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Plateau Governor Caleb Mutfwang
The Plateau State Governor, Caleb Muftwang, has raised concerns about the impact of inflation and the depreciating naira on the real value of the monthly federal allocation to state governments.
The governor acknowledged that though the amount of the federal allocation has increased, its purchasing power has significantly diminished.
“In terms of amount, it has actually increased, but in terms of purchasing power and real value, it has decreased very significantly,” Muftwang told Channels Television’s Sunrise Daily on Tuesday.
The governor also pointed out the rising costs of essential materials like diesel, cement, and iron rods used in infrastructure projects.
“We shouldn’t just look at the amount; let’s look at the purchasing power of the amount that the state has so far received from the federation account,” he emphasised.
Muftwang further illustrated the economic challenge by comparing the exchange rate over time.
“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. And we are still a consumer nation; many of the things we are using in governance are imported and so they are dollar-denominated, ” he added.
President Bola Tinubu, during his Sunday broadcast, highlighted that his administration’s reforms, including the removal of petrol subsidy and the floating of the naira, have resulted in state and local governments receiving the highest allocations in the nation’s history from the federation account.
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