Oyo Government Falls Back Heavily on Federal Allocation by 80%, Governor Makinde Laments
Oyo State Governor, Seyi Makinde, has said the state has fallen back on federal allocation, with its dependence on funds from the Federation Account returning to almost 80 percent.
Makinde stated this while speaking at a forum in the North-Central region, where he acknowledged that states are receiving more money from the Federation Account but said the increase had not translated into a corresponding improvement in the economic conditions of citizens.
The governor said when he assumed office in 2019, Oyo State’s dependence on federal allocation was above 80 percent. He said his administration worked to reduce the dependence, bringing it down to 65 percent by 2022.
Makinde, however, said the removal of fuel subsidy subsequently reversed the progress recorded, resulting in the state returning to almost 80 percent dependence on federal allocation.
He said, “Yes, they claim we have more money, that the state government has been collecting more money from the Federation Account. I’m not arguing with that.
“Yes, in the quantum of the money, we have more money. But has it translated to fighting hunger in our society? The answer is no.
“For us in Oyo State, when I came in, in 2019, the state dependence on federal allocation was about 80 plus percent.
“We worked really hard to bring it down. And you can go check the data. By 2022, we had gone down to 65 percent in terms of our dependence on federal allocation.
“Then came the statement, subsidy is gone. And the resultant effect is that today, Oyo State is back to almost 80 percent dependence on federal allocation.”
The governor’s remarks highlighted the challenge of reducing reliance on federal revenues, particularly amid the economic effects of fuel subsidy removal, while stressing the need for increased government resources to translate into tangible improvements in the lives of citizens.