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Tag: BudgIT

  • BudgIT seeks end to fuel subsidy

    A civic technology organisation, BudgIT has urged the Federal Government to end the controversial petroleum subsidy regime after 13 years.

    According to BudgIT, the Federal Government has spent close to N10 trillion on importing petroleum products under the guise of subsidy between 2006 and 2018 to the detriment of socio-economic developments.

    In a statement by its Principal Lead, Gabriel Okeowo, BudgIT said the country was dancing on the edge of a razor blade by continuing the subsidy regime.

    BudgIT said its research showed that the country currently imports an average of 91 per cent of its daily petrol needs, saying this exposes local petrol prices to price shocks from international factors of production and exchange rate volatility.

    “There is a near perfectly inverse relationship between the fall in the value of naira and the rise in the cost of imported petrol. That is, when next the naira is devalued, Nigeria’s subsidy bill can be expected to jump,” the statement said.

    It said the continuation of petrol price regulation perpetuates safety nests for “exceptional forms of corruption within the country’s subsidy regime.”

    “Import subsidy creates petrol price arbitrage – the differential between the regulated price in Nigeria and the high petrol prices in neighbouring countries – which is big enough to incentivise smuggling of subsidised products to neighbouring border towns. According to NNPC, there are 2,201 petrol stations in Nigeria’s porous border towns and coastal frontiers, with a combined fuel tank capacity of 144.9 million litres. Analysts argue, ringing corruption alert that the population around that area is far from justifying the size of the petrol market.

    “BudgIT notes with dismay that ‘fuel subsidy’ deprives Nigeria of funds needed for critical socio-economic development as it discourages investors, who generally prefer a deregulated industry, from investing in the downstream sector especially in the area of refinery construction and operation. For instance, the 10 trillion consumed by the subsidy regime is sufficient to construct 27,000megawatts (Mw) of electricity or build about 2,400 units of 1000-bed standard hospitals across 774 local government areas of Nigeria, found our research.

    REad also: BudgIT to Saraki, Dogara: make NASS 2019 budget public

    “We equally note that the Nigerian masses worship low oil prices. More so, the political class fears that increases in petrol price (and in the cost of living by extension), occasioned by a deregulated price regime, could become a flashpoint for mass uprisings and political instability. Nonetheless, we can never shy away from the opportunity cost of the corrupt subsidy regime.

    “Nigeria’s population is expected to balloon to 398 million people by 2050. With no strategic framework to end its subsidy program plus zero political will to reform the entire sector, the Nigerian government risks carrying the financial burden of a program that could drown out the development of its other sectors over the next 15 years.

    “It’s high time fuel subsidy is removed. Efficient palliative measures should be provided for those that will be worse hit by the removal. Four sectors – Transportation, Power, Health and Education – should be prioritised to cushion the effects.

    “While we are calling on President Muhammadu Buhari to do the needful, we also believe that funding for cheaper mass transit and subsidies to public institutions should be targeted for these groups.”

  • BudgIT to FG: end fuel subsidy regime now

    A civic technology organisation, BudgIT has urged the Federal Government to end the controversial petroleum subsidy regime after 13 years of operating it.

    According to BudgIT, Nigeria has spent close to N10 trillion on importing petroleum products under the guise of subsidy between 2006 and 2018 to the detriment of socio-economic developments.

    In a statement by its Principal Lead, Gabriel Okeowo, BudgIT noted that Nigeria was dancing on the edge of a razor blade by continuing the subsidy regime.

    BudgIT said its research showed that Nigeria currently imports an average of 91 percent of its daily petrol needs, saying that this exposes local petrol prices to price shocks from international factors of production and exchange rate volatility.

    “There is a near perfectly inverse relationship between the fall in the value of Naira and the rise in the cost of imported petrol. That is, when next the Naira is devalued, Nigeria’s subsidy bill can be expected to jump,” the statement said.

    It explained that the continuation of petrol price regulation perpetuates safety nests for “exceptional forms of corruption within the country’s subsidy regime.”

