Nigeria’s spending structure unsustainable – DG Budget



Nigeria’s current trend of spending more money on running the than on building new is unsustainable, Ben Akabueze, director-general of the Budget Office said yesterday.

Low revenue collection and high recurrent costs have resulted in actual capital expenditure below two trillion naira ($4.88 billion) a year for a decade, Ben Akabueze, director-general of the Budget Office, said Tuesday in a virtual presentation.

“Hence, the investments required to bridge the gap are way beyond the means available to the ,” Akabueze said. Recurrent spending, allocated towards salaries and running costs, has accounted for more than 75 per cent of the public budget every year since 2011, he said.

’s largest requires at least $3 trillion of spending over the next 30 years to close its gap, Moody’s Investors Service said in November. The country’s tax revenue as a proportion of gross domestic is one of the lowest globally, according to the International Monetary Fund.

“Huge recurrent expenditure has constrained the provision of good roads, steady power supply, services, quality education and quality shelter,” Akabueze said.

Nigeria should amend its constitution to create six regions to replace the existing 36 states, which each have their own governments, Akabueze said. The country also needs to reduce the number of cabinet ministers to a maximum of 24 from more than 40 and cut federal ministries to fewer than 20 from the current 27, he said.

“No country develop where a large part of its earnings is spent on administrative structures rather than on capital investment,” Akabueze said

No tags for this post.

Sign Up Now

ePaper Subscription

Be the first to comment

Leave a Reply

Your email address will not be published.


*