Under President Bola Ahmed Tinubu’s administration, the State House has spent more than N3.7 billion on vehicles and tyres, according to findings from GovSpend, a portal tracking government expenditures.
Data from GovSpend reveals that in May, four payments totaling N3.46 billion were made to Laralek Ultimate Limited, coinciding with Tinubu’s first year in office. The overall budget for the State House stands at N40.62 billion, with N28.12 billion allocated for capital expenditure, as reported by BudgIT, a civil society organization promoting transparency and citizen engagement.
Despite Nigeria’s external debt reaching N127.67 trillion in Q1 2024, the administration has been criticized for what some see as “frivolous spending,” especially amidst public pleas for economic sacrifices due to harsh policies impacting the masses.
During the Eid-el-Kabir holiday, President Tinubu emphasized the need for sacrifice for national progress, a statement that drew mixed reactions from the public and opposition parties. Coinciding with this, just a day after some vehicle payments were made, Budget and National Planning Minister Abubakar Atiku Bagudu apologized to Nigerians for the economic hardship, asserting that the government’s strategies were necessary despite challenges like currency issues and inflation, now above 33%.
READ ALSO: Nigeria’s Presidential Fleet Boasts 10 Aircraft, While Britain and Singapore Have None
The breakdown of payments from GovSpend includes N1.9 billion, N1.2 billion, N200 million, and N63.8 million for operational SUVs and pool vehicles for the State House, and N93.7 million for vehicles for the National Centre for the Coordination of Early Warning and Response Mechanism. The specific brands and models of these vehicles were not detailed.
READ ALSO: Tinubu extolls Wike’s leadership virtues, Inaugurates key projects
N244 Million Spent on Tyres in One Day
A significant portion of the expenditure, N244.65 million, was dedicated to purchasing and supplying car tyres in a single day. The payments, made on May 21, 2024, covered various bulletproof tyres and Westlake tyres from suppliers such as Obi-Wealth Enterprises Nigeria Limited and Hommy & Fay Investments Limited. However, Obi-Wealth Enterprises was found to be inactive on the Corporate Affairs Commission website.
Potential Budget Overrun
Andrew Mamedu, Country Director of ActionAid Nigeria, expressed concerns that if such spending continues, the State House could exceed its budget, affecting overall expenditure. He called for greater transparency from the administration regarding spending details and emphasized that economic sacrifices should be equitable.
While efforts to obtain comments from the presidency were unsuccessful, with no responses from the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the report raises critical questions about fiscal responsibility amid Nigeria’s economic challenges.