The ministries, departments, and agencies (MDAs) of the Federal Government spent over ₦16 billion on estacodes and compensations between 2023 and 2024, raising concerns over fiscal prudence and accountability. Data from GovSpend, an accountability platform by BudgIT, revealed that ₦9.079 billion was spent on estacodes within 10 months of 2024, while ₦7.41 billion was disbursed as compensation to individuals affected by government projects over two years.
Estacodes, which refer to travel allowances for public officials, accounted for substantial portions of government spending in 2024. Key highlights include:
• From February to April 2024, ₦5.9 billion was expended, with notable trips such as a National Human Rights Commission delegation attending a Universal Periodic Review session in Geneva, Switzerland, with over ₦33 million paid to four officials. The Federal Ministry of Special Duties allocated ₦15 million for air tickets and training in Ghana, while a Federal Ministry of Finance official received ₦31 million for trips to Kigali, Rwanda, and Accra, Ghana. The Federal Road Safety Corps spent ₦22 million on a Washington DC conference.
• From May to September 2024, ₦2.29 billion was spent, including ₦20.32 million by the Federal Ministry of Marine and Blue Economy for a study tour in London, and ₦5.24 million by the National Agency for Science and Engineering Infrastructure for international training.
• In October and November 2024, ₦872.5 million was disbursed, with ₦250 million allocated by the Ministry of Foreign Affairs for international engagements, and ₦7.58 million for a government official’s trip to Rwanda.
Between 2023 and 2024, MDAs spent ₦7.41 billion on compensations, an increase from ₦3.54 billion in 2023 to ₦3.87 billion in 2024. Key disbursements include payments by the Federal Ministry of Power to Project-Affected Persons (PAPs) in Lagos and Ogun states under the Japan International Cooperation Agency transmission project, with allocations exceeding ₦236 million. Over ₦66 million was also spent on consultancy services to review compensation rates and draft the Environmental Liability and Compensation Bill, led by the Federal Ministries of Works and Environment.
Civil society organizations, including the Socio-Economic Rights and Accountability Project (SERAP) and Accountability Lab Nigeria, have raised concerns over the scale and impact of these expenditures. Kolawole Oluwadare, SERAP’s Deputy Director, criticized the disproportionate focus on recurrent expenditure, stating, “When you match ₦9 billion spent on estacodes to the total capital expenditure, it becomes a huge sum that could have been directed toward developmental projects.”
Similarly, Odeh Friday, Country Director of Accountability Lab Nigeria, questioned the tangible benefits of such expenditures, particularly in the context of widespread poverty affecting over 130 million Nigerians. “These expenditures do not seem justifiable given the pressing economic challenges,” he said.
Civil society groups are demanding greater transparency in the allocation and use of public funds. Recommendations include public audits of travel and compensation expenses, sanctions for misuse of funds, and disclosure mechanisms to ensure taxpayer money is used effectively. Despite a directive from President Bola Tinubu banning non-essential travel, critics note that public officials continue to undertake costly trips, often flying first class. Activists argue for stricter enforcement of fiscal discipline to align government spending with the nation’s developmental priorities.
The debate underscores the urgent need for reforms to ensure public funds are used for the benefit of the citizens rather than excessive administrative costs.
