November 29, 2024
By Samuel Ogunsona
The Federal Government has approved a whopping N4.26 trillion as statutory transfers to newly established development commissions for various regions in the country.
This move is aimed at fostering growth and infrastructure development across different regions.
According to the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper, the development commissions set to benefit from this approval include the South East Development Commission, South West Development Commission, and North West Development Commission.
However, the North East Development Commission was conspicuously left out.
The document states, “The FGN’s 2025 budget estimates its aggregate expenditures at N47.90tn. This includes the GOEs’ expenditures of N2.73tn and grants/donor-funded projects of N711.11bn.
“The proposed 2025 Budget represents 36.6 per cent (or about N12.85tn) higher than the 2024 FGN aggregate expenditure estimate of N35.06tn.
“The 2025 expenditure estimate includes statutory transfers of N4.26tn (this includes provisions for the newly established South East Development Commission, South West Development Commission, and North West Development Commission), debt expenditure of N15.81tn (including N430.27bn for the Sinking Fund for retiring maturing bonds issued to local contractors/creditors), and non-debt recurrent expenditure of N14.21tn.”
The proposed 2025 budget represents a 36.6% increase from the 2024 FGN aggregate expenditure estimate of N35.06 trillion.
The expenditure estimate includes statutory transfers of N4.26 trillion, debt expenditure of N15.81 trillion, and non-debt recurrent expenditure of N14.21 trillion.
Earlier this year, the National Assembly approved the creation of the Zonal Development Commissions, which provide a foundation for the newly created Ministry of Regional Development by President Bola Tinubu.
The report also stated that N282.65 billion is made as a first-line deduction for the Basic Health Care Provision Fund statutory transfer.
Additionally, N231.78 billion has been set aside in the service-wide votes for GAVI/Routine Immunisation.
