Unviable football clubs drain states billions of naira yearly

Rivers United won the 2021/2022 NPFL

Premiere leagues in some jurisdictions globally are money spinners. Players bask in comfort while plying their trade. But in Nigeria, the reverse is the reality, with allegations of state governors using them as “revenue points” for political jobbers. The sheer mockery of club
football made by these clubs has led to strident calls for the clubs to sell shares to investors and become publicly quoted companies. GOWON AKPODONOR reports that translating that to reality is akin to Waiting For Godot.

Recently, a survey by BudgIT (a civic organisation that applies technology for citizens’ engagement with institutional improvement to facilitate societal change) reported that 33 state governments cannot finance their recurrent expenditures without monthly allocations from the Federation Account.
 
The report, which said that the prevailing economic situation has made it difficult for most states to meet their obligations to citizens, added that states have increasingly started depending on the Federation Account to maintain their respective workforces and fund their developmental projects.
 
What this means is that without the Federation Account, most of the states will become insolvent and unable to meet their responsibilities.
BudgIT explained that going by its findings, many states would be in jeopardy if federal allocations were to be reduced owing to oil price fluctuations. It said only three states, Lagos, Rivers, and Akwa Ibom can function without federal allocations, with 16 others only able to function marginally.
  
In their paper, Financing State Governments in Nigeria, 1980-2007 (Pp. 204-215), Akujiobi, Linus Eze, and Akujiobi A.B.C, both of the Federal University of Technology,