The Nation Newspaper

Tag: budget

  • Our Girls; NASS: Budget by 1-1-2018 – no tolls

    Our Girls; NASS: Budget by 1-1-2018 – no tolls

    Our girls are still missing since April 15, 2014. Pray.

    Today we talk Ejo Eko foreign reserves up, budget and tolls no thank you

    Ejo eko, the Lagos snake, a python-the hundreds of lorries parked from Surulere to Apapa- strangling the life and economy of Lagos is a dangerous disgrace as highlighted by Channels TV with bridges likely to be compromised from vehicular deadweight.

    Happily the foreign reserves have risen to above $38,000,000,000 and should top $40 by January making predictions of $55-60,000,000,000 by end 2018, realistic and the naira will rise again.

    National Assembly (NASS) has less than three weeks, 18 days, to the Nigerian people’s deadline for budget passage by NASS ‘1-1-2018’. Communicate with NASS politicians to encourage, force, empower, and energise them to stick to the people and not the politicians’ agenda. I make this ‘Legitimate Demand’, indeed a ‘Citizens’ Command’, on behalf of citizens to NASS that it sleeps not, breaks not, holidays not, laughs not, indeed eats luxuriously not, and drinks nothing but water until the passage of the 2018 Budget by 1-1-2018.

    Even the divorce settlement of BREXIT forced bothUK and EU politicians to burn the midnight light, never generator, haha, to achieve a breakthrough. NASS should learn to do the right thing, first with budget and then with the coming elections, from such real foreign democracies. Nigerians risk life and limb to benefit from other people’s investment in their own countries while back home their families wallow in darkness, self-pity and hopelessness. The budget approval and the coming election offer yet another opportunity to conduct the deadly game of politics quickly in the interest of the downtrodden citizenry. They cry inside for a better ‘Beloved Country’, a cry from Africa for many different political reasons, ever since Alan Paton published Cry, my Beloved Country way back in 1948. Politicians have opportunity to reconstruct to get real politics started but as long as the political godfathers and strongmen and few women are the ones who serially and chronically ruined Nigeria in the past 50 years, what hope have we for a new beginning?

    NASS is the face of Nigerian politics, in lifestyle, utterances, actions, empathy or pack of same and morality. From assessment of the various financial and other scandals which have plagued it and disappeared under the voluminous carpet, NASS is an easily assessable quality check on the Nigerian politics measured against other political institutions and the state of the nation and the citizens’ expectations or lack of accomplishment of those expectations. Let the NASS be fully aware of the huge weight of public opinion already against it for its profligacy, mega-money status and apparent insensitivity to the comparative squalor of the citizenry when compared to the extractive political salary legally-illegally extracted from the same federal government budget and purse!! Politics is indeed an extractive industry. NASS must do the needful to ensure that it passes the budget to help save its troubled reputation.

    Any NASS member should think again if he or she thinks his or her political posturing points ‘shown on NTA’ are more important than the survival reasons why hundreds of thousands of young Nigerians set out as part of the ‘migrant crisis’ to risk their lives and lived ones to cross the Sahara and Mediterranean for a ‘better life abroad’ where they expect what they do not have at home. Running water, constant electric power supply, pothole-free roads, mass transit, sound education, good health and housing are denied human rights of citizens in Nigeria. For years this column has warned of the growing ‘Migrants Crisis’ and the perils of this new 21st Century slavery generation. A number of years ago, CNN or BBC carried several investigative reporter documentaries by an excellent West African reporter whose name escapes me. He explored migration, slavery and travel. Today the matter is even more in the open than then. But is the more recent CNN exposure, again under CNN’s Freedom Project, supported by a social media explosion, helping to curb the practice that led to the migration crisis? Probably of little effect because the local media does not relay such documentaries to common people likely to flee.

    I do not like every budget item especially selling assets as some buyers may have stolen money in the past and want to launder it –a sort of double stealing. Even tolls have problems. We are not good road managers, causing suffering for citizens unnecessarily! All current tolls are inadequate, undermanned, poorly or mismanaged toll roads, totally underperforming tollgates as exemplified by the Lagos Oniru and the New Lekki Bridge often a nightmare for traffic movement. Just look at the hours added to Lekki travel by the toll bridges. Yes, they make billions for their owners and government but in an archaic manner. Will the tremendous traffic jams in Lagos with stand-still traffic become nationwide when federal government re-introduces toll bridges? Far better to increase the vehicle and driving licence fees by say N5,000 each and make electronic pre-paid tickets cheaper than tickets bought at the toll gate. Toll operators care nothing for reorganising the disorganised crazy 20 lanes into six orderly queues 50 metres to the toll points merely by stretching out their plastic barriers 50 meters out. Simple queue management!

     

    • NB: Nigerians uncover ‘I LOVE NIGERIA’ KNOWLEDGEABLE CANDIDATES for 2019 -SDG 16
  • Lawmakers hail planned 3,000MW power project for Lagos

    Lawmakers hail planned 3,000MW power project for Lagos

    Some lawmakers in the Lagos State House of Assembly on Tuesday said that the N1.046 trillion Lagos State Budget proposal Government would facilitate growth and development.

    The lawmakers hailed the state Gov. Akinwunmi Ambode for prioritising capital expenditure.

