NewStats: 3,263,876 , 8,181,702 topics. Date: Sunday, 08 June 2025 at 01:21 PM 2y4r1e

SmartyPants:


Don't make it about rail - that was only an example, and Lagos doesn't get the highest federal allocation either. Several States have much much more. What have they done with it? Lagos found ways to grow its IGR on its own too - why are other States so lax about this?

Even the ones that receive relatively little by way of allocations, what little have they done with it? Gombe is a shining example of a State that has done well with the little it was given. So what excuse do others have?

State governors being a mirror of the federal government is just another convenient excuse for refusing to be personally responsible. Your state governor is within your reach while the president is far removed from you. If you want to see immediate improvements in your standard of living, make sure your State governor does right by you. But Nigerians won't do that because it is easier to rant against the centre - that doesn't require any intentional actions.

Stop pulling examples out of your behind then
Lagos is among the states that get the highest allocation. Stop fishing for idiots. The IGR you're talking of is as a result of its vantage position as the commercial nerve Centre of the country and not any deliberate policy by the state. The same model used by Lagos had been applied in Osun and Ekiti with disastrous of indifferent results at best.

What has Gombe done? The states are majorly underfunded except for the major oil producing states which is not up to one-third of the states
The FG holds the vast majority of our commonwealth.

Cardoso!!

Seunmsg com and carry your brother o

9jatriot:
I like the fact that you did calculations.
Now the logic is this. Everything the FG gets, it shares with all the states with the ratio you have already written here. At the end using your calculation, FG will now have a share that is 1.4% per state assuming they were to use the amount to each state equally.

Then do not forget that the states themselves are supposed to generate IGR. This IGR is for each state alone. So a state are supposed to have (0.7+0.028)% + IGR. So the OP's question is valid, what do they do with their own share?

Do not forget, federal workers earn more than state workers. So from the FG's 1.4% per state, a lot of it goes into managing their federal infrastructures. A lot of it goes into Trunk A roads, rail and many more including stealing (which the states do even more).

So once again the OP's question is valid, what do the states do with their own share?

The IGR is skewed. If you're going to go by IGR then Lagos has the biggest thieves in govt.
Secondly, take a look at the 5bn palliatives shared to states by FG. No ability for it and it was disbursed by same FG. If FG is not interested in asking govs what they did with money given to them from FG, why should such burdens be placed on citizens?

I noticed also that you ignored the effect of dollar denominated returns that's exclusively in the hands of FG

SmartyPants:


Don't stop asking questions of Tinubu. He is the presidrnt after all. But does that mean you shouldnt look closer to home to also ask what exactly your governor does with the money he recieves? Do you think it makes sense for only Lagos to have a working rail system?

Lagos is having a rail system after over 24 years of fat federal allocation and humongous IGR+debt.

Most state govs are mirrors of the Federal. If we get Federal right, states so have no choice than to sit up.

However, Governor Umar Bago, alleged sabotage by a cartel which he accused of mopping up foodstuffs in order to cause hike in prices.

Bago, who said the Federal Government was aware of the activities of the cartel, alleged that the aim of its was to cause hunger and incite the people.

So after subsidy cabal

We now have food cabal

ivolt:

I don't see how your response negates mine.
Agriculture contributes less than 2% to the Dutch economy, that is a fact.
Did you find anything contrary.

We are talking rates and ratios, not raw numbers.
My points stands that large agricultural contribution denotes poverty.
I haven't found an exception yet.

You're right though. Even the Op is confused and spreading confusion. The total food import in 2019 was just N959bn which was just 5% of total imports in Nigeria so what exactly is the fuss about?
The dude is screaming over just 5% of imports

ivolt:

You are wrong here.
Agriculture contributes less than 10% of those countries economy,
Norway is even less than 2%.

BTW, Thailand and Philipines doesn't belong to that list. They are not rich
but still my points applies to them.
Large contribution from agriculture denotes poverty.

The Dutch agricultural sector is highly mechanised, and has a strong focus on international exports. It employs about 4% of the Dutch labour force but produces large surpluses in the food-processing industry and s for 21% of the Dutch total export value.[195] The Dutch rank first in the European Union and second worldwide in value of agricultural exports, behind only the United States,[196] with agricultural exports earning €80.7 billion in 2014,[197] up from €75.4 billion in 2012.[24] In 2019 agricultural exports were worth €94.5 billion.[198] In an effort to reduce agricultural pollution, the Dutch government is imposing strict limits on the productivity of the farming sector, triggering Dutch farmers' protests.[199]

One-third of the world's exports of chilis, tomatoes, and cucumbers go through the country. The Netherlands exports one-fifteenth of the world's apples.[200] A significant portion of Dutch agricultural exports consists of fresh-cut plants, flowers, and flower bulbs, with the Netherlands exporting two-thirds of the world's total.

