Nigerian foreign missions are facing a severe financial crisis due to delays in the release of their capital and overhead funds by the Federal Government. The overhead allocation for the second half of 2023, which should have been disbursed in June, is still pending, leaving the missions in a precarious situation.
This financial challenge has raised concerns among diplomats and Foreign Service officers serving in Nigeria’s 109 Diplomatic Missions worldwide, comprising 97 Embassies and 12 Consulates. They worry about the implications of this cash shortage on the missions’ operations and the well-being of their staff.
Several financial obligations, including electricity, water, and sanitation bills, have accumulated, and many missions are struggling to meet their commitments to staff members and local contractors. Staff members serving in Europe, Asia, and other parts of the world have reportedly sent distress messages to their colleagues at the Foreign Affairs Ministry’s headquarters in Abuja.
The issue of inadequate funding for Nigerian diplomatic missions has been a recurring problem. Earlier this year, funds allocated to a mission in Asia for personnel overhead were significantly lower than expected, leading to financial constraints. Additionally, the new floating exchange rate policy introduced by the Central Bank of Nigeria has impacted funding allocations, making it even more challenging for missions to meet their financial obligations.
As a result of the insufficient overhead funding, many missions have resorted to diverting personnel allocations to cover expenses such as staff accommodation and tuition for their children. This redirection of funds has exacerbated the financial strain.
Some staff members have been forced to borrow money from friends, family members, and local communities to avoid eviction and meet their financial obligations. Furthermore, newly posted officials to foreign missions have reportedly not received their relocation allowances.
This financial crisis has not only affected the missions’ day-to-day operations but also raised concerns about Nigeria’s image on the international stage. The delayed funding and budgetary constraints have hindered the effectiveness of Nigerian embassies and consulates in carrying out their diplomatic functions.
The solution proposed by some experts is to denominate the missions’ budgetary allocation in foreign currencies, such as dollars, rather than in naira. This would help stabilize the missions’ financial situation and ensure that they can fulfill their financial obligations promptly.
In summary, the financial crisis facing Nigerian foreign missions due to delayed funding and inadequate allocations has raised concerns about their ability to operate effectively and meet their financial commitments. Denominating the budget in foreign currencies is seen as a potential solution to address this ongoing issue.