BudgIT, a leading civic-tech organisation committed to promoting transparency, accountability, and effective service delivery in Nigeria, has raised concerns about several legacy issues in the 2025 Federal Government Proposed Budget.
The organisation is calling on the National Assembly to address these irregularities proactively, exercise its “Powers of the Purse” responsibly, and allow robust public participation in the budget review process.
The aim, according to BudgIT, is to ensure that the final approved budget reflects the true needs and preferences of Nigerians, focusing on job creation, poverty reduction, and inclusive, broad-based economic growth.
A review of the Federal Government’s budget performance over the past few years reveals a significant discrepancy between the government’s macroeconomic assumptions and the actual outcomes, leading to serious fiscal risks.
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These risks include unforeseen government obligations, challenges in budget financing, and a worrying increase in public debt.
BudgIT specifically flagged the government’s inflation projection of 15% for 2025 as unrealistic, given that inflation was at 34.6% as of November 2024. The surge in inflation has been driven by both monetary factors—such as exchange rate fluctuations and increased money supply—and the constant rise in food and energy prices, with no clear roadmap from the government for short-term resolution.
While the oil price projection of $75 per barrel appears feasible in light of global market trends, BudgIT cautioned the National Assembly against increasing the oil price benchmark to create fiscal space for budgetary insertions, a practice that has been observed in prior years.
In previous years, BudgIT has identified numerous budgetary insertions by the National Assembly that deviate from the federal government’s constitutional mandates and priorities. These insertions are often directed to Ministries, Departments, and Agencies (MDAs) that lack the capacity to effectively implement the allocated projects. For instance, in 2021, 5,601 capital projects were added during the review process. This number grew to 6,462 projects in 2022 and reached 7,447 insertions amounting to N2.24 trillion in the 2024 budget.
Despite the National Assembly’s constitutional authority to appropriate funds, these additions often distort the original intent of the executive’s proposed budget and disconnect it from the country’s long-term development agenda. Many of these inserted projects lack proper conceptualisation, design, and cost estimation, rendering them ineffective and infeasible.
Another concern raised by BudgIT is the omission of several MDAs, commissions, and councils from the 2025 budget breakdown. Key entities such as the National Judicial Council (₦341.63 billion) and TETFUND (₦940.5 billion) are absent, as are 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). This lack of transparency further exacerbates concerns about accountability and public oversight.
Furthermore, BudgIT pointed out a combined ₦2.49 trillion allocated to five regional development commissions (Niger Delta, South West, North East, North West, and South East) under the umbrella of personnel costs. This allocation clouds the true nature of these commissions’ operational expenses and raises questions about the efficiency and transparency of fund utilisation. For comparison, the Ministry of Interior, which oversees several key security agencies, has a significantly lower recurrent non-debt expenditure allocation of N648.84 billion.
Equally concerning is the absence of funding for the Lagos-Calabar Coastal Road, a major infrastructure project, from the 2025 budget. This omission suggests that if the project does receive funding, it may require the reallocation of resources from other critical initiatives, potentially hindering their successful implementation.
BudgIT also expressed concern over President Bola Ahmed Tinubu’s recent statements regarding the retirement benefits for military generals, including the provision of a bulletproof SUV, fully paid foreign medical treatment, and other welfare packages. These provisions contradict the president’s earlier commitments to reduce the cost of governance, and such expenditures risk inflating the budget, widening the fiscal deficit, and undermining the morale of lower-ranking military personnel who lack comparable benefits despite facing greater risks.
In its call to action, BudgIT urges the National Assembly to prioritise the national interest over personal or parochial concerns and ensure that the approved budget fosters economic growth, reduces poverty and inequality, and focuses on the needs of the most vulnerable Nigerians. The organisation believes that a well-executed budget can stimulate economic activities, promote macroeconomic stability, and facilitate the long-term development of Nigeria.
As the National Assembly reviews the 2025 Proposed Budget, BudgIT is appealing to lawmakers to uphold the principles of transparency, accountability, and responsibility in budgetary decisions.