    According to them, since the 2017 budget performance was above 70 per cent, the 2018 budget will transform the state, especially through a planned power project.

    Ambode presented the 2018 budget proposal tagged: “Budget of Progress and Development” before the state House of Assembly on Monday.

    The budget size, which represented a 28.67 per cent increase over the 2017 budget of N812 billion, had a capital expenditure of N699 billion and a recurrent expenditure of N347 billion.

    The Acting Chairman, House Committee on Information and Strategy, Mr Tunde Braimoh said: “The budget is apt, ambitious, lofty and well-targeted at transforming the Lagos State economy and infrastructure.’’

    Read also: Ambode to present 2018 Budget on Monday

    Braimoh noted that the budget provided for a power project aimed at boosting economic activities of the state.

    According to him, epileptic power supply has caused severe damage to the nation’s economy, and if Lagos State Government can provide regular power supply, it will boost investments.

    “The problem of power supply has made our country to lose its industrial base. The budget will change the topography of Lagos,’’ he said.

    The lawmaker, however, said that there was the need to sustain the robust relationship between the legislative and  executive arms of the government for expedited implementation of the budget.

    On whether the budget will be passed before January, the spokesman said that it might not be possible as the Assembly would do proper scrutiny of the budget before its passage.

    Braimoh, however, said that the lawmakers would sacrifice their comfort to ensure quick passage of the budget without compromising standards.

    Also speaking, Mr Setonji David, the Acting Chairman of the House Committee on Physical Planning and Urban Development, said : “It is a great thing that the budget of Lagos State is over N1 trillion.

    “It means Lagos is moving and more infrastructure development on the way. The ratio of capital expenditure to recurrent expenditure is fantastic, and this means the governor is visionary.

    “It is quite impressive that the governor budgeted massively for the embedded power project to light up the state for industrialisation,” David said.

    Mr Olusegun Olulade, the Acting Chairman, House Committee on Health Services, said that the budget would galvanise result in accelerated development of the state.

    The Acting Chairman of the Assembly’s Public Accounts Committee (Local), Prince Adebisi Yusuf , who expressed satisfaction at the 2017 budget performance, said that the 2018 Budget would be better implemented.

    Ambode stated during the budget proposal that his administration would have direct intervention in the power value chain toward generating 3,000MW Embedded Power Programme-  a three-year plan to achieve regular  power supply for the state in 2018.

    “The challenge of inadequate power supply must be resolved for our economy to perform optimally, and we believe the provision of this essential utility can no longer be left in the hands of the Federal Government alone.

    “We must complement each other for the overall development of our nation,’’ the governor said.

    NAN

  • Ambode presents N1.046trn budget for 2018

    Ambode presents N1.046trn budget for 2018

    Lagos State Governor, Mr. Akinwunmi Ambode on Monday presented the Year 2018 Budget proposal of N1.046 trillion to the  State House of Assembly.

    Christened  “Budget of Progress and Development”, Governor Ambode said the 2018 budget would be used to consolidate on the achievements recorded in infrastructure, education, transportation/traffic management, security and health sectors.

    According to him, the Budget would also focus on mandatory capacity building for civil servants, all teachers in public secondary/primary schools, officers in the health service sector and women & youth empowerment alongside Medium and Small/Micro Size Entrepreneurs (MSMSE’s).

    Explaining the key components of the budget, Governor Ambode said capital expenditure would gulp N699.082billion while N347.039billion would be dedicated to recurrent expenditure, representing a Capital/Recurrent ratio of 67 percent to 33 percent and a 28.67 percent increase over Y2017 budget.

    The Governor said that despite the modest achievements recorded in 2017, there was still much work ahead, assuring that Government would not relent in its efforts to give Lagosians the best by way of continuous and efficient service delivery.

    “Lagos has always been a trailblazer and we must consolidate on the economic gains made so far by initiating people-friendly programmes and projects that will attract more economic improvement in Y2018.

    “It is our resolve in Y2018 to strive and complete all on-going projects in order to meet their specified completion period and embark on new strategic projects. We intend to improve on our Internally Generated Revenue (IGR) in the face of the dwindling accruable revenue allocation from the Federal Government, sustain our vision on wealth creation and poverty alleviation,” Governor Ambode said.

    The Governor also listed key projects captured in the 2018 Budget to include the Agege Pen Cinema flyover; alternative routes through Oke-Ira in Eti-Osa to Epe-Lekki Expressway; the 8km regional road to serve as alternative route to connect Victoria Garden City (VGC) with Freedom Road in Lekki Phase I; completion of the on-going reconstruction of Oshodi International Airport Road into a 10-lane road and the BRT Lane from Oshodi to Abule-Egba.

    On infrastructural renewal, Governor Ambode said his administration remains committed to sustaining the tempo of continuous construction, rehabilitation, upgrading and maintenance of network of roads across the State including those within the boundary areas of Lagos and Ogun States and that the bus reform initiative would be consolidated with the introduction of high and medium capacity buses, construction and completion of bus depots at Oshodi, Anthony, Yaba and many others.

    He also said the movement of Mile 12 market to Imota had reached an advanced stage and would be completed in good time to pave way for relocation next year.

    The 181 Local Government Roads will be commenced as contractors will be mobilized immediately, as well as continuous gridlock resolution, junction improvement, construction of more laybys and advancement of signalization that will improve traffic congestion especially along the Lekki-Epe corridor.

