society
Nigeria’s 2024 budget: A milestone as capital expenditure exceeds recurrent for the first time since 1999
Nigeria’s 2024 budget: A milestone as capital expenditure exceeds recurrent for the first time since 1999
The Independent Media and Policy Initiative IMPI has hailed the federal government for allocating more funds to capital expenditure than recurrent in the budget for the first time in the current democratic dispensation.
It said in statement signed by its Chairman Niyi Akinsiju that the decision to buck a 24- year trend with the 2024 budget is a reflection of the government’s sincerity to drive real economic growth.
According to the policy think tank, there is a lot of positives to derive from a N28.7trillion spending plan that seeks to correct years of budget imbalance between capital and recurrent expenditures.
IMPI said: “From an analytical point of view, a budget with higher capital expenditure than recurrent is not only a driver of economic growth, it also impacts individual citizen’s quality and way of life.
“In this regard, we concur with the 2019 submission of the Nigerian Institute of Social and Economic Research (NISER) that the only way to bring about a meaningful influence on the economy is to monitor and evaluate funds that are specially intended for capital expenditure and capital projects.
“It would, however, appear that the disequilibrium between capital and recurrent expenditures has been eventually corrected. For the first time in the current democratic dispensation, the 2024 budget, which is the first in the tenure of the President Bola Tinubu administration, has more funds allocated to capital expenditure than recurrent.
“The budget of N28.777 trillion for the 2024 fiscal year has a recurrent expenditure of N8.7 trillion with N9.9 trillion allocated to capital expenditure.
“Granted that what was passed by the National Assembly was N1.28trillion more than the original N27.5 trillion spending plan, there are indeed good signs and prospects for a budget that is to be financed through a non-debt revenue of N19.6 trillion and a deficit of about N9.18 trillion.
“This is something to build on for an administration that has, since assuming office, embraced economic reforms that are not only courageous in the face of historical resistance to their implementation but are also expected to yield long term transformative benefits to Nigerians”
The policy think tank also lamented how previous administrations had failed to capitalize on two oil booms to boost infrastructural development in the country through higher capital votes.
“Between 2006 and 2013, the national economy grew at an average of between 6 and 8 percent according to World Bank figures yet the increased revenue was channeled into feeding public servants. The recurrent expenditures in those years were always bigger than allocation for capital expenditure.
“Nigeria’s recurrent expenditures which include spending on personnel expenses such as wages and pensions as well as overhead costs and service wide votes have regularly consumed over 65% of total budgets and a huge chunk of revenue.
“We consider it even more depressing that despite the incongruent budgetary imbalance, the country has, since 2009, been recording yearly budget deficits that average N3.3trn in recent years aggravated by oil price volatility and post-COVID economic debilitations in recent years.
“Budget Office data show that between 2011 and 2021, the Federal Government of Nigeria spent N29.3 trillion on (non-debt) recurrent expenditure while it earned N33.2 trillion revenue during this period. This means that what went into capital projects was extremely negligible,” It added.
IMPI is however hopeful that cost cutting measures approved by President Tinubu will ensure that more funds are freed for capital component of the budget
It said: “In addition to this is the decision to implement the 12 year-old Stephen Oronsaye’s report on public sector reforms which is expected to reduce cost of governance by at least N2 trillion even as the federal government is set to increase minimum wage. The challenge ahead lies in ensuring a better budget implementation in a country with a record of poor budget performance.
“We, however, feel sanguine over the prospect of attaining a 100 percent implementation of the capital expenditure aspect of the 2024 federal government budget premised on freed revenue from the civil service reforms to be channeled into funding capital projects for the good of the larger percentage of Nigerians.”
POLICY STATEMENT 09 ISSUED BY INDEPENDENT MEDIA AND POLICY INITIATIVE (IMPI)
FG Sets Fiscal Milestone First Time In Over 20 Years As Capital Expenditure Exceeds Recurrent
We have observed that for the first time in over two decades, capital expenditure funds are higher than allocations to recurrent. By the nation’s annual budget precedence, this is remarkable considering the age-long national aspiration to engineer a budget that is perceived as a true capital expenditure fiscal instrument.