Norway is also the world's second-largest exporter of fish (in value, after China).[171][172] Fish from fish farms and catch constitutes the second largest (behind oil/natural gas) export product measured in value.[173][174] Norway is the world's largest producer of salmon, followed by Chile.[175]

Maybe what you mean is subsistence farming as we have in Nigeria. In Netherlands, through agric, just 4% of the labour force generate over €90bn export from agric alone. In Nigeria about 60% of farming labour generate less than $10bn. Farming is big business.
Nigerian leaders don't want to do anything but just steal money and live off govt largesse

ivolt:

Forex is not some trophy to be kept in a museum.
It is just like any other tool of trade. There is always forex as long as you can afford the rate.

And what are you going to do about the jobless youths, force them into farms and pay them food wages?
Yes, we have to worry about food security, but this is the 21st century, and agriculture is no longer a major employer.

Show me a country whose economy depends on agriculture and I will show you a poverty-stricken country.

That's not true. Netherlands, Norway, even China, Thailand, Philippines and a host of other countries are agric-dependent and they are doing well
Let me add Singapore too

ivolt:

Do you know how much those countries spends yearly to subsidise the agricultural sector?
Moreover, no country in modern times has ever grown rich from farming.

Some think people just abandon farming for no reason.
That never happens, wherever there is money to be made, there will be large influx of players.

The government must provide massive agriculture subsidies to encourage industrial farming
since many players have concluded that it is not worth their time.
The government has to decide whether spending such money will be better for the country.

You guys are merely focusing on the symptoms instead of the root cause.
We can't blackmail basic economic decisions.

Well, folks like nairalanda1 argue that subsidies are bad for the economy and free market will cure all that ails us.
Meanwhile at the base of free markets practiced by countries like USA is a large dose of socialism that exists in their agric sector. Why should poultry feed be so expensive for example when we grow maize?
It is true that Nigeria does not have comparative advantage in most agricultural products especially the exportable ones, but it is also true that the single achievement any govt can have that will set us on the road to economic prosperity is to achieve food security. If we can achieve that, our economy will have enough bounce to make further heights. A hungry man nor dey see road

mrvitalis:

No matter the amount of farm land you have there are foods you can't produce...

$15 billion food bill is very small for me

The focus should not be on stopping import rather what to do to increase export simple

It is even a lie. I don't believe Nigeria spends anything close to $15bn importing food. If it is true, it will be the elites cause the larger percentage of Nigerians eat locally sourced foods
Before Buhari's border closure, the only staple imported food was rice. After he closed the border, most Nigerian households including food outlets now cook our local rice. The rest of our foods yam, maize, millet, cassava, beans, onions, vegetables are locally sourced. So who is eating $15bn worth of imported food? All those who eat pizza and baked beans

aribisala0:

They do this for strategic ,security and social reasons often at great subsidy cost
We are still farming with cutlass and hoes
Dangote invested $20 billion in a refinery
If somebody invested $2 billion in garri production and another $2 billion in Rice and another $2 billion in yam we won't have any food shortage. We need to understand that agriculture is serious business. It is not a joke. If we can find $16 billion to import why can't we find the same to produce and sell just like Ukraine. We don't have any winter and can produce food 365 days a year.
I believe we can feed Africa with the land and rainfall we have

Well, your political elites who control and have access to most of those resources prefer the imported ones than to engage in scrawny farming.

femisplash:

Dude, you need to understnd how the system works. All the 48% from all the states goes back into the same, one economy. 52%+48% goes into one economy and that's how inflation is controlled. Hope you've learnt something new.

You couldn't make sense.
Where does the 52% go to. Jupiter?

femisplash:

Dude, states collect 48%. Governors of each state determines who gets what.

Let's even it out

States get 26%. 26/36 is 0.7

LGs get 22% 22/744 is 0.029

Cumulatively, that is 0.729 per state+LG

That's what each state gets on average.

Assuming FG spends same amount on each state, FG with 52% gets to spend 52/36 which gives 1.4 per state.

I hope you can see how fallacious your claim is now

femisplash:

It only does when you over rely on importation.

