FG, States To Spend 53% Of ₦17.5tr Budgets On Salaries

More than half of the ₦17.5 trillion total budgets of federal and state governments will be spent on salaries and overheads this year, according to Daily Trust investigations.

Analysis of the budgets revealed that of the ₦17.5 trillion, ₦9.35 trillion will go for recurrent expenses, leaving only ₦8.17 trillion for power, roads, rail and other development projects. 

This year’s figures are higher than last year’s with about ₦4 trillion. In 2017, states and federal budgets were ₦13.5 trillion, with ₦5.9 trillion (41%) voted for salaries and the remaining ₦7.6 trillion for development projects.

The two tiers voted ₦12.5 trillion in 2016 with ₦5.3 trillion going for salaries and overheads and ₦7.2 trillion for capital projects.

Breakdown of the 2018 estimates shows that the federal government is spending ₦8.61 trillion, with personnel salaries, overheads, statutory transfers and debt servicing guzzling ₦5.96 trillion, leaving ₦2.65 trillion for capital projects. 

All the states, except Kebbi which has not yet presented its budget, have a total budget of ₦8.95 trillion. The sum of ₦5.52 trillion is for capital and the ₦3.39 trillion for recurrent.

The 19 northern states (minus Kebbi) have a combined estimate of ₦2.85 trillion; of which ₦1.18 trillion was for salaries and overheads and the ₦1.65 trillion for developmental projects.

In 2018, the 17 southern states have a cumulative budget of ₦6.12 trillion, voting ₦3.86 trillion for capital projects and the ₦2.21 trillion for recurrent.

In 2017, the northern states had a total budget of N2.38 trillion, witnessing a reduction of over ₦100 billion from 2016’s ₦2.5 trillion.

Last year, the total budget of the southern states was ₦3.83 trillion against previous year’s ₦3.5 trillion. 

Of this, ₦2.15 trillion was capital and ₦1.67 trillion recurrent, against ₦1.9 trillion and ₦1.5 trillion in 2016.   

Regional breakdown 

The northwest total estimates in 2018 are ₦1.15 trillion, comprising ₦747 billion capital votes and ₦405 billion recurrent.

In 2017, the zone (minus Kebbi) had a total budget of ₦1.01 trillion slightly lower than 2016’s ₦1.12 trillion. 

The budget had capital and recurrent components of ₦635.2 billion and ₦376.5 billion when compared to the previous year’s ₦698 billion and ₦479 billion irrespectively.

The northeast budgets for this year is ₦796 billion with ₦435.3 billion for capital projects, and the remaining ₦358.3 billion for recurrent expenses.

Last year’s total budget for the northeast zone was ₦593.1 billion, about ₦80 billion lower than 2016’s ₦676 billion, with capital expenditure consuming ₦298 billion against previous year’s ₦347 billion. 

The six states of the north-central budgets are ₦904 billion for this year. Of this figure, ₦475.3 billion will be spent on capital projects, and ₦421.3 billion going for salaries and overheads.

In 2017, the north-central figures were ₦781.5 billion, a rise of about ₦100 billion from previous year’s ₦684 billion. ₦439 billion was for capital and ₦342.4 billion for recurrent spending, compared to ₦385 billion and ₦343 billion in 2016.

The 2018 combined estimates for the southwest is ₦2.1 trillion, comprising ₦1.2 trillion capital votes, and ₦819.9 billion for recurrent.

Last year, the southwest zone’s budget was ₦1.47 trillion, slightly higher than 2016’s ₦1.36 trillion, with capital spending consuming ₦805.7 billion, leaving N668 for the recurrent component.  The zone had a recurrent vote of ₦695 billion and ₦671 billion capital in 2016.

The five states of the southeast budgeted ₦805 trillion this year. Capital votes will gulp ₦503.8 billion, and recurrent expenses ₦293.5 billion.

The southeast’s total budget last year was ₦581.2 billion, about ₦90 billion increase from the 2016’s ₦490 billion. It was made up of ₦324 billion capital and ₦257.3 billion recurrent votes; which was slightly higher than 2016’s ₦242 billion and ₦248 billion respectively. 

The south south region has a total budget of ₦3.2 trillion, N2.1 trillion for capital and ₦1.1 trillion for recurrent in 2018.

In 2017, the oil-producing zone had a total budget of ₦1.77 trillion against ₦1.6 trillion of the previous year, comprising ₦1.03 trillion capital, and ₦750.6 billion recurrent expenditure. The oil-rich region spent ₦949 billion on capital projects and ₦579 billion on recurrent in 2016.

