BudgIT concern over irregularities in 2025 proposed budget

BudgIT,   a   leading   civic-tech   organisation   promoting   transparency,   accountability,   and   effective service delivery in Nigeria, said it has observed certain legacy issues with the 2025 Federal Government proposed   Budget The organisation  calls on  the  National Assembly   to   proactively   address   the   irregularities, exercise its “Powers of the Purse” responsibly, allow robust public participation in the budget review process.

In a statement issued and signed by Communications Associates, BudgIT, Nancy Odimegwu, the Civic tech organisation urged the National Assembly to ensure that the  approved   budget  reflects   the   needs   and  preferences  of   Nigerians through job creation, poverty reduction, and inclusive broad-based economic growth.

 The statement, however, said that a review of the performance of the Federal Government budget over recent years has revealed that the Federal Government often falls way off the mark in its macroeconomic assumptions, which pose   serious   fiscal   risks   leading   to   severe   budget   financing   challenges,   additional   unforeseen government   obligations,   and   a   significant   increase   in   public   debt. 

According to the statement, the   government’s   inflation projection of 15 per cent in the 2025 fiscal year appears grossly unrealistic, considering that inflation, which stood  at   34.6 per cent   as   of   November   2024,   has  been driven not only by monetary factors such as exchange rate and money supply but also by the constant increase in food and energy prices—both of which the government has not created a clear roadmap to resolving in the short term.

It said while the oil price projection of $75 per barrel appears feasible given the global outlook of $70 to $73 per barrel, BudgiT strongly  advise the National Assembly to  resist  the   urge   to   increase   the   oil   price benchmark to create fiscal space for their budgetary insertions, a practice observed in previous years. 

BudgIT in its observation recalled in 2021 that 5,601 capital projects were added to the Appropriation Bill during the review process by the National Assembly, but in 2022, it increased to 6,462 projects across 37 Mother Ministries and 340 MDAs, while in 2024, a total of 7,447 insertions amounting to a staggering N2.24 trillion were found in the budget. 

It said while the Constitution grants the National Assembly the authority to appropriate funds, it often modifies the Executive’s proposed budget to distort its original intent and disconnect it from the nation’s long-term development agenda. It pointed out that many inserted projects   usually   lack   proper   conceptualisation,   design,   and   cost   estimation,   undermining   their effectiveness and feasibility.

BudgIT said “We have observed that the 2025 proposed budget breakdown submitted to the National Assembly for review and approval and published on the Budget Office website omits funding for the Lagos-Calabar Coastal Road and the breakdown of some MDAs, commissions, and councils, such as the National Judicial Council (N341.63 billion) and TETFUND (N940.5 billion). 

“The 2025 Proposed Budget also excluded the budgets of over 60 government-owned enterprises (GOEs), including the Nigeria Ports Authority, Nigeria Customs Service, and the Nigerian Maritime Administration and Safety Agency (NIMASA).”

BudgIT urged the National Assembly to reviews the 2025 proposed Budget, stating the need  to prioritise national interest over personal or parochial considerations and ensure that the approved budget stimulates economic activities and macroeconomic  stability, allocates resources to foster economic growth and development, equitably distributes resources to reduce poverty and inequality, and caters to the most vulnerable Nigerians.