FG Confirms Financial Struggles in Foreign Missions, Vows to Implement Reforms

The Ministry of Foreign Affairs has acknowledged the financial and operational difficulties affecting several Nigerian diplomatic and consular missions abroad, attributing the challenges to budgetary constraints and changes in foreign exchange policies.

In a statement issued on Monday and signed by ministry spokesperson Kimiebi Ebienfa, the ministry admitted that these financial pressures have disrupted the smooth operation of missions, leading to delays in payments to locally recruited staff, service providers, landlords, and home-based officers’ allowances.

“The ministry is aware of the restrictions that financial limitations have imposed on the smooth functioning of our missions, including the inability to pay salaries for locally recruited staff, meet financial obligations to service providers, pay rent, and provide foreign service allowances to home-based officers,” the statement read.

While noting that missions are not insulated from Nigeria’s broader economic challenges, the ministry highlighted that persistent budgetary shortfalls have hindered the effective operation of diplomatic posts and their capacity to carry out core responsibilities.

“It is important to note that Nigerian diplomatic missions are not immune to the economic realities at home, which impact government operations. The financial difficulties in our missions result from years of limited budget allocations,” the ministry explained.

The ministry assured Nigerians at home and abroad that the welfare of diplomatic staff and their families remains a priority for President Bola Ahmed Tinubu’s administration.

“The government is taking decisive and concrete steps to address the issues of fund allocation to all its Missions abroad,” the statement continued.

One such measure includes releasing special intervention funds to alleviate hardship in affected missions. According to the ministry, over 80 percent of the available funds have already been cleared for payment.

“Priority [was] given to service providers, salaries of locally recruited staff and arrears of claims due to officers,” based on evidence submitted by the missions.

To ensure transparency, a committee was established to verify the missions’ debt profiles and ensure that payments were justifiable and equitably disbursed.

The ministry also confirmed engagement with the Office of the Accountant-General of the Federation to recover shortfalls from the 2024 fiscal year, largely caused by exchange rate fluctuations linked to the government’s monetary policy reforms.

“To mitigate its impact, the government of President Bola Tinubu, has graciously approved the settlement of the shortfall,” the ministry said, confirming that the first tranche of funds had already been remitted, with “some missions acknowledging receipt.”

In addition, second-semester allocations have now been approved, and the ministry is coordinating with the Federal Ministry of Finance and the Central Bank of Nigeria to expedite the release of personnel and overhead funds beginning this week.

“Likewise, the Second Semester Allocations have been approved. The ministry is coordinating with the Federal Ministry of Finance and the Central Bank of Nigeria to ensure the prompt release of Personnel and Overhead Cost Allocations to all missions starting this week, to settle outstanding allowances and further ease the financial challenges of the missions. As a result of these efforts, missions have begun to stabilise,” the statement said.

Looking ahead, the ministry noted that it is working on a sustainable financial framework for its foreign missions, incorporating innovative and efficient strategies aligned with broader federal reforms aimed at enhancing fiscal governance and resource management.

“In addition, the ministry is diligently developing a sustainable financial model for funding our missions abroad, exploring innovative solutions and efficiency measures to ensure long-term operational stability. These initiatives are part of the wider public sector financial reforms being implemented by the Federal Government, aimed at strengthening fiscal governance and improving resource allocation,” the statement added.

In closing, the ministry expressed appreciation to diplomatic staff, host governments, and service providers for their resilience and cooperation during the challenging period.

“We are confident that the current difficulties are temporary and will be resolved through the concerted efforts of this administration. The Ministry of Foreign Affairs reaffirms Nigeria’s commitment to effective and dynamic international diplomacy, as well as the protection and welfare of every Nigerian citizen worldwide,” the statement concluded.