    The statement added: “Import subsidy creates petrol price arbitrage – the differential between the regulated price in Nigeria and the high petrol prices in neighbouring countries – which is big enough to incentivise smuggling of subsidized products to neighbouring border towns. According to NNPC, there are 2,201 petrol stations in Nigeria’s porous border towns and coastal frontiers, with a combined fuel tank capacity of 144.9 million litres. Analysts argue, ringing corruption alert that the population around that area is far from justifying the size of the petrol market.

    “BudgIT notes with dismay that ‘fuel subsidy’ deprives Nigeria of funds needed for critical socio-economic development as it discourages investors, who generally prefer a deregulated industry, from investing in the downstream sector especially in the area of refinery construction and operation. For instance, the 10 trillion consumed by the subsidy regime is sufficient to construct 27,000MW of electricity or build about 2,400 units of 1000-bed standard hospitals across 774 local government areas of Nigeria, found our research.

    “We equally note that the Nigerian masses worship low oil prices. More so, the political class fears that increases in petrol price (and in the cost of living by extension), occasioned by a deregulated price regime, could become a flashpoint for mass uprisings and political instability. Nonetheless, we can never shy away from the opportunity cost of the corrupt subsidy regime.

    “Nigeria’s population is expected to balloon to 398 million people by 2050. With no strategic framework to end its subsidy program plus zero political will to reform the entire sector, the Nigerian government risks carrying the financial burden of a program that could drown out the development of its other sectors over the next 15 years.

    “It’s high time fuel subsidy is removed. Efficient palliative measures should be provided for those that will be worse hit by the removal. Four sectors – Transportation, Power, Health and Education – should be prioritized to cushion the effects.

    “While we are calling on President Muhammadu Buhari to do the needful, we also believe that funding for cheaper mass transit and subsidies to public institutions should be targeted for these groups.”

  • CSOs to FG: increase budgetary provisions to education

    Some Civil Society organisations on Friday called on the Federal Government to increase budgetary allocation to the education sector.

    The CSOs, BudgIT, Public and Private Development Centre (PPDC) and Basic Rights Watch (BRW), during a joint press briefing in Abuja on Wednesday, said that allocation to the education sector in the last three years had declined.

    The conference was on education funding, access to funds and accountability process and recommendations for agencies under the education ministry.

    BudgIT’s Lead Partner, Seun Onigbinde, who spoke on behalf of the civil society organisations, said the challenges in the sector was worrisome.

    According to him, the development of the sector rests largely on adequate funding and proper monitoring of the use of funds.

    He said it was unfortunate that funds set aside for intervention are not accessed by state governments.

    Onigbinde said: “Over the years, allocation to the education sector have stalled below 11 percent, falling short to the 15-20 percent Incheon Declaration benchmark. In the last three years, allocations to the education ministry, as a percentage of the federal budget, has even declined.

    “It must be noted that the development of the education sector rests largely on adequate funding and proper monitoring of the use of funds. Unfortunately, funds set as intervention are not accessed by state governments.

    “With this in mind, we call on state governments to prioritise education by accessing funds to help develop the sector. Intervention funds to improve education through the tertiary education trust fund (TETFund) and universal basic education commission (UBEC) should be accessed by state governments and tertiary institutions respectively, as they must fulfill the requirements.”

    He called on the Federal Government to spearhead urgent reforms which are needed in the sector.

    Onigbinde noted that the rot in sector could be seen in the quality and performances of Nigerian pupils.

    He said Minister of Education, Adamu Adamu, has a lot to do in order to revamp the sector and should not only talk about declaring a state of emergency on it.

    Onigbinde said Nigerians need to raise questions about the inconsistency of the government in the education sector, so as to awaken them to their responsibilities.

    He said: “We have talked about the colourless administration of the current authorities at the Ministry of Education. We have not seen genuine reforms in the education sector. The government itself in 2018 talked about an emergency situation in education. They didn’t need to declare an emergency in advance. We expected them to start addressing the emergency immediately. But it simply shows that education has yet to become a priority for the government.

    “The rot in the education sector is generational and you can see the quality of pupils from schools and graduates from universities. This was not so in the last 20 or 30 years.

    “Hence we need to raise our voices and ask questions from the government. How have we funded the education? Is it adequately? We have money sitting in the federal purse through the Universal Basic Education Commission but you see some states not accessing the funds, because you tell them to bring the counterpart funding.”

