Economist Dr Emeka Okengwu has blamed Nigeria’s recurring problem of overlapping budgets on what he described as a failure of process, oversight and accountability, warning that the country is drifting into fiscal illegality by spending across multiple budget cycles simultaneously.
Speaking in an ARISE News on Tuesday, Okengwu said lawmakers and the executive had both failed in their constitutional responsibilities, insisting that Nigeria cannot lawfully operate three budgets at the same time.
“Failure on their side. It shows a failure of oversight. It is a failure of the functions of the National Assembly, because they are the only ones who have the powers by law to make sure the right things are done,” he said.
He added that merely expressing outrage in press conferences was insufficient.
“It’s not enough to hold press conferences and show dismay. They should be able to up their game. There used to be proper digital oversight mechanisms and coordinating units to ensure compliance,”Okengwu said.
Clarifying widespread public misconceptions, Okengwu stressed that an approved budget does not mean government has the cash to spend.
“A budget is simply a financial plan couched in figures. It does not mean that because ₦54 trillion is approved, you have ₦54 trillion to spend,”he explained.
According to him, the approved figures represent projections that must still be sourced through revenues, taxes or borrowing.
“What that means is that the capital projection of ₦54 trillion has to be found, either through borrowing or internal revenue. What goes in is usually not what comes out,” he said.
He warned that the absence of a system to reconcile projected and actual revenues fuels fiscal indiscipline.
“There is no system that synthesises what has been lost or gained, and it is in that gap that people begin struggling for cash-backing, which is where the problems start,” he added.
Okengwu raised concerns that Nigeria may already be violating its own laws by abandoning existing budgets without formally repealing them.
“We are at the end of the year and you have not spent one dime of this budget. The law is clear. I do not think there is any Act of the National Assembly that terminated the 2025 budget,”he said.
He questioned the legality of shifting focus to future budgets while previous ones remain unsettled.
“Are you making projections for the 2026 budget when you have not settled the 2024 budget, which is still running?”he asked.
While defending the idea of rolling over capital projects, Okengwu argued that Nigeria’s error lies in treating capital expenditure as an annual exercise.
“Rolling over capital projects is justifiable if it is done well. Capital budgets should not run on an annual basis. Most projects take three to five years before meaningful evaluation,”he said.
He said recurrent spending should remain annual, but capital projects should be embedded in medium- and long-term plans.
“What should not be rolled over is recurrent expenditure. Capital projects should sit within mid-term development plans such as 2021–2026, 2026–2030, and even Agenda 2050,” Okengwu stated.
Addressing concerns about unpaid contractors, Okengwu said the problem went beyond rollovers to deeper legal breaches.
“Government policy was clear: do not award contracts that are not cash-backed. Certificates were supposed to be issued before contracts were awarded,” he said.
He questioned whether that policy was being followed.
“If certificates were issued and contractors borrowed to execute projects, and they are not paid, then something is clearly not right,”he added.
Okengwu disclosed alarming figures about domestic debt obligations.
“Total local debt between 2022 and 2024 is about ₦4 trillion, with over ₦400 billion tied to certificates waiting to be paid,” he said.
Reacting to lawmakers’ claims that government is spending from past, present and future budgets simultaneously, Okengwu was blunt.
“If you are still spending from a budget that has not been formally rolled over by law, then you are committing an infringement,”he said.
He warned that such practices undermine transparency.
“If you did not close a yearly budget and there is no law rolling it over, then touching funds under that subhead is a wrongdoing,”he added.
Okengwu said rolling over 70 per cent of capital expenditure signalled poor performance.
“If you are rolling over 70 per cent of your capital budget, it means only 30 per cent was achieved. That is extremely poor for a country desperate for infrastructure,” he said.
He warned that Nigeria’s ambition to attract investment would remain elusive without serious capital delivery.
“Infrastructure is everything. If your capital projects are failing, then investors will simply not come,” Okengwu concluded.
Boluwatife Enome
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