Nigeria’s 2025 Budget Proposal Under Scrutiny: BudgIT Unveils Critical Omissions and Irregularities
Nigeria’s proposed 2025 federal budget has come under intense scrutiny from BudgIT, a civic-tech organization dedicated to promoting transparency and accountability in governance. BudgIT’s analysis has revealed a series of concerning omissions and irregularities that raise serious questions about the budget’s credibility, its alignment with national development goals, and its potential impact on the country’s fiscal health. The organization’s findings, released in a statement, highlight significant gaps in budget transparency, questionable allocations, and discrepancies between the proposed budget and the government’s stated commitment to fiscal responsibility. These issues, if left unaddressed, could undermine the effectiveness of the budget and hinder Nigeria’s progress towards sustainable economic development.
Central to BudgIT’s concerns is the lack of detailed budget breakdowns for crucial government agencies, including the National Judicial Council and TETFUND (Tertiary Education Trust Fund). The absence of this vital information obscures the allocation and utilization of substantial public funds, making it difficult to assess the efficiency and effectiveness of these institutions. Furthermore, the omission of budgets for several government-owned enterprises, such as the Nigeria Ports Authority and the Nigerian Customs Service, raises red flags about potential revenue leakages and a lack of transparency in these revenue-generating entities. This opacity undermines public trust and hinders efforts to hold these agencies accountable for their financial performance.
Another area of concern highlighted by BudgIT is the allocation of a staggering N2.49 trillion to regional development commissions under the guise of personnel costs. This practice raises suspicions of budgetary manipulation and obfuscates the true nature of the commissions’ operational expenses. By categorizing these expenses as personnel costs, the government effectively shields them from proper scrutiny, hindering efforts to assess their impact and ensure their alignment with regional development priorities. This lack of transparency creates an environment conducive to mismanagement and undermines public confidence in the responsible use of public funds.
The exclusion of funding for the Lagos-Calabar Coastal Road, a major infrastructure project, from the proposed budget also drew criticism from BudgIT. The organization cautioned that the potential for later allocation of funds to this project could necessitate reallocation from other essential projects, jeopardizing the overall credibility and stability of the budget. Such ad hoc budgetary adjustments create uncertainty and undermine the government’s ability to effectively plan and implement its development agenda. This practice also raises concerns about potential political maneuvering and the prioritization of certain projects over others based on non-transparent criteria.
BudgIT also expressed reservations about President Bola Tinubu’s proposed military welfare packages, which include provisions for bulletproof SUVs and paid foreign medical treatment for military generals. These proposals appear to contradict the president’s earlier commitment to reducing the cost of governance and raise concerns about the potential strain on the already stretched federal budget. The organization argues that such expenditures should be carefully evaluated in light of competing national priorities, such as education, healthcare, and infrastructure development. A clear justification for these expenditures is necessary to ensure public understanding and acceptance of their necessity.
In its analysis of recent budget performance, BudgIT pointed out the government’s recurring struggles with inaccurate macroeconomic assumptions, which have contributed to fiscal risks, budget financing challenges, and a growing public debt burden. The insertion of over 7,400 capital projects totaling N2.24 trillion into the 2024 budget further underscores concerns about resource efficiency and alignment with long-term development objectives. This practice of inserting numerous projects without proper conceptualization, design, and cost estimation undermines their effectiveness and feasibility, leading to wasteful spending and hindering the achievement of meaningful development outcomes.
BudgIT urges the National Assembly to conduct a thorough and responsible review of the proposed 2025 budget, emphasizing the need for robust public participation to ensure that the final budget reflects the priorities of the Nigerian people. The organization stresses the importance of prioritizing job creation, poverty reduction, and inclusive economic growth in the budget allocation process. This includes ensuring that funds are allocated to programs and projects that have a demonstrable impact on the lives of ordinary Nigerians and contribute to sustainable development. Only through a transparent and participatory budget process can the government ensure that public resources are used effectively to address the pressing needs of the nation and its citizens.