    In a joint release, the civil society organisations recommended that “the federal and state governments should prioritise education by creating a soft landing for states to enable access to the UBEC grants.”

    “For Nigeria to reverse the trend of education decline, we call on the Federal Government to align budgetary allocations with the United Nations Education, Scientific and Cultural Organisation’s standard,” the CSOs added.

  • BudgIT to Saraki, Dogara: make NASS 2019 budget public

    A civic organisation, BudgIT has asked the leadership of the National Assembly to make details of its 2019 budget open, showing a line-by-line breakdown of allocation.

    The organisation stated that the annual budget of the National Assembly has remained a one-line statutory transfer which is neither reviewed by any authority nor, at the very least, made accessible to the public thus enabling unbridled corruption.

    BudgIT’s Principal Lead, Gabriel Okeowo, in a statement, said  opening the 2019 budget of the lawmakers was the ultimate way the legislature could lead by example in making public accountability a culture in the country.

    According to the statement, it is an irony that the budget of the lawmakers has continued to defile public scrutiny.

    “At this age of digital governance plus global calls for transparency in public institutions, it is a national disrepute that the parliament has refused to eschew anti-democratic practices, as it continues to bury its yearly allocations under the hallowed chambers.

    “That Nigeria’s National Assembly, an arm of government that supposedly upholds accountability, has remained an impregnable black box which defies public scrutiny is an irony of all ironies.

    “Aside from the lawmakers being ranked as world’s top-paid legislators, at public expense, the annual budget of the National Assembly is a one-line statutory transfer which is neither reviewed by any authority nor, at the very least, made accessible to the public thus enabling unbridled corruption.

    “At this age of digital governance plus global calls for transparency in public institutions, it is a national disrepute that the parliament has refused to eschew anti-democratic practices, as it continues to bury its yearly allocations under the hallowed chambers,” the statement read.

    It said more disappointing is the fact that, despite Nigeria’s membership in Open Government Partnership and tons of pledges by Senate President Bukola Saraki to run an “open NASS,” the National Assembly immediately relapsed into its default setting after a breakdown of the budget was made public in 2017 because of public pressure.

    “Asserting that the 2017 record must be made permanent, we are making a renewed demand from the leadership of the eighth assembly to fully redeem its promise. Starting again with the 2019 budget, a line-by-line breakdown of the NASS allocation must be made public going forward.

  • BudgIT to Saraki, Dogara: make NASS 2019 budget public

    BudgIT, a civic organisation, has asked the leadership of the National Assembly to make open details of its 2019 budget, showing a line-by-line breakdown of allocation.

    The organisation stated the annual budget of the national assembly has remained a one-line statutory transfer which is neither reviewed by any authority nor, at the very least, made accessible to the public thus enabling unbridled corruption.

    In a statement on Wednesday in Abuja by its Communications Associate, Shakir Akorede, BudgIT’s principal lead, Gabriel Okeowo, stated that opening the 2019 budget of the national assembly was the ultimate way the legislature could lead by example in making public accountability a Nigerian culture.

    According to the statement, it is an irony that the budget of the national assembly has continued to defile public scrutiny.

    The statement reads: “At this age of digital governance plus global calls for transparency in public institutions, it is a national disrepute that the parliament has refused to eschew anti-democratic practices, as it continues to bury its yearly allocations under the hallowed chambers.

    “That Nigeria’s National Assembly, an arm of government that supposedly upholds accountability, has remained an impregnable black box which defies public scrutiny is an irony of all ironies.

    Read also: Mind yourself, Appeal Court President warns tribunal judges

    “Aside from the lawmakers being ranked as world’s top-paid legislators, at public expense, the annual budget of the National Assembly is a one-line statutory transfer which is neither reviewed by any authority nor, at the very least, made accessible to the public thus enabling unbridled corruption.

    “At this age of digital governance plus global calls for transparency in public institutions, it is a national disrepute that the parliament has refused to eschew anti-democratic practices, as it continues to bury its yearly allocations under the hallowed chambers.

