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Tag: BudgIT

  • States’ debt profile hits N4.49tn, says BudgIT

    •      ‘Lagos is most indebted state

    A civic technology organisation, BudgIT, has said the debt profile of states increased to N4.49 trillion in 2017.

    The organisation, which stated this yesterday in Abuja, the nation’s capital, in its StateOfState report, said the increase was against the N2.13 trillion recorded in 2014.

    BudgIT’s Research Lead, Atiku Samuel, who presented the reported, noted that most states resulted to borrowing due to increased inability to meet recurrent expenditure obligations and increased pressure.

    He urged states to focus on boosting their internally generated revenue (IGR) collection and slow down on borrowing.

    According to him, while there are opportunities in agriculture, manufacturing and trade, many states lack the foresight to explore them.

    Samuel also advised states to reduce their operating costs by slashing “unreasonable overheads” while freeing up more spending for social and economic infrastructure.

    He said: “The total debt stock of Nigerian states has increased from the 2012 level of N1.79 trillion to N4.49 trillion in 2017. With increased inability to meet recurrent expenditure obligations and increased pressure, most states resort to more debt uptake. The total debt profile of the states rose from the 2014 level of N2.13 trillion to 2017 level of N4.49 trillion.

    “States will need to focus on boosting internally generated revenue collection and simultaneously slowing down on borrowing. It is also important to rein in recurrent expenditure and rework the budgeting system. If this is done, states can increase their budget performance as well as pay backlogs of civil servants’ salaries, whilst grappling with a ghost worker problem.

    “Questions on the credibility and usefulness of budgets are being asked, particularly at the state level. Some states, like Cross River, have huge expenditure size, which is not commensurate with their revenue reality.

    “States need to look beyond rhetoric and commit to a reduction in their operating costs, including significantly slashing unreasonable overheads, while freeing up more spending for social and economic infrastructure.

    “States will need to link future borrowing to sustainable projects, which can pay back the capital cost of its recurrent loans and improve the overall income profile of the state.

    “Economic planners will need to lift states from a perpetual cycle of borrowing, work to improve tax collection efficiencies and realign budgeting with state-wide plans.

    “Significant investment is needed to improve the overall economic performance at the state level, which invariably could create jobs that feed into states’ IGR. Improved spending is also significant for value-added tax revenue.

    “Opportunities in aquaculture, agriculture, manufacturing, trade, logistics and tourism abound across states, but it seems many states lack the rigour and foresight to explore them.

    “Only then, will state budgets perform for the people; only then, will states become fiscally sustainable.”

    The BudgIT chief said Lagos debt profile accounted for 18.08 per cent of the total debt stock of states with N813.04 billion in 2017.

    This, he added, was against the N456.8 billion it recorded in 2014.

    “The total debt of Lagos State – the most indebted state in Nigeria – rose from the 2014 level of N456.8 billion to N813.04 billion in 2017, accounting for 18.08 per cent of the total debt stock of state governments.

    “Lagos’s unusually high overhead costs and debts continue to weigh its revenue down,” he added.

    with N813.04b’

  • Remove award of petroleum licenses from President – BudgIT

    A civic technology organisation, BudgIT, has called for the removal of discretionary powers to award petroleum licenses from a sitting President as contained in the Petroleum Industry Administrative Bill (PIAB).

    The organisation said the opportunity to arbitrarily award petroleum licenses led to the infamous Malabu (OPL 245) scandal.

    BudgIT’s Principal Lead, Gabriel Okeowo, advised the Federal Government to remove from the PIAB the clause giving any sitting President the right to award licenses outside the established regulatory framework.

    Okeowo, in a statement issued by BudgIT’s Communication Lead, Ayomide Faleye, in Abuja on Wednesday, said this would go a long way in preventing the recurrence of the Malabu saga.

    The statement reads: “We are worried that the President can still award petroleum licenses discretionarily. Section 8, Sub-section 7 of the same bill states that ‘The President may direct the Commission to negotiate and award petroleum licenses to qualified investors outside of the bidding process. Any such awards may only be for strategic and bilateral purposes.’

    Read Also: BudgIT hails NNPC on plan to reduce gas flaring

    “Why must the President be able to discretionarily award licenses outside the bidding process? For us at BudgIT, we advise the government to remove from the PIAB the clause giving any sitting President the right to award licenses outside the established regulatory framework, this will go a long way in preventing the recurrence of the Malabu saga.

    “The opportunity to arbitrarily award petroleum licenses led to the infamous Malabu (OPL 245) scandal. It can be recalled that Mr. Dan Etete who was the Minister of Petroleum during Sani Abacha’s military regime, awarded the prospecting rights to the huge OPL 245 block to Malabu Oil and Gas, a shell company in which Mr Etete secretly held a significant stake. Malabu paid only $2m of the required $20m signature bonus, and Abacha died five days after.

