Nigeria’s 2025 Budget Allocates N2.49 Trillion to Regional Development Commissions, Sparking Transparency and Equity Concerns

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In the proposed 2025 budget, the Federal Government of Nigeria has earmarked N2.49 trillion for regional development commissions, aiming to address the unique challenges and promote balanced development across the nation’s geopolitical zones. This substantial allocation underscores the government’s commitment to regional growth; however, it has also ignited debates over transparency in fund allocation and the apparent exclusion of the North-Central region.

Breakdown of Allocations:

  • The proposed budget details the following allocations to regional development commissions:
  • Niger Delta Development Commission (NDDC): N776.53 billion
  • North-West Development Commission: N585.93 billion
  • South-West Development Commission: N498.40 billion
  • South-East Development Commission: N341.27 billion
  • North-East Development Commission (NEDC): N290.99 billion

These commissions are tasked with implementing development projects tailored to the specific needs of their respective regions, addressing issues ranging from infrastructure deficits to economic empowerment.

Transparency Concerns

A significant point of contention is the classification of these substantial allocations under “personnel costs.” Budget analysts and civic organizations, such as BudgIT, have raised alarms that this categorization obscures the true nature of the expenditures, potentially hindering effective oversight and accountability. The lack of detailed breakdowns makes it challenging to assess how funds are distributed between administrative expenses and actual developmental projects.

BudgIT emphasized that lumping development commission budgets under personnel costs could compromise transparency and accountability, hindering proper scrutiny of fund utilization and the achievement of intended development objectives.

Exclusion of the North-Central Region

The budget’s omission of the North-Central geopolitical zone from these allocations has sparked significant debate. The North-Central, comprising six states and the Federal Capital Territory (FCT), remains the only geo-political zone without a dedicated regional development commission. This exclusion has led to calls for equity in federal allocations and the establishment of a North-Central Development Commission to address the region’s unique challenges.

Political figures, including Peter Obi, the Labour Party’s presidential candidate in the 2023 elections, have criticized the Federal Government for omitting the North-Central region from the 2025 budget proposal. In a post on X (formerly Twitter), Obi stated that the omission undermines the need for balanced development and peace in the country.

Implications for National Development

The establishment of the Ministry of Regional Development in October 2024, overseeing all regional development commissions, reflects the government’s strategy to streamline efforts toward regional growth. However, the current budgetary allocations and omissions raise questions about the equitable distribution of resources and the effectiveness of these commissions in achieving their mandates.

The exclusion of the North-Central region, in particular, has fueled discussions about fairness and political representation. Advocates argue that the region, with its diverse ethnic groups and strategic location at the heart of the nation, has contributed significantly to Nigeria’s political, economic, and social fabric and deserves equitable development funding.

Calls for Action

Civic organizations and regional leaders are urging the National Assembly to scrutinize the proposed budget closely, ensure transparency in fund allocation, and address the exclusion of the North-Central region. They advocate for a more detailed breakdown of the allocations to promote accountability and the establishment of a development commission for the North-Central zone to ensure balanced national development.

As the budget undergoes legislative review, it presents an opportunity for policymakers to address these concerns, promote equitable resource distribution, and enhance the effectiveness of regional development initiatives across Nigeria.

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