The ministries, departments, and agencies of the Federal Government spent over N16bn on estacodes for officials and compensations for people affected by government projects in about two years, The PUNCH reports.
Data obtained from GovSpend, a repository and accountability platform by BudgIT that analyses government spending, indicated that the MDAs spent N9.079bn on estacodes in 10 months, between February and November 2024.
The MDAs spent N7.41bn on compensating people affected by government projects in two years, it was further gathered.
Civil Society Organisations such as the Socio-Economic Rights and Accountability Project and the Accountability Lab Nigeria slammed the MDAs for spending that much on estacodes and compensations without tangible benefits.
Estacodes
On the N9bn for estacode, this sum was distributed across multiple trips for meetings, conferences, and training sessions.
Estacode refers to the allowance or stipend provided to public officials who are travelling outside their usual work location, typically to another city or country.
Between February and April 2024, a total of N5,907,483,286.61 was spent by various MDAs.
Among the notable trips was a February 8th trip comprising a delegation from the National Human Rights Commission that attended the Universal Periodic Review session in Geneva, Switzerland, with four key officials receiving estacodes of over N33m.
Another expenditure involved the Federal Ministry of Special Duties, which spent N15m for air tickets, estacodes, and course fees for officials attending a strategic policy program in Accra, Ghana.
In March, travel expenses continued to escalate. For instance, the Federal Ministry of Finance, paid Adebayo O.S., N31m to cover estacodes for trips to Kigali, Rwanda, and Accra, Ghana.
The Federal Road Safety Corps also spent over N22m on travel to Washington DC, USA, for the Transforming Transportation 2024 conference, with multiple officials attending.
Additionally, the Federal Ministry of Sports released over N800m for the participation of Team Nigeria at the 13th African Games in Ghana.
Between May and September 2024, MDAs expended N2,299,842,968.75 on international trips. Among these, the Federal Ministry of Marine and Blue Economy spent N5.08m each on four officials for a study tour to London, UK.
In the same period, the National Agency for Science and Engineering Infrastructure made payments for estacodes including a N5.24m allowance for officials attending international training programmes.
In October and November alone, N872,506,663.39 was spent, including a notable N250m by the Ministry of Foreign Affairs for various high-level international engagements. Other payments in this period include a N7.58m estacode allowance for a top government official traveling to Rwanda to attend an excellence programme.
Compensations
On compensations, it was observed that the MDAs spent N3.87bn on compensation payments in 2024.
This amount was an increase of 9.30 per cent from the N3.54bn recorded in 2023, according to data from the GovSpend platform.
The figures emphasise the financial burden compensation payments continue to impose on public funds, especially as legal fees rise.
In 2023, MDAs disbursed over N3.54bn, with the Federal Ministry of Power Headquarters accounting for the largest share of the spending.
Significant allocations were directed towards compensating project-affected persons as part of transmission expansion and infrastructure projects.
The Federal Ministry of Power, for instance, made payments of N236.02m and N211.04m to PAPs in Ogun and Lagos states under the Japan International Cooperation Agency-funded transmission expansion project.
Another tranche of N249.93m was spent on compensation payments for PAPs within the same project’s right of way. Many other compensations were outlined in the BudgIT document.
Consultancy fees
The PUNCH further observed that the Federal Government spent a total of N66.03m on consultancy services related to the review of compensation rates for crops, economic trees, and public acquisitions, as well as drafting and stakeholder workshops for the Environmental Liability and Compensation Bill.
These payments highlight the government’s efforts to improve the frameworks for compensation assessments and environmental accountability.
Data from the GovSpend platform reveals that the Federal Ministry of Works engaged Sabe Ter & Co, disbursing a total of N66.03m in two tranches.
The first payment of N24.83m and a subsequent payment of N41.18m were made on 16 November 2023.
Both payments were for consultancy services rendered to review compensation assessment rates for crops and economic trees affected by public acquisitions.
Also, the Federal Ministry of Environment Headquarters allocated funds to support the development of the Environmental Liability and Compensation Bill, emphasising the government’s commitment to addressing environmental accountability and compensation.
