a one-way election is because of the performance of the president in terms of national development and his performance in terms of politics, because this election is going to be the easiest,” Olayinka said.

“It will be much easier for the president than the 2023 election. That is a fact that most people are not willing to accept.”

Olayinka also noted that his principal, Wike, who remains a member of the PDP, has continued to work with the Tinubu administration.

He said Wike could have played a major role in mobilizing support for the PDP ahead of 2027 if he had not chosen to work with Tinubu.

“If Wike was not working with the president, probably he would have been galvanizing more support for the PDP. Now he is not. The president has been able to bring him and other people to himself,” he said.

The PDP chieftain also highlighted the possible impact of different opposition politicians backing separate presidential candidates in 2027.

“Imagine Alex Otti also pushing Labour Party presidential candidate. Imagine Adeleke pushing Accord Party presidential candidate. Imagine Wike is pushing that of PDP,” he said.

Olayinka argued that Tinubu’s decision to work with politicians from different political parties had made both governance and political mobilization easier for him, Naija News reports.

“By being open, by bringing people to himself, he (Tinubu) has been able to make governance easier. He has also been able to make politics easier for himself,” Olayinka said.

He also called on Nigerians to recognize Wike’s support for Tinubu, despite the FCT minister still being a member of the opposition PDP.

 

Continue Reading

News

Trump Is Behind My Plan To Return Fuel Subsidy – Atiku

Published

on

African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has claimed that United States President Donald Trump supports his proposal to restore the fuel subsidy in Nigeria if he wins the 2027 presidential election.

Daily Voice reports that Atiku made the claim in a statement by his spokesman, Phrank Shaibu, tagged, ‘Atiku boasts of stakeholders, Trump support on fuel subsidy’.

The former vice president said his proposed approach would focus on supporting local production and refining while making fuel more affordable for Nigerians.

Atiku revealed that his plan would involve government support for locally produced petroleum products rather than relying heavily on imported fuel.

According to him, increasing domestic production and supply would help reduce pressure on consumers and make it possible for Nigerians to benefit from lower prices at filling stations.

He said: “This is why my Production Subsidy is about putting money back into people’s pockets. Support what we produce and refine here, increase supply, monitor the price, and make sure Nigerians feel the benefit at the pump.

“CORAN is saying support domestic production. America understands the importance of supporting strategic energy production. Trump supports the fuel subsidy return.

“Yet Tinubu attacks relief for ordinary Nigerians while his government understands perfectly well how to grant waivers, incentives and concessions to multinational oil companies and businesses close to his administration.

So why does intervention suddenly become bad economics when ordinary Nigerians are meant to benefit?”

Continue Reading

Foreign

BREAKING: APC Leaders Named in Secret Move to Obtain Tinubu’s US Records

Published

on

The retired Nigerian Army Major General, Danjuma Hamisu Ali-Keffi, has alleged that two prominent members of the All Progressives Congress (APC) secretly sought confidential records on President Bola Ahmed Tinubu from United States government agencies.

Ali-Keffi, a former General Officer Commanding (GOC) 1 Division of the Nigerian Army, made the claim while speaking about the events that shaped Tinubu’s emergence as the APC presidential candidate.

According to him, the alleged attempt was brought to his attention by former Director of the Nigerian Financial Intelligence Unit (NFIU), Modibbo Hamman-Tukur.

The retired general said the incident happened during the period when powerful figures within the APC were struggling to determine who would secure the party’s ticket for the 2023 presidential election.

Ali-Keffi said the information came to him while he was serving as Commander of Operation Service Wide, an operation he described as being focused on terrorism financing and the leadership structures of terrorist organisations.

He explained that Hamman-Tukur later told him about an alleged move by two influential APC figures who were opposed to Tinubu’s presidential ambition.

According to Ali-Keffi, the individuals allegedly gained access to the office of the NFIU director without authorisation and sent requests to American government agencies for information concerning Tinubu.

“Two prominent APC people who were against Tinubu entered illegally into the office of NFIU director and sent messages to the US government agencies requesting confidential records of Bola Ahmed Tinubu on those issues – terrorism financing,” Ali-Keffi said.

The retired military officer said the former NFIU director was uncomfortable with the development.

