Amid calls for financial discipline, state assemblies across the country have approved budget increases totalling an additional ₦450 billion for the 2025 fiscal year. While some states have maintained their initial budget figures, others have opted for notable increments. As of December 27, 2024, 24 state assemblies had finalised and approved their 2025 budgets. Eight states, including Kaduna, Enugu, Ogun, Anambra, Sokoto, Kogi, Yobe, and Akwa Ibom, retained their proposed budget sizes. Meanwhile, 16 others substantially increased their budget allocations, raising questions about financial Sustainability and accountability.
Bayelsa, Ondo, Gombe, Edo, Oyo, Osun, Katsina, Ebonyi, Delta, Taraba, Zamfara, Plateau, Bauchi, Borno, and Cross River were among the states that increased their budgets for 2025. Despite ongoing calls to reduce governance costs and focus on fiscal discipline, these adjustments were made. Bayelsa State, for instance, saw its allocation rise from the initial proposal of ₦689.4 billion to ₦699.7 billion, reflecting an increment of ₦10.1 billion. Governor Douye Diri signed the revised allocation into law on December 26. Similarly, the Ondo State Assembly revised its 2025 Finance by ₦43.4 billion, moving from ₦655 billion to ₦698.6 billion.
National context and government fiscal responsibility concerns.
Gombe State also increased its allocation by ₦49 billion to reach ₦369.9 billion. State lawmakers have justified these increments as necessary adjustments to align with prevailing economic realities, though critics argue they could indicate poor financial planning. This trend is not limited to state assemblies. Earlier this year, the National Assembly adjusted the National Budget for 2024, raising it from ₦27.5 trillion to ₦28.7 trillion. This adjustment included adding 7,447 constituency projects valued at ₦2.24 trillion.
Senator Abdul Ningi from Bauchi Central had accused the National Assembly of allocation padding. His allegations led to his three-month suspension, emphasising tensions within the legislative chambers. Civil Society organisations have since called for increased fiscal responsibility to prevent unnecessary borrowing and mitigate long-term debt burdens. In Edo State, the assembly inflated the allocation by ₦70 billion, while Oyo approved an additional ₦6 billion. Osun State’s was adjusted by ₦37 billion, and Katsina added ₦10 billion to its proposed allocations. Ebonyi and Delta states witnessed the increases of ₦48 billion and ₦43 billion.
Various civil organisations have called for fiscal prudence.
Further increments were observed in Taraba (₦2 billion), Zamfara (₦1 billion), Plateau (₦58 billion), Bauchi (₦2 billion), Borno (₦31 billion), and Cross River (₦40 billion). While lawmakers have defended these adjustments as essential for addressing pressing developmental needs, analysts warn that such increases could lead to fiscal deficits if not supported by sustainable Revenue sources. Civil society groups and financial analysts have expressed concern over these rising figures, emphasising the need for effective financial planning. Those organisations argue that inflated allocations often increase borrowing, placing a significant debt burden on future generations.
They have called for greater transparency and accountability in allocations, urging governments at all levels to prioritise sustainable growth. This pattern has raised questions about governance priorities. Critics argue that while developmental projects are crucial, unchecked spending and lack of fiscal discipline could undermine long-term economic stability. Sustainable revenue generation and prudent expenditure remain critical to avoiding fiscal crises. Lawmakers in states like Ondo and Bayelsa have defended their allocation increments, citing the need to address economic challenges and fund critical projects.
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The Ondo House Committee on Finance and Appropriation Chairman, Oluwole Ogunmolasuyi, stated that the upward review was necessary to respond to the current economic landscape. Other state assembly representatives echoed similar sentiments. However, these justifications have not entirely convinced the public or experts, who highlight the lack of corresponding revenue growth to support these increased expenditures. The reliance on external borrowing to cover financial deficits remains a significant concern, with experts cautioning against the potential for unsustainable debt levels.