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2023 Budget: Concerns Mount Over N8.2 Trillion Recurrent Expenditure

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When the 2023 annual budget of N20.51 trillion annual budget was presented to the joint session of the upper and lower legislative Chambers, it would have been taken as a normal exercise without raising an eyebrow, considering that the presentation was in line with some relevant provisions of the Constitution.

However, issues of legitimacy and otherwise began to prop up as both Chambers commenced the legislative debate on the general principles of the document on Wednesday.

The debate on the general principles of the budget document, which is officially an executive bill, has nonetheless revealed figures in detail, item by item in line with the priority of government under Capital, Personnel and Recurrent expenditures.

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It is in line with this that DAILY POST observed that the recurrent expenditure of the current administration has been alarmingly on steady rise amid the yearning of government to cut cost in governance. For instance, the recurrent expenditure or overhead cost as it is also called for 2023 has surged from N6.9 trillion in 2022 to N8.2 trillion.

READ ALSO: bBuhari Reveals N9.73trn Available To Fund N20.51trn 2023 Budget

The recurrent expenditure is the yearly cost of activities of government and it was expected that this cost reduces due to certain measures or policies of the President Muhammadu Buhari administration which were aimed at putting this expenditure on the downward spiral.

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It is observed that in 2018, three years after President Muhammadu Buhari took over governance on the platform of the All Progressives Congress (APC), the recurrent expenditure was out at N3.5 trillion in rise of the preceding year; again in 2019, it went up to N4.7 trillion. This is even when governance was completely shut down due to the COVID-19 pandemic. DAILY POST recalled that both public and private establishments resorted to virtual means of doing business, yet no single amount of money was refunded to the national treasury of the Federal government as unspent overhead.

Again in 2020, the total amount for recurrent stood at N4.8 trillion. This is notwithstanding the embargo placed on recruitment of workers into the Federal Civil Service in the past seven years of Buhari’s administration. This is except for replacement of workers who have either died or resigned from service.

Though, the legislative session in the upper and lower legislative Chambers have been suspended to enable the Committees conduct public hearings on the appropriation of Ministries, Departments and Agencies of government, it should be a matter of curiosity on the part of the Chairmen and the members of those Committees to subject heads of the agencies of government to serious interrogation.

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To also dwell much on budget performance of each agency of government would be the right thing to do, particularly on their recurrent expenditure where it would lay bare value for funds released by the Federal Ministry of Finance for the year under review.

Reacting on Wednesday after plenary, the Senator representing Borno South Senatorial district, and Chairman of Committee on Army, Ali Ndume decried the yearly rise in recurrent expenditure without the commensurate results or successes in government circle.

READ ALSO: 2023 Budget Of Fiscal Consolidation And Transition [Full Text]

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In what he described as “Yahoo Yahoo boys in government offices”, the lawmaker lamented that some civil servants in government were worse off when it comes to the handling of public funds, stressing that they steal with impunity.

He queried the 2023 recurrent expenditure which the Federal government was seeking approval from the parliament, saying that it amounted to a 43% increase compared to that of 2022, while insisting that the appropriation shouldn’t be allowed to scale third reading in a hurry after they have reconvened on 15th November.

The lawmaker believes that the upward trend in the recurrent expenditure means enriching individual pockets of some officials of government and further queried the essence of IPPIS and other payment platforms.

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Though he lauded the Buhari administration’s timely releases of funds based on the yearly budget circle that runs from January to December, he doubted that meaningful achievements could be recorded amid rise in recurrent expenditure and debt servicing, particularly in 2023.

Ndume said: “What we witnessed in this administration is an improved implementation of the budget, in terms of releases.

“To the continuous rise in the recurrent expenditure and debt servicing, but that in debt servicing is even understandable. When you borrow to spend on recurrent and this money is going to less than 5 percent of Nigerian workers.

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“Right now the recurrent expenditure is standing at about 43 per cent which should be a concern to everyone.”

