Governor Chukwuma Soludo of Anambra State expressed concerns about the financial challenges facing the state and the nation.
Speaking at The Platform, a program hosted by Covenant Nation in Lagos to commemorate Democracy Day 2024, Soludo highlighted the economic hardships endured by Nigerians, particularly the over 100 million citizens living in multidimensional poverty.
Soludo shared his empathy for Nigerians during these tough times, noting his desire to provide significant financial relief to every resident of Anambra State.
However, he pointed out the impracticality of such an idea. He explained that if the state’s total monthly revenue, including allocations from the Federation Account Allocation Committee (FAAC) and Internally Generated Revenue (IGR), were to be distributed among Anambra’s estimated 8.5 million residents, each person would receive less than N2,500.
He further elaborated that the state’s limited revenue must also cover essential expenditures such as salaries, pensions, infrastructure projects, and investments in health and education.
For instance, the state recently recruited over 8,000 teachers and more than 1,000 healthcare workers, all of whom require compensation from the same constrained budget.
Governor Soludo warned of Nigeria’s severe fiscal challenges, noting that the country has one of the lowest tax revenues globally.
Additionally, the national debt has reached a critical level, leaving little room for further borrowing without incurring high costs. Despite these constraints, the demands and needs of the population continue to grow rapidly.
Soludo mentioned that while the Federal Government might consider printing more money as a short-term solution, this could lead to hyperinflation, causing the price of everyday items, such as a bottle of coke, to skyrocket to N1 million within weeks.
