A Professor of Strategic Management and Corporate Governance at the Lagos Business School, Professor Franklin Ngwu, has expressed concern over what he described as increasing confusion in the management of Nigeria’s budget, warning that the trend is undermining public trust and raising broader governance concerns amid reports that the Federal Government exceeded its 2024 borrowing target by more than ₦4.7 trillion.
Speaking during an interview with ARISE NEWS on Wednesday, Professor Ngwu said the uncertainty surrounding budget implementation was a major concern, noting that the budget remains one of the most important tools for planning, governance, economic growth, and democratic accountability. He argued that the lack of clarity over budget management raises questions about fiscal discipline, borrowing, and the overall direction of public finance.
“First of all, if we are saying that they exceeded just for one year, then somebody might say it’s just a one-off. But from what we’ve been hearing, reading, observing, and seeing with regards to our financial management, fiscal management, budget management… In terms of, for instance, at the moment, this is 2026, July ending, we are not even sure which budget we are using. Are we using 2024? Are we using 2025? Are we using 2026?
“And now, this new report that we exceeded in 2024. So, the increasing confusion with regards to the way the budget is being managed gives everyone serious concern,” he warned.
Adding, Professor Ngwu said: “And remember that budget is one of the critical tools that government use in terms of planning, in terms of governance, in terms of growth, in terms of so many things. It’s a tool of democratic governance and finance. But the way it’s being managed now, nobody is really sure where we are with regards to the way we’re managing our budget. So, Nigerians rightly are supposed to be concerned. All this, which is supposed to be at the center of governance, is something that we’re supposed to be concerned about. Because all this, of course, is eroding social trust, is eroding social capital of the government,” he stated.
Stressing that the lack of clarity over the budget currently being implemented raises serious concerns about fiscal planning, accountability, and the overall management of public resources, Professor Ngwu said the issue reflects broader challenges within Nigeria’s governance system.
“I think that if it’s just a one-off, then somebody can say that it’s one of those things that just happened and we’re going to correct it. But I will say that since 2023, when this government came into power, and up to today, there has been a kind of systematic failure in governance. And if we are even looking at the budget issue, as I said earlier on, we’re not even sure the budget we are using. And this is serious,” he stressed.
He further argued that the effectiveness of government reforms should not be measured only by policy announcements or international assessments, but by their impact on the daily lives of Nigerians. According to Professor Ngwu, issues such as poverty, unemployment, insecurity, inequality, and the absence of effective monitoring and evaluation remain key indicators for assessing whether reforms are delivering the desired outcomes.
“It’s not about perception; it’s about reality. So, I’m not saying that government are not explaining, but they need to explain better. But even with explanation, the reality points out to a different direction. We are talking about reports indicating that more Nigerians are moving into poverty. We are talking about that there’s no job in the country. We are talking about that insecurity is increasing. We are talking about that even though we claim inflation is coming down, the reality is the opposite. We are talking about that inequality is increasing in Nigeria.
“And of course, when you speak to Nigerians—as a teacher, I move around and I talk to Nigerians—and they tell you the way they are feeling, they tell you the way they perceive the government. So these are realities. They also make demands on you in terms of how you help them in different things: financial support, school fees, and all that. And you’re feeling it. You go to the market, you go to other places that Nigerians gather, and you interact with them.
“So it’s not really about perception; it’s about the reality that we have. While the government is trying in certain aspects, the question is: are the reforms turning out to positive outcomes on the lives of Nigerians? Whether you do reform from now till next year, and poverty is increasing, inequality is increasing, unemployment is increasing, insecurity is increasing… these are fundamental criteria and factors used to assess the effectiveness of governance. Unless and until when these indicators start going to the right direction, the reforms might be perceived as not being effective. And that’s the reality,” he argued.
Reiterating his position, Professor Ngwu said Nigeria must urgently reimagine its development priorities and focus on building a productive economy driven by industrialisation, manufacturing, and innovation rather than relying largely on oil revenue, remittances, and foreign investments.
