Plateau State Governor, Caleb Manasseh Mutfwang, has said the declining purchasing power by citizens is impacting on states’ revenues despite an increase in the accruals from the federal government.
Mutfwang was speaking as a panelist at the launch of the May 2025 edition of the Nigeria Development Update (NDU), a flagship World Bank report series that assesses Nigeria’s economic and social development prospects.
The governor, according to the Director of Press and Public Affairs, Gyang Bere, also disclosed that the state is on the rise and steadily charting a course toward economic prosperity.
However, he expressed concern over the hardship and declining purchasing power.
Weekend Trust reports that revenues accruing to states from the federation account have increased significantly following the removal of fuel subsidy by the President Bola Ahmed Tinubu-led government.
A recent report indicated that revenues to the federal, states and local governments rose from N760bn in 2023 to N3.2 trillion in 2024 on account of fuel subsidy removal by the federal government.
While the governor acknowledged the increase, he said the impact is not being felt because of the declining purchasing power.
He said, “Yes, revenue to the state has increased—there’s no doubt about that. But we cannot ignore the harsh reality that purchasing power has significantly declined.
“As leaders, we are committed to responsible spending aimed at improving the wellbeing of our people, and we continuously engage in peer reviews to enhance our approach.”
Giving an update on performance in his state, the governor said, “There is a remarkable improvement in Internally Generated Revenue (IGR) in Plateau State. When we took over office, Plateau was generating about N800 million monthly.
“I am pleased to report that we now generate over N3 billion monthly. The key to this growth is strategic investment in sectors where we have comparative advantage.
“In 2023, our budget for agriculture was around N3 billion. This year, we increased it to N13 billion. We’re investing in the entire value chain. Plateau is also among the first states to establish a Ministry of Livestock, following the Federal Government’s lead, due to our advantage in that sector,” he said.
The governor also stated that insecurity remains a challenge to the state as funds meant for critical infrastructure and development are being diverted to tackling insecurity in the state and at the national level.
Governor Mutfwang also spoke on efforts to support vulnerable populations, explaining that subsidies have been provided in agriculture through access to inputs, adding that on human capital development, scholarships for indigent students had been increased by 100percent, and tuition fees in tertiary institutions subsidized.
