Answer to Question #100108 in Finance for Ebube Paul Nwokeji

Question

Assuming the approval of 2020 appropriate bill in Nigeria part of the budget for fiscal year was to be distributed among the state.
A) How much will each state get ?
B) How much will the fifth state get?

Answer 1

A) Budget indicated that only four states in Nigeria are viable.

In this report, Lagos leads the fiscal sustainability index, followed by Rivers, Akwa Ibom and the Kano States. Access to audited statements brought out some facts on the true state of recurrent expenditure in focus states. Such states as Delta running huge recurrent expenditure reaching N200 billion. Bayelsa, despite its size and population, has a high recurrent bill as N137 billion, compared with Ebonyi with recurrent bill of N30 billion, Sokoto (N38 billion), Jigawa (N43 billion), Yobe (N35 billion), etc. It is a recurring theme to see states in South-South Nigeria running high recurrent bills, mainly driven by the high revenues earned due to the 13 per cent derivation.

B) Delta has a huge recurrent expenditure reaching N200 billion.