    Ambode said the Government would construct an ICT Focus Incubator Centre in Yaba, commence the development of Imota and Igbonla Light Industrial Park as well as the provision of additional small scale industrial estate at Shala, while the State Employment Trust Fund will disburse more funds to Lagosians to support business and stimulate the economy.

    Governor Ambode also assured that his administration will vigorously pursue its planned direct intervention in the power value chain towards generating 3,000MW Embedded Power Programme within a three-year plan to achieving 24/7 power supply for the State, stressing that the challenge of inadequate power supply must be resolved for the economy to perform optimally.

    He said within the 2018 fiscal year, the Government would continue to rekindle its efforts in the area of Tourism, Sports, Arts and Culture as well as embark on some major projects that would ensure that the State emerges as the hub for tourism, sports and entertainment.

    He listed some of the projects to include completion of the five new Art Theatres; establish a Heritage Centre at the former Federal Presidential State House recently handed over to the State Government; build a world class museum between the former Presidential Lodge and the State House, Marina; fast-track construction of the proposed four new stadia in Igbogbo, Epe, Badagry and Ajeromi Ifelodun (Ajegunle) and complete the on-going Epe and Badagry Marina projects.

    While acknowledging the cooperation and support received from Lagosians, members of the Business Community, Professional Bodies, Non-governmental Organizations and the State Civil Servants in years past, the Governor noted that the modest achievements by his administration within a short period couldn’t have been possible without residents who have been paying their taxes willingly and faithfully.

    Giving a sectoral breakdown at a press briefing in Alausa, Commissioner for Finance, Mr. Akinyemi Ashade said General Public Services got N171,623bn, representing 16.41 percent; Public Order and Safety, N46.612bn, representing 4.46; Economic Affairs, N473,866bn, 45.30 percent; Environmental Protection, N54,582bn, representing 5.22percent while Housing and Community Amenities got N59,904bn, representing 5.73 percent.

    Ashade also told journalists that Health sector got N92.676billion, representing 8.86percent; Recreation, Culture and Religion got N12.511billion, representing 1.20 percent; Education got N126.302billion representing 12.07percent, while Social Protection got N8.042billion representing 0.77percent.

    The event was well attended by dignitaries in the State including members of the State Executive Council led by the Deputy Governor, Dr Idiat Adebule, former Speakers of the Lagos State House of Assembly, members of the National Assembly from Lagos State, former Deputy Governors of the State, party chieftains, traditional rulers, religious leaders, among others.

  • Ambode to present 2018 Budget on Monday

    Ambode to present 2018 Budget on Monday

    Governor Akinwunmi Ambode of Lagos State will  present the 2018 Appropriation Bill to the state House of Assembly for approval on Monday.

    A statement by Ms Bose Lambo, Director, Public Affairs of the Assembly, said the presentation would commence at 11 a.m. and urged guests to be punctual.

    “This is to inform the general public that His Excellency, Mr Akinwunmi Ambode, will be presenting the 2018 Budget Estimates to the Lagos State House of Assembly on Monday, Dec. 11, 2017 at the Assembly Chamber, Alausa, Ikeja, by 11 a.m.

    Attendance is strictly by invitation,” Lambo said.

    Read also:Yuletide: Ambode approves sales of lake rice

    Ambode presented a budget of N662.58 billion for 2016 which was made up of N383.678 billion capital expenditure and N278.909 billion recurrent expenditure.

    The 2017 Appropriation Bill of N812.99 billion tagged: “Golden Jubilee Budget” was made up of a capital expenditure of N512.46 billion and a recurrent expenditure of N300 billion.

    NAN

  • Our Girls; NASS: Budget by 1-1-2018 our human right

    Our Girls; NASS: Budget by 1-1-2018 our human right

    Our girls are still missing since April 15, 2014. Pray.

    National Assembly ( NASS ) has less than four weeks, 25 days, to the Nigerian People’s Deadline For Budget Passage by NASS ‘1-1-2018’. NASS should not say ‘no’ for whatever reason. Everything is possible in politics- even rarely correct decision making!! Was it not NASS which passed, was it, 67 bills in one day?  It is to get results like this that we are being forced to pay NASS between N125 and 150,000,000,000 – to do our will, not its will. In the opinion of many, NASS is truly an unproductive highly extractive industry for little tangible returns. It is payback time. The budget is not a matter of life or death. It is only a matter of differing opinions on facts, fiction and figure. NASS should do our will to see the budget passed by 1-1-2018, warts, mistakes, differing estimates of oil income, differing guestimates of oil prices and all differences are speculative. The accolade ‘The first NASS to pass a budget by 1-1,’ will be a far greater crown than a litany of quibbling questions and blowing hot and cold with Ministries, Departments and Agencies (MDAs). Judging from all the multibillion ‘corruption-gates’ in and out of NASS, NASS has no leg to stand on by delaying the budget.

    Note that every million naira stolen results in X number of deaths from inability to afford medical treatment for family and poor diet and impoverishment from absent jobs making the thieves actual murderers by their actions. Political science and social science departments and must research this as stealing billions makes the thieves mass-murderers.

