NECA Demands Accountability For N10.4tn Shared to States, LGs As Subsidy Windfall Sparks Fresh Transparency Questions

 

By allcitynews.ng 

The leadership of Nigeria Employers’ Consultative Association (NECA) has put state and local governments under the spotlight, demanding that they publicly account for the huge resources that flowed to the sub-national governments between June 2023 and December 2025.

The demand came after the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, revealed that the Federal Government’s reforms had mobilised N15.8 trillion for the Federation during the period under review.

The demand for disclosure of how states and local governments collectively received N10.4 trillion from increased Federation revenues utilised the amount,

following the removal of petrol subsidy and foreign exchange reforms has opened a fresh front in Nigeria’s debate over public accountability, fiscal transparency and the real impact of the Federal Government’s economic reforms

Of that amount, N5.4 trillion accrued to the Federal Government, while N10.4 trillion was distributed to states and local governments through the Federation Account.

The figures immediately raised an important question: if the reforms generated additional resources on such a massive scale, where are the corresponding projects, services and measurable improvements that Nigerians should be able to see?

In his concern, NECA Direc

tor-General Adewale-Smatt Oyerinde, said the answer should not be left to political rhetoric. Governments at the sub-national level, he argued, must now open their books and tell citizens exactly how the money was received and spent.

Speaking on Channels Television’s Sunrise Daily on Thursday, Oyerinde said the disclosure made by the Federal Government should be followed by similar disclosures from states and local governments.

“Absolutely. I think it should trickle down,” he said, urging state commissioners for finance to come forward with details of their allocations and expenditure.

The intervention by NECA is significant because the controversy surrounding the removal of petrol subsidy has largely focused on the immediate economic pain experienced by households and businesses.

Since the subsidy was removed, Nigerians have confronted sharp increases in petrol prices, transportation costs, food prices and operating expenses. Businesses, particularly manufacturers and small enterprises, have also battled high energy costs, foreign exchange instability and weakening consumer purchasing power.

The Federal Government has consistently argued that the reforms were necessary to prevent the country’s finances from being consumed by an expensive and unsustainable subsidy regime.

The latest figures released by Oyedele provide a financial dimension to that argument. If the reforms helped generate N15.8 trillion in additional resources for the Federation in about two and a half years, the government can point to the increased revenue as evidence that the changes have expanded the fiscal space available to all tiers of government.

But the economic argument does not end with revenue generation.

For citizens, the more difficult question is what happened after the money was shared.

The N10.4tn accountability question

The N10.4 trillion is not a marginal sum. It represents resources that went directly to states and local governments at a time when Nigerians were facing some of the most difficult economic conditions in years.

NECA’s position is therefore that additional revenue must be accompanied by additional transparency.

Oyerinde compared the responsibility of governments to the obligations imposed on private companies, arguing that businesses are expected to prepare audited accounts and present performance reports to their shareholders.

“If you look at private businesses, at the end of the year you audit your accounts, you present your scorecard to your shareholders to gauge what we have done,” he said.

His argument strikes at the heart of Nigeria’s fiscal accountability challenge.

Citizens are, in effect, the ultimate stakeholders in public finance. Governments collect taxes, receive statutory allocations and benefit from revenues generated from the country’s natural resources and economic activities. Yet ordinary Nigerians often struggle to establish precisely how these resources are spent.

The demand by NECA is that this information gap should no longer be tolerated, particularly where such enormous additional revenues are involved.

State governments should, according to the employers’ body, disclose how much they received, what portion was spent, the sectors that benefited, the projects financed and the constraints encountered in deploying the funds.

Such disclosures would make it possible to move the conversation away from broad claims about government performance and towards measurable outcomes.

Subsidy removal and the politics of shared revenue

The issue is particularly sensitive because the money being discussed emerged against the backdrop of one of Nigeria’s most politically contentious economic decisions.

President Bola Tinubu’s declaration that “fuel subsidy is gone” in May 2023 immediately altered the economics of petrol consumption in the country.

The subsidy had been defended for years as a means of protecting Nigerians from the full cost of imported petrol. But successive administrations also struggled with the financial burden associated with maintaining it.

The Federal Government eventually made its removal a central pillar of its economic reform programme.

The policy generated an immediate increase in petrol prices and intensified inflationary pressures. Transport fares rose, businesses faced higher logistics costs and household incomes came under greater pressure.

The government’s counterargument has been that subsidy removal freed resources that could be redirected to productive uses and social and economic development.

Oyedele’s latest disclosure appears to reinforce that position from the revenue side.

However, the N10.4 trillion question introduces another dimension: how much of the additional revenue has actually translated into better lives for citizens?

That question cannot be answered by the Federal Government alone because a substantial portion of the money went to states and local governments.

This is precisely why NECA is demanding that the accountability process extend beyond Abuja.

States now face a credibility test

The challenge before state governments is straightforward but politically consequential.

If they received substantial additional allocations, they should be able to show where the money went.

That could mean roads, schools, hospitals, water projects, agricultural programmes, security, workers’ salaries, infrastructure, debt servicing or other legitimate public expenditure.

But simply listing projects may not be enough.

Citizens will increasingly want to know how much was spent, when the expenditure occurred, who received the contracts and whether the projects were completed.

That is where public accountability becomes more than an accounting exercise.

