Plateau State Governor Caleb Muftwang has disputed President Bola Tinubu’s claim that the removal of fuel subsidy has led to an increase in monthly federal allocation to states.
Speaking on Channels Television’s Sunrise Daily, Governor Muftwang said: “It is true that in terms of amount, it has actually increased but in terms of purchasing power, in terms of real value, it has decreased very significantly.”
He noted that the prices of essential materials like diesel, cement, and iron rods have increased, reducing the purchasing power of the allocated funds.
Governor Muftwang added: “So, 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. It doesn’t need any rocket science. When the last administration came in 2015, the dollar exchanged to 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. We are still a consumer nation; many of the things we are using in governance are imported and so they are dollar-denominated.”
Governor Muftwang declined to give an exact figure of the monthly allocation to his state, citing fluctuations in the amount received. He emphasized the need to consider the real value of the allocation, rather than just the amount.