    Let NASS pass the budget by 1-1-2018 for our children. We all know that a lecturer can fail even a professor in any examination if she wants to or if the price is right. So also with NASS which could delay or fail the budget forever on genuine and spiteful technicalities. It pays many to see this government fail just before the elections, as they again jump ship. Nigerians are on to their game, inflicting shame on Nigeria while our youth suffer in pain and are sold into Libyan slavery and used as bush meat for body parts. We the voting public all see through this filibustering/delaying shameful smokescreen. Such grandstanding and time-wasting politics may be okay for developed countries which deliver every comfort like power, water and sanitation, no matter which political party is in power.

    Our situation is shamefully different and cannot afford such political tactics. However it is such ill-conceived activities which fuelled the mass migrants’ movement. Why did these same MDAs have plain sailing since 1999 but are suddenly found wanting! Nigerians need their budget now for the year Jan-Dec. Should we not prepare a ‘Thank you NASS’ Card as NASS gives Nigeria this Christmas and New Year Present, although NASS would merely be doing its job.

    The Nigerian outcry from multimillionaire politicians about the ‘Migrants’ Misery Trail’ through the Sahara and across the Mediterranean Sea to drown in the sands or the sea off Lampedusa amounts to crocodile tears. The migrants and many resident Nigerians lament the needless absent infrastructure across Africa and particularly in our country where common electric power is ‘multi-billion naira corruption-ridden nuclear physics’ –killing citizens -murder. Yet China, the new big cheese worldwide, adds 30,000+Mw, to their grid annually even as more people in authority in Nigeria are discovered with more billions of our commonwealth. Of course we should have 150,000Mw by now and all heads of state should be ashamed and stop talking. They dropped Nigeria into this bucket of powerlessness.

    I have a simple yardstick for Nigeria’s development that affects every one of our citizens -power. That test is positive in every other country in war-torn Africa demonstrating Nigerian leaders’ collective colossal ineptitude. The test is the ‘One Year No Blackout Test’ – if I can turn on a switch with uninterrupted power every time for a year. Only then will I know that Nigeria is developing to the barest minimum expected by those youth forced to search for ‘the human right to 24 hour power’ by fleeing our country and risking life and limb and crazy organ donor doctors.

    Do you know what it means to be held down, perhaps put to sleep, and have a kidney or two and a cornea or two and even a heart removed just because your country’s leaders have stolen the money, murdering jobs, roads, health, and pensions, making life unliveable and a death sentence at home or abroad? And then the murderers blame youth for migrating to add insult to operation injury. Nigerian politicians have failed so many millions and should do more than apologise.

    Let nobody tell you that you have failed Nigeria if you did not steal – murder, or misguide, or cheat Nigerians and Nigeria. You are not responsible for Nigeria’s failures unless you took funds or made selfish decisions, denied others their rights to education, health and pensions and good elections by you actions and mis-actions. It is not about the electorate getting what it deserves because you see how much elections misspend with the odds stacked against honest candidates.

     

    • NB: Nigerians uncover ‘I LOVE NIGERIA’ KNOWLEDGEABLE CANDIDATES for 2019 -SDG 16
  • Gaidam presents N92.182b budget for 2018

    Gaidam presents N92.182b budget for 2018

    Yobe State Governor Ibrahim Gaidam has presented a budget of N92,182,336,000 for the 2018 fiscal year to the National Assembly.

    The “Budget of Consolidation and Socio- Economic Rejuvenation”, Gaidam said, is targeted at meeting the yearnings and aspirations of the people, as well as to ”concretise the government’s efforts at uplifting the standard and condition of living of the people.”

    The governor explained that the budget is built on the vision and mission contained in Yobe State Socio-Economic Reform Agenda (YOSERA).

    The governor said the budget will be funded from the Treasury Opening Balance, Internally Generated Revenue, Statutory Allocation, Value Added Tax (VAT), Ecological Fund, Excess Crude Oil/Exchange Rate Differential, among others.

    He added that N47,447,905, representing 51.5 per cent will be spent on recurrent expenditure while N44,734,431, representing 48.5 per cent will be spent on expenditure.

  • Badaru presents N134.17bn Jigawa budget for 2018

    Badaru presents N134.17bn Jigawa budget for 2018

    Gov. Muhammad Badaru of Jigawa on Tuesday presented a budget of N134.17 billion for the state’s 2018 fiscal year to the state House of Assembly.

    Badaru, who tagged the appropriation bill as “Budget of Economic Diversification and Self Sufficiency’’, said “it is slightly above 2017 budget by 3.3 per cent”.

    He told members of the house that “in line with the focus and contents of our medium term expenditure framework and policy thrust of the 2018 budget, I present to you highlights of the 2018 proposed budget.

    “As I mentioned before, the 2018 budget will, by and large, be a continuation of the current budget dubbed `Budget of Sustained Economic Growth and Social Transformation’.

    “Based on the consolidated position of the revenue and expenditure estimates, the 2018 Appropriation Bill is proposing N134.17 billion, about 3.3 per cent above the 2017 budget.”

    He explained that breakdown of major incomes with which to finance the budget included Internally Generated Revenue, N10.5 billion, Statutory Allocation and Value Added Tax, N51.6 billion.

