A financial analyst, Kalu Aja, has expressed concern over the Nigerian government’s plan to borrow heavily to finance its 2026 budget, which he describes as “wasteful.” The proposed budget, totaling N58.47 trillion, is currently under consideration by the Nigerian Senate.
According to Aja, a significant portion of the budget is allocated to expenditures such as solar streetlights, motorcycles, and cash grants, which he considers to be misuses of funds. Aja claims to have thoroughly reviewed the budget document and believes that it represents a missed opportunity for more strategic and impactful spending. He questions the logic of borrowing N2 trillion monthly to fund such projects, particularly in a country with pressing infrastructure needs, including poor road conditions.
The 2026 budget, presented by President Bola Ahmed Tinubu in December, anticipates a budget deficit of N23.85 trillion, with projected revenues of N34.3 trillion. This significant deficit underscores the government’s reliance on borrowing to meet its financial obligations. Aja’s criticism highlights the need for more prudent and effective allocation of resources, especially given the substantial financial burden that borrowing places on the nation.
The proposed budget’s focus on certain expenditures has sparked debate about the government’s priorities and its approach to addressing the country’s development challenges. As the Senate reviews the budget, it is likely that these concerns will be taken into consideration. The outcome of this review process will be crucial in determining the future direction of Nigeria’s economic policies and its ability to manage its financial resources effectively. The government’s decisions on borrowing and spending will have significant implications for the country’s economic stability and growth prospects.
