President of the Chartered Institute of Capital Market Analysts of Nigeria (CMAN), Professor Uche Uwaleke, has called for a strategic reallocation of funds earmarked for the purchase of motor vehicles in the 2025 federal capital budget.
According to Uwaleke, data compiled by his research team reveals that 288 government agencies have budgeted approximately N113bn for motor vehicle purchases in 2025.
This information, contained in the Executive Proposal and published on the Budget Office’s website, underscores a substantial expenditure with implications for Nigeria’s foreign exchange.
“These vehicles will be imported, which will inevitably exert pressure on the exchange rate,” Uwaleke noted.
He further emphasized that deferring these purchases to 2026 could free up critical funds for projects aimed at economic growth, job creation, and inflation reduction.
Uwaleke proposed that the diverted funds could be invested in initiatives like the “One District; One Product” (ODOP) project.
This program, implemented in collaboration with state governments, could allocate a minimum of N1bn to each of Nigeria’s 109 Senatorial Districts, fostering localized industrial development.
Additionally, the funds could rejuvenate the “One Local Government; One Product” (OLOP) initiative, which previously failed to gain traction due to inadequate funding and attention.
Uwaleke estimated that each Local Government Council could receive at least N145m from the reallocated budget, bolstering local production and economic activity.
“These funds can also support other productive ventures, particularly those with developmental impact,” Uwaleke stated, advocating for the exclusive use of locally made products in such projects to maximize economic benefits and minimize foreign exchange pressure.
Looking forward, Uwaleke urged policymakers to ensure that public spending aligns with principles of maximum social benefit, economic prudence, and value for money.
“The opportunity costs of non-developmental capital expenditures are too high for an economy striving for growth and stability,” he concluded.