    It also includes Local Government Contributions for Primary Education Personnel and Primary Healthcare Staff, N17.8 billion

    “Other Extraneous Federal Transfers including Excess Crude Oil Receipts, N4.5 billion, Opening Balance for 2018 Fiscal Year (including funds in project accounts such as the Universal Basic Education Project Account), N10 billion.

    “Internal and External Loans’; N6.2 billion Development Grants; Capital Contributions, Reimbursements and Other Miscellaneous Capital Receipts, N33.4billion,” Badaru said.

    “Taking into account, the sums of N1.6billion earmarked for Stabilisation and Contingency Funds, the total retained revenue allocated to the various expenditure components of the Budget is N132.57 billion.

    “It is worthy of note that incomes reflected against Local Government Contributions for Primary Education Personnel and Primary Healthcare Staff is simply a matter of budget and accounting principles.

    “ These are normally reimbursements to the State based on deductions at source.

    “As earlier mentioned, out of the total projected income, the sum of N1.6 billion is proposed to be set aside for Stabilisation and Contingency Funds.

    “This leaves a retained revenue of N132.57 billion shared among the major expenditure components.

    The components include “Recurrent Expenditures consisting of Personnel Costs, Overheads, Consolidated Revenue Fund Charges and Other recurrent expenses relating to service delivery are earmarked the sum of N65.535 billion, equivalent to about 48.8 per cent of the total income.

    “Whereas 66 per cent of the proposed recurrent expenditure goes to personnel emoluments, the balance of 34 per cent would go to the other non-personnel recurrent expenses.

    “It is worthy of note that while total recurrent expenditure has grown by almost 10 per cent relative to the approved estimates in 2017, the overhead cost elements have actually declined by about 2 per cent.

    “In other words, increase in recurrent expenditure was mainly accounted by personnel cost due to the recruitment in 2017 and new ones expected to be done in 2018.

    “Capital Expenditure is earmarked N67 billion, accounting for about 50 per cent of the total expected income. This is about 0.7 per cent below the 2017 initial approved estimates.

    Responding, the Speaker of the assembly, Alhaji Isa Idris, commended the governor for presenting the budget on time, pointing out that it would give the house an ample time to scrutinise it.

    Idris promised to ensure passage of the bill in line with procedure and provisions of the house standing rules.

  • Bane of the budget

    SIR; The perennial gap between budgetary estimates and implementation is a growing concern and a contributory cause of poor economic development. Budget is variously regarded as a comprehensive document of estimates of government’s income and expenditure proposed for a specified period which is usually one year. In Nigeria, it is not unusual to hear of frequent low budget implementation, leaving one to wonder if our budgets are always designed to be partially implemented.

    Any student who scores less than average in exams cannot be deemed to have done well. If this universal measurement approach is applied to assess government performance on budget implementation, then citizens would objectively score their government based on how the budget performs. There is no how a government should feel it has performed well when it continues to score low on execution of its budgets.

    Late submission of budget proposals by the Presidency to the National Assembly and the unnecessary prolonged deliberations on the appropriation bill  by the legislators have been seen to be the major reasons for the ineffective implementation of the budget.

    Since the inception of the fourth republic, it has been observed that it takes an average of six months before a budget is ready for implementation and this sometimes close to the middle of the year. This affects fiscal planning in private and non-formal sectors of the economy whose projections are usually predicated on federal government allocation to its ministries and agencies. Also, the recurring less than 45 percent capital component in budget implementation is quite worrisome.

    Even if corruption is fought at all sectors of the economy, without beaming the  search light on the budget office to unravel and carefully scrutinize inputs from various ministries, departments, commissions, agencies and parastatals, the nation would continue to experience unclear budgetary directions and minimal implementation of projects captured in such budgets.

    Lagos State for instance has been found to have an improved performance of its budget to nearly 90 percent with an improved trajectory for a continuous increase in its IGR. The transparent budgetary processes of the state have no doubt demystified that system which many states and federal government are still struggling to grasp.

    When figures are unnecessarily tinkered with, many wonder what constitutes padding, others question who has the authority to decide which projects should be in the budget, we are indeed in a serious dilemma. The question we the citizens should ask is who do we hold responsible where our expectations are not met?  If the simple process of executive preparing and presenting the budget to the National Assembly for consideration becomes such a tedious process, then it is personal interest that has compounded otherwise seamless and simple process.

    • Itaobong Etim,

    Calabar.

  • Do states deserve fresh budget support?

    Do states deserve fresh budget support?

    The fresh budget support announced by the federal government to the 35 states of the federation last Thursday has raised further questions about the propriety and otherwise of such interventions in some quarters. Ibrahim Apekhade Yusuf in this report examines the issues

    BAILOUTS. That is one word the President Muhammadu Buhari administration will be probably remembered for at the expiration of this regime.

    In the last two years, state governments have received bailouts and other forms of intervention from the federal government.

    While the jury is still out on the propriety or otherwise of these bailouts, the federal government last Thursday yet again approved a fresh budget support loan of N28billion to states across the federation.

    The fresh loan was announced by the Minister of Budget and Economic Planning, Udoma Udo Udoma, while briefing State House correspondents, after the National Economic Council, NEC, meeting, presided over by the Vice President, Prof. Yemi Osinbajo in Abuja.

    Justification for fresh loan

    Udoma said that it was the latest in the series of financial support that has been provided by the Federal government to the states to meet up with their obligations including payment of huge salaries to workers. According to him, each of the 35 states will receive N800million, while the total amount that will be received by the states would amount to N28billion.