A recurrent budget, as had been the character of the annual national budget, fiscally dots and panders to the needs and emoluments of federal government personnel aggregated in the cadre of public servants. The very few that, by providence, most of the time, find themselves in this privileged cadre always take the major chunk of government spending while capital expenditure, that aspect of federal government spending that provides for the general needs of the larger public through infrastructure and related facilities, is irreverently placed in the back burner of fiscal consideration.
This captures the capital-recurrent fiscal imbalances in the national budget in virtually all of Nigeria’s budgets since the 1990s without any form of change to its underpinnings after the return to democratic rule in 1999.
Nothing has changed as funds allocated to recurrent expenditure in more than 540 government agencies have, until recently, been more than what is set aside for infrastructural development.
Our study of national budget documents of the last 24 years, between 1999 and 2023, reveals a disconcertingly progressive climb in government expenses on public servants at the expense of projects in critical sectors of the economy. We consider this a purely consumption phenomenon, expenditures which do not result in the creation or acquisition of fixed assets (new or second-hand) for national use.
This phenomenon which dates back to the 1980s became more obvious at the outset of this current democratic dispensation in 1999.
According to statistics from the Central Bank of Nigeria (CBN), the recurrent expenditure in the last full year of military rule, 1998, was N178.10 billion. It, however, skyrocketed to N449.6billion in the first year of the then President Olusegun Obasanjo. This rise in cost of governance could be attributed to the infusion of the National Assembly into governance and since then it has maintained an upward swing.
We recall that when former President Obasanjo was beginning his second term, recurrent expenditure had moved closer to the N1trillion mark at N984.3billion in the 2003 budget while capital expenditure was less than N400billion.
More than 20 years later, the federal government still persists, seemingly helplessly, in spending more on public servants than providing for the larger majority of the Nigerian people. This translates to near non- existent capital formation in those years leading to aggravated deficit in infrastructural facilities. Now, the country has grown into a behemoth of more than 200 million people with a below par infrastructure availability. This is in spite of two oil booms between 2006 and 2013 recorded by the economy.
To put this in proper context, Nigeria has witnessed two crude oil engendered revenue boom, not by any conscientious policy conceptualisation or deployment but, rather, by providence. Oil price increased in the global market place and it reflected in our national revenue earnings. This has been the nature of prosperity in the country; increase in prices of crude oil leading to more earnings, not in consequence of deliberate policy development and application.
Between 2006 and 2013, the national economy grew at an average of between 6 and 8 percent according to World Bank figures yet the increased revenue was channeled into feeding public servants. The recurrent expenditure in those years was always bigger than allocation for capital expenditure.
Nigeria’s recurrent expenditure which includes spending on personnel expenses such as wages and pensions as well as overhead costs and service wide votes have regularly consumed over 65% of total budgets and a huge chunk of revenue.
We consider it even more depressing that despite the incongruent budgetary misbalance, the country has, since 2009, been recording yearly budget deficits that average N3.3trn in recent years on the back of oil price volatility and post-COVID economic debilitations. Budget Office data shows that between 2011 and 2021, the Federal Government of Nigeria spent N29.3 trillion on (non-debt) recurrent expenditure while it earned N33.2 trillion as revenue during this period. This means that what went into capital projects was extremely negligible.
From an analyst’s point of view, a budget with higher capital expenditure than recurrent is not only a driver of economic growth, it also impacts individual citizen’s quality and way of life. In this regard, we concur with the 2019 submission of the Nigerian Institute of Social and Economic Research (NISER) that the only way to bring about a meaningful influence on the economy is to monitor and evaluate funds that are specially intended for capital expenditure and capital projects.
It would, however, appear that the disequilibrium between capital and recurrent expenditures has been eventually corrected. For the first time in the current democratic dispensation, the 2024 budget, which is the first in the tenure of the President Bola Tinubu administration, has more funds allocated to capital expenditure than recurrent. The budget of N28.777 trillion for the 2024 fiscal year has a recurrent expenditure of N8.7 trillion with N9.9 trillion allocated to capital expenditure.
Granted that what was passed by the National Assembly was N1.28trillion more than the original N27.5 trillion spending plan, there are indeed good signs and prospects for a budget that is to be financed through a non-debt revenue of N19.6 trillion and a deficit of about N9.18 trillion.
