Rise In State Wages Attributed To Govs’ Jobs Bazaar

Rise In State Wages Attributed To Govs’ Jobs Bazaar

Amid growing calls for reduced governance costs, the personnel expenses for Nigeria’s 36 states have surged to N2.76 trillion for the 2024 financial year, according to an analysis by The PUNCH. This represents an increase of N501.16 billion from the previous year’s budget and a cumulative rise of N901.88 billion over the past two years……CONTINUE READING 

The analysis shows a consistent rise in state wage bills, with Taraba State’s 2023 wage budget increasing significantly from N37.62 billion to N109.65 billion, although actual expenditure from January to September 2023 was only N28 billion. For 2024, Taraba’s wage bill is projected at N54.47 billion.

Imo State’s wage bill for 2024 has surged by 134.12% to N61.18 billion from N26.13 billion in 2023, with the 2023 expenditure from January to September being N20.35 billion. Rivers State’s personnel costs have also nearly doubled to N252.89 billion in 2024, up from N128.78 billion in 2023, marking a 96.36% increase.

In contrast, Bayelsa and Ekiti States have reduced their personnel budgets. Bayelsa’s wage bill has dropped by 15.47% to N69.12 billion from N81.77 billion in 2023, while Ekiti’s has seen a slight decrease of 1.21% to N31.02 billion from N31.40 billion.

States with wage bills exceeding N100 billion include Oyo (N132 billion), Ogun (N122 billion), Delta (N164 billion), Akwa Ibom (N127 billion), Lagos (N302 billion), and Rivers (N252 billion).

Since 2023, around 12 governors have appointed over 4,385 aides, with significant increases in states such as Taraba, Ekiti, Niger, and others. This surge in appointments has coincided with a rise in both domestic and external debts for several states. For example, Niger State’s domestic debt increased from N121.95 billion to N139.80 billion, while Plateau State’s debt rose from N157.62 billion to N173.93 billion. External debts also rose, with Cross River State’s debt increasing significantly from $153.17 million to $211.13 million.

A report highlighted that 24 states may struggle to pay salaries without federal allocations, with only 11 states able to independently cover wage expenses. States like Lagos, Kano, Anambra, and Edo are among those with strong internal revenue capabilities.

Concerns are growing about the impact of a potential increase in the minimum wage on state budgets. According to a recent analysis, states with lower fiscal health might struggle to meet higher wage demands. Recommendations include improving fiscal conditions, enhancing revenue collection, and reducing unnecessary expenditures.

Experts have criticized the proliferation of political appointees, suggesting it exacerbates the financial strain on state governments. Calls for reducing the number of appointees, enhancing transparency, and adopting cost-effective measures have been made to address these challenges.

In summary, the substantial increase in state wage bills and the rise in political appointees highlight the need for greater fiscal discipline and strategic management of state resources.

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