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Home Business News

FG confirms Nigerian embassies are struggling with unpaid rent, salary arrears, others

Rosalia Ozibo by Rosalia Ozibo
September 2, 2025
in Business News
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The Ministry of Foreign Affairs has confirmed that several Nigerian diplomatic and consular missions abroad are struggling with unpaid rent, salary arrears for local staff, and other financial obligations.

In a statement issued on Monday, September 1, 2025, by its spokesperson, Kimiebi Imomotimi Ebienfa, the ministry admitted that the missions are facing operational challenges due to years of budgetary shortfalls and the country’s broader economic situation.

“The Ministry is not unaware of the restrictions that financial limitations have placed on the smooth running of the Missions, including the inability to pay salaries of locally recruited staff, financial obligations to service providers, rent to landlords, and the foreign service allowance to home-based officers,” the statement read. 

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Causes of the financial strain 

According to the ministry, the situation is a direct consequence of budgetary limitations over the years, which have left Nigerian missions abroad unable to deliver their core diplomatic and consular mandates effectively.

“It is pertinent to state, however, that the Nigerian Diplomatic Missions are not immune to the economic situation at home and its attendant challenges to government operations,” the ministry explained. 

The ministry noted that Tinubu administration has reportedly introduced measures to address the crisis, including the release of special intervention funds to cushion the hardship faced by the missions.

“To ensure that the monies remitted to the Missions are utilised judiciously and managed prudently in line with this Administration’s financial discipline policy, the Ministry set up a committee to assess and confirm the debt profile of the affected Missions with a view to ensuring that payments are justifiable and carried out based on equity and fairness to all those affected,” the statement noted. 

The ministry revealed that more than 80 per cent of the available funds have been cleared for payments, with priority given to service providers, salaries of locally recruited staff and arrears of claims due to officers.

FX shortfalls and monetary policy impact 

The ministry also acknowledged that exchange rate harmonisation and other recent monetary policy changes have worsened the situation by creating funding shortfalls for missions.

“The Ministry has also engaged the Office of the Accountant-General of the Federation in obtaining refunds for the shortfall in Missions’ allocations in the 2024 fiscal year due to foreign exchange differentials associated with the new monetary policy and the harmonisation of exchange rates,” the statement added. 

It confirmed that the first tranche of refunds had already been remitted to missions, with some confirming receipt, while second-semester allocations had also been approved.

More details 

Beyond immediate relief, the ministry said it is working on a sustainable financial model for funding Nigerian missions abroad. This model, it explained, would include innovative solutions and efficiency measures to ensure long-term operational stability, in line with ongoing public sector financial reforms.

The ministry assured Nigerians living overseas and the international community that their welfare and the smooth functioning of diplomatic missions remain a priority for the government.

“We are confident that the current challenges are temporary and will be overcome through the concerted efforts of this administration,” the ministry stated. 

It also commended the resilience of diplomatic staff and thanked host governments, service providers, and international partners for their patience during the financial crisis.

Tags: Nigerian Embassies
Rosalia Ozibo

Rosalia Ozibo

Rosalia is a versatile journalist with a focus on technology and education. She has a talent for turning complex ideas into engaging stories, exploring how innovation and learning shape the future of people, business, and society. From tracking shifts in digital transformation and emerging tech to writing about developments in education policy and practice, her work bridges insight and accessibility. Known for sharp analysis and compelling storytelling, she continues to provide readers with perspectives that connect knowledge, opportunity, and the evolving world of work.

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