Dons Eze
STATES FALL SHORT OF 2024 BUDGET TARGETS AMID 2025 BUDGET PRESENTATIONS BY GOVERNORS
A recent review of select Nigerian states’ budget performance revealed that none of them achieved a 60% budget performance rate between January and September 2024 (Q1 – Q3).
This underwhelming performance comes at a time when states are preparing to implement substantial budgets for the 2025 fiscal year.
Katsina state, for instance, had allocated N481.7 billion for the 2024 fiscal year, but actual expenditures only reached N216.4 billion, translating to a 44.9% budget performance. Furthermore, the state’s internal revenue generation was relatively low, with only N29.9 billion recorded between January and September 2024.
Jigawa state’s budget stood at N383.5 billion for the 2024 fiscal year but the actual amount spent stood at N174.8 billion between January and September 2024. This represents a percentage performance of 45.6%. The state made only N18.4 billion internally.
Jigawa
In Niger state, the budgeted amount was N829.4 billion, while the actual expenditure was N252.2 billion. This puts the budget execution percentage at 30.4.
In Abia state, the budgeted amount stood at N567.2 billion, while N171.8 billion was spent, representing 30.3% of the budgeted amount. The state only generated N22.1 billion as internally revenue.
In Anambra state, the budgeted amount stood at N410.3 billion, while its budget performance revealed that N132.5 billion was spent, representing 32.3% budget performance. Internally, the state recorded generated N28.2 billion.
Ananmbea
In Ondo state, the budgeted amount stood at N395.2 billion while the actual budget execution stood at N206.6 billion, representing 52.3% budget performance. The state made N24.4 billion internally in the same period.
Ondo
In Oyo state, the budget stood at N438.4 billion while the execution stood at N210.9 billion, representing 48.1% performance. Oyo state generated N45.7 billion internally.
In Bauchi state, the budgeted amount stood at N394.8 billion while the amount spent was N202.9 billion, representing 51.4% budget performance. The state recorded only N15.9 billion internally generated revenue.
In Zamfara state, the budgeted amount stood at N426.5 billion, while N145.8 billion was spent, representing 34.2% budget performance. The state recorded N18.4 billion internally generated revenue.
Plateau
Adamawa state budget was N281.1 billion while N154.8 billon was spent, representing 55.1% budget performance. Only N9.1 billion was recorded as internally generated revenue by the state between January and September 2024.
In Akwa Ibom, the budgeted amount was N849.9 billion, while N228.7 billion was spent, representing 26.9% budget performance. The state however recorded N41.4 billion internally generated revenue between January and September.
As states gear up for the 2025 fiscal year, they’ve allocated substantial funds, but there are lingering concerns about their ability to meet these budget targets.
Niger state, for instance, is planning to spend a whopping N1.5 trillion in 2025, despite struggling to fulfill its 2024 budget estimates. This significant increase – 48.3% more than the 2024 appropriation – has raised eyebrows, especially since the state governor, Mohammed Umaru Bago, recently claimed the 2024 budget performance was only 68.88%.
Internally in 2024, the state only earned N29.2 billion. If it was to fund its 2024 budget from internally generated revenue, it would only have achieved 3.5% budget performance.
It received N182 billion from the federation account, representing about 72% of the state expenditure.
The state also borrowed N79 billion, meaning that it relied on loans for 31.3% of the N252 billion it spent between January and September 2024.
In 2023, the state budgeted N473 billion but only spent N190.9 billion at the end of the year, representing 40.3% of its total budget.
The state earned only N18 billion in 2023, meaning that it could only provide for 3.8% of its total approved budget if it relied on its internally generated revenue.
It received N92.6 billion from the federation account.
The state also ended up borrowing N90 billion in the year.
Niger state’s plan to fund its N1.5 trillion budget for 2025 has raised eyebrows, given the uncertainty surrounding its financing. The state’s history of relying heavily on loans is also a cause for concern, having borrowed N79 billion to cover 31.3% of its N252 billion expenditure between January and September 2024.
This trend of relying on loans to fund its activities is alarming, especially considering the state’s track record of low budget execution. For instance, in 2023, the state budgeted N473 billion but only managed to spend N190.9 billion, which is just 40.3% of its total budget
The state earned only N18 billion in 2023, meaning that it only generated 3.8% of its total approved budget if it relied on its internally generated revenue.
It received N92.6 billion from the federation account and ended up borrowing N90 billion in the year.