This is something to build on for an administration that has, since assuming office, embraced economic reforms that are not only courageous in the face of historical resistance to their implementation but are also expected to yield long term transformative benefits to Nigerians.
In addition to this is the decision to implement the 12 year-old Stephen Oronsaye’s report on public sector reforms which is expected to reduce cost of governance by at least N2 trillion even as the federal government is set to increase minimum wage. The challenge ahead lies in ensuring a better budget implementation in a country with a record of poor budget performance.
We, however, feel sanguine over the prospect of attaining a 100 percent implementation of the capital expenditure aspect of the 2024 federal government budget premised on freed revenue from the civil service reforms to be channeled into funding capital projects for the good of the larger percentage of Nigerians.
Signed
Chief Niyi Akinsiju, Cifian
Chairman,
Independent Media and Policy Initiative (IMPI)
March 11, 2024.
Banwo Questions Omokri’s Conduct After Appointment As Ambassador
Political commentator and founder of the Naija Lives Matter Organisation (NLM), Dr. Ope Banwo, has raised concerns about the conduct expected of diplomats following the appointment of Reno Omokri as Nigeria’s ambassador to Mexico.
In an article published on his website, www.mayoroffadeyi.com, Banwo argued that individuals appointed to represent Nigeria abroad are expected to maintain a level of neutrality and decorum that reflects the country’s diplomatic traditions.
The article titled “The Strange Case of Reno Omokri,” questions whether the tone of public political engagement associated with Omokri’s social media presence aligns with the expectations of diplomatic service.
Omokri, a former presidential aide who has built a strong online following through commentary on Nigerian politics and governance, was recently appointed as Nigeria’s envoy to Mexico.
According to Banwo’s article, the role of an ambassador requires a transition from partisan political commentary to broader national representation.
“An ambassador represents the entire nation and not a political party,” Banwo wrote, noting that diplomats are traditionally expected to avoid public political confrontations that could affect international perceptions of their countries.
He contrasted the roles of political campaigners and diplomats, arguing that the two require different communication styles and responsibilities.
“Politics is combative while diplomacy is measured,” Banwo stated in the article, emphasizing that ambassadors typically engage in dialogue, negotiation and relationship-building rather than domestic political disputes.
Banwo also pointed to the historical composition of Nigeria’s diplomatic corps, which has largely included career diplomats trained in international relations and protocol.
According to him, such professionals are accustomed to maintaining restraint in public communication because their statements can carry official implications.
The article also referenced the biblical book of Ecclesiastes to illustrate the author’s broader reflections on leadership and public office.
Banwo noted that the appointment of political figures to diplomatic positions is not unusual globally but stressed that such appointments usually come with expectations of behavioural adjustments.
He urged Nigerian public officials who hold diplomatic positions to prioritise the country’s international image and approach public commentary with caution.
“Nigeria deserves ambassadors who elevate the country’s image,” he wrote.
How OPay Is Turning Product Architecture Into a Customer Service Advantage
In high-volume fintech markets like Nigeria, customer service can no longer sit at the end of the business process. When a platform serves tens of millions of users and processes millions of transactions every day, the old model of customer service, call centres, long queues, and manual complaint handling quickly becomes too slow, too costly, and challenging to scale.
The future of customer service in fintech is not just about answering calls faster. It is about preventing problems before they happen. This is where product design, technology, and risk systems begin to play a bigger role. Instead of reacting to customer complaints, modern fintech platforms are now building customer protection and support directly into the app experience itself.
OPay is one of the platforms showing how this shift works in practice.
Over the past few years, OPay’s product development has followed a clear pattern. New features are not only designed to make payments easier, but also to reduce errors, prevent fraud, and lower the number of issues that customers need to complain about. In simple terms, many customer service problems are stopped before users even notice them.
One of the strongest examples of this approach is OPay’s real-time fraud and scam alerts. Traditionally, customers only contact support after money has already left their account. At that point, the damage is done, emotions are high, and recovery becomes more complex. OPay’s system works differently. When a transaction looks unusual, based on amount, timing, behaviour, or pattern, the system raises a warning before the transfer is completed. This gives users a chance to pause, review, and confirm. In many cases, this stops fraud before it happens.
