Plateau State Governor Caleb Muftwang criticizes the decreased purchasing power of federal allocations despite rising amounts. He attributes this to inflation and the unstable naira, impacting the value of funds for state projects. Muftwang urges a focus on real value rather than just nominal figures.
Plateau State Governor Caleb Muftwang has raised concerns about the real value of federal allocations despite an increase in the total amount disbursed to states. Speaking on Channels Television’s Sunrise Daily, Muftwang highlighted that while the nominal figure of allocations has risen, its purchasing power has significantly decreased due to inflation and unstable naira.
The governor pointed out that essential construction materials, such as diesel and cement, have become more expensive, affecting state projects. He criticized the government’s emphasis on the increased allocation without considering its reduced value in real terms. Muftwang emphasized that the fluctuating exchange rate and the high cost of imported goods are eroding the effectiveness of the funds received from the Federation Account Allocation Committee (FAAC).
Despite the increased federal allocations, the true impact on state finances is diminished by the soaring costs of goods and services essential for governance and infrastructure development.
