Nigerians express anger over government's spending amid widespread hardship
Nigeria's government faces public outrage over proposed spending plans, including a lavish presidential yacht and luxury cars worth $63 million, while the nation struggles with a crippling debt burden and a severe cost-of-living crisis
The Nigerian government has faced criticism for including a 6 billion naira ($6.3 million) presidential yacht and luxury cars in their budget, while the country is dealing with increasing debts and a high cost of living. However, after public outcry, lawmakers rejected the proposal for the presidential yacht and allocated the funds to a student loan program instead, ultimately approving the N2.1 trillion ($2.7 billion) supplementary budget on Thursday.
The budget reserves N2.9 billion ($3.6 million) for the procurement of SUV vehicles for the presidency. Additionally, it allocates N4 billion ($5 million) for the renovation expenses of the president's residential quarters. Surprisingly, the budget includes N1.5 billion ($1.9 million) for official vehicles designated for the First Lady's Office, despite the lack of formal recognition of this office by Nigerian laws.
A spending problem
Nigerians, many of whom who are struggling to make ends meet, reacted in anger to the proposed budget, prompting the lawmakers to make changes.
"Nigerians are currently experiencing some of the most severe economic challenges in their history. It demonstrates a shocking lack of empathy for the President to spend so extravagantly at a time when soldiers fighting the war on terror are losing their lives and should be provided with better motivation to boost morale. Additionally, pensioners are being neglected, civil servants are unable to support their families with their incomes, and the prices of fuel and food are rising rapidly, nearing a 30% increase," stated former presidential aide Reno Omokri in a post on X, formerly known as Twitter.
Yomi Ogunsanya, an anti-corruption activist, commented to CNN that the budget "disrespects the sensibilities of Nigerians" and criticized the plans to renovate the president's residence and purchase new SUVs as "wasteful."
"These are wasteful spendings⦠Nigeria doesnt have a revenue problem; we have a spending problem."
Government hypocrisy
Some critics argue that it is hypocritical for the government to allocate funds towards luxuries when impoverished citizens are bearing the brunt of the economic reforms implemented by the president. The World Bank states that over 80 million Nigerians live on less than $2 per day, making Nigeria the country with the second-largest impoverished population worldwide, after India.
"Amidst the fiscal challenges, it is concerning that the federal government insists on expending resources on trivial matters while neglecting the financial struggles of its citizens," expressed Nigerian lawyer and political analyst Ken Eluma Asogwa during a phone interview with CNN from Abuja.
Presidential aide Bayo Onanuga specified in a statement released prior to the yacht's removal from the budget that it was "a naval vessel equipped with specialized security devices designed for high-profile operational assessments and not intended for presidential usage."
Onanuga further mentioned that "the navy had placed an order for the naval boat during the previous administration."
According to Nigeria's debt management office, the country has a debt of over one billion dollars and intends to borrow additional funds this year. Whether the supplementary budget will be financed partially through loans is unclear at present. CNN has contacted the budget office for further clarification.
Local media reported on Thursday that the Nigerian House of Representatives reallocated the funds designated for the presidential yacht to the student loan scheme before passing the spending bill. Additionally, the country Senate approved the supplementary budget after the MPs from both parliaments consolidated their report on the budget.
Economic woes
, Tinubu's Special Adviser on Information and Strategy, chose not to provide any comment regarding the government's intention to purchase luxury vehicles for the presidency. Nevertheless, CNN has contacted the presidency for a statement.
Nigerians have been struggling with inflation rates higher than average for several years. Nonetheless, the depreciation of the domestic currency, which has plummeted to unprecedented lows against the dollar, has intensified price surges and exacerbated the hardships faced by the people.
Nigeria's imports-driven economy heavily relies on the dollar for international trade. In June, the Nigerian government announced the removal of controls on foreign currencies, a move aimed at allowing the local currency to freely exchange against the dollar. However, this has further weakened the Nigerian naira, which currently trades at over N1000 to a dollar on the black market.
Last month, Nigeria experienced an inflation rate of 26.72%, marking its highest level in two decades. Additionally, food inflation rose to over 30% year-on-year in September, an increase of 1.3% compared to the previous month. Transport costs had already soared after Tinubu eliminated a fuel subsidy during his inaugural speech in May, citing its unsustainability and negative impact on public finances.
In his Independence Day address in October, Tinubu appealed to Nigerians to make sacrifices while waiting for his economic reforms to yield results, urging them to "persevere during this challenging period." However, critics have highlighted the lack of efforts made to reduce the exorbitant expenses of the government.
According to data intelligence company Stears, Tinubu heads a cabinet consisting of 48 members, the largest of any Nigerian president since the country's transition to democratic governance in 1999.
Nigeria's Senate recently announced its intentions to purchase luxury vehicles for its 469 members, disregarding the country's economic challenges. Sunday Karimi, the chairman of the Nigerian Senate's services committee, explained to the media that this decision was motivated by the deteriorating condition of roads in the nation. Karimi expressed that the senators require these vehicles to facilitate their oversight responsibilities and travel extensively within their constituencies. He further emphasized the dire state of Nigerian roads, stating, "If one observes the roads across the country, we are confronted with a severe problem as the majority are in deplorable conditions."
Ogunsanya, an anti-corruption activist, expressed to CNN that Nigerians have not yet experienced the advantages of the funds saved from the fuel subsidy removal. Despite the removal, people are still being affected by the consequences. Instead of using the money for productive purposes to alleviate the people's suffering, the government is using it selfishly for personal luxuries.
