The recent surge in subnational revenue has sparked mixed reactions from stakeholders across Nigeria, including labour union leaders and opposition parties. While the National Bureau of Statistics reported a 50% increase in states’ Internally Generated Revenue (IGR) to ₦3.63 trillion in 2024, many critics raised concerns about poor revenue management and the neglect of vital projects at both federal and state levels.
According to the report released on Monday, although states saw a significant rise in IGR, many still rely heavily on monthly disbursements from the Federation Accounts Allocation Committee (FAAC). Twelve states recorded over 50% revenue growth, but 24 states posted less than that, highlighting the fragile nature of their economies and continued dependence on federal allocations.
Labour unions and opposition groups acknowledged the growth but questioned its transparency and impact on the welfare of citizens. The Nigeria Labour Congress (NLC) described the increase as “paper gains,” arguing that despite higher revenues, workers’ welfare, infrastructure, and public services remain neglected. Salaries, pension payments, and healthcare improvements have yet to reflect the revenue boost.
Opposition parties also criticized the fiscal discipline of several governors, claiming that budget implementation and capital projects remain weak despite increased funds. They urged anti-corruption agencies and auditors to investigate revenue management, emphasizing the need for citizens to benefit from every naira generated.
The Peoples Democratic Party (PDP) in Ogun State criticized Governor Dapo Abiodun’s administration for failing to translate increased allocations into tangible development. PDP spokesperson Arc. Kayode Adebayo said local governments were still struggling with basic infrastructure, like road repairs and drainage clearing, and accused governors of ignoring President Bola Tinubu’s push for local government autonomy.
Trade Union Congress (TUC) Chairman Comrade Akeem Lasisi echoed these concerns, emphasizing that governments must prioritize workers’ welfare, infrastructure, healthcare, and education. In Sokoto, PDP Chairman Hon. Aliyu Goronyo accused Governor Ahmed Aliyu’s administration of mismanaging funds and abandoning projects initiated by predecessors. He also highlighted worsening insecurity and unemployment.
In Benue State, opposition parties criticized Governor Hyacinth Alia’s leadership, describing him as ineffective despite the state’s “huge resources.” Labour Party Chairman Ibrahim Idoko called salary and pension payments basic duties, not achievements, and noted that local contractors were being overlooked.
Conversely, some labour leaders praised governors for fiscal responsibility. Plateau State’s NLC Chairman Eugene Mangji commended Governor Caleb Mutfwang for regular salary payments and implementation of the minimum wage. Kano’s NLC Chairman Kabiru Inuwa praised Governor Abba Kabir Yusuf for clearing salary arrears and improving workers’ conditions.
However, critics like SDP Chairman Alhaji Ali Shettima argued that priorities were misplaced, with more focus on flyovers than water supply or agriculture. Bayelsa’s TUC Chairman Julius Laye urged Governor Douye Diri to increase funding for health and education despite progress in infrastructure development.
FAAC data revealed that the 36 states and the FCT received ₦5.08 trillion in allocations in 2024, exceeding the combined IGR. States such as Adamawa, Anambra, and Benue had less than 50% IGR growth, with some like Ondo and Yobe experiencing revenue declines. In contrast, states like Lagos, Rivers, and the FCT remained top revenue earners, contributing over 40% of the national total.
Enugu State led percentage growth at 433%, driven by reforms in land administration, followed by Bayelsa and Kano. Despite these gains, analysts warned that without improved fiscal accountability, many states risk continuing a pattern of revenue growth without visible development outcomes.