    He said the Accountant General of the Federation Mr. Idris Ahmed informed council that approval has been received and the Central Bank of Nigeria, CBN, has been directed to pay N800million to each of the 35 states of the Federation.

    The minister said the Governors at the meeting expressed appreciation to the Federal Government for the restoration of the Budget Support Loan Facility for July and August 2017.

    He said:  “The Accountant General reported to Council that approval has been received and CBN has been directed to pay N800 million to each of the 35 states of the Federation. Governors expressed appreciation to the Federal Government for the restoration of the Budget Support Loan Facility for July and August 2017.

    “The Accountant General of the Federation informed Council that balance in the ECA as at November 17, 2017 stands at $2,309,693,583.35. “Signs of recovery had been observed since Q3 2016 and the Recovery consolidated in Q3 2017 with GDP doubling to 1.40% Non-oil GDP contracts in Q3 2017 by 0.76% after growing in Q1 R Q2 2017, while the Services sector is still in the negative, the Manufacturing Sector grows negative in Q3 2017 also.

    “Due to high inflationary pressures, household consumption expenditures remain constrained, though it appears such pressure is easing. Headline inflation has declined since January reflecting tight monetary policy food price increases have remained persistent but slowing down. The total value of capital importation at the end 2017 of Q3 stood at $4.14 billion (131.3% growth year on year).”

    While the federal government’s may have had good intentions, the received wisdom out there is that the states government are hardly deserving of fresh bailouts given the controversy which has greeted successive interventions to the states.

    Timeline of bailout to states

    The Nation can authoritatively report that the federal government has given N1.75tn as bailout to states so far.

    According to a report by BudgIT, a civic startup that liberates budgets and public data, in 2015, a salary loan of about N338bn was disbursed to states. The term of the loan was 20-year and the purpose of the loan was to help states facing fiscal strain meet outstanding salary obligations.

    This was swiftly followed by the N575bn restructuring programme bond. The federal government negotiated this debt package through the Debt Management Office to allow states convert high interest bank debt into a 20 year tenured debt with interest rates set at 14.83%. With the exception of Ogun state, 23 states were immediate beneficiaries. However, the actual sum disbursed was not made public, BudgIT stated.

    In July 2015, the federal government remitted approximately N92.18bn to States from dividends worth $2.1bn paid to the centre by Nigerian Liquified Natural Gas Company (NLNG).

    Barely a year later, the sum of N7.85bn was also approved by the federal government to assist states with revenue short falls in January 2016 from the dividend remitted by NLNG.

    In July 2016, the federal government endorsed the allocation of N3.6bn from solid minerals savings to states as part of the routine monthly FAAC disbursements.

    A total of N117.3bn was also disbursed to states, amount taken from excess revenue generated from Petroleum Profit Tax (PPT). Ordinarily, this should go into the Excess Crude Account, but it was speedily distributed between the federal and state governments.

    In all, a total of N1.75tn has been disbursed to states as extra-statutory fund but little is known about how the funds had been spent. The latest amount released is the N522.74bn refund to states for surplus deductions of external debt servicing fees between 1995-2002.

    The lack of will to encourage states to embrace transparency and the inability of the federal government to enforce conditions that mandate states to articulate their policies and submit to standardised performance indicators has ensured that governors merely sit back and routinely await the discovery or refunding of money into the treasury, and immediately seek their share.

    BudgIT had previously sent Freedom of Information Request to Central Bank of Nigeria and no adequate response was provided. It is observed that the Federal Government seems to have adopted a reductionist approach to the States; often basing its release of funds on a need to offset recurrent expenditure at sub-national level.

    Allegations of diversion of bailout funds

    Allegations of diversion of bailout funds have been widespread in the recent times according to a report by the Independent Corrupt Practices and Other Related Offences Commission, which monitored how states spent the N338bn bailout fund given to them by the federal government, signed by Mustapha Hussain on behalf of the Commissioner, Public Enlightenment.

    Buhari had last year approved the sum of N338bn for 27 states that were unable to pay salaries. Some of the states had been unable to pay over 10 months’ salary arrears and pensions.

    Vice-President Yemi Osinbajo, who heads the National Economic Council, had explained that the loan is repayable at an interest rate of nine per cent over a 20-year period and it is “solely for the purpose of paying the backlog of salaries.”

    However, the report issued by the ICPC showed that Benue and Imo states were found wanting, while a few other states were found to still be owing salaries, an indication that the funds may have been mismanaged.

    The report comes less than a month after the Economic and Financial Crimes Commission arrested the Principal Secretary to the Governor, Dr. Pascal Obi and two others — Uzoho Casmir and Iheoma Kenneth — who were described by the EFCC as the director of finance and treasurer respectively.

    The fresh report by the ICPC states that, “Imo State applied for and received bailout funds of N26, 806, 430, 000.00 from the Central Bank of Nigeria which were domiciled with two commercial banks namely Fidelity and Zenith banks. In the course of analysis, it was discovered that some transfers were made into certain Imo State Government accounts which are not related to salaries and emoluments are as follows: N2bn paid into a Government Account; N2bn into an Imo State Project account; N2bn transferred into microfinance bank; and a management fee of N21, 017, 810.00 was paid into an unspecified account.”

