Nigerian politicians squandered N118.2trillion in 12 years – Report

A civil society group, the International Society for Civil Liberties & the Rule of Law (Intersociety), Tuesday,  said Nigerian political leaders, comprising of Federal, States, Local Government and Federal Capital Territory, collectively squandered a total of N118.2trillion or $600 billion  in 12 years, spanning January

2005 and December 2016.

According to the group, the money included both generated and borrowed funds secured for the purpose of budgetary expenditures in all of the country’s public offices. It also added that the authorities in charge of the country’s 36 States and 774 constitutionally recognized Local Government Areas (LGAs) as well as the authorities of the Federal Capital Territory (Abuja); numbering 17,500, made up of elected and appointed public office holders in the executive, legislative and judicial arms of government were responsible for the squandering.

The report further stated that between June 2007 and December 2016; a period of  ten years, the public officers squandered a staggering public debts of over N10trillion or $50billion from local and international sources.

The report reads in part: “When added, the country’s total official or public debts will be raised to as much as $80billion or N16trillion by the end of December 2016. The country’s current official public debts as at June 2015 were quoted by DMO as “N11.1trillion or $63.8billion”, using old official exchange rate of N155/US$. This is no longer fiscally realistic. Crookedness is also associated with government local borrowings in Nigeria; making it difficult for DMO to appropriately capture every kobo borrowed locally particularly by State Governments. As a matter of fact, totality of public borrowed funds in Nigeria both openly and illicitly borrowed; is strongly believed to be in the neighborhood of $80billion to $90billion or N18trillion or even more. Nigeria had also spent a whopping sum of N2.95trillion or $15billion in the past five years (2010-2014) in debts servicing. It is also feared in many informed quarters that Nigeria’s current public debts may most likely double at the end of President Buhari’s embattled administration by 2019, owing to alarming rates with which loans are being borrowed by his administration and subordinates of his administration particularly the State Governors.

“Our grounded findings were arrived at using the main public budgets of the Federal Government, the 36 States and the Federal Capital Territory; while in the case of 774 constitutionally recognized Local Government Areas (LGAs), their statutory federation allocations was used. For instance, in the 2015 federal allocations to the LGAs in Nigeria, a total of N953billion or $4.5billion was so allocated. On the other hand, our grounded finding did not include supplementary budgets of some of the 36 States and the Federal Government (some) as well as the internally generated revenues of the 774 LGAs. That of the LGAs was informed by total castration of the independence and functionality of the LGAs system in Nigeria; worsened by the provisions of Sections 162 (6) (State Joint LGA Account) and 7(1) (management of LGAs by State Government). Also, in the course of our findings, the official exchange of N199.00/US$ was applied or used.  We also hold that if the “missing points” are added, the budgeted and squandered public funds in Nigeria in the past 12 years will be higher than the figure under discussion.

“Further breakdown of the above findings statistically indicates that by the end of December 2016, the Federal Government would have budgeted, generated, borrowed and squandered a total of N48.1trillion or $240billion; having budgeted and squandered N1.8trillion in 2005, N1.9trillion in 2006, N2.3trillion in 2007, N3.58trillion in 2008, N3.76trillion in 2009, N4.6trillion in 2010, N4.48trillion in 2011, N4.7trillion in 2012, N4.98trillion in 2013, N4.92trillion in 2014, N4.5trillion and the Buhari’s supplementary budget of N575billion in 2015 in addition to his 2016 budget proposal of N6.07trillion; all totaling N48.1trillion or $240billion in 12 years or from 2005 to 2016″, the group said.

Continuing, the group said the South-south or Oil Niger Delta Region emerged the second largest squanderer with a whopping sum of N17.1trillion or $85billion; comprising N11.5trillion budgeted and spent between January 2005 and December 2013, and N5.6trillion between January 2014 and December 2016. The constitutionally recognized 774 LGAs emerged third largest squanderer with N14.4trillion or $70billion allocation in 12 years; comprising N11.4trillion between January 2005 and December 2013, and N3trillion between January 2014 and December 2016.

“Southwest zone was 4th largest squanderer and the country’s sub national largest debtor. It squandered a total of N11.3trillion or $56.5billion; comprising N7.3trillion between January 2005 and December 2013, and N4trillion between January 2014 and December 2016. Northwest zone was the fifth largest squanderer with N8.5trillion or $42.5billion; comprising N5.38trillion between January 2005 and December 2013, and N3.1trillion between January 2014 and December 2016; followed by North-central as sixth largest squanderer with N7.35trillion or $37.5billion; comprising N5.19trillion between January 2005 and December 2013, and N2.16trillion between January 2014 and December 2016. The Northeast zone was the seventh largest squanderer with N5.76trillion or $28.8billion; comprising N3.75trillion between January 2005 and December 2013, and N2trillion between January 2014 and December 2016.

“This Southeast zone emerged 8th largest squanderer with N5.1trillion or $25billion; comprising N3.45trillion between January 2005 and December 2013, and N1.66 trillion between January 2014 and December 2016. The ninth largest squanderer was the Federal Capital Territory (Abuja) with N1.96trillion or $9.5billion; comprising N1.33trillion between January 2005 and December 2013, and N625billion between January 2014 and December 2016; all totaling N118.2trillion or $600billion in the past 12 years or January 2005 to December 2016″, the report stated.