BBYDI Raises Red Flags Over Kwara’s 2025 Budget: Concerns Over High Spending, Low Investment In Key Sectors, Debt Risks

Ilorin, kwara State– The Brain Builders Youth Development Initiative (BBYDI) has expressed concern over the Kwara State Government’s recently presented 2025 Proposed Budget, projecting a total expenditure of N540.36 billion with an expected deficit of N70.45 billion.

However, despite acknowledging positive strides in the budget, the organisation has raised issues regarding the state’s revenue sustainability, fiscal discipline, and developmental priorities.

In a statement released on Friday, Communications Officer of BBYDI, Jairus Awo, explained that while the budget includes some commendable provisions, concerns remain about the reliance on federal allocations, debt management, and wasteful spending.

According to the statement, Kwara’s projected revenue stands at N469.91 billion, with a heavy reliance on Federal Account Allocation Committee (FAAC) disbursements, which are expected to contribute N259.79 billion, alongside an internally generated revenue (IGR) of N96.23 billion.

BBYDI has warned that the state’s over-dependence on federal allocations makes it vulnerable to national economic fluctuations, which could lead to revenue shortfalls.

However, the budget anticipates external loan receipts of N70.43 billion. While the figure represents a substantial increase in borrowing, BBYDI has cautioned that improper management of this debt could worsen the state’s financial burden.

The budget allocates N204.71 billion to recurrent expenditure, over 37% of the total budget. Within this, personnel costs amount to N69.14 billion, raising concerns about an inflated public payroll.

Meanwhile, the overhead costs for ministries have skyrocketed to N107.2 billion, which BBYDI believes indicates inefficiency and wasteful administrative spending.

Of particular note is the N5.82 billion allocation for the Government House, which is seen as excessive compared to allocations for critical sectors like education and healthcare.

The Organisation argued that despite significant socio-economic challenges, the education and health sectors have received insufficient funding in the 2025 budget.

Education is allocated just N51.53 billion—only 9.5% of the budget—falling far short of UNESCO’s recommended 15-20%. The health sector fares no better, with an allocation of N43.1 billion, which is below the Abuja Declaration’s 15% target for health funding.

BBYDI also criticised the rising allocations for pilgrimage boards, political offices, and administrative agencies, which it sees as evidence of poor spending prioritization, given the state’s urgent development needs.

However, several capital projects in the budget appear to suffer from inflated costs, with insufficient clarity on specific road projects or implementation plans.

The Ministry of Works and Transport has been allocated N30.57 billion, but there is no breakdown of the proposed infrastructure projects.

Meanwhile, the Ministry of Communications received N2.75 billion, a disproportionate amount given the state’s ongoing infrastructure challenges.

The lack of detailed budget breakdowns for government agencies, commissions, and councils further exacerbates transparency concerns, making it difficult for the public to scrutinize the budget effectively.

Escalating Public Debt and Debt Servicing Risks

Kwara’s growing debt burden is another area of concern. The state has committed N11.78 billion to debt servicing, a significant amount that could otherwise be invested in essential public services.

With a projected loan receipt of N70.43 billion, BBYDI has warned that without a clear debt sustainability plan, the rising debt obligations could become unsustainable and strain future budgets.

Neglect of Social Protection and Job Creation

BBYDI has also highlighted the lack of prioritization for social protection and job creation in the 2025 budget. The Ministry of Social Development has been allocated a meager N36.17 million, a stark contrast to the state’s pressing need for youth empowerment and poverty alleviation programs, particularly given the high unemployment and poverty rates.

While BBYDI acknowledges the positive steps taken by the Kwara State Government in its proposed 2025 budget, the organization has urged the government to address the growing concerns about fiscal discipline, transparency, and the prioritization of developmental sectors to ensure sustainable growth and development for the people of Kwara State.

However, BBYDI made recommendations to ensure fiscal responsibility, transparency, and sustainable development.

“We urge the Kwara State House of Assembly to: Reduce recurrent expenditure by streamlining payroll, cutting excessive overhead costs, and minimizing wasteful spending.

“Increase investment in education and health to meet international best practices and improve human capital development.

It said, “Provide transparency and accountability by publishing detailed breakdowns of capital projects and making budget performance reports publicly available in local languages.

“Strengthen internally generated revenue (IGR) through better tax collection mechanisms, economic diversification, and strategic investments in revenue-generating sectors.

“Implement realistic revenue forecasting and avoid overestimating expected grants and loans, which could result in budget underperformance.

“Prioritize social services and job creation over non-essential projects and administrative spending to ensure inclusive economic growth,” BBYDI stated.

The Organisation said, “As the Kwara State House of Assembly reviews the 2025 Proposed Budget, we call on lawmakers to prioritize the long-term economic sustainability of the state over short-term political considerations.

“A responsible, transparent, and development-focused budget will be essential in ensuring that Kwara State’s resources are utilized efficiently and equitably to benefit all citizens. This is a series one in our annual budget analysis,” BBYDI added.