And whose fault is that?

I hope you know that devaluation leads to more money in circulation which leads to inflation as well

femisplash:

Devaluation is supposed to affect your balance of trade, discourages import and encourages export. The only thing that should affect your spending is inflation.

It shows how ignorant you are. So devaluation does not affect the purchasing power of your currency abi?

femisplash:

52% - 48%(state+LG)

FG 52%
States 26%
Ls 22%

Out of the 26%, Kano gets about 0.7% while Lagos gets 0.8. Lagos also gets 13% derivation while Kano gets none. Bayelsa gets about 0.6% and also 13% derivation

So how does it make sense to lump all the states together and ask citizens to hold their governors able for a paltry 0.8% when the FG is holding 52%? How?!!!

G00dharddick:


And Tinubu the clueless man has a wonderful istration? No kidnapping going on? Things are cheap under Tinubu right? The joke is on you 🤡

Tinubu's istration is bad nor doubt. But don't come here and cover GEJ in roses. He was not a good leader

femisplash:

Replica, you say?. You're very very untruthful to yourself, i don't know why you so chose to be blantanly dishonest. Meanwhile, allocations are shared on the basis of a standard sharing formula. I don't know how you mean by single or seperate entity.

What is the sharing formula?

https://nairaland.macsoftware.info/7992020/only-11-states-generate-enough

Oh. That was referring to IGR. The report is a whitewash. The report is talking of how many states can pay salaries without federal allocation when the constitution that creates the states asks that they be run based on federal allocation.
Let's not kid ourselves. Our revenue generating profile among our states is not balanced. It is skewed towards Lagos and Abuja on a massive scale.
You pay VAT towards the centre mostly from Lagos. Lagos collects wharf landing fees from ports for goods going to the hinterland while most industries cited in Lagos pay tax to Lagos for goods they produced which will be consumed elsewhere. It's not the fault of Lagos though. But to use igr as a means of measuring the performance of states is something I find terribly fraudulent. Even the British recognised the fraud during colonial times and had to devise a means of ensuring equity

ReubenE:

I have argued with him on several occasions that subsidy is not really our problem but the culture of stealing and profligacy in our political environment.

More money made available in Nigeria means more money available to steal and not necessarily more money for development as long as stealing is not curtailed.
Subsidy has been removed supposedly for over six months but Nigeria has gone from bad to worse despite the argument for "making more money available". Subsidy has been removed but Nigeria is still borrowing upon borrowing to the point we now even borrow with crude oil upfront.

Look at the 2024 budget, it reeks of profligacy because there is more money. Almost all the line items are inflated and many others absolutely unnecessary because there is more money supposedly because of subsidy removal.

Nigeria government has spent more than enough money in Turn Around Maintenance (TAM) of our refineries in the last 20 years, money enough to build new 4 refineries but the refineries they did the turn around maintenance are still not working till date. So anybody that believe removing subsidy with build hospital, build roads and other blahblahblah is just being delusional as subsidy does not stop government from doing any of those things if they really want to do them.
It is true that subsidy removal will make more money available for government expenditure and it is good. But Tinubu and Buhari has proven to us that subsidy is not really our problem as most government apologists make it seem. Tinubu has grounded this country despite subsidy removal and stealing has spiked after. Again he's still amassing loans...

It's all propaganda and conditioning. Do you know how many times the "benefits" of subsidy removal have changed from mouth to mouth?

First it was subsidy removal will bring investment into the country especially in the oil and gas sector.

Then it became subsidy removal will give us enough money to build badly needed infrastructure like roads, rails, schools, hospitals etc

Then came subsidy removal will curb corruption on our govt expenditure

The most ridiculous I heard from the corn man himself is that subsidy is the reason our refineries stopped working. I mean you must see Nigerians as special kind of stupid to say that.

The fact is subsidy has become a fundamental bloc of our economy. It stands on higher or equal footing with say naira value.

So I have steadfastly believe that since it was govt of its own choosing that brought us to this where our economic fundamentals was subsidy, it behoves on govt to find a way to steer us out of it. Subsidy is not a bad tooth that needs to be removed with little finesse but a lot of anaesthetic.

No.

Subsidy removal demands deep thinking and solutions that ensures the country is better off for it. The dude labeled me a communist for that practical stand borne out of reality.

One thing I'm happy for is that we got a president who was finally allowed to remove subsidy the way people like him have been clamouring for and we have seen the result.

