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Think Tank Warns Tinubu Administration Over Poor Capital Budget Implementation

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A public policy and governance advocacy group, Citizens Media and Development Network (CIMEDEN), has cautioned that without a more “aggressive and strategic approach” to implementing capital budgets, President Bola Tinubu’s government may struggle to provide critical infrastructure capable of transforming the economy and improving the lives of ordinary Nigerians.

In a statement signed by its Director, Mr. Samuel Odaudu, and made available to journalists in Abuja over the weekend, CIMEDEN noted that Nigeria’s longstanding poor implementation of capital budgets since 1999 has stunted economic growth and perpetuated underdevelopment.

“The Nigerian economy, along with the reforms of President Tinubu’s government—no matter how well-intended—may not achieve desired outcomes if it continues the trajectory of poor capital budget handling seen in previous administrations,” the group said.

It warned that failure to address this issue could exacerbate multidimensional poverty instead of creating jobs and wealth for vulnerable citizens.

The group’s concerns followed revelations at the National Assembly last week, where the Presidential Economic Team, led by Finance Minister Wale Edun, disclosed that the 2024 capital budget performance was only 25%.

This figure contrasts sharply with the near 100% implementation of recurrent expenditure during the same period, despite improvements in non-oil revenue collection.

CIMEDEN emphasized that capital budgets are pivotal for developing essential infrastructure such as roads, railways, electricity, health, education, and ports, all of which drive economic growth.

However, it criticized Nigeria’s budgetary system, arguing that it has been skewed towards sustaining a corrupt and visionless bureaucracy across all levels of government, thereby stifling development.

“President Tinubu’s prioritization of capital expenditure over recurrent expenditure in the 2024 budget was a historic step,” the group acknowledged. “Yet, the abysmal 25% implementation rate undermines the potential benefits of this policy shift.”

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It attributed the poor performance to issues such as insufficient cash backing for capital projects, ineffective monitoring, and corruption within bureaucratic systems.

CIMEDEN urged President Tinubu to initiate reforms that would ensure full implementation of capital budgets, stressing that “a national budget is a law that must be implemented.”

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Seplat installs 850MMscfd gas infrastructure

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Seplat Energy Plc has said it is increasing domestic gas supply in Nigeria by installing over 850 million standard cubic feet per day (MMscfd) of infrastructure.

Chief Operating Officer, Mr Samson Ezugworie, stated on Sunday that the company is working diligently to address Nigeria’s persistent energy poverty.

Ezugworie confirmed that over 850MMscfd of gas installations have been completed within Nigeria’s borders to support local demand.

He added that this figure excludes the capacity of assets recently acquired from Mobil Producing Nigeria Unlimited (MPNU).

“Over the years, we’ve installed over 850MMscfd of gas aimed at supplying domestic users across the country.

“With the MPNU acquisition, we’re exploring new growth opportunities within its vast gas reserves.

“We intend to utilise a significant portion of this gas to further power homes and industries across Nigeria,” Ezugworie said.

He reiterated Seplat Energy’s commitment to sustainability across environmental, social, and corporate governance dimensions.

According to him, the company’s long-term focus is driven by outcomes that extend beyond short-term gains.

He stressed that building a sustainable business requires vision, even when benefits are not immediately visible to today’s generation.

Capacity development, he added, remains central to Seplat’s growth and national development priorities.

“This month, 50 graduates began employment and are undergoing diverse training across various departments.

“For us, this reflects sustainability—developing talent pipelines to secure Seplat’s future leadership and technical expertise,” he said.

Ezugworie also highlighted the company’s technological interventions transforming Nigeria’s gas sector.

He noted that Seplat had executed its End of Routine Flaring (EORF) roadmap through targeted facility investments.

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“These initiatives are designed to reduce Scope 1 and 2 emissions and boost energy efficiency across operations.

“For example, our Sapele Integrated Gas Plant’s first module is now operational and producing gas.

“At full capacity — expected in 2025 — the plant will significantly cut our Group’s Scope 1 emissions.

“Other key flare-out projects are ongoing, including the Western Asset Flares Out and Oben LPG Project.

‘The company is also working on the Sapele LPG Facility and the Ohaji Flares Out Project,” he said.

According to him, Seplat expects to end routine flaring of gas across its onshore assets by the second half of 2025.

He further outlined Seplat Energy’s efforts in Corporate Social Investment across health, education and energy access.

“In 2024, 352 teachers benefitted from the Seplat Teachers Empowerment Programme (STEP),” Ezugworie said.

He added that 6,373 students were impacted by the Pearls Quiz, and STEAM labs were equipped in four schools.

“Our Eye Can See Programme helped 9,780 people last year. Energy solutions reached six schools and three hospitals,” he said. (NAN)

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AfDB’s Chief Adesina Warns Of Tariff ‘Shock Wave’

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An onslaught of tariffs by the United States will send “shock waves” through African economies, the president of the African Development Bank said on Friday, warning of reduced trade and higher debt-servicing costs.

The comments come as US President Donald Trump has upended global markets by pushing — and then retracting — a slew of tariffs in recent days.

A baseline 10-percent levy remains in place for all countries, along with higher tariffs on Chinese imports to the United States — scrambling decades of global trade policy.

Those new levies — with 47 African countries at risk of even higher tariffs — will cause local currencies to weaken on the back of reduced foreign exchange earnings, AfDB President Akinwumi Adesina said in the nation’s capital, Abuja.

“Inflation will increase as costs of imported goods rise and currencies devalue against the US dollar,” Adesina said in a speech at the National Open University of Nigeria, according to prepared remarks which also touched on migration and decreased foreign aid.

