ALLEGED BUDGET PADDING: Need for transparency

Senator Abdul Ningi’s revelation about the padding of Nigeria’s 2024 budget with an enormous N3.7 trillion has sent shockwaves throughout the country. Budget padding has unfortunately become a regular occurrence in Nigeria since the return of democracy in 1999. Even former President Olusegun Obasanjo had criticised the National Assembly for their practices of budget bloating during his time in office between 1999 and 2007.

The budget padding scandal started off quietly with a meeting between the Northern Senators Forum and President Bola Tinubu regarding the alleged N3.7 trillion insertion in the 2024 appropriation. Senator Ningi revealed that the budget passed by the Senate for 2024 was N25 trillion, not the N28 trillion being implemented by Tinubu. The discrepancy raised concerns about transparency and accountability in the budgeting process.
Ningi’s interview with the British Broadcasting Corporation (BBC) Hausa Service exposed the deal and sparked concern among the Senate leadership. In the interview, the senator mentioned that the Forum would look into the “additional sum of N3 trillion” and other budget items that were not previously disclosed to the Senate. This caused a push to penalise him, with backing from the Presidency. Many Northern senators chose to distance themselves from Ningi rather than support him.

Apart from the budget lining accusations, Senator Jarigbe Agom-Jarigbe disclosed during the debate on the breach of privilege motion raised by Senator Olamilekan Adeola against Ningi for his interview with the BBC, that senior senators received N500 million each. Additionally, there were claims that the government authorised N2.5 billion for Senate President Godswill Akpabio to procure deep freezers, generators and other items for his constituency as part of empowerment projects.

Budget padding continues to be a persistent challenge within the National Assembly, a fact that has been acknowledged by previous Presidents. In 2016, the chairperson of the House of Representatives Committee on Appropriation, Abdulmumini Jibrin, made accusations against the former House of Representatives Speaker, Hon. Yakubu Dogara and three other officials. Jibrin claimed that they fraudulently took N40 billion from the N100 billion allocated for constituency projects. This scandal caused a major uproar and Jibrin was subsequently removed from his position for exposing the supposed fraud.

Projects worth N480 billion were fraudulently inserted into the budget during the defence sessions that year. In 2019, fraudulent projects worth billions were discovered in Nigeria’s defence budget. Former President Muhammadu Buhari accused the National Assembly of increasing the budget by N90 billion, making it difficult to achieve his government’s Economic Recovery and Growth Plan (ERGP).

Buhari also conveyed his disappointment with the modifications made to the budget by lawmakers in 2022. These changes included a N400 billion increase in federal independent revenue, a reduction in allowances for the Nigerian Police and Navy and the addition of new provisions for National Assembly projects. During the signing of the 2023 Appropriation Bill on January 2, federal lawmakers introduced new projects totalling approximately N770.72 billion and estimates provided by MDAs were raised by around N58.55 billion.

Regrettably, President Tinubu addressed allegations of the budget alterations by asserting that those levying such accusations lacked a comprehensive understanding of budgetary processes. He stressed that the budget figures were meticulously calculated and grounded on a strong basis, while also affirming the senators’ integrity. Tinubu’s comments were intended to elucidate any misconceptions and uphold the transparency of the budgeting procedure. However, the President’s stance on the issue may inadvertently foster corruption among the legislators.

Senator Ningi’s suspension lacks legitimacy and therefore he should be reinstated immediately. Rather, the Senate leadership should address his allegations of budget padding sincerely and stop chasing shadows. If BudgIT’s report is accurate, the Senate must allocate the N3.7trillion towards essential areas like education, health and poverty alleviation. We commend Senators Ningi and Jarigbe for speaking out. We think that an independent panel of inquiry should be established by the Federal Government to investigate their concerns.

The Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) are well aware of their responsibilities and do not need to be instructed before discharging them. They have to apprehend and prosecute all individuals involved in the alleged budget fraud to end the corrupt practice. No one should be exempt from investigation, as there should be no sacred cows in the fight against budget graft.

Our lawmakers must shun this rip-off because it diverts funds from essential sectors to projects that may not serve the public interest. This is detrimental to economic development. It worsens inequality, undermines public trust in government institutions and can lead to inflation by injecting unauthorised funds. It can also reduce citizens’ purchasing power, divert resources from productive investments, hinder progress, perpetuate poverty and facilitate corruption within government agencies.

To prevent budget padding, oversight mechanisms such as the Budget Office of the Federation and the National Assembly should be strengthened. Transparency and accountability in the budgeting process play a critical role in identifying and preventing padding. Legislative reforms should be put in place to streamline the budget process and ensure compliance with fiscal discipline. The establishment of independent budget monitoring committees can also help enhance accountability and curb the menace.

Opr/The Tide News Online Editorial