FG’S N8.8TN OVERSPEND TO THREATEN TRANSPARENCY ON FUTURE LOANS SAYS OYE

Former President of the Organised Private Sector of Nigeria, Dele Oye, has warned that the Federal Government’s reported N8.8 trillion budget overspend could undermine transparency and weaken confidence in Nigeria’s future borrowing plans.

Speaking on the issue, Oye said the concern was not that public funds had been diverted or gone missing, but that the government exceeded its approved budget by N8.8 trillion before subsequently amending the 2024/2025 Appropriation Act.

Drawing from findings contained in a recent International Monetary Fund (IMF) report, he explained that the overspending resulted largely from capital expenditure carryovers rather than financial misappropriation.

According to him, the development raises questions about fiscal discipline and the government’s commitment to transparency in managing public finances.

“The issue is not that money is missing or diverted. What happened is that the government overspent its budget by N8.8 trillion due to capital carryovers and later amended the Appropriation Act. The concern is the character it reveals—that government can overspend by about two per cent of GDP,” Oye said.

He further argued that the overspend should not be viewed as an accidental error but as a deliberate exclusion from the original budget framework, a move he believes could affect public trust and investor confidence.

Oye cautioned that fiscal transparency is essential for maintaining credibility with lenders and development partners, warning that actions perceived as weakening budget discipline could complicate future borrowing efforts.