A report by BudgIT, an accountability agency, has revealed that the Federal Authorities spent 3 times its income in 2023, leading to a deficit of N13.50tn.
In its evaluation of the 2023 fiscal accounts from the Workplace of the Accountant-Normal of the Federation, BudgIT acknowledged that the federal government’s income final yr was N5.99tn, whereas it spent N19.50tn, exceeding its earnings by 225 per cent.
The report confirmed that the income got here from numerous sources, together with N3.80tn from the Federation Account Allocation Committee, N1.98tn from the Federal Authorities’s unbiased income, and N202.54bn from different sources.
This deficit highlights the federal government’s continued drift away from fiscal duty, because it borrows greater than it earns, perpetuating a cycle of debt and monetary instability.
Reacting to this, a fiscal accountability professional on the Centre for Fiscal Transparency and Integrity Watch, Victor Agi, sounded the alarm on Nigeria’s escalating debt disaster, warning of extreme financial implications if pressing motion just isn’t taken.
“The economic system is bleeding and we’re struggling to fund capital expenditure. The implications are dire,” Agi mentioned.
He criticised the federal government’s dealing with of the economic system, stating, “It reveals how irresponsible the handlers of the economic system have been since a few years now.”
Agi famous that Nigeria has skilled no financial development since 2014, with the economic system experiencing damaging development. “If nothing is finished about it, it’ll proceed,” he warned.
He expressed concern over the federal government’s borrowing habits, saying, “The issue just isn’t the truth that the federal government is borrowing, however what are we borrowing for? We’re borrowing to fund debt, to fund frivolities.”
Agi identified that solely 4.4 per cent of the federal government’s N19tn expenditure final yr was used for capital expenditure, describing it as “not acceptable.”
He warned that the implications of the federal government’s actions are already being felt, with the price of residing escalating and extraordinary folks struggling to make ends meet.
“The cash we’re borrowing just isn’t the issue per se. The truth that we’re borrowing to service debt, to fund frivolities, is the issue,” Agi emphasised.
He known as for fiscal duty, urging the federal government to prioritise funding for the true sector of the economic system and capital expenditure.
“Our fiscal handlers should be extra accountable if we’ll get out of the present financial scenario,” he mentioned.
A public coverage fanatic, Femi Oladele, additionally expressed issues over the Nigerian authorities’s spending habits, warning that the nation’s financial woes could worsen if not addressed.
Oladele famous that spending a couple of earns just isn’t inherently dangerous, however emphasised the necessity to study the breakdown of such expenditures.
“If I earn N200,000.00 month-to-month, however spend N1,000,000.00 in three months – that’s not essentially dangerous. But when we verify what I spent the cash on, we will then draw subjective inferences,” he mentioned.
He questioned the federal government’s priorities, suggesting that they could be counting on unknown “windfalls” to maintain their spending habits.
“For my part, it seems to be like our Authorities believes (or is aware of) that there’s some sort of windfall someplace that others don’t know,” Oladele acknowledged.
He criticised the federal government’s tendency to prioritise non-essential expenditures, saying, “There are some expenditures that may wait…until we exit this financial doldrum, nevertheless it seems they don’t seem to be so frightened.”
Oladele additionally highlighted the necessity for native funding to stimulate financial development and growth.
“Most of these spendings are sadly not native, so would have little influence on our economic system straight. We have to make investments domestically to spur financial actions that may escalate development and growth,” he emphasised.
