Nigeria’s Ecological Fund: N39.62bn Disbursed Amid Rising Environmental Challenges
Nigeria’s 36 states have received a total of N39.62 billion from the ecological fund over the past year, according to data from the Federation Account Allocation Committee, published by the National Bureau of Statistics. This fund, crucial to addressing the country’s growing environmental challenges, including erosion, desertification, flooding, and oil spills, has sparked debate over its management and impact.
The ecological fund, established in 1981, is allocated at a rate of two per cent from the Federation Account. Its primary purpose is to assist all levels of government in tackling ecological problems, with disbursement overseen by the Ecological Fund Office, under the Office of the Secretary to the Government of the Federation.
From June 2023 to June 2024, the Federal Government distributed N39.62 billion among Nigeria’s 36 states. The allocation reflects the varied environmental challenges across the country, with funds distributed based on the severity of these issues. Kano State, grappling with severe erosion and flooding, received the highest allocation of N2.1 billion, averaging N175 million per month. Borno State, which continues to suffer from the environmental fallout of the insurgency, followed with N1.68 billion.
Recent heavy rains have exacerbated these challenges, rendering sections of the Kano-Maiduguri highway impassable and further straining the state’s resources. The Federal Government recently terminated the contract for Section 1 of this road project due to delays, as announced by the Minister of Works, Senator David Umahi.
In the wider context, the ecological crisis is reflected in a report by the United Nations Office for the Coordination of Humanitarian Affairs, which details the devastating impact of weather-related incidents in Nigeria’s BAY states—Borno, Adamawa, and Yobe. Between April and July 2024, these states experienced severe windstorms and flooding that affected over 124,000 individuals across 56 internally displaced persons (IDP) sites, leaving many in desperate need of shelter and basic services.
Despite the significant allocations, questions remain over the transparency and effectiveness of the ecological fund. Victor Agi, an advocate from the Centre for Fiscal Transparency and Accountability, criticised the lack of visibility in the fund’s management. “We don’t even get to know how the funds are used,” Agi said, questioning the fund’s efficacy in mitigating recurrent environmental disasters like flooding.
Echoing these concerns, Tobi Awolope, an environmental economist at the Centre for Agricultural Development and Sustainable Environment, highlighted the misdirection of resources as a significant issue. “The government has been intervening, but the right people and target population are not being adequately reached,” Awolope said, urging for more rigorous impact assessments to ensure that the fund achieves its intended objectives.
As the ecological challenges facing Nigeria intensify, there are growing calls for more stringent oversight and accountability in the management of the ecological fund. Experts recommend setting clear objectives and closely monitoring the allocation and utilisation of these funds to ensure they contribute effectively to ecological restoration and disaster prevention.
