A coalition of civil society organisations has raised alarm over what it describes as persistent violations of constitutional and statutory provisions guiding Nigeria’s public finance management, warning that the trend threatens democratic accountability, fiscal sustainability, and public trust.
In a joint statement signed by groups including Centre for Social Justice, ActionAid Nigeria, Nigeria Labour Congress, Civil Society Legislative Advocacy Centre, BudgIT, and Impact Bridge Africa Advisory, the organisations decried opacity, delayed processes, and lack of inclusivity in the federal budgeting system.
They noted that non-compliance with fiscal laws is not merely procedural but a systemic failure that undermines macroeconomic stability, weakens investor confidence, and erodes the social contract between the government and citizens.
Legal Framework Undermined
The groups stressed that Nigeria’s public finance architecture is backed by clear laws, including the 1999 Constitution (as amended), Fiscal Responsibility Act (2007), Appropriation Acts, Debt Management Office Act (2003), and Public Procurement Act (2007).
However, they warned that persistent deviations from these frameworks amount to institutional breakdown, eroding the principles of transparency, accountability, and predictability in governance.
Budgeting Irregularities and Delays
Central to the concerns is the late presentation of key fiscal documents, including the 2026–2028 Medium Term Expenditure Framework (MTEF) and the 2026 budget proposal, both submitted months behind statutory timelines.
As of April 8, 2026, the 2026 federal budget remains unapproved and unsigned, a situation the groups described as a gross violation of the Constitution and Financial Year Act.
They further criticised the disconnect between fiscal policy instruments, warning that inconsistencies between the MTEF, budget, and debt strategies weaken fiscal coherence.
Controversial Budget Expansion and Poor Implementation
The statement also flagged moves by the National Assembly to increase the proposed 2026 budget from N58.4 trillion to N68.3 trillion, raising concerns over unclear funding sources and an already high deficit of N25.2 trillion.
The groups described reliance on uncertain oil windfalls linked to global conflicts as abnormal budgeting practice.
Equally troubling, they said, is the poor implementation of the 2025 capital budget, citing the Federal Ministry of Health and Social Welfare, which reportedly received only N36 million out of N218 billion allocated.
Debt Surge and Transparency Gaps
On debt management, the coalition revealed that Nigeria’s public debt surged from N87.3 trillion in June 2023 to about N159.2 trillion by December 2025, raising fears of a potential debt trap.
They also criticised the lack of transparency, noting that updated debt figures were not published on official platforms as required, while loan approvals—such as a reported $6 billion request—were rushed through the National Assembly without due process.
Wider Economic and Institutional Failures
The statement highlighted rising fuel costs, which jumped from N875 to N1,370 per litre, worsening economic hardship without clear relief measures in the proposed 2026 budget.
It also condemned continued financial waste in state-owned refineries, where over $15 billion has reportedly been spent without operational results, alongside deep inefficiencies in the electricity sector, which loses over 40% of generated resources.
The coalition further pointed to weak institutional accountability, marked by poor enforcement of regulations and absence of sanctions for violations.
Call for Urgent Reforms
To address the challenges, the groups called for comprehensive reforms, including strengthening the Fiscal Responsibility Commission, enforcing sanctions for violations of fiscal laws, ensuring timely budget approvals and adherence to deficit limits, improving transparency in debt management, introducing targeted interventions to cushion economic hardship, reforming or concessioning state-owned refineries, and holding electricity distribution companies accountable.
A Call to Restore Trust and Accountability
In a strongly worded conclusion, Chief Executive of Impact Bridge Africa, John Onyeukwu, emphasised that the concerns raised go beyond criticism.
“What we have set out here is not merely critique—it is a call to restore fidelity to law, to process, and to public trust. A nation does not drift into dysfunction; it is led there by choices—choices to ignore rules, to bend institutions, to normalise opacity. We must now choose differently. This moment demands courage from those in authority, vigilance from citizens, and integrity from institutions.” He stated. “Public finance is not an abstract system—it is the moral ledger of governance. And where that ledger is distorted, justice itself is weakened. We stand, therefore, not in opposition, but in insistence: that Nigeria can, and must, govern itself lawfully, transparently, and in the true interest of its people.”
Subtopic: A Defining Moment for Fiscal Governance
The coalition concluded that Nigeria stands at a critical crossroads, facing a choice between entrenching a rules-based fiscal system or continuing down a path of opaque governance, with far-reaching consequences for economic stability and democratic integrity.