    “More disappointing is the fact that, despite Nigeria’s membership in Open Government Partnership and tons of pledges by Senate President Bukola Saraki to run an “open NASS,” the National Assembly immediately relapsed into its default setting after a breakdown of the budget was made public in 2017, thanks to public pressure.

    “Asserting that the 2017 record must be made permanent, we are making a renewed demand from the leadership of the eighth assembly to fully redeem its promise.

    “Starting again with the 2019 budget, a line-by-line breakdown of the NASS allocation must be made public going forward.

    “It is worth the call that Senate President Bukola Saraki and Speaker Yakubu Dogara should leave behind a great legacy, one that history would never forget, by truly and finally opening NASS.”

  • Burutai asked to account for spendings on military operations

    Lt. General Tukur Yusuf Buratai, has been asked  to  account for spending on operation Lafiya Dole and Crocodile Smile.
    The request was made through the Freedom of Information (FOI) Act and signed by Bamisope Adeyanju, Seun Akinyemi and Atiku Samuel, on behalf of SERAP, EiE and BudgIT respectively.

    The groups said: “If the requested information is not provided within 14 days of the receipt and or publication of this letter, our organizations shall take all appropriate legal action under the Freedom of Information Act to compel you to comply with our request.”
    The organisations asked General Burutai to provide information on the 2015, 2016 and 2017 budget implementation reports of the Nigerian Army, including the amounts released (financial implications) and expended for the various operations the Army carried out.

    The groups also urged him to furnish them with “the amounts released (financial implications) and expended in fiscal years 2015, 2016 and 2017 for: Operation Lafiya Dole, Operation Safe Haven, Operation Python Dance, Operation Ruwan Wuta, Operation Delta Safe, Operation Mesa, Operation Harbin Kunama, Operation Awatse, Operation Tsera Teku and Operation Crocodile Smile.”

    The groups said: “Transparency of the budget process and its implementation is an essential condition to achieve good governance.
    “The reports, if provided and published, will shed light on military spending and put to rest once and for all the perceived lack of transparency and accountability in the spending of military budgets, which has been a subject of intense public debate and concern.”

    According to the groups: “several billions of naira allocated to the military to defend the country and protect its people have neither contributed to improving the ability of Nigerian soldiers to fight Boko Haram and other armed groups nor provided the much-needed security especially for Nigerians in the North-east of the country.”

    The FOI request read in part: “The information being requested does not come within the purview of the types of information exempted from disclosure by the provisions of the FOI Act.
    “The information requested for, apart from not being exempted from disclosure under the FOI Act, would serve the national interest, public welfare, public interest and peace, human rights, good governance, transparency and accountability.

    “By virtue of Section 1(1) of the Freedom of Information Act, 2011,we are entitled to request for or gain access to information, including information on 2015, 2016 and 2017 budget implementation reports of the Nigerian Army, and the amounts released (financial implications) and expended in fiscal years 2015, 2016 and 2017 for the various operations listed, which have yielded no tangible result.”

    “Also, by virtue of Section 4(a) of the FOI Act, when a person makes a request for information from a public official, institution or agency, the public official, institution or agency to whom the application is directed is under a binding legal obligation to provide the applicant with the information requested for, except as otherwise provided by the Act, within seven days after the application is received.”

