Nigeria’s first lady, Aisha Tinubu, is set to receive N1.5 billion ($3.9 million) for the purchase of vehicles for her office, according to the 2023 supplementary budget proposal submitted by President Bola Tinubu to the National Assembly.
The budget allocation for the first lady’s office, which is not constitutionally recognized, has sparked outrage among Nigerians facing economic hardships due to reforms implemented by the current administration.
The reforms include the removal of fuel subsidy, which led to a 400 percent increase in petrol prices, and the liberalization of the exchange rate, which caused the naira to depreciate by over 20 percent against the dollar in the official market.
These measures have resulted in soaring inflation, which reached an over 18-year high of 26.7 percent in September 2023 and reduced the purchasing power of Nigerians.
According to the World Bank, Nigeria’s poverty rate is projected to rise from 40.1 percent in 2019 to 45.2 percent in 2022, meaning that about 100 million Nigerians will be living below the poverty line of $1.90 per day.
The budget proposal also revealed that the State House, which comprises the offices and residences of the president and vice president, will receive a total of N28 billion ($73.4 million) for recurrent and capital expenditures.
Some of the items in the budget include N2.9 billion ($7.6 million) for sport utility vehicles, N4 billion ($10.5 million) for the renovation of the president’s residential quarters, and N12.5 billion ($32.8 million) for the presidential air fleet.
The presidential air fleet, which consists of 10 aircraft, has been criticized as a wasteful expenditure that drains public resources and benefits only a few elites.
In contrast, the budget allocated only N5 billion ($13.1 million) for renovating 100 schools and N5.5 billion ($14.4 million) for a student loan fund.
The supplementary budget of N2.17 trillion ($5.7 billion) was approved by the Federal Executive Council on Monday and is expected to be passed by the National Assembly soon.
The budget is meant to address urgent security and health needs, as well as fund some critical infrastructure projects.
However, some analysts have questioned the rationale and transparency of some budget items, especially those related to the State House and the Office of the National Security Adviser.
They have also expressed concern about the budget’s impact on Nigeria’s fiscal deficit and debt sustainability, as the government plans to borrow N4.89 trillion ($12.8 billion) to finance the budget deficit of N10.78 trillion ($28.2 billion).
Nigeria’s debt stock stood at N35.47 trillion ($92.9 billion) as of June 2023, representing 35 percent of its gross domestic product (GDP).
Despite these challenges, some experts have also commended the government for taking bold steps to reform the economy and attract foreign investment.
They have urged Nigerians to be patient and hopeful that the reforms will yield positive results in the long run.
Source: Business Insider Africa
