Nigeria’s foreign missions worldwide are confronting severe financial constraints, exacerbated by the Federal Government’s delay in disbursing their designated capital and overhead budgets.

According to Punch, the stipulated overhead funding for the 2023 second half, expected in June, has yet to materialize, placing the missions in a precarious situation.

Diplomats and Foreign Service personnel spanning 109 diplomatic outposts, including 97 embassies and 12 consulates globally, have expressed growing concern over the budgetary stalemate’s ramifications on operational logistics and staff welfare.

Given the current trajectory, many missions might default on their financial commitments to staff and local service providers in the near future.

Essential utilities and operational bills are mounting, with expenses related to electricity, water, and sanitation outstanding.

The distress is palpable among embassy staffers worldwide, with many in Europe and Asia reaching out to their peers at the home ministry in Abuja.

One source shared, “The Federal Government hasn’t disbursed funds intended for crucial overhead expenses like utilities, rent, and staff housing.”

Multiple embassies have relayed their predicament to the ministry, only to be met with silence.

In another instance, a mission in Asia anticipated a personnel overhead of $270,000 for the year’s first half. Yet, only $164,000 was received for the second half, marking a 41% deficit.

While the exact cause remains unclarified, some speculate it’s due to currency exchange rate fluctuations.

A diplomatic official noted the adverse effects of the Central Bank of Nigeria’s recent decision to let the naira float, suggesting this policy shift has hampered financial distributions to embassies.

As consequences escalate, missions face potential defaults on salary payments, service bills, and other fiscal obligations. This could tarnish Nigeria’s reputation, given the likelihood of its representatives facing public financial embarrassments.

Historically, underfunded missions have been forced to allocate personnel funds for staff accommodation and schooling needs. Yet, even these stopgap measures are faltering.

One Foreign Service officer anonymously shared his team’s difficulties, mentioning instances of staff borrowing money or facing eviction due to unpaid rent. Previously, in 2021, Nigerian staffers in Budapest, Hungary, were evicted for similar reasons.

Budgetary records highlight a consistent pattern of underfunding. The 2023 budget allocated N98.11 billion to the ministry and missions. Yet, prior years also witnessed discrepancies in fund releases against allocations.

Given the chronic funding issues, Nigeria has closed embassies in Sri Lanka, Czech Republic, and Serbia, with another downsizing.

When approached for comments, both the Minister of Foreign Affairs, Amb. Yusuf Tuggar and ministry representatives remained non-committal.

Veteran diplomat, Mr. Rashid Akinkuolie, recommends transitioning the missions’ budget to dollar denomination, emphasizing the inherent challenges of converting from naira in an unstable currency landscape.

This fiscal dilemma was previously underscored by Prof. Bolaji Akinyemi, a former Minister of External Affairs, who pointed out on Arise News TV that while countries like South Africa expand their global diplomatic footprint, Nigeria’s external presence is dwindling due to financial constraints.