For example, a state government that received billions of naira in additional allocations should be able to demonstrate whether the funds resulted in new infrastructure, expanded social services or stronger economic activity.

If a government says the money was consumed by salaries and recurrent expenditure, it should also be able to explain why and whether the expenditure was necessary.

The same principle applies to local governments.

The constitutional and political debate surrounding local government financial autonomy has placed increasing attention on the resources available to councils. The disclosure that N10.4 trillion went to states and local governments therefore makes transparency at the grassroots even more important.

Oyerinde said citizens should use the opportunity to engage governments more constructively.

He argued that development should ultimately start at the state and local government levels, where citizens interact most directly with government.

That observation is critical.

A federal government policy may be designed in Abuja, but its impact is experienced in communities. A state government’s expenditure on roads, schools or healthcare is felt directly by residents. Local government spending on primary healthcare, sanitation, markets and rural infrastructure can have an even more immediate effect.

The missing link between revenue and development

Nigeria’s central economic problem has never been simply the absence of public revenue.

The country has generated enormous sums from oil, taxes, customs duties and other sources over several decades.

The deeper problem has been the conversion of public revenue into sustainable economic development.

That is why the latest N15.8 trillion figure should not be viewed merely as a success statistic.

Revenue mobilisation is only the first stage.

The real test is whether the additional resources produce measurable improvements in infrastructure, productivity, employment, healthcare, education and living standards.

This is particularly important for the business community represented by NECA.

Manufacturers and employers need more than larger government revenues. They require functional infrastructure, reliable electricity, efficient transportation networks, predictable policies and a consumer population with sufficient purchasing power.

If additional public revenue is effectively invested in these areas, businesses ultimately benefit through lower operating costs and improved productivity.

But if the money disappears into poorly explained recurrent expenditure, abandoned projects, inflated contracts or other forms of inefficient spending, the economic benefits of the reforms become much harder to demonstrate.

Transparency could change the reform narrative

The political narrative surrounding the Tinubu administration’s economic reforms has been dominated by two competing positions.

Supporters argue that the reforms corrected structural distortions and created the foundation for stronger public finances.

Critics counter that the immediate burden has fallen disproportionately on ordinary Nigerians, while the promised benefits remain insufficiently visible.

The N10.4 trillion disclosure could therefore become an important test of both arguments.

If states and local governments can demonstrate that the additional revenues were responsibly deployed, the figures could strengthen the case that subsidy removal and other reforms have created resources for development.

If governments fail to provide convincing accounts, however, questions about the effectiveness and fairness of the reforms are likely to intensify.

This is why NECA’s demand goes beyond bookkeeping.

It is essentially a demand for evidence.

Citizens need to see the connection between the money generated by reforms and the improvements promised by government.

The Federal Government has set a precedent

Oyerinde commended the Finance Minister for publicly presenting details of the Federal Government’s finances, describing the disclosure as a step towards greater transparency.

That endorsement also creates a benchmark for the sub-national governments.

If Abuja can disclose how much it received from the reforms, states should be able to provide comparable information about their allocations.

The logic is difficult to dispute.

A federation in which revenue is publicly accounted for at the federal level but becomes opaque after distribution to states and local governments cannot claim to have achieved full fiscal transparency.

The expectation should therefore be for a comprehensive fiscal trail from the Federation Account to the final expenditure.

That would give Nigerians a clearer picture of how the money moved and what it achieved.

Citizens at the centre of the accountability debate

Perhaps the most important aspect of NECA’s intervention is its emphasis on citizens.

For years, public finance debates in Nigeria have often remained confined to government officials, economists, legislators and political actors.

But citizens are the people ultimately paying for economic reforms through taxes, higher prices and reduced purchasing power.

They therefore have a legitimate interest in knowing how public resources are deployed.

Oyerinde believes citizens should now engage state and local governments constructively.

That engagement could take many forms: demanding budget information, monitoring projects, questioning expenditure priorities and comparing government promises with actual outcomes.

Greater access to information would make such engagement more meaningful.

The N10.4 trillion disclosure has therefore created an opportunity for a wider national conversation about fiscal responsibility.

The question is no longer simply whether subsidy removal increased government revenue.

The bigger question is whether Nigeria’s political system can convert that additional revenue into visible and sustainable development.

A new accountability benchmark

The Federal Government’s disclosure has effectively placed a large figure on the table: N15.8 trillion generated from reforms, with N10.4 trillion going to states and local governments.

The next chapter should be about accounting for that money.

State governments should not wait for accusations before providing information. Commissioners for finance can publish allocation figures, expenditure records and project reports. Local governments can provide corresponding details about resources received and how they were deployed.

Such disclosures would not necessarily mean that every naira was spent on capital projects. Governments have legitimate recurrent obligations, including salaries, pensions, healthcare, education and debt commitments.

But transparency requires that citizens know the choices made with their money.

That is the standard NECA is now demanding.

And as Nigeria continues to grapple with the consequences of sweeping economic reforms, the credibility of the entire reform programme may increasingly depend not only on how much money government generates, but on how honestly, efficiently and transparently every naira is accounted for.

The N10.4 trillion shared with states and local governments has consequently become more than a fiscal statistic. It is now an accountability test.

For state governors, local government authorities and their finance officials, the message from the organised private sector is clear: show Nigerians what you received, show them what you spent, explain the challenges and, most importantly, show them what the money achieved.

 

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