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Report Shows 14 Nigerian States Heavily Dependent on Federal Allocations to Fund 2023 Budgets

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A new report by BudgIT reveals that 14 Nigerian states, including Akwa Ibom, Bayelsa, Delta, and Taraba, are highly dependent on funds from the Federal Account Allocation Committee (FAAC) to sustain their 2023 budgets, pay salaries, pensions, and gratuities.

These states rely on FAAC for at least 70% of their total revenue, making them vulnerable to financial instability without federal support.

The report highlights Bayelsa’s dependency on FAAC, with 92.17% of its 2023 revenue coming from federal allocations, as its gross FAAC revenue amounted to over N347 billion, while its total revenue stood at approximately N407 billion. Similarly, Akwa Ibom’s dependency on FAAC is 86.29%, followed by Delta at 83.88%, and Taraba at 81.89%.

States generally depend on a combination of Internally Generated Revenue (IGR) and FAAC allocations to meet their financial obligations, with some also seeking external loans and grants. FAAC distributes funds monthly, factoring in components such as the 13% derivation, statutory allocations, and VAT revenue.

According to Dataphyte, 34 states relied on federal allocations for at least 50% of their 2023 budget needs. Out of the 36 states, only 17 could sustain their budgets if the benchmark for revenue to allocation reliance was set at 56%. Notably, Rivers, Delta, Ekiti, and Ebonyi were able to fund over 70% of their budgets through IGR.

This financial dependency raises concerns about fiscal sustainability and highlights the need for states to strengthen their IGR to reduce reliance on federal funds.

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Governor Umo Eno Dissolves Akwa Ibom State Executive Council

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Governor Umo Eno of Akwa Ibom State has dissolved the State Executive Council with immediate effect, according to a statement from the Secretary to the State Government, Mr. Enobong Uwah.

The dissolution affects all commissioners and special advisers, who are instructed to hand over their duties to the permanent secretaries in their respective ministries. In ministries lacking permanent secretaries, the most senior director is to assume responsibility.

The governor expressed his gratitude to the outgoing council members for their service and contributions to the state’s development, wishing them success in their future endeavors.

Governor Eno inherited the executive council members from his predecessor, Mr. Udom Emmanuel, nearly 19 months ago.

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PDP Welcomes Founding Fathers Back to Party in Akwa Ibom State

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The Peoples Democratic Party (PDP) in Akwa Ibom State has celebrated the return of two prominent founding members, Chief Edet Isong and Prince Emmanuel Isong, to the party.

The Ward 2 branch of the PDP in Urue-Offong/Oruko formally welcomed the returnees at a grand ceremony in Uyo, marking their reintegration into the party.

Chief Edet Isong, a former Transition Chairman of Urue-Offong/Oruko, expressed enthusiasm about rejoining the PDP, describing it as “coming back home to contribute, support, and work for my family, the PDP.” He commended Governor Umo Eno’s leadership and the state’s developmental strides, citing projects like the Nsit Atai-Okobo Road as evidence of progress under the administration.

Prince Emmanuel Isong, a retired Director with the Independent National Electoral Commission (INEC), also returned to the PDP, bolstering the party’s presence in Ward 2 and the Urue-Offong/Oruko community.

The Deputy Ward Chairman, Mrs. Nkoyo Unanaonwi, expressed joy at the return of the two stalwarts, highlighting their invaluable contributions to the party and community. “Their return is a big win for our party,” she noted.

Goodwill messages flowed from stakeholders, including Hon. Victor Amah, Chief Daniel Afiakurue, and Comrade Clement Walter, who celebrated the reunion as a significant boost for the PDP.

Chief Isong, previously affiliated with the Young People’s Party (YPP) after leaving the All Progressives Congress (APC), stated his decision was influenced by the steadfast leadership in the PDP and Governor Umo Eno’s people-focused agenda.

The ceremony marked a pivotal moment for the PDP in Urue-Offong/Oruko, as members expressed optimism about the party’s future strengthened by the return of its founding fathers.

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Akwa Ibom PDP Declares Governor Umo Eno Sole Candidate for 2027 Governorship Election

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The Peoples Democratic Party (PDP) in Akwa Ibom State has endorsed Governor Umo Eno as its sole candidate for the 2027 governorship election, despite the general election being over two years away.

The decision, announced at the PDP Enlarged State Executive Council Meeting on 6 January 2025, was formalized in a communiqué signed by the party’s state chairperson, Aniekan Akpan. The party cited Governor Eno’s “outstanding performance” and “exemplary leadership” under his Arise Agenda as reasons for the endorsement.

“His vision has delivered significant dividends of democracy for Akwa Ibom State,” the communiqué stated.

This move effectively excludes other aspirants within the party, consolidating Governor Eno’s position as the PDP’s flagbearer in a state that has remained a PDP stronghold since 1999.

Governor Eno, who assumed office on 29 May 2023, dissolved his cabinet hours before visiting the PDP state secretariat in Uyo on Saturday.

With opposition parties like the All Progressives Congress currently weak in the state, Governor Eno appears well-positioned for a second term in 2027.

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