“If we talk about, for example, they said that our foreign reserve is increasing, what are the sources of the foreign reserve? The sources still include oil sales, remittances, and maybe foreign portfolio investment and all that. But is that the way how we’re supposed to grow our foreign reserve? The main way that we’re supposed to improve the economy, not just the foreign reserve, is in terms of productivity.
“So the question is, where is productivity in Nigeria? Are we producing? Outside oil, what is the net source of revenue for Nigeria? Manufacturing, are they doing well? The answer is no. So as I keep emphasizing, because of this low level of discussion, people believe that when you construct roads as a governor, you should be praised. People believe that when you construct classrooms, you should be praised. That is not where we are supposed to be as a country. Of course, you know Nigeria, we don’t live in isolation to the global economy. The global economy has moved on, even in African countries that I’ve traveled to. So we are supposed to sit, as I said earlier on, to reimagine the country. And this has to be driven by the President to show effective leadership, to show committed leadership, to show that uncompromisingly, this is where the country wants to go,” he stressed.
Urging government at all levels to take constructive feedback seriously, Professor Ngwu stressed that such interventions should be seen as contributions rooted in knowledge, experience, and patriotism rather than criticism. He expressed hope that President Bola Ahmed Tinubu’s administration would ultimately leave behind a legacy of improved governance and meaningful development.
“What we are imploring, is that the government should take some of these feedbacks—not that we are criticizing government, but we are offering suggestions from a point of knowledge, from a point of experience, and most importantly, from a profound position of commitment and patriotism. Because all of us want the country to do well. And we want to see that at the end of the tenure of President Bola Ahmed Tinubu, that there’s a legacy that we can talk about,” he said.
Speaking on fiscal sustainability, Professor Ngwu said Nigeria’s continued borrowing without corresponding productivity gains was not sustainable, stressing the need for better use of resources to drive economic growth and improve living standards.
“It’s not sustainable. If you notice, once the government wants to do something, they borrow money. Once the money is exhausted or being exhausted, there’s an announcement that another borrowing is coming. But the question then is, have we even clearly looked at our economy, our areas of comparative advantage, and see how we can harness all the resources that we have to achieve what we need as a country? I don’t think so. The productivity of the country is lying comatose. We are not even producing. What are we even selling to the global economy? What are we selling to Africa? What are we selling to West Africa? Outside oil, what is it that we can say that we are very good in?
“But the question is not even borrowing per se, because if you’re borrowing for productive activities, then it’s fine. The question is that when we borrow, we don’t even see the releases for the capital expenditure that we want to do. We read a report that the 2025 budget, they couldn’t implement it, and only implemented 30%. And 70% will move to 2026. And recently there’s another extension to move it again from March to September as the case… I mean, it is not the way things are done.
“And anybody saying that the government is doing the right thing with regards to the way they are managing the budget, I’m not sure the person has that level of understanding and patriotism required to move this country forward. So the answer to your question is: it’s not sustainable, it’s not the way countries borrow, it’s not the way things are done, and we are not even seeing the evidence that these resources being borrowed are judiciously and prudently used to elevate governance, to elevate standard of living in Nigeria,” he said.
According to the professor, Nigeria’s economic outcomes are closely linked to the quality of its governance, stressing that weak institutions, poor planning, and ineffective management of public resources could deepen the country’s existing challenges.
“Economic outcomes are determined by economic policies. And economic policies are determined by the politics of the environment. And the politics is determined by the sociology of the society. And that is the reason why I’m imploring the federal government, the state governments, the governors, to understand this connection, and to really see how they can reimagine Nigeria and bring the country to real achieve what they’re supposed to achieve. Our governance level is poor, and it’s not to the level we’re supposed to be,” he lamented.
“With what is going on at the moment with the way budget, debt, governance, insecurity, and other things are being managed, I think we are even going to a worse situation. We need to do things differently,” he concluded.
Favour Odima
