Professor Uche Uwaleke, Nigeria’s first Professor of Capital Market and the Director of the Institute of Capital Market Studies at Nasarawa State University, Keffi, has urged the federal government to redirect the alleged “N113 billion” allocated in the 2025 budget proposal for the purchase of vehicles to infrastructural projects across the country.
Uwaleke made this recommendation during an interview with the News Agency of Nigeria (NAN) on Friday in Abuja.
According to him, 288 government agencies included the purchase of vehicles in their 2025 capital budgets.
He explained that importing these vehicles would further strain the country’s exchange rate.
Why vehicle purchases should be postponed
- The expert advised that the CEOs of the respective government agencies postpone their vehicle purchases until 2026.
- He suggested that the significant funds could instead be channelled toward projects aimed at boosting productivity, reducing inflation, and addressing unemployment.
“For instance, the money can be used to commence a Federal Government project, in conjunction with state governments.
“Such a project could be known as the ‘One District; One Product (ODOP)’ initiative, implemented in each of the 109 Senatorial Districts, with each district receiving a minimum of N1 billion.
“It could also be used to revive the ‘One Local Government; One Product (OLOP)’ initiative, which failed to make a significant impact due to poor attention,” Uwaleke said.
- Furthermore, he stressed that each local government council could receive at least N145 million from the funds freed up by deferring vehicle purchases.
“One can equally think of other productive uses for capital expenditure, such as vehicle purchases, which are not necessarily developmental in nature.
“Given their high opportunity costs to the economy, one way to minimize such expenses is to ensure that only locally made products are considered,” Uwaleke added.
- He emphasized that public expenditure should adhere to principles of maximum social benefit, economic efficiency, and value for money.
What you should know
President Bola Ahmed Tinubu presented the 2025 Budget of Restoration to the National Assembly on December 18, 2024.
- He revealed that N14.55 trillion in revenue had been generated as of Q3 2024, representing 75% of the annual target, while government expenditure for the same period stood at N21.60 trillion, accounting for 85% of the budgeted spend.
- In his address, President Tinubu highlighted the centrality of infrastructure to his administration’s development agenda, noting that the proposed N4.06 trillion allocation for infrastructure is one of the key highlights of the budget.
- However, he did not provide a breakdown of how the allocation would be distributed across various infrastructure projects.
- The President also reiterated the importance of the Renewed Hope Infrastructure Fund—a strategic initiative launched earlier in his administration—as a vehicle to drive investments in critical sectors such as energy, transport, and public works.
- Tinubu acknowledged the efforts made to drive Nigeria’s recovery and economic growth despite challenges in the global and domestic economic environment.
He stated that his administration remains focused on stimulating the economy through public investments.
“While challenges persist, we improved revenue collection and fulfilled key obligations. The transformational effects of this on our economy are gradually being felt,” Tinubu noted.
The President also emphasized that increased government spending on infrastructure, security, and human capital development is essential to fostering growth and recovery.
