A closer examination of Ogun State’s budget performance documents has uncovered a startling revelation: Governor Dapo Abiodun’s administration spent a staggering N2.3 billion on welfare, refreshments, and foodstuffs in just the first three months of 2024.
Within the N2.3 billion disbursement, a breakdown of the spending reveals that the sum of N323 million was earmarked for pilgrimage and other religious events, an allocation that may seem disproportionate given the large spending on food and refreshments. Notably, the sum of N228 million was set aside for the purchase of refreshments and meals, an amount that could potentially have been put to use in other areas of public service.
An analysis by Peak Newspaper Nigeria sheds light on the extent of the spending, with a report suggesting that welfare packages were the highest cost item at a staggering N1.7 billion, followed by foodstuffs which amounted to a comparatively modest sum of N25 million.
In what could be seen as a startling imbalance in budgeting, the overall spending on welfare surpasses the sum allocated for capital projects in several key sectors, according to the examination of the budget documents. This reveals a priority allocation that favors welfare packages over long-term investments in crucial areas of development, highlighting the importance of prudent budgeting in promoting sustainable growth in Ogun State.
Adding to the shock value of the budget allocation imbalance, the Ministry of Agriculture was allocated a paltry N123 million for capital expenditure during the first quarter of 2024, while the Bureau of Job Creation and Youth Empowerment, an agency tasked with boosting employment and empowering youth, received a staggering zero naira in capital expenditure. These allocations suggest that areas of critical importance to the state’s development, such as agriculture and youth empowerment, have been underfunded in favor of seemingly discretionary welfare expenditures.
To compound the already distressing expenditure allocation, a further examination of the budget reveals that a whopping 60% of the total capital expenditure on works and infrastructure, amounting to N3.8 billion, was allocated to pilgrimage, welfare packages, foodstuffs, and refreshments. Moreover, the Ministry of Rural Development, another key agency in fostering rural development and poverty alleviation, received zero naira in capital expenditure.
In comparison, the Ministry of Housing received N493 million for capital expenditure. The allocation for education, science, and technology capital needs was N1.7 billion, less than the amount spent on welfare packages. The health sector was allocated only N151 million for its capital needs.
The Ministry of Community Development and Cooperative also recorded zero naira in capital expenditure for the first quarter of 2024.
This spending on welfare packages comes amid significant debt servicing costs, with Ogun State allocating N11.8 billion to service its debt in the first quarter of the year.