He also called for investigation of the current figure, saying: “This rise in recurrent expenditure should be investigated.

“The introduction of TSA, GIFMIS and IPPIS is supposed to control this cost, but instead you know Nigerians. I suspect we have more yahoo Yahoo people in the government than you find in the hotels and on the streets.”

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According to him, the sum of N32 billion allocated to the Nigerian Army as capital expenditure amid the high level of insecurity was grossly inadequate, adding that the figure has been static in the last three years.

He said the Army which he chairs have improved the security challenges across the nation, believing that if the amount was upscaled it could reduce insecurity in the country.

He added: “I’m in charge of the Army. Look at the funniest thing, we are in a war situation everywhere. We are saying the challenge of insecurity should be addressed which is very important.

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“But guess what? The capital budget of the Nigerian Army again is only N32 billion. Are we serious? If we are not safe, how can we even spend?

“The capital budget of the Nigerian Army is still grossly inadequate compared to what they need to bring this issue of escalating insecurity to an end.”

In her view, Senator Oluremi Tinubu representing Lagos Central Senatorial district commended President Buhari for the 2023 budget, saying that he has laid a solid legacy over the years he has spent.

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READ ALSO: Nigerian Govt Plans N19.76trn Budget For 2023

She said: “President Muhammadu Buhari has laid a solid legacy and the 2023 N20.51 trillion which is a combination of all subheads will be used to continue his legacies in infrastructure by the successive governments.

“Of course, Buhari is not a magician that will complete everything during his tenure. He did his best and he is still doing but another government will continue from where he stopped”, Oluremi said.
DAILY POST

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NNPCL Raises Fuel Price

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The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of petrol from ₦865 to ₦992 per litre, marking a fresh hike that has sparked widespread concern among motorists and consumers .

As of the time of filing this report, the company has not released any official statement explaining the reason for the sudden adjustment.

During visits to several NNPC retail outlets, The Nation observed fuel attendants recalibrating their pumps to reflect the new price.

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READ ALSO:JUST IN: NNPC, NUPRC, NMDPRA Shut As PENGASSAN Begins Strike

At NNPC filling station on Ogunusi road, Ojodu Berger, petrol attendants at the station said they were instructed to change the price to reflect the new rate N992 per litre.

However, checks at Ibafo along the Lagos /Ibadan expressway showed that NNPC outlets still displayed the old price of N875 per litre, although they were not selling to commuters.

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Most of the NNPC stations were not dispensing fuel.

 

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CBN Directs Banks To Refund Failed ATM Transactions Within 48hrs

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The Central Bank of Nigeria has directed Deposit Money Banks and other financial institutions to refund customers for failed Automated Teller Machine transactions within 48 hours, in a sweeping reform aimed at protecting consumers and restoring confidence in the banking system.

The directive is contained in a draft guideline released by the apex bank on Saturday, titled “Exposure of the Draft Guidelines on the Operations of Automated Teller Machines in Nigeria.”

The document, signed by Musa I. Jimoh, Director of Payments System Policy Department, was circulated to banks, payment service providers, card schemes, and independent ATM deployers, with a call for stakeholder feedback by October 31, 2025.

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Under the draft, failed “on-us” transactions, where customers use their own bank’s ATM, must be reversed instantly. If technical glitches prevent immediate reversal, the bank is required to manually refund the customer within 24 hours.

READ ALSO:CBN Sets POS Maximum Transactions In Fresh Guidelines

For “not-on-us” transactions, involving other banks’ ATMs, refunds must be processed within 48 hours.

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“Customers must not be made to suffer for failed transactions caused by system errors or network failures,” the circular stressed.

In a significant shift, the CBN mandated banks and ATM acquirers to deploy technology that automatically reverses failed or partial transactions, removing the need for customers to lodge complaints.

Institutions holding customer funds due to failed disbursements must reconcile and return balances immediately.

