FG, states, LGAs squander N80 trn in 9 years

on   /   in Special Report 12:52 am   /   Comments

BY CLIFFORD NDUJIHE,  DEPUTY POLITICAL EDITOR
BY the end of December 31, 2013 the three tiers of government in Nigeria would have spent N80 trillion or more, going by federal and states’ budget appropriations and statutory allocations to the 774 local councils since January 2005, Vanguard’s investigations have revealed.

On the average, this means our 811 governments spend collectively N8.89 trillion a year, N740.74 billion a month, N24.35 billion a day and N1.01 billion an hour.

If 2013 is singled out, the expenditure will be higher. Apart from Osun State, which is yet to publish its 2013 budget estimates, the Federal Government, Federal Capital Territory, Abuja and the other 35 states, barring supplementary budgets, will spend N11.301 trillion this year.

Jonathan and Okonjo-Iweala

Jonathan and Okonjo-Iweala

The local councils are expected to earn at least N1.4 trillion from statutory allocation in 2013. Thus, the three tiers of government would spend at least N12.7 trillion this year which translates to N34.79 billion a day

The N80 trillion excludes local councils’ internally-generated revenue, IGR, and some supplementary appropriations by state governments. In 2008, the councils got N1.05 trillion as statutory allocations from the Federation Account and about N1.2 trillion in 2009. In the eight years up to 2007, the third tier of government received N3.3trillion. Between 2010 and 2012, the councils got about N3.8 trillion as statutory allocations.

Of this princely sum, about N24 trillion or 30 per cent was spent on capital projects while N56 trillion or 70 per cent was squandered on recurrent expenditure.

Giving insight of what to be expected in the 2013 Federal budget recently, Finance Minister and Co-ordinating Minister of the Economy, Dr Ngozi Okonjo-Iweala, said the Federal Government had reduced the recurrent expenditure component of the budget from 71.47 per cent of the 2012 budget to 68.66 per cent.

“We are increasing the capital expenditure from 28.53 per cent in 2012 to 31.34 per cent in 2013,” she added.

Without meaning to, Okonjo-Iweala showed why majority of Nigerians have been swimming in extreme poverty over the years despite hefty budgets.

How? If only 31.34 per cent of the 2013 budget is allocated to capital expenditure (provision of infrastructure, amenities, etc), which may be miserly implemented as usual with 68.66 per cent to be squandered on recurrent expenditure (salaries, emoluments of public servants and political office holders, running costs, etc), there is really no cause for cheer. Most states of the federation operate similar budgets.

The composition of the nation’s public servants is as follows: Federal executive, 472; federal lawmakers, 469; state executives, 2664; state lawmakers, 1,152; council executives, 3096; council lawmakers 8692; and federal/state judiciary, 934, totaling 17,474, a mere 0.011 per cent of Nigeria’s 160,000 million population.

Over the years, the bulk of funds allocated to capital projects have been looted by political leaders and civil servants. And despite the efforts of the anti-graft agencies like the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and related offences Commission (ICPC), graft is still upwelling and looted funds are hardly recovered leaving the citizenry to bear the brunt.

High, maternal, infant mortality rates

A United Nations report titled: “Trends in Maternal Mortality: 1990 to 2010,” which was released on May 16 showed that 14 percent of the world’s deaths related to childbearing occur in Nigeria.

While maternal death rates around the world have almost halved over the past two decades, according to the UN report, Nigeria’s rate — 630 deaths for every 100,000 live births — is the world’s 10th highest, behind nine other sub-Saharan African countries led by Chad and Somalia.

Statistics from the Save the Children organisation, an international non-profit group revealed that almost 800,000 Nigerian children die every year before their fifth birthday, making Nigeria the country with the highest number of new born deaths in Africa. The group said that majority of children deaths under age five, particularly in the northern parts of the country, were due to treatable and preventable diseases. The group released the figures at a Save the Children Special Campaign (STC) launched in Lagos last Tuesday.

Poor human development indices

Currently, Nigeria is ranked 142 out of 169 countries on the Global Human Development Index. Nigeria’s ranking was part of the 2010 Human Development Report released by the United Nations Development Programme in Abuja last Monday. The HDI is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide.

Indeed, the National Bureau of Statistics (NBS) said recently that more than 112.5 million Nigerians were living below the poverty line.

It said the percentage of Nigerians living in absolute poverty — those who can afford only the bare essentials of food, shelter and clothing — rose to 60.9 per cent in 2010, compared with 54.7 per cent in 2004.

According to the Statistician General of the Federation, Dr Yemi Kale, between 2004 and 2010, Nigeria’s poverty rate had moved from 54.4 per cent to 69 per cent involving 112,518,507 Nigerians, adding that although the country’s Gross Domestic Growth (GDP) had grown since then, it had little impact on the poverty situation.