State with high recurrent votes

Of the 35 states that presented their budgets, only eight have swollen recurrent expenditure higher than their capital votes.

Bayelsa State Governor Henry Seriake Dickson budgeted ₦295.2 billion for the year. He is spending N148.3 billion on recurrent, leaving ₦146.9 billion as capital votes. In 2017, the governor budgeted ₦221 billion but spent ₦137 billion on salaries and overheads, and ₦84.3 billion on capital projects

In Yobe, Governor Ibrahim Gaidam budgeted ₦92 billion for the year, ₦44.6 billion for capital and ₦47.4 billion for recurrent. The state voted ₦69 billion for 2017 with ₦42 billion for recurrent spending and ₦27 billion for capital projects.

Governor Ayodele Fayose’s Ekiti State budgeted ₦98.6 billion for 2018. He is spending ₦66.4 billion recurrent, and N32.1 billion on capital. Last year, the state had a higher recurrent vote of ₦55.6 billion out of the ₦94 billion budget, leaving ₦38.4 billion for capital expenditure.

Taraba State Governor Darius Ishaku budgeted ₦51.2 for recurrent and ₦45.5 billion for capital in 2018.  

Governor Abdulfatah Ahmed of Kwara State budgeted ₦182 billion this year, and he’s spending ₦106.7 billion on salaries and overheads, leaving the remaining ₦75.2 billion for capital projects.

Another governor in this league is Plateau’s Samuel Lalong, who is spending ₦75.8 billion of the state’s ₦145.4 billion on recurrent expenses leaving ₦69.6 billion for developmental projects.  Last year, Governor Lalong budgeted ₦68.5 billion for recurrent and ₦64.3 billion for capital.   

Enugu State Governor Ifeanyi Ugwanyi budgeted ₦98.5 billion for the state in 2018. He is spending only ₦30.8 billion on capital projects, channeling the huge balance of ₦60.7 billion to salaries and overheads.   

Governor Rotimi Akeredolu of Ondo is also spending ₦81.5 billion of his 2018 annual budget of ₦171.2 billion on recurrent expenses. He has only ₦68 billion in capital spending.

States with small expenditure

Some of the states with small estimates this year include Yobe (₦92 billion), whose budget rose from ₦69 billion in 2017. Others are Ekiti (₦98.6) billion. The state budgeted ₦94 billion in 2017. 

Niger’s proposed budget is ₦128 billion, about ₦20 billion higher than its 2017 budget of ₦108 billion. Nasarawa budgeted ₦122.8 billion for 2018, which is almost double the ₦67 billion, it spent in 2017. 

Other states with relatively low annual expenditure are Taraba (₦96.6 billion), Enugu (₦98.5 billion), Gombe (₦105 billion), Zamfara (₦130.7 billion), Jigawa (₦134.2 billion), Abia (₦141 billion), Edo (₦146.6 billion), Plateau (₦145.4 billion), Kogi (₦147.8 billion).

States with above ₦150 billion but less than ₦200 billion estimates are Adamawa (₦162.7 billion), Anambra (₦166.9 billion), Bauchi (₦168 billion), Ondo (₦171.2 billion), Borno (₦172.2 billion), Osun (₦173.9 billion), Benue (₦178.4 billion), Kwara (₦182 billion), and Imo (₦190.9 billion).

States with big expenditure  

For the first time, Cross River state is leading states with higher budgets this year, with a record budget of ₦1.3 trillion. Its budget skyrocketed from a modest ₦301 billion in 2017 and ₦305 billion in 2016, making it the first state to hit the 12-figure benchmark.   

The business rich- Lagos spent ₦813 billion in 2017, and ₦662 billion in 2016, but now planning to spend ₦1.04 trillion next year, trailing the former oil-rich state of Cross River. 

Other states with huge expenditure this year are Akwa Ibom, which budget rose from ₦424 billion in 2016 and N365 billion in 2017 to N651 billion in 2018. Delta state is planning to spend ₦298 billion this year, having spent ₦271 billion in 2017 and ₦268 billion in 2016. 

Ogun spent ₦221 billion in 2017, and it is proposing to spend ₦345 billion in 2018. Kano is planning to spend ₦234 billion this year, having spent ₦210 billion in 2017 and ₦274 billion in 2016. 

Kaduna’s 2018 approved budget is ₦216.5 billion this year. It spent ₦215 billion in 2017. Katsina state is proposing ₦211 billion in 2018. 

Other states expenditures this year are Rivers (₦510 billion), Bayelsa (₦295.2 billion), Oyo (₦267 billion), Ebonyi (₦208 billion), and Sokoto (₦220 billion).