Poor budget implementation remains one of Nigeria’s most pressing challenges, stalling development and exacerbating economic hardship. According to Prince Igho Sadjere, a seasoned banker and fellow of the institute of Chartered economists Nigeria, also a member of the International Economic Development Council, the failure to execute national budgets effectively is a significant factor contributing to inflation, poverty, and underdevelopment in the country.
Citing recent statistics, Sadjere revealed that the 2024 national budget implementation rate was less than 50%. “From January to July last year, the budget implementation was dismal, falling below 50%,” he stated. “This failure intensified inflation, suffering, and other socio-economic challenges for Nigerians.” Such figures highlight a persistent trend that undermines the government’s ability to deliver on its promises.
Sadjere identified corruption as a primary factor derailing budget execution. “At various levels of government, corruption creates loopholes that siphon resources away from their intended purposes,” he explained. Additionally, he pointed to weak institutional frameworks and a lack of accountability within ministries, departments, and agencies (MDAs) as systemic flaws exacerbating the problem.
Another critical issue is budget padding. “Most of our leaders are self-centered,” Sadjere asserted. “They prioritize personal gains over the welfare of the masses. This practice inflates the budget unnecessarily, leaving less room for meaningful implementation.”
The ramifications of poor budget implementation are far-reaching, affecting the ordinary Nigerian most acutely. Without adequate execution, critical sectors such as healthcare, education, and infrastructure suffer, leaving citizens deprived of basic services. “The question is,” Sadjere posed, “is the budget reaching the man on the street? The budget must directly impact the lives of everyday Nigerians.”
To address these challenges, Sadjere advocates for a comprehensive overhaul of the budget implementation process.
- Strengthen Oversight Mechanisms: “The government must deploy experts in economic management to monitor budget execution across MDAs,” he recommended. This step would ensure transparency and accountability at all levels.
- Enforce Performance-Based Policies: Agencies that fail to implement at least 60% of their budgets should face sanctions. Such measures would incentivize efficiency and discourage wastefulness.
- Combat Corruption: Tightening loopholes and prosecuting those involved in budget padding or mismanagement are essential for restoring trust in the system.
- Engage the Public: Citizens should be empowered to demand accountability and track budgetary outcomes in their communities. Public participation in the budgeting process can create additional layers of scrutiny.
Nigeria’s potential for growth and prosperity is immense, but poor budget implementation continues to hold the nation back. As Prince Sadjere emphasized, “A budget is not just a document of figures; it is a promise of progress to citizens.
For this promise to be fulfilled, we need strong policies, transparent processes, and a collective will to prioritize the needs of the people over personal interests.”
It is time for government agencies, policymakers, and citizens to work together to ensure that national budgets translate into tangible benefits for all. Only then can Nigeria’s economic trajectory align with its aspirations.