Nigeria’s federal revenues fund roads and services in states
By the AFREEQUE newsroom, based on Businessday
Illustrative image · Abdulrahman Abubakar · Pexels · Licence PexelsIncreased revenues from Nigeria’s Federation Account are enabling states to fund more roads, hospitals, schools and public services, Nasarawa Governor Abdullahi Sule said. At the 32nd Nigerian Economic Summit, officials and development partners called for greater transparency and for the results of this spending to be measured, BusinessDay reports.
Increased allocations from Nigeria’s Federation Account have enabled states to fund more roads, hospitals, primary healthcare centres, schools, and spending related to pensions and workers’ welfare, Nasarawa State Governor Abdullahi Sule said at the 32nd Nigerian Economic Summit. He added that the revenues had reduced his administration’s reliance on borrowing from commercial banks, according to BusinessDay.
Higher transfers have also strengthened local government finances, allowing them to save part of their monthly allocations to fund water supply, solar energy and health projects, Abdullahi Sule said. However, the governor called on states to diversify their revenues and attract more private investment.
In the mining sector, Nasarawa is asking companies that have obtained federal licences to set up processing facilities in the state rather than export raw minerals. The policy is said to have attracted four or five companies, including lithium processors; the Avatar Lithium Processing Plant is reported to have a capacity of 3,000 tonnes a day, according to the governor, quoted by BusinessDay.
