OGUN State Governor Dapo Abiodun’s office will spend N11.4 billion on welfare packages and another N1.2 billion on travel and transportation from the state coffers in 2024 amid the state’s huge debt.
This is according to the state’s 2024 appropriation bill reviewed by The ICIR.
The welfare and travel packages is for the governor’s office.
The ICIR reported that the N703 billion budget titled “Budget of Sustained Growth and Development” comprised N415.66 billion for capital expenditures and N287.37 billion for recurrent expenditure.
Abiodun said the budget had consolidated revenue costs of N27.35 billion, personnel costs of N95.05 billion, overhead expenses of N105.88 billion, and public debt charges of N59.09 billion.
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The government earmarked N109.21 billion for education, representing 16 per cent and N81.18 billion for the health sector, representing 12 per cent of the budget, while N28.88 billion, representing four per cent, was budgeted for housing and community development.
Abiodun explained that agriculture and industry would gulp N14.21 billion, representing two per cent, while N22.87 billion, representing three per cent, was budgeted for recreation and culture.
Governor’s spending
Findings by The ICIR showed that the governor earmarked N11.4 billion (N11,423,592,000) for his welfare packages and N1.2 billion (N1,178,695,804) for his travel expenses as the state continues to struggle with debt.
This means the governor will expend an estimated N950 million monthly as a welfare package while spending roughly N98 million monthly on travel expenses if the budget is fully implemented.
According to the National Bureau of Statistics (NBS), Ogun state recorded the highest domestic debt as of December 31, 2023, which was N278.7 billion (N278,675,120,734).
It came behind Lagos and Delta states on the list of states with the highest domestic debt that year.
Domestic debt refers to the money owed by the government to creditors within the country. Being highly indebted domestically suggests that the state may face financial challenges in managing its debt burden and meeting its financial obligations to the state.
Even though residents and observers in the state have been raising concerns over the situation, the state government has always insisted that they have not exceeded the state’s debt limit.
Further analysis of the budget by The ICIR showed that the governor allocated N1.1 billion (N1,102,682, 252) for fuel and lubricants for his office and N967 million ( N967,393,999) for refreshments and meals.
The governor also plans to spend N861 million (N861,183,338) for “special days and celebration” and N14 billion (N14,020,948,839) on “contingency”.
In total, N64 billion (N64, 193, 544, 562) was allocated for the governor’s office in the budget. This is higher than the amounts budgeted for the Ministry of Environment (N10.6 billion), the Ministry of Transportation (N6.3 billion), the Ministry of Rural Development (N8.7 billion ) and the Ministry of Environment (N4.9 billion) combined.
This implies that the governor’s office was allocated a substantial amount of the state’s resources compared to other critical sectors such as environment, transportation, and rural development.
Abiodun had attributed the state’s substantial debt to the depreciation of the naira against the dollar and his predecessor, Ibikunle Amosun, who allegedly left him with a debt of N142 billion.
However, the governor’s seeming extravagant spending could exacerbate the state’s debt crisis despite claims that it is targeted at funding critical infrastructure projects.
Nurudeen Akewushola is an investigative reporter and fact-checker with The ICIR. He believes courageous in-depth investigative reporting is the key to social justice, accountability and good governance in society. You can reach him via [email protected] and @NurudeenAkewus1 on Twitter.