In a recent circular, the federal government has announced the discontinuation of funding for professional bodies and councils starting from 2026. This decision, revealed by the Director General of the Budget Office, Ben Akabueze, is in line with the directive of the Presidential Committee on Salaries (PCS).
The circular, DG/BDT/GEN.CORR/2016/XII/3067, dated 26th June 2023, was addressed to the Nigerian Council of Food Science & Technology, under the Federal Ministry of Science, Technology & Innovation. Akabueze stated that the implementation of this decision would commence from the 31st of December, 2026.
According to Akabueze, the PCS approved the discontinuation of budgetary allocation to professional bodies and councils during its 13th meeting. Consequently, the Budget Office will no longer make provisions in the budget for these institutions, and they will be considered self-funded organizations. Starting from the designated date, the professional bodies and councils will be fully responsible for funding their personnel, overhead, and capital expenditures.
The primary motivation behind this decision is the government’s objective to reduce the cost of governance. With Nigeria’s total debt stock currently standing at approximately N49.85 trillion, excluding the Central Bank of Nigeria’s N22.719 trillion Ways and Means loan, the country’s debt sustainability has become a major concern for financial experts.
The Debt Management Office (DMO) has expressed worries over the federal government’s debt service to revenue ratio, which stands at 73.5 percent for 2023. This ratio significantly surpasses the recommended threshold of 50 percent, further emphasizing the need for the government to take measures to improve its financial situation.
