Reality check..
By Ayuba Doekyil
In recent weeks, public debate has been loud over the “humongous” allocations handed to state governors from the federal purse.
Social media is awash with figures that run into billions, with many Nigerians asking why such massive funds are not translating into visible development.
But here’s the truth...while the allocations look large on paper, their actual value has been shrinking, thanks to the steady collapse of the naira.
Let’s take a step back.
On 28 September 2014, a dollar exchanged for N164. By 28 September 2022, that figure had climbed to N448. And by yesterday, 28 September 2025, the naira had crashed to a staggering N1,486 to $1.
What does this mean in practical terms?
A N10 billion allocation to a state government in 2014 was worth more than $60 million. The same N10 billion today is just about $6.7 million, almost ten times less in real value. On the surface, governors are receiving billions. In reality, the purchasing power of those billions has collapsed.
This same logic applies to individual income. In 2014, a N50,000 salary translated to about $305. In 2022, it shrank to $111. Today, it is barely $34.
The naira figures remain the same, but their worth has disappeared at the market stalls, the fuel stations, and in everyday living.
So, when Nigerians complain that states are “getting too much money,” the conversation misses a crucial point, volume is not value.
What looks like plenty on paper buys far less today than it did a decade ago. It is like seeing a bag of rice in 2014 go for N10,000, only for the same N10,000 today to fetch just a small rubber measure.
The truth is this, before we judge the allocations to governors by their billions, we must weigh them against the realities of the exchange rate and inflation. Otherwise, we risk mistaking big numbers for big value, when in fact, they are just billions on paper, but pennies in value.
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