Photo caption: President Bola Tinubu
The Presidency spent over N23bn in 2024 to purchase foreign currencies for the international trips of top executive government officials, including President Bola Tinubu, Vice President Kashim Shettima, and the First Lady, Oluremi Tinubu.
This figure, compiled from data provided by GovSpend, a government spending tracker managed by BudgIT, reflects a significant increase from the N18.63bn recorded in 2023, showing a rise of approximately 23 per cent.
The spike in spending comes as a result of the rising frequency and scale of international trips undertaken by the President and State House officials. These trips, which are said to be vital for Nigeria’s diplomatic engagements and international relations, are becoming increasingly costly due to the depreciating value of the naira against major global currencies.
In a year marked by economic challenges, the cost of maintaining the country’s diplomatic presence globally has seen a sharp increase. The rising cost of foreign exchange, compounded by the volatile exchange rates and Nigeria’s economic situation, has placed additional pressure on government finances.
The expenditure, spread across various official and diplomatic trips, demonstrates the escalating cost of international travel for Nigeria’s top government officials. For the President, the largest share of the foreign currency expenditure in 2024 was attributed to his international engagements.
Major spending includes N1.04bn for the President’s trip to Ethiopia in February 2024. This was followed by a N1.27bn expenditure in March 2024 for the presidential air fleet’s forex transit funds. The President’s air fleet continues to be a major financial drain, with N5.07bn allocated for its operational and foreign exchange needs in April 2024.
This expenditure reflects the high costs of maintaining Nigeria’s air fleet, which is responsible for supporting the President’s international travel. The funds are used not just for travel but also for the upkeep and operational readiness of the aircraft.
Meanwhile, the Vice President’s international travels in 2024 also contributed significantly to the overall foreign exchange expenditure. In January 2024, the Vice President’s trip to Switzerland was funded with N426.88m, while another N176.77m was spent on his trip to Côte d’Ivoire the same month.
The Vice President’s total foreign exchange expenditure in 2024 amounted to almost N750m, demonstrating a steady increase in the costs of his foreign engagements compared to previous years. The First Lady also accounted for a significant portion of the foreign exchange spending in 2024.
About N149.79m was spent on her trip to France in January 2024, and N202.39m was allocated for her trip to Mozambique in March. The First Lady’s total foreign exchange expenditure for 2024 was over N478m.
The Office of the Chief of Staff, tasked with coordinating the President’s engagements and ensuring smooth operations during official visits abroad, plays a critical role in managing a number of foreign exchange expenditures.
In 2024, the Office of the Chief of Staff to the President spent a total of N94.7m on foreign exchange purchases to facilitate various official functions. The expenditure covered a range of high-level government activities, including diplomatic engagements and preparations for international conferences.
The largest portion of this spending under the Office of the Chief of Staff to the President, N46.5m, was allocated for foreign exchange to support the President’s trip to the United Kingdom in August 2023.
Another notable allocation of N12.7m was made for preparations for Nigeria’s participation in the 78th session of the United Nations General Assembly in the United States, which took place later in the year. Additional foreign exchange purchases amounting to N5.1m were made to cover other logistical requirements tied to official trips and events.
The increasing volume of foreign exchange transactions underlines the growing demand for financial resources to support Nigeria’s diplomatic presence on the international stage. While these trips are vital for Nigeria’s global presence and influence, they come at a significant cost.
The rising spending on foreign currency for such engagements highlights the challenges the Nigerian government faces in managing foreign exchange, especially as the country grapples with inflation, exchange rate instability, and economic uncertainty.
The 2024 spending figures also show how the increasing frequency of international trips by top government officials has led to higher allocations for foreign exchange. The need for foreign currencies to cover travel, accommodation, and other costs associated with these trips is growing.
The depreciation of the naira further exacerbates this situation, as it now requires more local currency to secure the same amount of foreign exchange. For instance, the President’s trip to Ethiopia in February 2024 saw an allocation of N1.04bn, which was significantly higher than similar trips in 2023. In 2023, the President’s trip to Ethiopia was funded with only N136.12m.
Similarly, the Vice President’s travel costs in 2023 were lower, with only N43.02m allocated for his trip to Ethiopia. The rise in these costs is attributed not only to the increased number of international trips but also to the sharp depreciation of the naira, which has made the cost of acquiring foreign currencies more expensive.
