Despite an increase in the monthly federal budget allocated to state governments, Plateau State Governor Caleb Muftwang has emphasized that the purchasing power and real value of these funds have “decreased significantly” due to inflation and the depreciation of the naira.
Speaking on Channels Television’s Sunrise Daily, Governor Muftwang stated, “It is true that in terms of amount, it has actually increased, but in terms of purchasing power and real value, it has decreased very significantly.” He mentioned that the monthly allocation to his state has been inconsistent, making it difficult to provide an exact figure. Additionally, the prices of essential materials such as diesel, cement, and iron rods for critical infrastructure projects have risen. “So, we shouldn’t just look at the amount; let’s consider the purchasing power of the amount the state has received from the federation account,” he emphasized.
Governor Muftwang further elaborated, “It doesn’t need any rocket science. When the last administration came in in 2015, the dollar exchanged for about N180 to the naira. Today, you are telling me that money has increased, but we all know the value of the naira to the dollar. And we are still a consumer nation; many of the things we use in governance are imported and dollar-denominated.”
He referenced a broadcast by President Bola Tinubu during the #EndBadGovernance protests, where Tinubu noted that reforms like the removal of petrol subsidies and the floating of the naira have “led to our State and Local Governments receiving the highest allocations ever in our country’s history from the Federation Account.”
