In the past year, the Nigerian Presidency, under President Bola Tinubu, has spent an astounding N16.06 billion on purchasing foreign currencies for international trips, according to the data from GovSpend, a platform by the civic organization BudgIT.

This expenditure, covering the period from June 23, 2023, to May 25, 2024, reflects the significant costs associated with the president, vice president, First Lady, and the Chief of Staff’s international engagements.

The data highlights the spending patterns and raises critical questions about the prioritization of government expenditure amid economic hardships faced by ordinary Nigerians.

Breakdown of the Expenditures

President’s Spending: The bulk of the forex purchases was attributed to President Bola Tinubu’s international trips, amounting to N10.93 billion. These trips included high-value purchases of foreign currency to support diplomatic missions.

For instance, N82.04 million was spent on July 28, 2023, to purchase $176,392.80 for a trip to Ghana. On multiple occasions, large sums such as N152.37 million, N228.55 million, and N146.65 million were spent to purchase $200,000, $300,000, and $315,300, respectively.

Additionally, N197.70 million was utilized four times for the purchase of $1,000,000 each for trips dated July 19, 2023. Further expenditures included N71.74 million, N18.33 million, and N135.93 million for purchases of €300,000 each on September 6, 2023.

Vice President’s Spending: The Vice President’s international trips cost N101.68 million. Notable expenditures included N58.66 million for the purchase of £1,000,000 on June 23, 2023, and N426.88 million for $483,277.00 for a trip to Switzerland on February 24, 2024. An additional N43.02 million was spent on the purchase of €300,000 for trips on September 6, 2023.

First Lady’s Spending: The First Lady’s trips amounted to N623.05 million. Significant purchases included N149.79 million for $152,831 for a trip to France on January 4, 2024, and N202.39 million for $126,834 for a trip to Mozambique in March 2024.

Further expenditures included N144.57 million for $96,118 for a trip to Addis Ababa, Ethiopia, on February 9, 2024, and N126.3 million for $83,967 for a trip to London in March 2024.

Chief of Staff’s Spending: The Chief of Staff’s office spent N59.24 million on foreign currencies for international engagements. Notable expenditures included N46.51 million for $100,000 for trips to the UK on August 10, 2023, and N12.73 million for $79,740 for preparations towards Nigeria’s participation in the 78th session of the UNGA in the USA on November 22, 2023.

Presidential Air Fleet: The Presidential Air Fleet’s forex transit funds amounted to N4.97 billion. Major allocations included N387.60 million on August 15, 2023, N2 billion on August 16, 2023, and N713.22 million on August 29, 2023.

Currency Dominance and Exchange Rate Impact

The analysis reveals that the dollar was the dominant foreign currency purchased, with about N6.42 billion spent to buy $9.98 million. In comparison, expenditures on UK Pounds totaled N58.66 million for £1 million, and about N269.02 million was spent to acquire €1.2 million. The largest expenditure category was Forex Transit funds, amounting to over N9.42 billion, though the specific type of foreign currency purchased was not disclosed.

Under President Bola Ahmed Tinubu’s administration, the naira has experienced a dramatic depreciation. On May 30, 2023, the naira traded at N464.5/$1 on the official market, but by July 12, 2024, it had plummeted to N1,563.80/$1—a 70.3% decline.

This steep depreciation has profoundly impacted the expenses for international trips, as more naira is required to purchase the same amount of foreign currency. For example, NairaMetrics noted that $1 million required N464.5 million in May 2023, but by July 2024, the cost had surged to N1.56 billion.

Against Govt.’s Call for Sacrifices

These expenditures raise critical questions about the government’s fiscal priorities, especially given the severe economic challenges facing many Nigerians. The substantial amounts dedicated to international trips highlight the high costs associated with maintaining diplomatic engagements and the operational needs of the Presidential Air Fleet.

While the government’s commitment to sustaining a robust international presence is clear, the need for transparency and prudent use of public funds have been overly advocated.

This is because the spending is occurring amid government calls for the masses to make sacrifices as the economy bites harder. The significant expenditures on international trips by the presidency have been noted as hypocritical and indicative of predatory leadership.

The present government has remained adamant in response to calls to cut the cost of governance. Economic experts say that this disconnect between government spending and the economic realities faced by ordinary Nigerians underscores a pressing need for more responsible and equitable fiscal policies.