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SME Guide

Nigeria distributes N39.6 billion in ecological funds to 36 states

In a significant move to address environmental challenges, the Federal Government of Nigeria allocated N39.62 billion in ecological funds to its 36 states from June 2023 to June 2024, according to data published by the National Bureau of Statistics.

Key Highlights:

  • Kano State received the highest allocation of N2.1 billion.
  • Borno State, facing insurgency-related environmental issues, received N1.68 billion.
  • Lagos, Kaduna, and Sokoto were among the top recipients.
  • Kwara, Bayelsa, and Ondo received the lowest allocations.

The Ecological Fund: Purpose and Distribution

Established in 1981, the ecological fund comprises 2% of the Federation Account and aims to assist all government tiers in tackling ecological problems such as erosion, desertification, flooding, oil spills, and drought. The Ecological Fund Office, under the Office of the Secretary to the Government of the Federation, manages the disbursement process.

Environmental Challenges and Fund Allocation

Recent environmental events highlight the critical need for these funds.

  1. Heavy rainfall impacts:
    • Rendered parts of the Kano-Maiduguri highway are impassable.
    • It affected numerous states across Nigeria.
  2. Severe weather incidents in Borno, Adamawa, and Yobe (April–July 2024):
    • Affected 124,275 individuals across 56 IDP sites.
    • Caused by 46 heavy windstorms, 66 flooding events, and 115 combined incidents
    • Damaged camp infrastructure, including shelters and WASH facilities
    • 7% increase in weather-related incidents compared to the previous year
  3. Humanitarian crisis:
    • Only 5% of the affected population received shelter or non-food item assistance.
    • Over a million IDPs across three states are in need of support.
    • Borno State was most affected, with 114,747 IDPs impacted.

Expert Opinions on Fund Management

  1. Victor Agi, Centre for Fiscal Transparency and Accountability:
    • Expressed concerns over a lack of transparency in fund management.
    • Questioned the effectiveness of mitigating annual flooding
    • Suggested direct federal control for better accountability
  2. Tobi Awolope, Environmental Economist:
    • Highlighted issues of ineffective intervention and resource misdirection.
    • Emphasised the importance of impact assessments.
    • Recommended clear objectives and monitored fund utilisation

Recommendations for Improved Ecological Fund Management

  1. Establish clear objectives for interventions.
  2. Ensure funds reach targeted beneficiaries.
  3. Implement close monitoring of fund allocation and utilisation.
  4. Conduct regular impact assessments.
  5. Focus on ecological restoration and disaster prevention.

Conclusion

The distribution of N39.6 billion in ecological funds represents a significant effort by the Nigerian government to address pressing environmental challenges. However, experts emphasise the need for improved transparency, effective management, and targeted interventions to maximise the impact of these crucial resources on Nigeria’s ecological landscape.

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