BBYDI Expresses Concerns Over Kwara’s 2025 Proposed Budget

The Brain Builders Youth Development Initiative (BBYDI) has raised critical concerns regarding the Kwara State Government’s 2025 Proposed Budget, which projects a total expenditure of N540.36 billion and a deficit of N70.45 billion.

In a statement signed by its Communications Officer, Jairus Awo, BBYDI acknowledged some commendable aspects of the budget but highlighted pressing issues surrounding transparency, fiscal discipline, and developmental priorities.

The budget, which anticipates total revenue of N469.91 billion, relies heavily on Federal Account Allocation Committee (FAAC) disbursements and internally generated revenue (IGR).

It also includes a significant loan projection of N70.43 billion, raising questions about the state’s debt sustainability and revenue assumptions.

BBYDI expressed concern over the allocation of N204.71 billion for recurrent expenditure, representing 37% of the total budget.

It noted that personnel costs and overhead expenses appeared inflated, while allocations to critical sectors like education and healthcare remain below internationally recommended benchmarks. Education received N51.53 billion, just 9.5% of the budget, far short of UNESCO’s recommended 15-20%, while health was allocated N43.1 billion, below the 15% benchmark outlined in the Abuja Declaration.

The group also criticized the insufficient attention to social protection and job creation, with the Ministry of Social Development receiving just N36.17 million despite rising unemployment and poverty rates in the state.

Additionally, it pointed out the lack of detailed breakdowns for some capital projects and government agencies, which limits public scrutiny and accountability.

BBYDI called on the Kwara State House of Assembly to prioritize transparency, fiscal responsibility, and developmental goals as it reviews the proposed budget.

The organization emphasized the need for realistic revenue forecasting, increased investment in human capital development, and a clear debt sustainability plan to ensure the long-term economic stability of the state.

The statement concluded by urging lawmakers to focus on the equitable distribution of resources to foster inclusive growth and improve the living standards of all citizens in Kwara State.

The statement reads in full;

The Kwara State Government recently presented its 2025 Proposed Budget, and while we recognize some positive strides, there remain significant concerns regarding transparency, fiscal discipline, and developmental priorities. The budget, which projects total expenditure at N540.36 billion with an expected deficit of N70.45 billion, contains commendable provisions, yet raises questions about revenue sustainability, debt management, and spending priorities.

Commendable Provisions in the Budget

Inclusion of Minimum Wage Adjustments: The proposed budget includes provisions for an improved minimum wage structure, demonstrating a commitment to enhancing workers’ welfare.

Increased Allocations for Key Sectors: The budget acknowledges the importance of education and healthcare by increasing allocations, though more improvements are still required.

Efforts to Improve Internally Generated Revenue (IGR): The state has outlined initiatives to boost revenue generation, which is crucial for reducing dependency on federal allocations.

However, despite these positive steps, a critical review reveals several shortcomings that require urgent attention:

1. Unrealistic Revenue Assumptions and Deficit Financing Kwara State has projected total revenue of N469.91 billion, primarily sourced from Federal Account Allocation Committee (FAAC) disbursements (N259.79 billion) and internally generated revenue (IGR) of N96.23 billion. This heavy reliance on federal allocations makes the state vulnerable to national economic fluctuations and revenue shortfalls. Furthermore, the budget anticipates external loan receipts of N70.43 billion, a substantial increase that, if mismanaged, could exacerbate the state’s debt burden.

2. High Recurrent Expenditure and Wasteful Spending The budget allocates N204.71 billion to recurrent expenditure, representing over 37% of total spending, which is significantly high for a state with pressing developmental needs. Within recurrent expenditure:

Personnel costs amount to N69.14 billion, raising concerns about an over-bloated payroll.

Overhead costs for ministries skyrocketed to N107.2 billion, suggesting potential inefficiencies and wasteful administrative spending.

The Government House is allocated N5.82 billion, a figure that seems excessive when compared to allocations for critical sectors such as social protection and job creation.

3. Insufficient Investment in Key Developmental Sectors Despite significant social and economic challenges, the education and health sectors remain underfunded:

Education received N51.53 billion, which is only 9.5% of the budget, falling short of UNESCO’s 15-20% recommendation.

Health was allocated N43.1 billion, failing to meet the Abuja Declaration’s 15% benchmark.

Meanwhile, allocations for pilgrimage boards, political offices, and administrative agencies continue to rise, reflecting poor spending prioritization.

4. Inflated Project Costs Several capital projects raise concerns regarding cost efficiency and feasibility:

The Ministry of Works and Transport was allocated N30.57 billion, but without detailed clarity on specific road projects or implementation strategies.

The Ministry of Communications received N2.75 billion, which seems disproportionately high for a state struggling with basic infrastructure.

5. Transparency Deficiencies in Budgetary Allocations A lack of detailed breakdowns for certain government agencies, commissions, and councils hinders public scrutiny. Furthermore, the budget fails to outline clear performance metrics for ongoing projects, making it difficult to assess the effectiveness of previous investments.

6. Escalating Public Debt and Debt Servicing Risks With loan receipts projected at N70.43 billion, Kwara’s debt servicing obligations will continue to rise. The state is already committing N11.78 billion to debt servicing, an amount that could be better spent on essential services. Without a clear debt sustainability plan, the rising debt burden could strain future budgets.

7. Poor Social Protection and Job Creation Measures The budget does not prioritize job creation, youth empowerment, or poverty alleviation programs. The Ministry of Social Development received a mere N36.17 million, a glaring omission given the high unemployment and poverty rates in the state.

Recommendations To ensure fiscal responsibility, transparency, and sustainable development, we urge the Kwara State House of Assembly to:

Reduce recurrent expenditure by streamlining payroll, cutting excessive overhead costs, and minimizing wasteful spending.

Increase investment in education and health to meet international best practices and improve human capital development.

Provide transparency and accountability by publishing detailed breakdowns of capital projects and making budget performance reports publicly available in local languages.

Strengthen internally generated revenue (IGR) through better tax collection mechanisms, economic diversification, and strategic investments in revenue-generating sectors.

Implement realistic revenue forecasting and avoid overestimating expected grants and loans, which could result in budget underperformance.

Prioritize social services and job creation over non-essential projects and administrative spending to ensure inclusive economic growth.

As the Kwara State House of Assembly reviews the 2025 Proposed Budget, we call on lawmakers to prioritize the long-term economic sustainability of the state over short-term political considerations. A responsible, transparent, and development-focused budget will be essential in ensuring that Kwara State’s resources are utilized efficiently and equitably to benefit all citizens. This is a series one in our annual budget analysis.

Yours sincerely,
Jairus Awo
Communications Officer,
Brain Builders Youth Development Initiative
Ilorin, Kwara State.