“The cost of servicing debt as a share of government revenue will rise, as expected revenues decline.”

As some observers watch for countries around the world to turn to other trade partners — including China — Adesina warned that Europe and Asia “will buy less goods from Africa” amid the global shocks.

The Trump administration’s current trade posturing also makes it nearly certain that the US African Growth and Opportunity Act, a major duty-free agreement for 35 African countries that expires this year, will not be renewed, Adesina said.

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“Chances of renewal and extension are now extremely low,” he said, predicting serious blows for Lesotho and Madagascar, which are major clothing, diamond and vanilla exporters.

Old models ‘no longer work’
Adesina is set to step down as head of the bank — a major lender to economic development projects on the continent — at the end of his second term later this year.

But much of his speech focused on the future of the continent, from critical mineral deals to reduced foreign aid to emigration.

He said the global financial system has failed to deliver for Africa “especially on matters of debt, climate change and access to greater financing”, while “restrictive immigration policies” in rich countries pose challenges for labour mobility.

The dismantling of USAID, America’s main foreign development arm, along with cuts by European countries, “means that the old development models that Africa has always relied on will no longer work.”

At the same time, however, Adesina argued that “aid is not the way to develop”, and that “Africa cannot blame others for not taking in its rising migrant population”.

“It must create the right environment for its own youth to thrive, right here on the continent,” he said.

Whether and how that happens though, is contingent on both African and foreign powers — including the United States as it pursues a deal on critical minerals with the Democratic Republic of Congo.

Though Adesina didn’t reference the deal directly, he warned that “Africa must also carefully negotiate its engagement in the global geopolitical rush for critical minerals and rare earth elements”.

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Much of Africa’s vast mineral wealth is mined locally but processed abroad, leaving many countries at the bottom of the supply chain.

The continent “must move away from exporting raw minerals and move into processing and value addition to benefit from the high returns at the top of global value chains”, Adesina said.

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Africa’s Real GDP Expected to Increase by 4% in 2025, According to Afreximbank

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Afreximbank’s Research Report indicates that Africa’s real Gross Domestic Product (GDP) is anticipated to grow by 4.0% in 2025, despite the prevailing global economic fragility.

The 2025 African Trade and Economic Outlook (ATEO) Report, produced by Afreximbank, forecasts that Africa’s real GDP will rise to 4.1% in 2026 and 4.2% in 2027.

As reported by the News Agency of Nigeria (NAN), the 2025 ATEO offers a comprehensive analysis of Africa’s economic and trade performance, projecting the continent’s growth trajectory in the near to medium term.

The report emphasizes key macroeconomic and trade developments that are pivotal to Africa’s recovery, detailing opportunities for sustainable growth amid increasing global and domestic uncertainties.

Notably, the report reveals that 41% of African economies are expected to grow by at least 5%, nearly double the global average of 21%, highlighting the continent’s expanding role as a catalyst for global growth.

The gradual recovery of Africa is expected to be bolstered by rising global demand for African exports, a trend of disinflation, and the execution of structural reforms aimed at diversifying economies across the continent.

However, the report also identifies potential downside risks to Africa’s economic outlook, including escalating geopolitical tensions and fluctuating commodity prices.

The report warns that an economic slowdown in the United States and China could affect international financial conditions and diminish demand for African resources. Additionally, internal conflicts and climate change pose threats to stability and growth.

On a more optimistic note, the report points to potential upside risks, such as a projected decline in global interest rates beginning in 2025, should geopolitical conditions remain stable, which may enhance access to financing.

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Moreover, the African Continental Free Trade Area (AfCFTA) offers a significant opportunity to strengthen economic integration and intra-African trade, thereby reducing vulnerability to external shocks in the medium term.

To mitigate potential downside risks, the report recommends several short-term strategies, including adopting a nuanced and proactive monetary policy stance, enhancing resilience against climate-related and geopolitical disruptions, boosting domestic consumption, and accelerating the implementation of the AfCFTA agreement.

In the medium term, it suggests a shift towards economic diversification through strategic investments in human capital development and workforce training in key emerging sectors.

Furthermore, the report emphasizes the importance of improving economic governance, public infrastructure, and initiatives to bolster intra-African trade dynamics.

The report outlines several challenges and solutions for Africa to achieve stability and sustainable development in an increasingly uncertain global landscape.

The first challenge is Africa’s reliance on commodity exports, which leaves countries vulnerable to fluctuations in global commodity prices. To mitigate this risk, a structural shift towards a more diversified and resilient economy is essential.

The second challenge pertains to debt sustainability, with many African nations allocating over 50% of their revenues to servicing debt due to substantial development financing needs. Ensuring debt sustainability will require more efficient public spending and prioritization of growth-oriented investment projects.

The third challenge involves human capital and skill development. The report advocates for increased government investment in healthcare and fostering collaboration between public and private sectors. Strengthening training in science and technology is vital for skill development and successful structural transformation.

The fourth challenge concerns the inadequate social outcomes of economic growth in Africa, marked by slow progress in poverty reduction. To enhance growth that reduces poverty, it is crucial to improve basic public infrastructure and services, along with reducing dependency on natural resources through structural transformation. Addressing inequalities should be central to sustainable development goals, ensuring equitable access to quality education, healthcare, energy, transport infrastructure, and financial services.

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The final challenge identified is the rising concern over environmental degradation and the increasing frequency of extreme weather events. For sustainable economic development, promoting green growth must align with comprehensive policy frameworks that address climate change adaptation and mitigation strategies while recognizing the continent’s development needs and challenges.

The 2025 ATEO provides an extensive analysis of Africa’s economic and trade performance, projecting the continent’s growth trajectory in the near to medium term. (NAN)

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