    According to the report, Benue State received over N12bn that was meant for the payment of salaries but mysteriously paid over N70m into the account of the Office of the Deputy Governor.

    The report states, “In Benue State, the total debt accrued from staff salaries and emoluments amounted to N12, 503, 439, 787. 48. The state received N12, 503, 439, 787.48 as bailout fund and disbursed N10, 852, 536, 702.96 with a balance of N1, 650, 903, 084.52. Analysis of the documents submitted revealed a double payment of N37, 760, 000.00 in favour of the Office of the Deputy Governor. This double payment is presently being investigated.”

    In the case of Osun State, the ICPC stated that the state received N34.9bn as bailout and it disbursed N16.3bn. However, the report adds that the commission is investigating allegations that the state had not paid salaries since July 2015.

    Living in denial

    While many of the states have been noncommittal about what they received by way of interventions, checks by The Nation had revealed that the three tiers of government (federal, states and local governments) shared N2.788 trillion between January and June this year, a 38% increase on the N2.019 trillion shared in the first half of 2016.

    The Nigeria Extractive Industries Transparency Initiative (NEITI) Quarterly Review which focuses on disbursement from the Federation Accounts and Allocation Committee (FAAC).

    The review was based on data obtained by NEITI at the meetings of FAAC and data from National Bureau of Statistics, Office of the Accountant General of the Federation, Federal Ministry of Finance and the Debt Management Office.

    Out of $2.788 trillion disbursed in the first half of 2017, the federal government received N1.09 trillion, 36 state governments received N923 billion while N549.8 billion went to 774 local governments in the country.

    A further  breakdown  shows that total releases to the three tiers of government was N430.16 billion in January, N514 billion in February, N496.40 billion in March, N418.82 billion in April, N418.82 billion in May and N462.36 billion  in  June.

    However, despite the 38% increase in disbursements in the first half of 2017 when compared with 2016, all the three tiers of government suffered significant revenue decline in terms of projected FAAC disbursement.

    “Coupled with the low price of oil is the country’s difficulty in meeting the targeted/budgeted production rate of 2.2 million barrels per day. Production has consistently fallen below two million barrels per day since March 2016. Thus the double “whammy” of low oil prices and lower production that hit the country since 2014 has remained,” the NEITI Quarterly Review observed.

    The NEITI Quarterly Review further disclosed that a total of N513 billion was spent on debt servicing by the three tiers in the first quarter of 2017. This was against the N1.276 trillion disbursements in the first quarter. This means that debt servicing took up 40.27% of FAAC disbursement for the first quarter of this year.

    “The figure reveals that debt servicing as proportion of total FAAC allocations is generally higher in the first quarter of the year, after which it falls to lower levels. Based on this, the figure of 40.27% observed in the first quarter of 2017 might be an upper threshold and it would thus be expected that this figure will be lower for the remaining quarters of the year”, the report concluded.

    However, the Debt Management Office (DMO) is yet to provide data on the figure for the second quarter of 2017.

    In this direction, the NEITI publication expressed concern that, the nation’s debt in relation to revenues appears to have reached critical levels. It further disclosed that domestic debt servicing constituted 90% of total debt servicing.

    The report also remarked that “domestic debt servicing consistently outstrips external debt servicing. In the first quarter of 2015, domestic debt servicing made up over 93% of total debt servicing. This figure did not change much by the first quarter of 2017 as domestic debt servicing was over 92% of total debt servicing.”

    On the Paris Club debt refund to the 36 states and Federal Capital Territory (FCT), the NEITI Quarterly Review confirmed that N760.18 billion was released by the federal government to the 36 states and the Federal Capital Territory Abuja.

    The money which was paid in two tranches represents refunds of over deductions from FAAC allocations to states and local governments used for quick payment of debt relief granted to Nigeria by the Paris Club between 1995 and 2002.

    The NEITI publication disclosed that Rivers received the highest amount of N44.93 billion followed by Delta with N37.61billion and Akwa Ibom N35.98 billion. Bayelsa got N34.9 billion while Kano state received N31.74 billion respectively. The Federal Capital Territory, Abuja received the lowest amount of N2.05 billion.

    Strident calls against fresh loans

    Expectedly, not many people are in support of bailouts to the states judging by the allegations of misappropriation and diversion of past funds.

    The labour union is one of many people opposed to the disbursement of bailouts to states.

    Speaking with newsmen in Abuja recently, Comrade Ayuba Wabba, president of the Nigeria Labour Congress (NLC) noted matter-of-factly that the state governments don’t deserve the interventions from the federal government judging by past records.

    Echoing similar sentiments, Olise Emeka, a civil rights advocacy lawyer said bailout by government has made most of the states complacent.

    The way forward, he said, is for the state governments to be ingenious in their ways rather than rely on largesse from the government.

  • A HOLLOW RITUAL CALLED BUDGETING (2)

    A HOLLOW RITUAL CALLED BUDGETING (2)

    In a country with a criminally high unemployment rate, the vibes one gets from the President’s speech does not give any hope that the teeming youth roaming the streets would smile any soon. You wonder why jump into such hasty conclusion when the details of that budget remain somewhat shrouded in secrecy.

