BudgIT has raised concerns over an N3.42 trillion discrepancy in the proposed 2024 Appropriation Bill recently presented to the National Assembly by President Bola Ahmed Tinubu for approval.
In a statement on Monday, BudgIT noted that from its review, the total size of the 2024 budget is N24.08 trillion, N27.5 trillion aggregate budget presented. This, it said, indicates a disparity of N3.42 trillion compared to the sum presented, and it was called an act of consistent corruption in the country’s budgeting process.
“The proposed budget’s total sum is N24.08 trillion, indicating a discrepancy of N3.42 trillion compared to the N27.5 trillion aggregate budget presented. We suspect that the difference above comprises the aggregate budgets of the Government-Owned Enterprises,” said BudgIT, a leading civic-tech organization promoting transparency, accountability, and effective service delivery in Nigeria.
According to the statement published on the organisation’s X account, the difference observed comprises the aggregate budgets of the Government-Owned Enterprises. “To this effect, the Government-Owned Enterprises’ proposed revenue and expenditures require disaggregation. The revenues and expenditures of several Government-Owned Enterprises have historically been absent from formal budget presentations,” it stated.
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It also noted duplications in allocations, particularly in renovating the president’s and vice president’s quarters. It stated that while the Federal Government made provisions for a cumulative sum of N8 billion (N4 billion each) through the 2023 supplementary budget for the renovation the President’s official quarters in Aso Rook Villa and Dodan Barracks, an additional N500 million has been re-allocated to the renovation of the President’s quarters in Aso Rock Villa, with N5 billion earmarked for the renovation of the President’s quarters in Dodan Barracks.
Also, the Vice President’s quarters in Lagos and Abuja, which got a cumulative sum of N55 billion in the 2023 supplementary budget for renovation, equally got allocations of N4 billion, N300 million, and N5 billion each in the 2024 budget.
Cumulatively, the President and Vice President have a total allocation of N283 billion to either renovate or construct their quarters in Lagos and Abuja and another N10 billion to digitize those quarters.
Contextualising the development, BudgIT notes that the funds set aside to renovate, construct, and digitalise the official residences of the President and Vice President are more than the capital budget of the Ministry of Solid Mineral Development and the Ministry of Steel Development put together.
“Recall that in August 2023. We itemized ten plagues that the Tinubu administration should avoid in the 2024 budget and budget process to ensure value for money and curb expenditure inefficiency and waste. Enforce accountability and put Nigeria on the pathway of prosperity, economic growth and development.
“Unfortunately, having reviewed the proposed 2024 Appropriation Bill breakdown, we observed that the Bola Ahmed Tinubu administration has continued with some deleterious budget practices from previous regimes that have fostered corruption, underdevelopment, unemployment, and multidimensional poverty,” it stated.
In the statement which was signed by Nancy Odimegwu, communications Associate for BudgIT, the organisation noted that the revenue projections, which have generally been ambitious and unmet, even in aggregate.
It stated that there was need for budget revenue projections to align with fiscal realities, which must be done realistically and pragmatically adding that with net oil revenue falling on average in the last three years, it serves as a generally unreliable source of government revenue. “The Nigerian government’s focus needs to be directed beyond customs revenues and value-added.
“The service-wide vote, which was established as a contingency fund to address unforeseen circumstances and events, has increased exponentially in recent years from N198.95 billion (2.18% of the budget) In 2018 to N757.1 9 billion (5.54% of the budget) in 2021, and more recently to N4.41 trillion (16.03% of the budget) in 2024, In addition, the service-wide vote provision contains budget lines that should be captured within MDAs‘ budgets and vague budget lines that create loopholes for impropriety and/or corruption.
“For example, the service wide vote envelope in the 2024 Appropriation bill contains N108 billion for “special projects” With the project code “ERGPQ213044.” To worsen the situation, the federal government budget implementation reports often contain no information on how service eide votes are Utilized.
“To this end, we urge the National Assembly to recognize the budget’s pivotal role as a government policy instrument and conduct a thorough examination. We call for a comprehensive review that prioritizes broad-based economic growth, reduces inequality, addresses poverty, tackles insecurity, bridges Nigeria’s infrastructure gap, and invests in human capital development.”
“The proposed Appropriation Bill indicates plans to borrow $7.8 billion and €100 million (approximately N6 trillion) to fund the Medium-Term Expenditure Framework (MTEF). The Federal Government has projected a foreign borrowing of N1.77 trillion to finance the fiscal deficit of the 2024 budget; hence, should the government be seeking approval to borrow to fund budgets (2025 and 2026) that are not currently in existence?”
The proposed Appropriation Bill indicates plans to borrow $7.8 billion and €100 million (approximately N6 trillion) to fund the Medium-Term Expenditure Framework (MTEF). The Federal Government has projected a foreign borrowing of N1.77 trillion to finance the fiscal deficit of the 2024 budget; hence, should the government be seeking approval to borrow to fund budgets (2025 and 2026) that are not currently in existence?
It also noted the absence of crucial budget breakdowns from the National Assembly, Government-Owned Enterprises, and some Ministry Departments and Agencies in the 2024 budget proposal. For instance; there is no breakdown of the National Assembly, the Niger Delta Development Commission, and the North East Development Commission’s budget.
For emphasis, the budgets of key revenue-generating government entities, including the Nigeria Ports Authority, Nigeria Customs Service, Nigerian Maritime Administration and Safety Agency (NiMASA). National Petroleum Investment Management Services (NAPIMS). Nigerian Security Printing and Minting Plc (NSPM). a few are conspicuously missing from the proposed 2024 budget presented to the National Assembly.
