The 36 states of the federation have spent N1.71tn on recurrent expenditures including allowances, foreign trips, office stationery, aircraft maintenance, and more in the first nine months of 2023.

This is according to an analysis of their budget performance reports sourced from Open Nigerian States, a budgIT-backed website that serves as a repository of government budget data. 24 states analysed by The PUNCH had budget implementation data covering the first three quarters of the year while 12 states had data for the first two quarters of the year.

The states cumulatively spent N802.43bn on salaries across the data period available, but The PUNCH isolated this data set to focus on other recurrent spending items. If salaries were added, total recurrent spending would have been N2.52tn.

Other recurrent spending items covered in this report include the amount spent on foreign and domestic travel, Internet access fees, entertainment, foodstuff, honorarium/ sitting allowance, wardrobe allowances, telephone bills, electricity charges, stationery, anniversaries/special days, welfare, aircraft maintenance, and more.

Of the 36 states, only 30 states have disbursed security votes (N87.45bn) so far. Also, the total borrowings of the states grew to N988bn as of the third quarter of 2023.

In the first nine months of 2023, Abia spent N17.61bn on housing/rent allowance, meal subsidy, entertainment allowance, wardrobe allowance, social benefits, pension, gratuity, internet access charge, telephone charges, local and international travels, office stationeries, maintenance services, consulting and professional services, fuel, financial charges, miscellaneous expenses, and others.

In the first two quarters, Akwa Ibom spent N92.54bn on allowances and social contributions, social benefits, travel and transport, utilities such as electricity chargers, Internet access charges, and more, materials and supplies such as office stationery, drugs, laboratory and medical supplies, maintenance, training, and more. So far, the state has spent N10 million on hosting/mobilisation of political associations and interest groups, N841.83m on entertainment at meetings, and more.

Recently, The PUNCH reported that state governments borrowed about N46.17bn from three banks to pay salaries between January and June 2023.

Borrowing for recurrent expenditures is a growing concern to economists. An economist and former Vice-Chancellor of the University of Uyo, Prof Akpan Ekpo, recently told The PUNCH, “The situation is bad, but most states do not have enough in terms of internally generated revenue. A lot of the states, even their federal government allocation, cannot pay salaries, which is very dangerous. You should not borrow to pay salaries.

“You should borrow to finance capital projects. States have to think of new ways of increasing their IGRs. If they continue borrowing to pay salaries, it is not good for the economy.”

A development economist, Dr Aliyu Ilias, further noted, “With the current hardship we have in the country, they may not have an alternative than to resort to borrowing. But borrowing to pay salaries is becoming a problem. We must stop borrowing for recurrent expenditure. We can borrow for capital expenditure; that is okay. The consequence is that we are digging ourselves into more trouble.”

Meanwhile, the Ondo State Government has denied media reports that the state governor, Mr Rotimi Akeredolu spent the sum of N7.3bn without the approval of the state House of Assembly.

The Chief Press Secretary to the governor, Mr Richard Olatunde, in a statement on Tuesday said, “It is important to state unequivocally that the referenced N7.3bn constituted the cumulative amount of palliative funds received from the federal government.

“These funds were allocated under the contingency sub-heading to address unforeseen expenses not initially budgeted for but deemed necessary during the fiscal year.