BudgIT Foundation, a civic-tech organization in Nigeria, and the Labour Party presidential candidate in the 2023 general election, Peter Obi have faulted President Bola Tinubu’s decision to implement four different budgets simultaneously.
They have described the implemention of the 2023 Approved Budget, the 2023 Supplementary Budget, the 2024 Approved Budget, and the 2024 Supplementary Budget concurrently as unprecedented and fundamentally flawed.
BudgIT, in a statement by its Communications Officer, Nancy Odimegwu expressed concerns regarding the government’s proposal to extend the implementation period of the 2023 Approved Budget and the 2023 Supplementary Budget from the proposed termination date of December 31, 2023, to December 31, 2024.
It highlighted that such decision deviates from standard global practices.
Typically, budgets are designed to run for 12 calendar months. The 2023 Approved Budget of N21.83 trillion, signed into law by former President Muhammadu Buhari in January 2023, was expected to follow this tradition.
“Standard practice should be that projects not catered to within a fiscal year are rolled over to the budget of a new fiscal year,” it said.
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Issues with concurrent budgeting
BudgIT pointed out that while the 2024 Appropriation Bill was being drafted, the National Assembly (NASS) passed the 2023 Supplementary Budget of N2.17 trillion, which President Bola Tinubu assented to barely two months before the end of the 2023 fiscal year. The National Assembly initially extended the implementation of the 2023 budgets to June 30, 2024, and has now pushed it further to December 31, 2024.
The BudgIT’s Country Director, Gabriel Okeowo argued that implementing four budgets concurrently would severely undermine budget credibility.
“The concurrent implementation of four budgets will lead to severe budget credibility issues, as revenues projected in 2024 alone would most likely be used in implementing four different budgets, negatively impacting service delivery in critical social sectors and the provision of essential public infrastructure,” he stated.
According to him, extending the capital budgets beyond 12 months contradicts the principle of annual public budgets and that, if allowed, the practice would convert Nigeria’s annual budget into a biennial one, a concept neither supported by the 1999 Constitution nor the Fiscal Responsibility Act of 2007. The organization emphasized that projects not covered within a fiscal year should be rolled over to the next fiscal year’s budget.
Frivolous spending and inefficient implementation
BudgIT also criticized the presence of many frivolous items in the 2023 budgets that will compete with essential projects in the 2024 Budget for the limited resources available to the Federal Government. They called for a return to a disciplined January-to-December budget calendar and urged the government to focus on projects and programs that align with Nigeria’s development goals, reduce inequality, and improve the lives of citizens.
“We also urge the Federal Government to identify and implement only the projects and programs that align with Nigeria’s overarching development goals, reduce inequality, and improve the lives of citizens, the bulk of whom are multi-dimensionally poor,” the statement said.
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Enter Obi’s observation
Peter Obi, the presidential candidate of the Labour Party in the last general election, also condemned the government’s decision. Expressing his displeasure on X, Obi stated that the concurrent implementation of multiple budgets shows disregard for fiscal responsibility, transparency, and accountability.
“This intentionally reckless action will lead to frivolous items in the approved budgets competing with essential projects for limited resources, further exacerbating the suffering of the Nigerian people,” Obi remarked, describing it as “a recipe for chaos, confusion, and catastrophe.”
He added that the leaders appear out of touch with reality and lack the competence to manage the nation’s finances effectively.
The former Anambra State governor said it’s unfortunate that “this deliberate act of fiscal recklessness”, which betrays one of the cardinal pillars of democracy, is being executed by those elected to represent the people.
“Leaders are elected to responsibly manage public resources in an organized way. I respectfully appeal and in fact, demand that this situation be reversed immediately in preference for a more responsible and transparent approach to budgeting.
“We must prioritize the needs of the Nigerian people, not the selfish interests of a few. This is a call to action for all Leaders to desist from actions that will further drive the country into economic chaos,” he said.
He further noted that neither the National Assembly nor the executive has any excuse to promote or condone such unconscionable behavior.
Obi’s statements reflect a broader sentiment of dissatisfaction among the Nigerian populace. Citizens and experts have called for a more responsible and transparent approach to budgeting. They demand that the government prioritize the needs of the Nigerian people over the interests of a few and adhere to fiscal policies that promote economic stability and growth.
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