Subsidy: FG palliative spending falls by N37bn

The Federal Government has spent less on combating poverty in 2024, as social protection spending dropped by 22 per cent, despite a surge in economic hardship and savings from fuel subsidy removal.

According to data from the Open Treasury Portal managed by the Office of the Accountant-General of the Federation, payments made towards social protection as palliatives between January and September 2024 fell to N128.5bn from N165bn in the same period in 2023. This represents a drop of N37bn.

This is in contrast to the sector’s budget allocation, which rose by 12.4 per cent from N559.9bn in 2023 to N629.4bn in 2024.

The Open Treasury Portal introduced in 2019 provides public access to details of government receipts, payments, and financial activities, and it includes daily, monthly and quarterly spendings of the Federal Government.

Social protection spending in Nigeria refers to government expenditures on programmes and initiatives aimed at reducing poverty, vulnerability, and economic inequality.

It includes cash transfers and other support systems designed to safeguard the well-being of the most vulnerable populations, such as low-income households and those affected by economic shocks or disasters.

Such spendings are intended to provide a safety net, promote economic inclusion, and enhance resilience against economic hardships.

However, despite the increased hardship and poverty in the country, the Federal Government has spent less so far this year on social protection.

The amount spent on social protection is about 2.1 per cent of the N6.04tn spent on servicing debt in the first six months of this year.

The International Monetary Fund earlier said that Nigeria allocates the majority of its revenue to debt servicing, leaving limited funds for critical development projects.