CHRICED warns of governance failure, links poor budget execution to rising poverty

Stanley Ihedigbo

Resource Centre for Human Rights and Civic Education has raised serious concerns over what it described as the Federal Government’s persistent failure to effectively implement the capital components of the national budget, calling for urgent transparency and accountability in public expenditure.

In a press release issued on March 25, 2026, and signed by its Programme Manager, Victor Emejuiwe, the organisation expressed deep dissatisfaction with the government’s fiscal performance, citing official data from the Budget Office of the Federation, which revealed a pattern of chronic underperformance in capital budget execution.

According to CHRICED, an analysis of the 2024 fiscal year showed that out of a total capital allocation of ₦9.9 trillion, only ₦5.81 trillion was released, with actual utilisation standing at ₦3.27 trillion. While this represents an 81.91 per cent utilisation of released funds, the organisation stressed that the figure falls significantly short when measured against the overall capital budget, leaving many critical development projects unfulfilled.

The situation, the group noted, has deteriorated further in 2025. It decried the failure of the Budget Office to publish the third and fourth quarter implementation reports, describing the omission as a violation of statutory provisions under the Fiscal Responsibility Act.

Available figures, CHRICED said, indicate that out of a projected ₦23.44 trillion capital budget, only ₦34.32 billion was released in the first quarter and ₦393.86 billion in the second quarter—representing less than one per cent of the total allocation.

“This trend clearly demonstrates that both the 2024 and 2025 capital budgets remain largely unimplemented,” the statement said.

The organisation warned that the continued neglect of capital expenditure undermines development, particularly at a time when Nigerians are grappling with economic challenges triggered by the removal of fuel subsidies, rising petrol prices, and escalating cost of living. It lamented that key sectors such as education, healthcare, and power generation remain severely underfunded, worsening poverty levels and unemployment across the country.

CHRICED further criticised what it described as a paradox in fiscal management, noting that while the government claims to have improved revenue generation, there has been a consistent failure to release funds for capital projects.

In contrast, recurrent expenditures, largely used to service the cost of governance, continue to receive full and timely funding.

“This imbalance deprives citizens of essential infrastructure, slows economic growth, and erodes public trust in governance,” the group stated.

The organisation also expressed concern over the delay in signing the 2026 budget, warning that the rollover of unimplemented projects into subsequent fiscal cycles reflects systemic inefficiencies and weak governance structures.

Looking ahead to the 2027 general elections, CHRICED cautioned that political considerations could further derail budget implementation.

It warned of a high risk that funds meant for capital development might be diverted for political activities, thereby fueling corruption, inflation, and abuse of office.

Equally, the group faulted the National Assembly of Nigeria for what it described as its silence and failure to exercise effective oversight over the executive arm of government.

“It is troubling that the National Assembly appears unwilling or unable to hold the executive accountable, raising questions about its commitment to protecting public interest,” the statement added.

In light of what it described as poor budget performance over the past three years, CHRICED maintained that there is little evidence of meaningful development outcomes that would justify any claims for re-election by the current administration.

To address the situation, the organisation called for a comprehensive audit of all capital allocations and releases between 2023 and 2026.

It also demanded the immediate publication of all outstanding 2025 budget implementation reports in line with legal requirements.

Additionally, CHRICED urged public officials seeking elective positions ahead of 2027 to demonstrate accountability and comply with directives requiring them to resign from office to avoid compromising governance.

The group further called on citizens to actively engage in demanding transparency, responsible leadership, and proper utilisation of public resources.

“Nigeria cannot achieve sustainable development without disciplined, transparent, and accountable budget implementation,” the organisation stressed, reaffirming its commitment to promoting fiscal responsibility and safeguarding citizens’ rights.