Co-founder of the BudgIT Foundation, Seun Onigbinde, has characterized Nigeria's budgeting process as disorganized and lacking in coordi...
Co-founder of the BudgIT Foundation, Seun Onigbinde, has characterized Nigeria's budgeting process as disorganized and lacking in coordination, stating that the system has entirely collapsed and lost its way.
Speaking to Channels Television in an interview on Wednesday, Onigbinde stated that the federal government's budgeting system "is in disarray," noting that the process has lost all sense of financial responsibility, planning, or accountability.
He mentioned that the federal government has kept prolonging several budgets past their calendar years, leading to confusion in project implementation and financial reporting.
He pointed out that the budgets for 2023 and 2024 were prolonged into 2025 without adequate reasoning, cautioning that these extensions undermine financial management and erode public confidence in the budgeting procedure.
He stated that while President Bola Tinubu approved the 2025 budget earlier in the year, actual funding activities only started in October, several months into the financial year.
Onigbinde stated that the delay highlighted a clear separation in how the government handles its financial obligations, emphasizing that this trend reveals a significant structural issue within the federal government's financial framework.
He stated, "The president approved the 2025 budget in March, yet we are only beginning the capital implementation process in October. This indicates a challenge within the federal government's financial framework."
He mentioned that by the third quarter of 2025, the government has not yet published any implementation report for the year, indicating there is no documentation available regarding the budget execution in the first and second quarters.
He mentioned that the absence of records makes it impossible for Nigerians to know which initiatives are being carried out or how important they are to the country's growth.
He stated that sound financial management requires that after a fiscal year concludes, the government should finalize accounts, recover any unused funds, and submit an additional budget — rather than prolonging previous budgets into the next year.
He stated, "You can't keep prolonging the budget cycle for another 18 months or 12 months. It leads to confusion. What we currently have is the 2024 budget carried over into 2025, and we're questioning when the 2025 budget will actually start."
Onigbinde stated that the present scenario indicates Nigeria is no longer taking its financial development seriously, pointing out that inadequate collaboration among the Budget Office, the Ministry of Budget and National Planning, and the Ministry of Finance has made matters worse.
He stated that the failure in coordination is on the president's table, adding that he must be held accountable for making sure the different financial agencies operate together effectively.
He mentioned that during the tenure of former President Muhammadu Buhari, there was at least a structure in place that made sure the budget cycle operated from January 1 to December 31, even if the submission was delayed.
He stated that the present administration had "violated that agreement," pointing out that there was now no consistent budget schedule directing financial activities.
He stated, "At times, the budget under Buhari was submitted late, but they ensured that the budget was enacted into law on the first day of the year. What we face today is a system without a schedule, which is truly disappointing."
Onigbinde pointed out that the present circumstances have resulted in the nation lacking any reliable financial guidance, further stating that by November 12, 2025, there was still no Medium-Term Expenditure Framework (MTEF) document or a proposed 2026 budget under consideration by the Federal Executive Council.
He mentioned that this was a clear indication of how much financial responsibility had declined.
He mentioned that in past administrations, budgets were occasionally released as early as October to ensure sufficient review before the end of the year, but the present government has not continued this practice.
Onigbinde stated that the effects of the delay were already evident in the subpar execution of capital projects and the growing dissatisfaction among contractors.
He stated, "By the time you review the capital expenditure for 2024, it was estimated at N12 trillion, but we only spent N6 trillion. That represents a 50 percent capital performance. Also, keep in mind that the 2024 capital performance carried over into 2025. So, in technical terms, we haven't implemented any new projects in 2025."
He mentioned that even if the government publishes a 2025 implementation report, it would only include ongoing expenses like salaries and administrative costs, not capital projects, as those initiatives have not yet begun.
He mentioned that the nation's debt repayment expenses had almost doubled, increasing from N6.86 trillion to N12.36 trillion, while income numbers, despite being higher in nominal value, remained insufficient to support the size of the federal budget.
He stated that federal government revenue increased from N12.4 trillion in 2023 to N20.98 trillion in 2024, an increase of approximately N8 trillion, although this growth was mainly due to the depreciation of the naira rather than actual productivity gains.
He mentioned that the federal government aimed to collect N25 trillion in revenue for 2024 but managed to obtain only N21 trillion, increasing its budget shortfall.
He mentioned that even with the increased figures, taking on debt was unavoidable since the majority of the revenue was being allocated towards paying off debts, required transfers, and operational expenses, resulting in minimal or no funds available for capital spending.
He stated, "Regardless of how impressive the revenue numbers may appear, they still fall short of the target. Once you factor in statutory transfers and other regular expenses, there's essentially nothing remaining for capital projects without taking on debt."
He mentioned that the federal government should avoid the urge to return to the "dark days" when the Central Bank of Nigeria was treated as a "piggy bank" for financing shortfalls.
He mentioned that the National Assembly should also be accountable by reducing unnecessary additions and backing the executive in focusing on critical capital projects.
He stated, "If this doesn't occur, we will continue to face oversized capital budgets that remain unfulfilled, which is precisely the current scenario."
He observed that numerous contractors continued to voice complaints about unpaid agreements that had been finalized over a year ago, indicating the severity of the financial crisis.
He mentioned that the president needs to quickly establish clear financial priorities, and if funds are insufficient, develop additional budgets instead of extending previous ones indefinitely.
He stated, "The president needs to establish his priorities correctly. If any of these priorities lack the necessary funding, it should be included in a supplementary budget and carried over to the following year."
He mentioned that the uneven distribution of the budget was not beneficial for national progress and might undermine public trust in governmental bodies.
He stated, "This uneven budget execution is of no benefit to the country's growth. What is required is transparency, responsibility, and cooperation."
Copyright 2025 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (okay1)
Tagged: Nigeria, Governance, Economy, Business and Finance, West Africa
Provided by SyndiGate Media Inc.Syndigate.info).
COMMENTS