THERE are growing concerns by some economists over Nigeria’s reliance on borrowing to fund the N5.095 billion presidential yacht and other line items in the 2023 supplementary budget.
The concern followed the Federal Government’s proposal to appropriate N5.095 billion for the purchase of a presidential yacht under the capital expenditure of Nigeria Navy and N5.5 billion for education loan fund in the 2023 supplementary budget.
This is in the 2023 supplementary appropriation details of MDA spending, sighted by The ICIR.
Some of the economists said President Bola Tinubu-led administration was pushing Nigeria into more debt since the supplementary budget is largely to be funded by borrowing.
“The worst part is that Nigeria will borrow to buy the Presidential yacht. Nigeria has a spending problem, not a revenue problem,” a development economist, Kalu Aja, said on his X handle.
“Keep in mind, we only know about the presidential yacht because the federal budget is broken down in line by line. Even the budgets of secretive institutions like DIA and DSS are broken down. However, the National Assembly budget is not broken down line by line. So, it can appropriate NASS yacht, and you will not know,” Kalu said.
More Nigerians are also worried about the maintenance cost for the proposed yacht, as Nigeria struggles with challenging economic problems triggered by high inflation and currency problems.
“Amidst all the economic crisis and hardships we have, you can see their priority and where their focus is. It doesn’t show an urgency to solve any problem,” another development economist, Celestine Okeke, told The ICIR.
“This is a huge concern, and we want the elected political office holders to make the sacrifices they have called on Nigerians to make,” a development economist, Chika Mbonu, told The ICIR.
Meanwhile, a further breakdown of the supplementary budget document revealed that the Nigerian Navy proposed a capital expenditure of 42.3 billion and a recurrent expenditure of N20.42 billion, totalling about N62.8 billion.
Other items in the budget proposal from the Nigerian Navy include the purchase of vehicles, construction of the naval base in Lekki and Epe, provision of critical equipment, and purchase of ammunition.
Under the capital supplementation for the 2023 supplementary budget, the Federal Government proposed N5.5 billion as an education loan fund to fund the Student Loan Act. The total capital supplementation for the 2023 supplementary budget is N210.5 billion.
Meanwhile, the Senior Special Assistant to the President on Media and Publicity, Tope Ajayi, has debunked reports that Tinubu requested a presidential yacht.
Ajayi clarified this through a statement titled, “On Presidential Yacht And Other Matters,” in response to reports about the allocation of N5 billion naira for a presidential yacht in the N2.17 trillion supplementary budget submitted to the National Assembly.
According to Ajayi, the Navy requested the yacht for operational purposes, not Tinubu.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.