  • Constituency projects over bloated, poorly executed, says BudgIT

    A civic technology organisation, BudgIT, on Wednesday said most of the constituency projects nominated by federal lawmakers in 2017 were over bloated and poorly executed.
    It alleged that some lawmakers connived with contractors to inflate the price of projects they nominated last year.
    BudgIT’s Principal Lead, Gabriel Okeowo, said this at the launch of Tracka’s 2017 report on constituency projects in 20 states.
    Mr. Okeowo, in the report titled: Lessons and Findings from the focus states, accused lawmakers of shrouding some of their projects in secrecy.
    He also said some of the empowerment projects nominated by lawmakers had little or no impact on the lives of their constituents in 2017.
    He said: “Every year, we deploy our team of Project Tracking Officers across the federation to track the effectiveness and efficiency of the projects. To increase development across Nigeria, it is important to track projects in the budget; raise local champions who monitor such projects and demand accountability from representatives. This is how Tracka addresses critical socio-economic issues in Nigeria.
    “The focus period of the report we are launching today is from May 2017 to June 2018. 24 Project Tracking Officers (PTOs), were in 617 communities across 374 Local Government Areas in the 20 focus states to sensitize residents on the 2017 budgetary provisions situated in their communities. Based on our findings, 1,228 projects were tracked; of these, 478 have been completed, 200 are ongoing, 364 have not started while 13 projects are abandoned.
    “We observed an increased number of abandoned and non-executed projects. On several occasions, where projects were delivered, the project sums were inflated and some were executed with inferior products, resulting in endangerment of lives, developmental setbacks and further expenditure.
    “This happens as contractors try to maximize profit by cutting costs, and they are emboldened to do so because often, there are no sanctions, despite complaints and consequences. While others projects were executed, they were put under lock and key awaiting commissioning while the community suffered.
    “Other findings as you may see the report were over significant amount that went into empowerment projects which are difficult to track and their impact cumbersome to measure. Many projects were over bloated while execution was poorly executed. These realities led to a populace that does not feel the impact of government projects, though they read of them in the newspapers, hear about them on radio or see them all around their communities.
    “As the 2019 elections beckon, we hope that this report can be a tool to assess performance, to question political office aspirants on projects and determine how citizens will engage politicians during the campaigns as well as at the polls.
    “In the coming year, we will continue to deepen our work with the grassroot citizens, increase opportunities for civic education through our community champion initiative as well as empower Nigerians to take ownership of the project monitoring process in their communities.
    “Our resolve is to continue to work towards a future where every Nigerians will be courageousto ask questions, demand results and hold our leaders accountable.  That way, both the followers and the leaders will walk closer to the Nigeria of our dreams.
    Earlier, Program Manager for Tracka, Uadamen Ilevbaoje, said lawmakers completed 478 projects in one year.
    Mr. Ilevbaoje, who presented the report, said the organisation tracked 1,228 projects in 2017 and discovered that 478 have been completed, 200 are ongoing, 364 have not started while 13 projects are abandoned.
    He said the Tracka report shined light on the status of different projects across the focus states.
    He said: “The focus period of the report we are launching today is from May 2017 to June 2018. 24 Project Tracking Officers (PTOs), were in 617 communities across 374 Local Government Areas in the 20 focus states to sensitize residents on the 2017 budgetary provisions situated in their communities. Based on our findings, 1,228 projects were tracked; of these, 478 have been completed, 200 are ongoing, 364 have not started while 13 projects are abandoned.
    “Other findings as you may see the report were over significant amount that went into empowerment projects which are difficult to track and their impact cumbersome to measure. Many projects were over bloated while execution was poorly executed.
    “These realities led to a populace that does not feel the impact of government projects, though they read of them in the newspapers, hear about them on radio or see them all around their communities.”
    Tracka is a platform by BudgIT that uses active citizens who track and monitor government projects in their communities in order to ensure quality service delivery.

  • BudgIT laments as Nigeria ranks 157th on CRI Index

    BUDGIT has expressed dismay at Nigeria’s position for the second time in commitment towards reducing inequality in the country despite persistent advocacy for the Federal Government to invest more in sectors that improve on human development capacity of its people and bridge the gap between the haves and the have-nots.

    Nigeria has the unenviable distinction of being at the bottom of the Index for the second year running. Nigeria’s social spending (on health, education and social protection) is shamefully low. As seen in the index, the scale of economic inequality has reached extreme levels as evidenced in the daily struggles of the majority of the population as well as with the report that Nigeria recently overtook India as the “poverty capital of the world”.

    “Our insights are drawn from the Commitment to Reduce Inequality Index, the second in the series released by Development Finance International (DFI) and Oxfam which measures the commitment of governments to reduce the gap between the rich and the poor. The index is based on a new database of indicators, now covering 157 countries, which measures government action on social spending, tax and labor rights – three areas are found to be critical in reducing the gap. Nigeria was ranked 157th out of 157, which shows that the country is currently spending way too low on key sectors such as health, education and social protection,” BudgIT said.

