Investigative Report: Federal Government's Unbudgeted N30 Billion Food Supply Initiative.

In a surprising move, the Federal Government of Nigeria has reportedly allocated approximately N30 billion in the last few months of 2025 to address pressing food supply issues. Notably, this amount was not part of the statutory allocation outlined in the 2025 budget.

Background

The FIRS is Nigeria's primary revenue-generating agency, responsible for collecting and managing federal taxes. Its core mandate is to ensure efficient tax administration, enhance revenue generation, and provide support for the government's economic development initiatives.

The 2025 budget, themed "The Budget of Restoration: Securing Peace, Rebuilding Prosperity," was designed to stimulate economic growth, enhance public services, and address critical sectors such as health, infrastructure, education, and security. With a total budget of N54.99 trillion, the government aims to drive economic development and restore growth.

The N30 Billion Initiative

Sources indicate that the N30 billion allocation is part of a broader effort to tackle food supply challenges and ensure food security in the country. This move is seen as a response to the growing concerns about food availability and affordability, particularly in the face of rising inflation and economic instability.

Implications and Concerns

While the initiative is well-intentioned, concerns have been raised about the transparency and accountability of the allocation. As the government seeks to address pressing food supply issues, questions remain about the effectiveness of this intervention and its potential impact on the economy.

Some of the concerns include:

Inflation: With inflation projected to decline from 33% in 2024 to 15% in 2025, the success of this initiative will depend on effective implementation and prudent fiscal management.

Fiscal Deficit: Nigeria's fiscal deficit is expected to increase to N13.8 trillion, raising concerns about the country's debt profile and the sustainability of such initiatives.

Revenue Generation: The government's revenue projections are based on optimistic assumptions, including an oil price benchmark of $75 per barrel and an exchange rate of N1,400 per US dollar.

Sectoral Allocations

A review of the 2025 budget reveals significant allocations to key sectors, including:

Health Sector: N200 million has been allocated to mitigate the impact of the recent suspension of US aid to Nigeria's health sector.

Infrastructure Development: A substantial portion of the capital expenditure will be directed toward transportation, power, and housing projects.

Education Sector: Funds have been allocated for the enhancement of educational facilities, teacher recruitment, and strategic education programs.

Security and Defense: Significant allocations have been made to defense and security agencies to support counter-insurgency efforts and national security programs.

Potential Impact on Revenue Generation

The FIRS's revenue generation efforts may be impacted by the diversion of funds to support food supply initiatives. With a revenue target of N19.4 trillion for 2025, the agency's ability to meet its targets may be compromised if its resources are diverted to support non-core initiatives.

Conclusion

The FIRS's N30 billion food supply initiative is a surprising development that raises important questions about the agency's mandate, fiscal responsibility, and transparency. As the government seeks to drive economic growth and development, it is essential to ensure that agencies like the FIRS focus on their core functions and operate with transparency and accountability.

In the coming months, it will be crucial to monitor the implementation of this initiative and assess its impact on the economy and the FIRS's operations. By doing so, Nigerians can expect to see tangible benefits from this significant investment and ensure that the FIRS remains focused on its core mandate of revenue generation and tax administration.

Recommendations

The Federal Government's N30 billion food supply initiative is a timely intervention that addresses a critical need. However, its success will depend on effective implementation, transparency, and accountability. As the government seeks to drive economic growth and development, it is essential to ensure that such initiatives are aligned with the broader economic strategy and fiscal framework.

In the coming months, it will be crucial to monitor the implementation of this initiative and assess its impact on the economy and food security. By doing so, Nigerians can expect to see tangible benefits from this significant investment.

Recommendations

To ensure the success of this initiative, the government should:

Prioritize transparency: Provide regular updates on the allocation and utilization of funds.

Ensure accountability: Establish a clear framework for monitoring and evaluating the effectiveness of the initiative.

Foster collaboration: Engage with stakeholders, including civil society organizations and private sector players, to leverage expertise and resources.

By adopting these recommendations, the government can ensure that the N30 billion food supply initiative achieves its intended objectives and contributes to the country's economic growth and development.

By demanding accountability and transparency, Nigerians can ensure that the N30 billion allocation is utilized effectively and that the intended objectives are achieved. It is time for Nigerians to question and drag their state governors to ensure that the funds are used for the intended purpose.

#FIRSAccountability
#StateGovernorsAccountability
#FoodSupplyInitiative
#TransparencyAndAccountability
#NigeriaDeservesBetter
#EffectiveGovernance