This increase in expenditure is raising concerns over the sustainability of such large allocations for international trips, particularly as Nigeria’s fiscal position remains under pressure.
Further checks by The PUNCH showed that the Presidency bought over $1.274bn for 13 disclosed forex-related transactions for international trips by key government officials in 2024. The largest foreign currency purchase was made for the President’s trip to Dubai, UAE, with $1.271bn bought.
Other notable transactions included $483,277 for the Vice President’s trip to Switzerland, $692,265 for the President’s trip to Ethiopia, and $152,831 for the First Lady’s trip to France. Additional notable expenditures include $117,524 for the Vice President’s trip to Côte d’Ivoire and $93,004 for his trip to Liberia.
The First Lady’s trips were also well-funded, with foreign exchange purchases of $126,834 for her visit to Mozambique and $96,118 for her trip to Addis Ababa, Ethiopia. Other allocations included $1.13m for the estacode of participants in the UK and USA training programs and $100,000 for the President’s trips to the UK.
Also, $79,740 was spent on preparations for Nigeria’s participation in the 78th session of the United Nations General Assembly in the United States. While these 13 transactions provided a clear picture of the amount spent, it is important to note that the data did not include the dollar amounts for some transactions (as a total of 43 transactions were recorded), which means the total amount of foreign exchange purchased could be higher.
The PUNCH further observed that the State House recorded a massive surge in its air travel expenses for top executive officials, with spending increasing by 344% in 2024 compared to the previous year.
According to data from the GovSpend platform, the total amount spent on air tickets for local and international trips by government officials reached N7.83bn in 2024. This is a sharp rise from N1.77bn in 2023, reflecting a significant rise in official travel engagements at the highest levels of government.
The bulk of these expenses went to Hinterland Travel & Tours Limited, which continued to secure major contracts for the purchase of air tickets. In March 2024, the company was paid N158.59m, N167.99m, and N164.28m for the purchase of tickets related to presidential trips, both domestic and international.
Other travel agencies also shared in the government’s spending, with Travel Options Ltd receiving N12.84m in March and N53.21m for the purchase of tickets for official trips. Overland Travels and Tours Limited also received N23.30m for the purchase of international and local tickets in July 2024.
In addition to routine travel, the government made significant payments for official educational and conference trips. A notable expense was N5.35m for a government officer’s study visit to Casablanca, Morocco, to attend a five-day seminar on e-procurement.
Other expenses also contributed to the surge in spending, including N5.15bn for the Vice President and First Lady’s international trips. This sharp rise in air travel spending highlights the growing desire of government officials to participate in international diplomacy and educational engagements.
However, the rapid increase in these costs raises concerns about the sustainability of such expenditures, especially as the country faces ongoing fiscal challenges. Critics argue that while such trips may be necessary for diplomatic and professional development, the scale of these expenditures may not always reflect the best interests of taxpayers.
The Socio-Economic Rights and Accountability Project raised concerns about the expenditure on estacodes by the MDAs, describing it as a potentially troubling misuse of public funds.
In an earlier interview with The PUNCH, SERAP’s Deputy Director, Kolawole Oluwadare, expressed his apprehension over the spending, emphasising the misalignment between the government’s priorities and the economic realities faced by Nigerians.
“It will not be surprising given the fact that has been in the public domain in recent times, specifically the findings of the National Assembly committee on the 2024 budget says that the performance of the 2024 budget for capital expenditure is about 25 per cent whereas recurrent expenditure is 100 per cent and this simply shows where the priority of government is, even though what government seem to be saying is different from reality,” Oluwadare said.
He further noted that the discrepancy between capital and recurrent expenditure is a reflection of the government’s skewed fiscal priorities. “Ultimately, Nigerian citizens have been victims of these wrong priorities,” he added.
He pointed out the staggering amount involved in these payments, particularly in comparison to the country’s capital expenditure. In a direct challenge to government officials, he questioned the justification of foreign and local trips funded by taxpayer money.
The Country Director of Accountability Lab Nigeria, Odeh Friday, earlier expressed concern over the impact such spending has on taxpayers and the need for increased transparency and accountability.
“This highlights the urgent need for a shift toward greater equality and accountability in the management of public finances,” Friday said.
He emphasised that it is critical to evaluate the outcomes of these significant expenditures, questioning whether they truly serve the interests of the Nigerian people. “Some of them are clearly wasteful expenditure,” he added.
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