The year 2023 was marked by impressive figures regarding public finances in Nigeria. Data from the disbursement report of the Federation Account Allocation Committee (FAAC), released by the National Bureau of Statistics (NBS), reveals that the federal government has made significant deductions from state government accounts, totaling a sum of ₦415.12 billion over the period 2019 to 2023.
Among the states most affected by these deductions are Lagos, Kaduna and Cross River. Lagos was thus debited almost ₦131.1 billion, followed by Kaduna with ₦45.85 billion and Cross River with ₦21.59 billion deducted from its accounts.
Other states also suffered significant deductions, such as Oyo with ₦18.25 billion, Rivers with ₦14.76 billion, Ogun with ₦10.31 billion and Edo with ₦10.92 billion deducted.
In contrast, states like Borno (₦1.55 billion), Yobe (₦2.1 billion) and Zamfara (₦2.1 billion) recorded lower deductions.
An analysis of deductions over the five years reveals an upward trend from ₦57 billion in 2019 to ₦120.01 billion in December 2023. These deductions have enabled Nigeria to meet its financial obligations, with total debt expenditure increasing rising to ₦7.8 trillion in 2023, an increase of 121% from the previous year.
Also, according to the Federation Debt Management Office (DMO), Nigeria’s total public debt, comprising federal, state and Federal Capital Territory (FCT) debts, increased by 10.7 % quarter by quarter, increasing from ₦87.87 trillion in Q3 2023 to ₦97.34 trillion in Q4 2023.
These figures illustrate the complexity of public finance management in Nigeria and highlight the need for increased transparency to ensure sustainable and balanced economic development.