    It is because the few nuggets one have read about that documents leave one breathless. For example, this paper published some worrisome subheads last week wherein it was state, among other things, that the sum of N1.3bn out of the Presidency’s total proposed allocation of N51.4 would be expended on breathing a new life into the State House Medical Centre otherwise known as the State House Clinic.

    While it is no longer news that our ‘patriots’ lawmakers at the National Assembly and the bureaucracy have rebuffed all entreaties to go public with item by item details of the N125bn they cream off the budget annually, it is surprising that The Presidency and the security services appear to be competing for the prize of the highest spender on the purchase of state-of-the-art gadgets running into billions of naira. This is aside the funds ‘eyemarked’ and earmarked for all manners of things as it was in the past.

    These include but not limited to the N145 million for food stuff / catering materials supplies; N165 million for maintenance of motor vehicle / transport equipment; N132 million on fuel and lubricants; N67 million for vehicles’ fuel; N45 million for generator fuel; N18 million on gas; N135,668,651 on refreshment and meals while honorarium and sitting allowance would take N478,313,996. I guess if our leaders must live in splendour, then we must understand the pocket-friendly N12.4m to take care of the ongoing rehabilitation work on the Presidency’s animal enclosure and procurement of its veterinary lab equipment and the N28.9m to upgrade the presidential villa ranch and construction of the proposed wildlife mini-zoo with a token N24m for local flowers’ nursery, irrigation and upgrade of a helipad grass field.

    The report went further to disclose that the “annual routine maintenance of mechanical/electrical installations at the Presidential villa is being proposed for N4,860,392,146, outstanding liabilities on routine maintenance and other services for 2016 is allocated N565. 6 million while N83. 7 million is allocated for the purchase of tyres for bullet proof vehicles, trucks, jeeps, ambulance and other utility vehicles. The routine maintenance of State House Lagos facilities (Dodan Barracks, VP Residence/Guest Houses at Ikoyi) is to be undertaken at a cost of N145,869,150 under the 2018 national budget.” In fact, the routine with which gigantic allocations are made for routine services has become a norm that no longer attracts our angst. If the narrative remains the same in the 2018 projections, why should we hope that it would change in the nearest future?

    Now, let’s dissect Buhari’s speech a little. With the effective presidential order placed on fresh recruitments by Ministries, Departments and Agencies and an increment in recurrent expenditure which would be used mainly to take care of salaries and overheads of a bloated, hydra-headed monster called public service, those who have been dusting their papers with a probable hope of securing white collar jobs in the MDAs may as well shelve that idea in spite of Buhari’s caveat that such recruitments would only be carried out after the affected bodies must have ‘obtained the requisite approvals.” The other window of opportunity that is likely available for anxious “any-job-would-do’ applicant is in the armed forces for obvious reasons. Even that is subject to some underhand terms and conditions which are not easy to scale through without the influence of a powerful interest! Here, the ‘Nigerian factor’ is always at play all the time.

    While it is commendable that the President has cautioned the MDAs on the imperative of operating strictly within the cost-saving measures adopted by his government, the best example, I insist, should be set by The Presidency and the National Assembly in their expenditure layout for 2018. By this, Nigerians would want to see a remarkable departure from the amazing maze of appropriations by these bodies in the past. Sadly, it seems we are all waiting for Godot in that department. Is it possible that, this time, logic-defying figures would not be ‘captured’ as funds to be spent on cutleries, toiletries, computers, Internet facilities, bullet proof cars, local and foreign trips including feeding the exquisite animals in the palatial mansions of those who offered themselves for service? Would we see a transformative change and an open system in how perks and perquisites are allocated such that what we see on paper would exactly be a reflection of what was actually paid to public officials? Would the key sectors of the economy duly get what has been allocated them as and at when due so that the percentage of implementation would boost the economy and subsequently lead to the creation of jobs in the private sector since the public sector has been placed under lock and key?

    The viability of a budget is not based on its projected promises but rather on the practicality of the deliverables—how they impact on the people down the social strata. Senate President Bukola Saraki recognised this fact when he admonished Buhari that the implementation of the 2018 budget will be “a defining element of this administration” because there can never be a consolidation without steadying the “ship of this recovery.” What this means is that all the leakages would have to be plugged because no one would buy the staid excuse that the economy draining pipes were unleashed by the past administration to frustrate this government. Having spent more than two years on the saddle, tightening those economic holes shouldn’t be rocket science to any serious minded government unless it chooses to wring its hands in helplessness while the rape of the national till persist. Let them fix it please!

    Listen to Saraki: “As the country emerges from that period of uncertainty, the question on the lips of many Nigerians has been this: How does the recovery translate into tangible economic benefits for me? We must remember that the real gains must be felt on a personal level by the individual, for economic recovery to have meaning. People are seeking to get back to work but cannot find jobs. Deliberate steps must be taken to make the 2018 budget a job oriented one.”

    In matters like this, our leaders have never failed in striking the right chords or hitting the bulls’ eye in listing the reasons why Nigeria remains a sinking giant. The sad reality is that most of these leaders work assiduously to frustrate the identified panacea to lifting the country out of its self-inflicted pernicious inertia. No doubt, they have spoken with one voice. But would they walk the talk after the public show of conviviality? This time, would the people feel the impact of their outlandish show of patriotism or would they recoil to their shell to begin yet another journey to the path that got us here?