Jigawa State, as reported by the National Bureau of Statistics, received a total of N29.2 billion in FAAC (Federation Account Allocation Committee) funds between December 2023 and February 2024. However, a closer look reveals significant disparities in allocation during this period.
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Allocation Peaks and Valleys
- Highest Allocation: In January 2024, Jigawa State obtained N10.2 billion, marking the peak of its allocation.
- Lowest Allocation: Conversely, in December, the state received the lowest allocation of N9.2 billion.
Dependency on Federal Allocation
Northern states’ heavy reliance on federal allocation has raised concerns. This report highlights the precarious situation exacerbated by the revenue generated by states under review.
Jigawa’s Imbalanced Revenue
- Jigawa’s internally generated revenue (IGR) stood at a mere N1.3 billion during the first quarter of 2024.
- Shockingly, this means that the state received 29 times its IGR as federal allocation during the same period, as indicated by budget performance reports.
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Salary Struggles and Developmental Constraints
- Despite spending N15 billion on personnel expenditures in Q1 2024, Jigawa would have been unable to meet its salary obligations.
- Additionally, allocating N14 billion to capital needs further limited the state’s ability to invest in crucial developmental projects.
Expert Warnings
Experts caution that over-reliance on federal government revenue poses risks to a state’s long-term development. Jigawa’s financial challenges underscore the need for sustainable revenue diversification strategies.