He claimed Hamman-Tukur later went to his office at about 2am after becoming aware of what was happening.

According to Ali-Keffi, the people allegedly involved realised that the NFIU director had arrived and subsequently left the office.

Ali-Keffi further claimed that a response was later received from the United States concerning the request.

He, however, said he was not aware of the exact information contained in the response.

“I don’t know what the record is or related to current issues regarding his forfeiture and other issues, if I am not mistaken,” he said.

The former army commander was careful to distinguish between the alleged request for information and any conclusion about Tinubu.

He said he had no personal knowledge of the contents of the records allegedly requested from the US authorities.

He also did not claim that the records established that Tinubu committed any offence.

Instead, he said his account was based on information he received from Hamman-Tukur at the time.

Ali-Keffi also alleged that NFIU officials connected to the incident were later dismissed. He said the matter eventually became the subject of legal proceedings.

The retired general further brought former Kaduna State Governor, Nasir El-Rufai, into the account.

Ali-Keffi alleged that El-Rufai was aware of some of the information relating to the request for Tinubu’s records.

He said the former Kaduna governor was among the political figures who had knowledge of the matter but did not support the idea of using confidential information against Tinubu.

Tinubu eventually defeated other contenders at the APC presidential primary in June 2022.

He went on to defeat Atiku Abubakar of the Peoples Democratic Party (PDP) and Peter Obi of the Labour Party in the February 2023 presidential election.

Ali-Keffi said his own decision to support Tinubu at the time was influenced partly by El-Rufai’s argument that power should move from the North to the South.

He recalled that the argument was based on the need to maintain a sense of balance and national unity after former President Muhammadu Buhari, a northerner, had completed his second term.

The retired general said the political situation could have been different if the alleged information obtained from the United States had been made public before the APC primary.

“Had people like the former NFIU Director and people like El-Rufai who were in the know, who were aware of that documents that were sent in respect of candidate Bola Ahmed Tinubu, had they allowed it to get to public domain at that time, I believe it would have perhaps hurt the candidaty of Ahmed Bola Tinubu. Certainly, he wouldn’t have gotten the ticket to fly the flag of APC at that time,” Ali-Keffi said.

Several prominent politicians had shown interest in the APC presidential ticket before Tinubu eventually emerged as the party’s candidate.

Ali-Keffi said those considerations played an important role in the eventual decision by some politicians to back Tinubu.

He also recounted a separate conversation involving former Federal Inland Revenue Service (FIRS) chairman, Muhammad Nami, and an unnamed powerful minister who was said to have been close to Buhari.

According to Ali-Keffi, Nami approached the minister during the United Nations General Assembly in New York in an effort to persuade him to support Tinubu.

The retired general said the minister expressed reservations about Tinubu and warned that he could take action against some people if he eventually became president.

“Look, Ahmed Tinubu is going to come after them. He was going to do this and that. You people don’t know this,” Ali-Keffi recalled the minister as saying.

Nami, according to Ali-Keffi, continued to make the case for a Southern presidency and argued that handing the APC ticket to a Southern candidate would promote national balance.

However, years after the 2023 election, Ali-Keffi said he now regrets his decision to support Tinubu.

“I regret actually voting for him,” he said.

He also stated that he would not vote for the ruling party in the next election.

“I’m not going to vote APC next election,” Ali-Keffi said.

The Independent National Electoral Commission (INEC) has published the personal particulars of candidates nominated for the 2027 presidential and National Assembly elections, with President Bola Tinubu’s nomination documents showing that the sections for his primary and secondary education were left blank.
The Independent National Electoral Commission (INEC) has published the personal particulars of candidates nominated for the 2027 presidential and National Assembly elections, with President Bola Tinubu’s nomination documents showing that the sections for his primary and secondary education were left blank.

In a related development, POLITICS NIGERIA reported in August that fresh controversy had emerged over Tinubu’s academic credentials.

This came after the Independent National Electoral Commission (INEC) explained why his primary and secondary school certificates were not included among the documents displayed for the 2027 election.

The commission said it displayed the documents submitted by candidates and did not have the authority to demand additional credentials or alter the information contained in their submissions.

 

Source: Politics Nigeria

Continue Reading

Trending