ABUJA — The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has moved to clear misconceptions regarding the funding of the nation’s capital, revealing that the territory receives only a small fraction of the federation’s monthly revenue.
Speaking in a video released by Voice TV Nigeria, Wike explained that the FCT’s financial allocation is not calculated on the same basis as the 36 states. Instead, its funding is strictly tied to a 1% share of the Federal Government’s total monthly earnings.
The Math of Governance
To illustrate the FCT’s financial reality, the Minister provided a breakdown of how fluctuations in federal revenue directly impact the city’s ability to function. He stated that if the federal government earns ₦1 trillion in a month, the FCT receives just ₦10 billion. He pointed out the significant gap between these receipts and fixed costs, noting that the monthly salary bill alone can exceed ₦12 billion, leaving a deficit even before projects are considered.
Demands vs. Resources
Wike addressed critics of his administration, arguing that many do not understand the sheer scale of the costs involved in running Nigeria’s administrative hub. He noted that the FCT is expected to deliver world-class infrastructure, ensure the security of the nation’s seat of power, and provide social services for both the city center and its rapidly expanding satellite towns.
The Minister emphasized that critics often overlook the comprehensive costs of governance, which include public servant salaries, massive ongoing construction, and the maintenance of essential services for a growing population.
Calls for Understanding
The Minister’s disclosure comes amid ongoing debates over the FCT’s budget and development pace. By highlighting the 1% formula, Wike aims to reset public expectations, emphasizing that the territory’s progress is tethered to the nation’s overall economic performance. Despite these constraints, the Minister maintained that his administration remains committed to prioritizing critical projects that improve the lives of residents while navigating the territory’s unique financial framework.
