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MONEY FOR NOTHING: How inflated budgets keep development at a standstill in Nigeria

W.N YEMI by W.N YEMI
June 4, 2025
in National
Reading Time: 3 mins read
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  • Misassigned projects, like town halls built far from responsible agencies, expose systemic failures in Nigeria’s public finance structure.
  • Inflated, vague, or duplicated projects delay vital services like healthcare and infrastructure, undermining development and public trust.

In Nigeria, inflated national budgets have long posed a barrier to effective development.

In recent months, new evidence has drawn attention to how irregularities in the 2024 budget process have deepened public mistrust and stalled progress on essential projects.

Allegations of budget padding—where expenditures are inserted without clear justification—have surfaced again, this time involving both independent civil society watchdogs and members of the National Assembly itself.

THE 2024 BUDGET AND ITS RAPID APPROVAL

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President Bola Tinubu submitted a proposed 2024 appropriation bill of ₦27.5 trillion in November 2023.

Within a month, the National Assembly had passed a revised version totalling ₦28.7 trillion—an addition of over ₦1.2 trillion.

While fast-tracked budget approvals are not uncommon in Nigeria’s Fourth Republic, the scale of the increase and the speed of the legislative process raised red flags among public finance experts.

This accelerated process left minimal room for due diligence, and critics argue that it undermined transparency and weakened fiscal oversight.

ALLEGATIONS FROM SENATOR ABDUL NINGI

In March 2024, Senator Abdul Ningi of Bauchi Central alleged in a BBC Hausa interview that a parallel budget totalling ₦3.7 trillion had been inserted without his knowledge and without approval from the National Assembly as a whole.

He later clarified that he did not use the term “budget padding,” but maintained that irregularities existed in the appropriation process.

The Senate reacted swiftly. Senator Ningi was suspended for three months on grounds of misconduct and misrepresentation.

However, the debate did not end there. In defending Ningi’s broader concerns, Senator Jarigbe Agom Jarigbe disclosed during a plenary session that some lawmakers received up to ₦500 million each in zonal intervention (constituency) projects, while others received much less—indicating a lack of uniformity and transparency in project allocation.

INDEPENDENT FINDINGS BY BudgIT

BudgIT, a civic technology organisation that monitors public spending, independently confirmed several of the senator’s claims.

Its analysis found that 7,447 projects worth ₦2.24 trillion were inserted into the 2024 budget, many of which lacked specific locations or implementation frameworks.

In some cases, federal agencies with no mandate or capacity for certain infrastructure were assigned projects worth billions of naira.

One example cited in BudgIT’s report involved a cooperative college being allocated funds for the construction of a town hall hundreds of kilometres away from its base of operations.

Such misalignments, BudgIT noted, were symptomatic of larger systemic failures in public financial management.

THE COST TO NATIONAL DEVELOPMENT

These irregularities have direct consequences on development. When budgetary allocations are inflated or misdirected, the delivery of key infrastructure, healthcare, education, and social welfare services is delayed or derailed entirely.

Resources earmarked for vital national development projects often end up lost in procurement delays, untraceable expenditures, or unexecuted contracts.

Furthermore, project duplication, vague entries, and assignments to unqualified agencies contribute to waste.

The resulting inefficiency perpetuates poverty, weakens public trust, and erodes the legitimacy of national and sub-national governance structures.

A RECURRING PATTERN

Nigeria has a history of budget-related controversies. “Budget padding” allegations are not new, but they continue to reflect an ongoing lack of institutional reform.

While lawmakers defend insertions as part of their right to represent constituents through zonal interventions, critics argue that these insertions lack coordination with national development plans and often serve narrow interests.

The absence of a reliable system for public project monitoring exacerbates the problem. In many cases, citizens have no access to budget details, and when projects are funded, there is often no accountability if they are not completed.

THE WAY FORWARD

The 2024 controversy has renewed calls for reforms in Nigeria’s budgeting framework. Experts suggest that improved transparency, participatory budgeting, and stronger institutional checks are crucial to halting the misuse of public funds.

Digital platforms such as the Open Treasury Portal and enhanced role for civil society organisations could also ensure greater oversight.

Equally, the legislature must adopt and enforce stricter internal rules to prevent arbitrary insertions and promote equitable project distribution.

Strengthening the budget office’s independence and establishing a performance-based funding system may also ensure that funds align with national priorities and measurable outcomes.

The recent revelations surrounding Nigeria’s 2024 budget highlight the deeper structural issues in the country’s fiscal governance.

Allegations of inflated budgets and project insertions, whether termed padding or not, have tangible implications for development.

Until these concerns are addressed through institutional reform and greater accountability, the cycle of “money for nothing” is likely to persist, keeping true national progress out of reach.

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