The ministry paid N15.68m to Belladonix Ltd on March 21, 2024, for drafting the bill and N10.16m to Riel & Niel Synergy Ltd on May 10, 2024, for organising a stakeholder workshop related to the preparation of an action plan for the proposed bill.
These expenditures demonstrate the collaborative approach adopted by the ministry to engage stakeholders in creating a robust framework for environmental liability and compensation.
The agencies also made other payments for consultancy services, among others, which were captured in the BudgIT document.
SERAP slams MDAs
These expenses sparked debate, particularly regarding the allocation of government funds for international travel.
Critics argue that while such trips may be necessary for diplomatic and professional development, the scale of these expenditures may not always reflect the best interests of taxpayers.
The Socio-Economic Rights and Accountability Project raised concerns about the expenditure on estacodes by the MDAs, describing it as a potentially troubling misuse of public funds.
In an exclusive phone interview with one of our correspondents, SERAP’s Deputy Director, Kolawole Oluwadare, expressed his apprehension over the spending, emphasising the misalignment between the government’s priorities and the economic realities faced by Nigerians.
“It will not be surprising given the fact that has been in the public domain in recent times, specifically the findings of the National Assembly committee on the 2024 budget says that the performance of the 2024 budget for capital expenditure is about 25 per cent whereas recurrent expenditure is 100 per cent and this simply shows where the priority of government is, even though what government seem to be saying is different from reality,” Oluwadare said.
He further noted that the discrepancy between capital and recurrent expenditure is a reflection of the government’s skewed fiscal priorities.
“Ultimately, Nigerian citizens have been victims of these wrong priorities,” he added.
Oluwadare clarified that while public officials are entitled to estacodes, the scale of the expenditure should be carefully examined.
“It is not like this government or public officials are not entitled to estacodes but I don’t know the quantum that we can say is justifiable,” he said.
He pointed out the staggering amount involved in these payments, particularly in comparison to the country’s capital expenditure.
“When you match N9bn to the total capital expenditure either budgeted or spent it is a huge sum of money that could otherwise have been spent on other developmental projects,” Oluwadare said.
The SERAP deputy director also criticised the lack of proper accountability in the management of public funds, urging for a reevaluation of how estacodes are allocated.
“This perhaps shows a failure in our accountability systems to ensure that both in terms of budget performance the capital expenditure is at par with recurrent expenditure but also to the quantum of spendings,” he said.
In a direct challenge to government officials, he questioned the justification of foreign and local trips funded by taxpayer money.
“Who and how should be paid estacodes? And what’s the quantum of these estacodes? These trips, whether local or foreign are they justifiable? Even if they’re budgeted for in the budget, does it fit into the fiscal priorities of the government?” he asked.
Oluwadare’s comments come at a time when over 130 million Nigerians live in poverty, further intensifying the need for fiscal prudence.
“Spending this huge amount of money at a time when more than 130 million Nigerians are poor, I don’t think that’s justifiable in any way,” he said.
The Country Director of Accountability Lab Nigeria, Odeh Friday expressed his alarm over the impact such spending has on taxpayers and the need for increased transparency and accountability.
“This highlights the urgent need for a shift toward greater equality and accountability in the management of public finances,” Friday said.
He emphasised that it is critical to evaluate the outcomes of these significant expenditures, questioning whether they truly serve the interests of the Nigerian people.
“Some of them are clearly wasteful expenditure,” he added, referencing the fact that President Bola Tinubu had imposed a ban on non-essential travel for public servants.
Despite this, he noted that public servants continue to travel luxuriously, often flying first class, at the taxpayers’ expense.
“What tangible benefits do these travels bring to Nigeria? What measurable impact do they have on the economy, public service delivery, or national development?” he said.
Without clear evidence of the positive impact these travels have on Nigeria’s development, Friday argued that such spending is difficult to justify.
“Taxpayers must demand greater scrutiny of public funds,” he stressed.
He further pointed out a growing disconnect between the principles of responsible financial management and the actions of some public servants.
He called for “transparent mechanisms” such as publicly disclosed reports detailing the purpose, outcomes, and measurable value derived from these travels.
“Independent audits” were also suggested to assess compliance with fiscal responsibility laws, with sanctions for any misuse of public funds.
“Nigeria must ensure funds are used in ways that truly benefit the country and its citizens,” Friday added.