How N80 trn was  spent

Among the three tiers government, the Federal Government is the major spender. By the end of 2013, it would have spent N32.121 trillion. The Central government is distantly followed (See table) by Trillionaire states like Lagos (N3.282 trillion), Rivers (N3.079 trillion), Akwa Ibom (N2.651 trillion), Delta (N2.377 trillion), Bayelsa (N1.708 trillion), FCT (N1.336 trillion), Kaduna (N1.096 trillion), Kano (N1.057 trillion) and Oyo (N1.045 trillion).

The expenditures of Lagos and Rivers respectively within the period are equivalent to what the five states of the South-East geo-political zone (N3.345 trillion) and six states of the North-East geo-political zone (N3.752 trillion) spent in nine years.

Across the zones, the oil-rich South-South spent N11.503 trillion. It was followed by South-West (N7.30 trillion), North-West (N5.386 trillion), North-Central (N5.197 trillion), North-East (N3.752 trillion) and the least, South-East (N3.345 trillion).

BUDGET TABLE   Federal/States’ Budgets since 2005 (In N billions)   

S/No    States    2005    2006    2007    2008    2009    2010    2011    2012    2013
1    Abia    24.1    34.6    46.7    57.989    55.536    75.3    105.106    129.959    137.2
2    Adamawa    32.152    36.3    40    43.55    53.9    67.463    70.6    87.9    95
3    Akwa Ibom    87.17    118.68    184.03    265.15    283.813    288.834    419.785    533.113    470.08
4    Anambra    29.2    35.87    54.25    60.58    75.53    67    66.9    103.2    110.89
5    Bauchi    57.8    59.93    60    120    78.89    87.7    111.957    132.547    137.3
6    Bayelsa    116.2    176.6    148.2    186    164.13    178.52    214.59    238.158    285.93
7    Benue    44.91    46.3    44.84    64.65    63.29    89.49    71.6    159.78    130.992
8    Borno    50.5    48.5    56.1    78.87    75    85    99.8    149    184.3
9    Cross River    35.66    44.78    39.85    106.654    85.226    111.774    119    144.627    151.37
10    Delta    115.99    150    189    232.8    256.64    235.7    361.9    437.2    398
11    Ebonyi    21    28.67    31.2    57.74    73.05    76.205    73.5    86.869    104.374
12    Edo    45.12    51.2    46.98    60.66    80.59    99.25    163.86    150.045    150.97
13    Ekiti    28.9    26.2    31    80.91    65.8    69.93    92.5    95.5    97.6
14    Enugu    25.1    31.1    38.38    60.71    60.46    67.86    89.6    74.997    82.9
15    Gombe    30.66    26.41    50    65.29    51.64    55.6    79.4    93.535    107.893
16    Imo     35.7    37    43.4    112.9    134    127    124.475    178.638    197.744
17    Jigawa    40.42    48.8    55    67.1    76.7    70.9    77.293    109.525    115.4
18    Kaduna    48.27    59.77    77.05    94.08    153.17    196.7    136.5    154.3    176.4
19    Kano    41.6    49.99    60    71.48    108.7    110.3    157.69    221.7    235.3
20    Katsina    31.4    37.36    55    83    69.18    81.2    100    113    114
21    Kebbi    35    40    50    61.46    61.4    67.8    91.5    97.9    119.9
22    Kogi    31.31    33.89    45    52.37    78.669    78    80    126.411    132.6
23    Kwara    33.9    35.66    60    66.5    72.2    67    60.61    85.1    94.4
24    Lagos    112.7    224.23    277.77    403.4    405    429.5    445.18    485.3    499
25    Nasarawa    25.42    29.05    35.46    55.7    58.3    87.5    81.506    104    108
26    Niger    33.79    42.08    50    55.45    69.09    111    129    94.05    83.7
27    Ogun    40.55    48.58    54.8    77.34    100.02    100.73    98    200.55    211.86
28    Ondo    34.79    48.48    51.5    82.33    84.975    124.3    143    156    151
29    Osun    25.2    29.05    34.77    38    98.01    113    88.143    150.125
30    Oyo    39.3    60.7    66.23    115.88    128.4    138.851    147    196.072    152.12
31    Plateau    29.4    31.9    45    63.02    79.5    74.864    86.562    115    133.5
32    Rivers    144.8    168    183.38    377    432.28    429    415.9    438    490.32
33    Sokoto    35.8    41    48    53    54.8    75    76.78    100.7    115.83
34    Taraba    44.65    26.2    33    37.5    48.87    64.144    58.7    73.8    73
35    Yobe    33.12    38.47    44    73    46.47    62.42    69.22    78.5    86.6
36    Zamfara    43.14    38.68    66.5    76.5    59.4    73.06    59    120.81    125
37    FCT, Abuja    52.88    36    64.3    69.5    159.5    158    236    306.414    253.1998
38    Fed. Govt.    1.80 tn    1.90 tn    2.3 tn    3.58 tn    3.76 tn    4.61 tn    4.484 tn    4.7 tn    4.987 tn
TOTAL    3.54 tn    4.02 tn    4.86 tn    7.42 tn    7.86 tn    9.11 tn    9.59 tn    9.64 tn    11.30 tn
Legend: tn = trillion

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