The country is depressed right now! Anywhere you go, it is lamentations and wailing regardless of tribe or religion. Hunger and deprivation does not know any tribe or religion. After all, Muslims in MINNA and KANO are the first to protest.

The fact that fuel is still being sold at N600 today is a stark ission of the failure of subsidy removal.

The fact that WB has twice come out to berate the govt on the state of economy which is due to the same subsidy removal they've been recommending shows that the idea is a totally bad one and folks like me who were labeled communists were right all along.

It's not about economic concepts or principles. It's about the fact the fuel subsidy is an interval part of our economy and demands intelligent solution than just removal to get rid of. And anyone who tells you the removal will bring anything positive is simply living in a fools paradise just as you've said.

femisplash:

You missed your math class, FG gets more than states by only 6% and obviously FG takes care of far more financial burdens than all the states. Cumulatively, FAAC has shared over 3trillion extra funds in 6months.

You missed the dollar denominated reserves.
The fallacy in your submission is that you're treating the 36 states and 774LGs as a single entity. That's false logic and reductionist. The 36 states collect varying amount from the national purse and each is expected to function optimally as a state with same set of officials and functions. Meanwhile, most of those officials and function are a replica of the FG that gets far above them in allocation

G00dharddick:


The joke is on you. Tell your Tinubu to take the country back to the days of incompetent GEJ abeg.

Tinubu is the worst president Nigeria has ever had - Arewa

Doesn't matter
GEJ was not a good president
A President who had girls kidnapped from their schools and he kept mum for almost two weeks! Haba!! Tribalism will kill this country

This is a darn ignorant question
Whatever increase is there in allocation, FG still takes the lion share. Take for example your claim that 787bn was shared in May before Tinubu took office, and 1.13trn in August, 3 months after he took office. Of the increase of about 300bn which you're touting, Tinubu alone will take 52% and that is minus the big fact that the dollar denominated returns on that increase will be with Tinubu and not the state govs since he controls the CBN.
The state govs individually get less than 10% of the total increase.

grandstar:
This gladden my heart. This government needs to do more in regards to economic reform.

It's continously determination to remain dovish in regards to double digit inflation is coming at a high price.

This has led to higher rates of inflation and the massive depreciation of the Naira The lower the value of the Naira, the higher the cost of supplying fuel at 600/litre.

The government is being dishonest when it says the subsidy is gone despite the contrary being true today.

Why would state governments be broke if money previously wasted on subsidizing petrol was now in their kitty?

State govts are broke?

ReubenE:

Fuel is N40 in Iran that has been under Western Sanctions for close to 40 years.

Maybe you should readjust your statement to mean fuel was never cheap in Nigeria and not "fuel was never cheap"

That is one dude that has been highly discredited by smarter dudes on this platform
Even he knows he has no leverage

G00dharddick:


GEJ incompetent? Abeg what will you call Tinubu's failure?

Do you know GEJ is 10million times better than Tinubu? Oga tell your Tinubu to take us back to the days of incompetent GEJ where people were enjoying and buying food and fuel extremely cheap.

Tinubu is the worst president Nigeria has ever had - Arewa

GEJ is not better than Tinubu. GEJ is was very incompetent and indecisive. GEJ benefitted from working with people like Iweala and Sanusi but as a president, he was fvcking incompetent

Mandate2023:


U can get a job as cleaners in 1 of d terminals, that's hw it will put food on your table......since your mate r doing good things with their lifes but na food u no get to eat.....no food for lazy man

Cleaners are common men
Most of them don't have food to eat
You are not smart sir

Saudi is bringing 20bn dollars investment and it's one Liman from Niger state is the one telling us.

APC sef

APCNig:


Yes, we are enjoying this istration and teaching the headless mob how the game is played. Una go cry Tire, because No Evidence

What is this one saying
Have you even eaten this morning

Paraman:
There was record to show FG was paying subsidy. Nigerians know how much we were spending on importing refined crude oil

Which record?
NNPCL claimed they were not paying subsidy

Oloriburuku ni gbogbo yin

He's making example with soyabeans

How many Nigerians eat soyabeans

Why not compare rice, yam, beans, millet, corn, onions, fruits and vegetables

Werey jatijati

DeepSight:


Subsidies cost you four refineries? You must be living in lala land.
Corruption cost you those refineries, not subsidies.

And understand this: if you like remove every subsidy or government expense in Nigeria - Corruption will still destroy everything.

Pls pay him no heed

He is a Corning man 🌽