Nigerian States Expend N1.71 Trillion on Recurrent Costs in 2023: Analysis Reveals Spending Trends and Borrowing Concerns

In the first nine months of 2023, the 36 states of Nigeria collectively spent N1.71 trillion on recurrent expenditures, encompassing allowances, foreign trips, office stationery, and more, according to an analysis sourced from Open Nigerian States.

The budget performance reports, reveal intricate spending details from 24 states for the first three quarters and 12 states for the first two quarters.

Salaries accounted for N802.43 billion across the data period, with the potential for total recurrent spending reaching N2.52 trillion if salaries were included.

The detailed report covers diverse recurrent spending items such as foreign and domestic travel, entertainment, foodstuff, honorarium, wardrobe allowances, telephone bills, electricity charges, stationery, and more.

Despite challenging economic conditions, only 30 out of the 36 states disbursed security votes amounting to N87.45 billion. Additionally, total state borrowings surged to N988 billion by the end of the third quarter of 2023.

The analysis provided insights into individual state expenditures, shedding light on various expenses. For instance, Abia spent N17.61 billion on housing/rent allowance, meals, entertainment, and other recurrent items.

Akwa Ibom allocated N92.54 billion in the first two quarters, emphasizing allowances, social contributions, and utility costs.

The report underscores the wide range of spending patterns across states, with some dedicating significant amounts to specific areas.

Lagos, for instance, reported a non-salary spend of N289.49 billion, covering diverse expenses like aircraft maintenance, special duties, and welfare packages.

Concerns arise over increasing state borrowings, with experts emphasizing the need for fiscal responsibility. Economists warn against borrowing for recurrent expenditures, urging states to focus on internally generated revenue and strategic borrowing for capital projects.

The scrutiny of state expenditures has intensified, with public figures like Funso Doherty calling out Lagos State for its spending practices. As states grapple with economic challenges, the balance between fiscal responsibility and meeting essential needs remains a critical concern.