Plateau State Governor Caleb Muftwang has expressed concerns that although the monthly federal allocation to state governments has risen, its purchasing power and real value have “decreased very significantly” due to inflation and the wobbling naira.
Muftwang noted, “It is true that in terms of amount, it has actually increased but in terms of purchasing power, in terms of real value, it has decreased very significantly.”
He elaborated that essential construction materials, including diesel, cement, and iron rods, have become more expensive, further eroding the value of the funds received.
He added, “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 all of us know the value of the naira to the dollar.” Muftwang emphasised that many governance-related goods are imported and dollar-denominated, amplifying the impact of the naira’s devaluation.
The Governor also pointed out that the monthly federal allocation figures have fluctuated, and he cannot provide an exact figure for Plateau State’s allocation.
Currently, the Federal Government receives 52.68% of the country’s monthly revenue, states get 26.72%, and local governments receive 20.60%, as allocated by the Revenue Mobilisation Allocation and Fiscal Commission.