    Nigeria also ranks very low, 104th, on the progressivity of her taxation policy, a stagnated minimum wage, and consistent abuse of labor rights. The CRI index shows that in the past year, Nigeria has seen an increase in the number of labor rights’ violations. The minimum wage has not increased since 2011, put at 55 cents per day.

    BudgIT called on the government to increase its commitments in policy impact and actions by improving efforts on progressive spending, taxation, and workers’ pay and protection as a matter of urgency in order to move more Nigerians out of the poverty line. “We affirm that Nigeria needs to invest in its people with an aggressive investment in education, health, access to capital and growth poles that expand youth employment. We also take note that on the World Bank Human Capital Index, Nigeria ranked 152 out of 157 countries.

    “Beyond the current social investment programs, President Buhari should forward stronger action in tackling inequality, especially systemic long-term investments. We believe this should a major issue towards the 2019 general elections,” it said.

  • Edo not owing workers’ salaries – BudgIT

    An independent survey by civic start-up, BudgIT, has shown that Edo State is not owing workers’ salaries.

    The survey which was conducted across Nigeria’s 36 states showed state governments that currently owe outstanding workers’ salaries in the education and health sectors, secretariats as well as backlog of pension.

    The survey, tagged State of States: 2018 Sub-National Salary Survey, which is valid as of September 24, 2018, showed that the Governor Godwin Obaseki-led administration does not owe salaries due school teachers, midwives in government hospitals and secretariat workers.

    In a statement, Special Adviser to the Governor on Media and Communication Strategy, Mr. Crusoe Osagie, said that the survey confirms the state government’s stance on the early payment of workers’ salaries, and “civil servants can testify that they get their salaries before the 26th of every month.”

    According to him, “The verdict of the survey by the independent researchers once again affirms what is already known by all. It goes to show everyone what workers in Edo enjoy and the fact that we are indeed committed to the welfare of workers.”

    He said that the ability to pay workers as and when due is the result of the frugal, time-tested resource management strategy adopted by Governor Godwin Obaseki in managing the state’s resources.

    Osagie said, “The state government has been able to meet her statutory financial obligation to workers as a result of her efficient financial management principle. We are happy that other people are also acknowledging this with surveys like this.

    Read Also: BudgIT knocks NASS

    “At this juncture, it is pertinent to stress that the Governor Obaseki-led administration will, at all times, work for the betterment of the lives of Edo workers, provide enabling environment for them to work and also set the right machinery for capacity building so they can be fulfilled in their jobs as well as their private lives.”

    The survey showed that some states are owing outstanding salaries ranging from one to 36 months, with the worst hit being Kogi, Osun, Imo and Delta states.

    Commenting on some of the states, BudgIT said, “While midwives in Kogi were only paid 40 percent of their agreed salaries and secretariat workers paid 50 percent, in Osun, salaries outstanding is 50 percent for 30 months, but those in levels 1-7 were fully paid.”

  • BudgIT ranks Edo high on ability to meet recurrent expenditure

    BUDGIT has hailed Edo State government for prudent allocation of resources.

    It said this has enabled the Governor Godwin Obaseki-led administration to meet its monthly recurrent expenditure commitments.

    The civic oganisation’s “State of the States 2018 Report on the Ability of States to Meet Monthly Recurrent Expenditure Obligations for January – June 2018,” said: “Rivers, Bayelsa, Delta, Akwa Ibom, Edo and Ondo are among the top 10 states in our Index.”

    The organisation explained that “Index A looks at the ability of states to meet their recurrent expenditure with internal revenue, including 13 per cent derivation. States, such as Rivers, Lagos, Delta, Bayelsa and Edo top Index A.”

    On Index B, which looks at states’ ability to cover recurrent expenditure without borrowing,  the organisation noted: “…about 16 states could cover the recurrent expenditure obligation without borrowing funds– a marked improvement over 2017.

    “In the first six months of 2017, only four states could effectively meet their recurrent expenditure without borrowing, selling assets or/and donor funds. States, such as Kano, Bayelsa, Edo, Rivers and Delta top the index.

    BudgIT added that “Edo appears to have shown some initiative by trying to resuscitate its rubber and palm plantations in conjunction with the private sector, a move likely to increase earnings.”