- Travel cost by flight in Nigeria rose by 25% in July, says NBS
A report by BudgIT, an accountability firm, has revealed that the Federal Government spent three times its revenue in 2023, resulting in a deficit of N13.50trn.
In its analysis of the 2023 fiscal accounts from the Office of the Accountant General of the Federation, BudgIT stated that the government’s revenue last year was N5.99trn, while it spent N19.50trn, exceeding its income by 225 per cent.
The report showed that the revenue came from various sources, including N3.80trn from the Federation Account Allocation Committee, N1.98trn from the Federal Government’s independent revenue, and N202.54bn from other sources.
This deficit highlights the government’s continued drift away from fiscal responsibility, as it borrows more than it earns, perpetuating a cycle of debt and financial instability.
Reacting to this, a fiscal accountability expert at the Centre for Fiscal Transparency and Integrity Watch, Victor Agi, sounded the alarm on Nigeria’s escalating debt crisis, warning of severe economic implications if urgent action is not taken.
“The economy is bleeding and we are struggling to fund capital expenditure. The implications are dire,” Agi said.
He criticised the government’s handling of the economy, stating, “It shows how irresponsible the handlers of the economy have been since a couple of years now.”
Agi noted that Nigeria has experienced no economic growth since 2014, with the economy experiencing negative growth.
“If nothing is done about it, it will continue,” he warned.
He expressed concern over the government’s borrowing habits, saying, “The problem is not the fact that the government is borrowing, but what are we borrowing for? We are borrowing to fund debt, to fund frivolities.”
Agi pointed out that only 4.4 per cent of the government’s N19trn expenditure last year was used for capital expenditure, describing it as “not acceptable.”
He warned that the implications of the government’s actions are already being felt, with the cost of living escalating and ordinary people struggling to make ends meet.
“The money we are borrowing is not the problem per se. The fact that we are borrowing to service debt, to fund frivolities, is the problem,” Agi emphasised.
He called for fiscal responsibility, urging the government to prioritise funding for the real sector of the economy and capital expenditure.
“Our fiscal handlers must be more responsible if we will get out of the current economic situation,” he said.
A public policy enthusiast, Femi Oladele, also expressed concerns over the Nigerian government’s spending habits, warning that the country’s economic woes may worsen if not addressed.
Oladele noted that spending more than one earns is not inherently bad, but emphasised the need to examine the breakdown of such expenditures.
“If I earn N200, 000.00 monthly, but spend N1, 000,000.00 in three months – that’s not necessarily bad. But if we check what I spent the money on, we can then draw subjective inferences,” he said.
He questioned the government’s priorities, suggesting that they may be relying on unknown “windfalls” to sustain their spending habits.
“In my opinion, it looks like our government believes (or knows) that there is some kind of windfall somewhere that others don’t know,” Oladele stated.
He criticised the government’s tendency to prioritise non-essential expenditures, saying, “There are some expenditures that can wait…till we exit this economic doldrums, but it appears they are not so worried.”
Oladele also highlighted the need for local investment to stimulate economic growth and development.
“Most of those spending are unfortunately not local, so would have little impact on our economy directly. We need to invest locally to spur economic actions that can escalate growth and development,” he emphasised.
Travel cost by flight in Nigeria rose by 25% in July says NBS
Also, the National Bureau of Statistics said the price of domestic air flight in Nigeria rose by 25 percent in July 2024 when compared to the same period of 2023.
The bureau in its Transport Fare Watch Report for July said domestic air fare rose by 25 per cent year-on-year (YoY) to ₦98,561.74 in July 2024 from ₦78.775.74 in July 2023.
NBS said, “In air travel, the average fare paid by air passengers for specified routes single journey was N98, 561.74 in July 2024, showing an increase of 9.65 per cent compared to the previous month (June 2024).
“On a YoY basis, the fare rose by 25.12 per cent from N78, 775.74 in July 2023.”
The development comes after the Federal Government last month said it would further raise its tax charges amid complaints by the Airline Operators of Nigeria over multiple taxation.
Despite the increase in airfare in July, the prices paid for bus, motorcycle and waterway journeys declined in July 2024.
NBS said, “The average fare paid by commuters for bus journeys within the city per drop decreased to 2.18% from N963.58 in June 2024 to N942.61 in July 2024. On a year-on-year basis, it declined by 29.46% from N1, 336.29 in July 2023.
“In another category, the average fare paid by commuters for bus journey intercity per drop was N7, 117.17 in July 2024, indicating an increase of 0.35% on a month-on-month basis compared to N7, 092.03 in June 2024.
“The average transport fare paid on Okada transportation was N483.33 in July 2024 which shows an increase of 1.22% when compared with the value recorded in June 2024 (N477.49).
“On a year-on-year basis, the fare decreased by 25.20% when compared with July 2023 (N646.12). For water transport (waterway passenger transportation), the average fare paid in July 2024 was N1, 403.06 which indicates a decline of 0.44% on a monthly basis.
“On a year-on-year basis, it decreased by 0.26% from N1, 406.70 in July 2023.
“On state profile analysis, for intercity bus travel (state route charged per person fare), the highest fare was recorded in Anambra with N9, 566.89, followed by Gombe with N8, 299.44.
“The lowest fare was recorded in Kwara with N5, 518.38, followed by Ebonyi with N5, 596.11. Taraba state recorded the highest number of bus journeys within the city (per drop constant route) in July 2024 with N1, 457.28 followed by Ondo with N1, 200.94.
“On the other hand, Adamawa recorded the least with N500.00, followed by Abia with N505.35.”
