Ben Akabueze, Director-General of the Federation’s Budget Office, has condemned waste in government and advocated for a review of the fuel subsidy.
Akabueze while speaking on a Channels Television program commemorating Nigeria’s 62nd anniversary of independence, said the government’s spending on subsidies has been consuming a lot of resources after personnel costs and debt servicing.
He counseled President Muhammadu Buhari’s administration to prioritize spending while reducing unnecessary waste.
“We need to take a hard look at the petrol subsidy that is the single largest item of expenditure after personnel cost and debt service for the Federal Government,” Akabueze said.
“There are some wastes that we still need to cut. We need to do the job of prioritising how we spend the limited resources that are available.”
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He also denied claims that the government is overspending, saying that the current administration needs to look into new revenue streams.
According to Akabueze, the country’s infrastructure is severely underfunded, with many public services suffering as a result.
“Our problem is not that the government is spending too much money. The truth is that the government is not spending enough money and the numbers are there to show.
“The public expenditure to GDP ratio is at the bottom even on the African continent and that is why public services are suffering whether in health or education.
“The infrastructure faces a significant deficit. It is however correct that we can be more efficient in our expenditure,” the accountant added.
Akabueze’s remarks come less than a month after Finance Minister Zainab Ahmed presented the government’s proposal to spend ₦3.36 trillion on petrol subsidies in 2023.
Zainab, who testified before the House of Representatives Committee on Finance in Abuja on August 29, said the petrol subsidy would be extended until the middle of 2023.
She explained that the Federal Government intends to spend ₦19.76 trillion in total for the fiscal year 2023, with a projected deficit of ₦11.30 trillion.
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