For users, this feels like protection built into the app, not an emergency response after a loss. For the business, it means fewer fraud cases, fewer complaints, and less pressure on customer support teams. This proactive model aligns with global fintech best practices, which prioritise prevention over recovery.
Another important layer is step-up security for high-risk or high-value transactions. As users move more money and rely more heavily on digital wallets, security cannot be one-size-fits-all. Adding too many checks to every transaction creates frustration. Adding too few creates risk. OPay balances this by applying stronger security only when it is needed. For example, biometric verification and additional authentication steps are triggered in sensitive situations. This keeps everyday transactions smooth, while adding extra protection when the risk is higher. This approach builds trust quietly. Users may not always notice the security working in the background, but they feel the result: fewer unauthorised transfers and fewer urgent problems that require support intervention.
Beyond visible features, OPay also runs behaviour-based risk systems in the background. These systems monitor patterns such as sudden device changes, unusual login behaviour, or transaction activity that does not match a user’s normal habits. When something looks off, the system responds automatically. Most users never see these checks. But their impact shows up in fewer failed transactions, fewer reversals, and fewer cases where customers need to chase resolutions. As a result, customer service interactions shift away from crisis handling toward simple guidance and assistance.
Together, these layers form what can be called an invisible customer service system. Many issues are intercepted early, long before they become formal complaints. User sentiment on social media provides real-world signals of how this system is being experienced. On X (formerly Twitter), some users have publicly shared their experiences with OPay’s responsiveness and reliability.
One user, @ifedayo_johnson, wrote, “Opay has refunded it almost immediately. Before I even made this tweet but I didn’t notice. logged it as transfer made in error on the Opay app and they acted almost immediately. Commendable. Thank you @OPay_NG. I’m very impressed with this!”
Another user, @EgbonAduugbo, shared “The reason I love opay so much is that you hardly ever have to worry, wait or call their customer service for anything cuz everything just works!”
While social media comments are not formal performance metrics, they matter. They reflect how real users feel when systems work smoothly and issues are resolved quickly, often without friction. This product-led customer service model becomes even more important when viewed in the context of OPay’s scale. At this scale, even minor improvements in fraud prevention or transaction success rates can prevent thousands of potential complaints every day. In this context, customer service is no longer driven mainly by headcount. It is driven by engineering choices, risk models, and system design.
OPay’s journey suggests what the future of fintech in Africa may look like. The next generation of leaders will not only be those with the most users, but those whose systems are designed to protect users, resolve issues quickly, and reduce friction at scale.
society
Phillips Esther Omolara : Answering The Call To Worship And Transforming Lives Through Gospel Music
Phillips Esther Omolara : Answering The Call To Worship And Transforming Lives Through Gospel Music
Introduction : Phillips Esther Omolara (Apple Of God’s Eye) is an Inspirational and passionate Nigerian gospel music minister, singer, and songwriter dedicated to spreading the message of Christ through her songs.
Background : I was born and brought up in Lagos State. I am a devoted gospel minister and a worship leader who began her musical journey in the children choir later graduated to adult church choir at a young age, leading praises and also a vocalist in the choir.
Early Life : I was born on April 8th 1990 in Lagos, Phillips Esther Omolara is a native of Oyo state in Ogbomosho.
Family : Got married to Phillips Oluwatomisin Omobolaji from Ogun State and our union was blessed with children.
Education : I went to Duro-oyedoyin nursery and primary school Ijeshatedo, Lagos, where I laid the foundation for my academic pursuits. For my secondary education, I attended Sanya Grammer school in Ijeshatedo, Lagos.
During my high school years, I was already deeply involved in church activities. After completing my secondary education, Phillips Esther pursed higher education at Lagos State Polytechnic (LASPOTECH).
Musical Style : Known for [e.g., Inspirational songs, Contemporary Worship, Highlife, Reggae, Traditional Yoruba], and my music blends spiritual depth with creative musicality.
INSPIRATIONS AND INFLUENCES : I have no specific role model in the gospel music industry. However, I have expressed my love for songs from several Veteran gospel artists who have influenced my musical journey.
Some of the gospel artists whose music i admires include:
* Mama Bola Are
* Tope Alabi
* Omije Ojumi
* Baba Ara
* Bulky Beks
Mission : My ministry focuses on leading people to the presence of God and creating an atmosphere for miracles.
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