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READ ALSO:FG Records N7.34tn Fiscal Deficit In 11 Months – Report

According to the apex bank, these measures respond to widespread frustration over delayed refunds and poor customer service and form part of a broader effort to enhance consumer protection, improve reliability, and modernise Nigeria’s payment infrastructure in line with global standards.

The guidelines will also overhaul ATM operations nationwide. Banks and card issuers are now required to deploy at least one ATM for every 5,000 active cards, with phased targets of 30% compliance in 2026, 60% in 2027, and full compliance by 2028. Any future deployment, relocation, or decommissioning of ATMs must receive prior approval from the CBN.

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To ensure safety, ATMs must be fitted with anti-skimming devices, CCTV cameras, and placed in enclosed or well-lit areas.

Machines are expected to comply with Payment Card Industry Data Security Standards, maintain audit logs, and display functional helpdesk contacts. At least 2% of all ATMs must feature tactile symbols for visually impaired customers.

READ ALSO:CBN, UBA, Others In Benin Given Ultimatum To Remove Their Buildings Or Be Demolished

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ATMs are also required to dispense cash before returning cards, allow free PIN changes, issue receipts for all transactions except balance inquiries, display clear transaction fees, dispense only clean banknotes, and provide backup power to reduce downtime.

Downtime must not exceed 72 consecutive hours, after which operators must inform the public of the cause and expected restoration time.

The CBN will enforce compliance through regular audits, on-site inspections, and monthly reports from ATM operators detailing deployments and locations. Defaulting institutions risk sanctions, though fines were not specified.

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READ ALSO:Nigeria’s External Reserves Increase As CBN Releases 2024 Financial Results

The apex bank explained that the overhaul was necessary due to rising complaints about failed transactions, cyber fraud, and declining service quality, noting that “the goal is to build a payments system that works seamlessly for everyone, urban and rural users alike.”

Nigeria’s electronic payments landscape has grown rapidly in recent years, with 200 million cardholders and rising reliance on digital banking, but network failures, poor infrastructure, and delayed reversals have continued to undermine confidence.

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The fresh guidelines, coming eight months after a revision of ATM fees, are expected to streamline service delivery, enhance transaction security, and hold banks accountable. Stakeholders are invited to submit feedback ahead of the final policy adoption, which could take effect before the end of the year.

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Nigerian Stock Market Hits 10th Consecutive Uptrend As investors Gain N308bn

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The Nigerian Stock Market recorded its 10th consecutive uptrend as investors raked in N308 billion gain on Thursday.

This comes as the Nigerian Exchange Limited, NGX, market capitalisation, which opened at N92.490 trillion, appreciated by 0.33 per cent to close at N92.798 trillion on Thursday.

Also, the All-Share Index added 0.33 per cent, or 485.25 points, to close at 146,204.34, compared with 145,719.09 recorded on Wednesday.

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READ ALSO:Asian Stocks Rise As Trump Postpones Mexico, Canada Tariffs

Increased trading in Eunisell Interlinked, Caverton Offshore Support Group, Sunu Assurances, Industrial and Medical Gases, Mecure, and 27 other advancing stocks boosted market performance on Thursday.

To this end, the market breadth also closed positive with 32 gainers and 21 losers.

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Further analysis showed that Eunisell Interlinked and Caverton Offshore Support Group led the gainers’ chart by 10 per cent each, closing at N44 and N6.93 per share, respectively, while FTN Cocoa Processors led the losers’ table by 6.67 per cent, closing at N5.60 per share.

READ ALSO:UK Stock Markets Plunge In Biggest Daily Fall Amid Trump Tariff

Market activity showed a decline in the number of deals and volume traded but an improvement in trade value.

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Accordingly, a total of 346.99 million shares worth N27.43 billion were traded in 24,691 deals, compared with 525.72 million shares worth N13.61 billion exchanged in 25,597 deals on Wednesday.

Fidelity Bank topped the activity chart with 42.01 million shares valued at N861.54 million.

According to DAILY POST, NGX has continued its bullish run from last month’s end to date.

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