Why Our Foreign Missions are Facing Serious Financial Crisis, By FG

The New Diplomat
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  • Says, Steps ongoing to address Challenges.

By Obinna Uballa

The Ministry of Foreign Affiars of Nigeria has said that Nigerian embassies and consulates across the globe are facing severe financial distress, with unpaid staff salaries, mounting debts, and disruptive diplomatic operations.

In a statement released on Monday by Ministry of Foreign Affairs spokesperson, Kimiebi Ebienfa, the government said that budgetary shortfalls and foreign exchange volatility have affected Nigerian missions, leaving them unable to pay locally recruited staff, service providers, landlords, or meet allowances for home-based officers at various posts abroad.

“The ministry is not unaware of the restrictions that financial limitations have placed on the smooth running of the missions, including the inability to pay salaries of locally recruited staff, financial obligations to service providers, rent to landlords, and the foreign service allowance to home-based officers,” the statement read.

The ministry admitted that years of inadequate funding and operational challenges have compounded the situation. “Our diplomatic missions are not immune to the economic situation at home,” the ministry stated, stressing that the financial squeeze has resulted in allocation shortfalls.

“The financial situation in our missions stems from budgetary limitations over the years, resulting in shortfalls in allocations,” the ministry added

The ministry, however, disclosed that special intervention funds had been approved to ease the hardship.

According to the Ministry, more than 80% of these funds have already been cleared for payment, prioritizing service providers, local staff salaries, and arrears owed to officers.

According to the ministry’s spokesperson, to ensure accountability, a verification committee was set up to scrutinize the various missions’ debt claims before disbursement will be made.

The ministry confirmed that it is working with the Office of the Accountant-General to help address 2024 budget shortfalls caused by what it described as foreign exchange rate fluctuations.

“The government of President Bola Tinubu has graciously approved the settlement of the shortfall,” the ministry said, revealing that the first tranche of funds has already been disbursed, with some embassies confirming receipt.

According to the ministry, second-semester allocations have also been approved and will be released this week in coordination with the Federal Ministry of Finance and the Central Bank of Nigeria.

However, beyond emergency funding, the ministry maintained that it is designing a sustainable financial framework for foreign missions, exploring innovative funding strategies to stabilize operations and align with broader fiscal reforms.

“These efforts are integral to improving fiscal governance and ensuring effective resource allocation,” the statement noted.

While expressing appreciation to diplomatic staff, host governments, and service providers for their understanding, the ministry of foreign affairs assured that the crisis is temporary. “Nigeria remains committed to robust diplomacy and the protection of citizens worldwide,” it concluded.

“It is pertinent to state, however, that the Nigerian diplomatic missions are not immune to the economic situation at home and its attendant challenges to government operations.

“The financial situation in our missions stems from budgetary limitations over the years, resulting in shortfalls in allocations,” the ministry added. .

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