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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.

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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.

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

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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.

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.

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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.

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.

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

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.

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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.

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.

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“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.

“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.

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“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.”

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.

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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.

“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.”

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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.

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.

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“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 Reduces Fuel Price After Dangote Refinery’s Adjustment

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The Nigerian National Petroleum Company Limited has reduced its premium motor spirit pump price on Thursday, according to DAILY POST.

It was confirmed that NNPCL retail outlets in the Federal Capital Territory, Abuja, have reduced their pump price to N890 per litre from N945.

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This new fuel price has been reflected in NNPCL retail outlets such as mega station Danziyal Plaza, Central Area, Wuse Zone 4, Wuse Zone 6, and other of its filling stations in the nation’s capital.

READ ALSO:N5bn Damage: NNPCL Secures Appeal Court Victory Against Ararume

The latest downward review of fuel price in NNPCL outlets represents an N55 reduction in fuel pump price.

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It was reduced to N890 per litre this afternoon, down from N945,” an NNPCL fuel attendant told DAILY POST anonymously on Thursday.

This comes a Nigerian filling station, MRS Empire Energy, on Thursday adjusted their fuel pump price to N885 and N946 per litre, down from N910 and N955 per litre.

The latest fuel price reduction trend is unconnected to Dangote Refinery’s ex-depot petrol price adjustment by N30 to N820 per litre from N850 and the price of crude oil in the international market.

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Dangote Refinery Reduces Fuel Price

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Dangote Petroleum Refinery has announced a reduction in the ex-depot (gantry) price of Premium Motor Spirit, PMS, commonly known as petrol, by N30, from N850 to N820 per litre, effective from August 12, 2025.

This was disclosed in a statement by the company’s spokesman, Anthony Chijiena, on Tuesday.

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The 650,000-barrel-per-day plant said the move is part of its unwavering commitment to national development, assuring the public of a consistent and uninterrupted supply of petroleum products.

READ ALSO:Dangote Refinery Gets New CEO

In line with our dedication to operational excellence and sustainable energy solutions, Dangote Petroleum Refinery will commence the phased deployment of 4,000 CNG-powered trucks for fuel distribution across Nigeria, effective August 15, 2025,” said Chijiena.

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The announcement comes as the refinery prepares to commence direct fuel distribution nationwide. The development is expected to lead petroleum product marketers to reduce their pump prices in the coming days.

In Abuja, the retail fuel price stood between N885 and N970 per litre as of Tuesday evening.

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Indian Refiners Abandon Russia For Nigerian Crude, As Dangote Refinery Relies On US

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India Refineries have abandoned Russian crude for Nigerian crude, while domestic refiner Dangote Refinery relies heavily on West Texas Intermediate crude from the United States of America.

This followed a recent sanction threat by US president Donald Trump on India over continued patronage of Russian crude.

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According to Reuters, industry sources said that Indian Oil Corporation recently bought one million barrels of Nigeria’s Agbami crude for September 2025 delivery in a tender awarded to global trader Trafigura.

Also included are one million barrels of Angola Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban, and two million barrels of Nigerian oil, according to Reuters.

READ ALSO:‘My Eyes Dey Your Body’: Drama As Portable Professes Love For Regina Daniels

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The report noted that the purchase is part of a broader sourcing spree that has seen Indian refiners secure millions of barrels from non-Russian sources post July 2025.

Meanwhile, Indian refiners secured purchases of Nigerian crude grades; the $20bn Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, is relying on around 60 percent on US and other imoorts to feed its processing units.

Data showed that the refinery imported an average of 10 million barrels in July 2025, saying it was increasingly relying on the US for its feedstock despite the naira-for-crude deal with the Federal Government, which kicked off in October last year.

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According to Reuters, the Indian Oil Corp and Bharat Petroleum have bought a million barrels of non-Russian crude billed for delivery in September and October after the US pressured India to halt purchases from Russia.

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Indian state refiners had been largely absent from the Nigerian crude market spotlight since 2022; they have in the past concentrated on Russian crude amid the Russian-Ukrainian war. However, the Indian refiners paused Russian purchases in late July 2025 after pressure from US President Donald Trump.

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On the part of Dangote Refinery, data from commodities analytics firm Kpler showed that in July, US barrels accounted for about 60 percent of Dangote’s 590,000 barrels per day of crude intake, with Nigerian grades making up the remaining 40 percent.

In July, the Dangote refinery’s crude imports surged to a record 590 kbd—driven largely by US barrels overtaking Nigerian supply for the first time—amid ongoing domestic sourcing challenges, Kpler reports.

“While WTI has held a significant share in Dangote’s import slate since March, this is the first time US crude has overtaken Nigerian supply—a shift driven by several factors,” Kpler stated.

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