Renowned Professor of Capital Market and Director of the Institute of Capital Market Studies at Nasarawa State University, Keffi, Uche Uwaleke, has called for the introduction of a budget law to enhance transparency and accountability in Nigeria’s fiscal process.
His remarks followed President Bola Tinubu’s presentation of the 2025 budget proposals to the National Assembly on December 18, 2024.
The proposed budget, titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” outlines an aggregate expenditure of N49.7tn with a projected deficit of N13.4tn, approximately four per cent of the nation’s GDP.
Key allocations prioritize defense and security (N4.91tn), infrastructure (N4.06tn), education (N3.52tn), and health (N2.48tn). The budget is based on an oil price benchmark of $75 per barrel and an oil production target of 2.06 million barrels per day.
Uwaleke emphasized the need for a comprehensive budget law similar to the U.S. Congressional Budget Act of 1974 to address delays and inefficiencies in Nigeria’s budget process.
He highlighted that late presentation of the budget hampers the National Assembly’s ability to conduct thorough scrutiny, as the constitution permits the President to submit the Appropriation Bill at any time before the financial year begins.
“A formalized budget law should establish clear timelines, strengthen a nonpartisan National Assembly Budget Office, and ensure public hearings on the Appropriation Bill to encourage civic engagement,” Uwaleke stated.
He argued that such measures would provide stakeholders with the tools to critically assess and improve fiscal planning and implementation.
Uwaleke expressed concerns about the N13.4tn deficit financing, with N9.3tn expected to come from discretionary borrowings, while asset sales and multilateral loans account for smaller portions.
He warned that reliance on non-project-tied borrowings could exacerbate Nigeria’s debt burden and called for tying long-term loans to self-liquidating projects.
Additionally, Uwaleke cautioned against off-budget expenditures, which could obscure the government’s fiscal position. He stressed the importance of reconciling all claims on public financial resources within the budget framework, particularly in light of expected revenue challenges from oil projections and the implementation of the new minimum wage.
The professor criticized the lack of clarity in project descriptions within the budget. He noted that several projects, including railway and road construction under the ministries of Transport and Works, are listed as “ongoing” without specific completion targets or progress metrics. This ambiguity, he argued, hinders accountability and effective monitoring.
He recommended specifying project deliverables, such as kilometers of road or rail completed, to enhance transparency. “For budget information to discipline fiscal actions, it must be transparent and devoid of arbitrary language,” Uwaleke added.
Uwaleke also advocated for increased funding for underperforming sectors like solid minerals, which received only N16.7bn in the 2025 budget despite its revenue diversification potential.
He urged a review of overhead costs for ministries and agencies with disproportionate expenditures, including the Ministry of Budget and Economic Planning and National Rural Electrification.
He said the budget projects independent revenue growth from N1.9trn in 2024 to N3.5trn in 2025, driven by increased operating surpluses and dividends from key organizations like the NLNG.
However, Uwaleke called for more substantial recapitalization of Development Finance Institutions to attract private sector interest.
Uwaleke commended the budget preparation team but stressed the importance of subjecting the 2025 Appropriation Bill to public hearings.
“Public scrutiny will not only enrich debate but also ensure that the budget aligns with the priorities and concerns of citizens,” he said, urging lawmakers to champion transparency and accountability in the budget process.