    “The Department of Petroleum Resources, DPR has also admitted that no due diligence was carried out before the awarding of OPL 245 to Malabu Oil and Gas in 1998. This oil block which is considered to be the richest in Africa, is estimated to contain about 9 billion barrels of crude.

    “Malabu is an example of cronyism and corruption that sees senior government officials’ gift of oil blocks and other publicly-owned assets to self, friends or well-wishers.

    “The Petroleum Industry Bill is meant to build strong institutions that also allow transparent and fair allocation of oil blocks.”

    He advised the government to critically look into the proposed PIAB before it is finally passed into law.

    Okeowo hailed Section 8; Sub-section 2 of the Bill which recommended that “petroleum licenses shall be awarded through an open, transparent and competitive bidding process conducted by the Commission pursuant to this Act.”

    The statement added: “This is a welcome idea which means awarding of petroleum licenses will be free and fair enough for everybody.

     

     

  • BudgIT to track capital projects in FCT, Nasarawa

    Civic technology organisation, BudgIT has concluded plans to track capital projects located in the Federal Capital Territory (FCT) and Nasarawa state.

    The organisation said it will use its Tracka Platform to ensure transparency in capital and constituency projects nominated by lawmakers from FCT and Nasarawa.

    BudgIT is already using Tracka to ensure transparency in projects nominated by lawmakers and state governments in 22 states.

    Programs Officer, BudgIT, Omokhaye Henry, said the exercise will engage 24 communities in FCT and Nasarawa by examining where capital projects are awarded and would have community project tracking teams within the locality.

    Mr. Omokhaye, who is also the Coordinator of the Abuja Budget Tracking Program for BudgIT said it was important as Nigerian citizens to ensure transparency and accountability regarding the use of funds.

    The Program Officer, in a statement issued by the organisation’s Communication Lead, Abiola Afolabi, said BudgIT will engage with government officials and relevant agencies to follow up on projects nominated for execution.

    The statement reads: “Tracka who already has a presence in 22 States is scaling its reach to Nasarawa State and Abuja – the FCT to monitor public projects and ensure they are implemented through citizen collaboration and government engagement.

    Read Also: BudgIT hails NNPC on plan to reduce gas flaring

    “Acknowledging the low and poor implementation of capital projects over the years, Tracka ensures the budget works for the people by equipping them with adequate budgetary information to help demand service delivery.

    “Our goal is to empower communities through simplified access to budgetary information to enable them ownership of the enlisted projects till it is fully executed. The tracking exercise will engage 24 communities in FCT Abuja and Nasarawa States, examining where capital projects are awarded and would have community project tracking teams within the locality.

    “Tracka will collaborate with other stakeholders-Civil Society Groups, Religious and Traditional Leaders across the focus communities.

    “We will be engaging government officials and agencies via written letters to follow up on these projects and also engage digital citizens using social media as a feedback loop, and the reviews will be aggregated to build actionable intelligence.”

    Also, BudgIT’s Lead Partner, Oluseun Onigbinde said it was important to challenge government officials to ensure that public funds were effectively used and not as a tool for corruption.

    “The program should challenge government officials to ensure that funds are expended effectively and not as a tool for corruption.

    “It is increasingly vital for Civil Society Organizations to engage government on the use of public funds to repress the ignorance of the people in public funds management, which is the tool, used by public office holders to deny the citizen of service delivery,” the statement quoted him as saying.

  • BudgIT to tract constituency projects in FCT, Nasarawa

    Civic technology organisation, BudgIT, has concluded plans to track constituency projects located in the Federal Capital Territory (FCT) and Narasawa State.

    The organisation said it would use its Tracka Platform to ensure transparency in constituency projects initiated by lawmakers from FCT and Nasarawa.

    BudgIT is already using Tracka to ensure transparency in projects nominated by lawmakers in 22 states.

    The Programs Officer of BudgIT, Omokhaye Henry, said the exercise would engage 24 communities in FCT and Nasarawa by examining where capital projects are awarded and would have community project tracking teams within the locality.

    Henry, who is also the Coordinator of the Abuja Budget Tracking Program for BudgIT, said it was important as Nigerian citizens to ensure transparency and accountability on use of funds.

    The Program Officer, in a statement issued by the organisation’s Communication Lead, Abiola Afolabi, said BudgIT would engage with government officials and relevant agencies to follow up on projects nominated for execution.

    The statement reads: “Tracka who already has a presence in 22 States is scaling its reach to Nasarawa State and Abuja – the FCT to monitor public projects and ensure they are implemented through citizen collaboration and government engagement.

    “Acknowledging the low and poor implementation of capital projects over the years, Tracka ensures the budget works for the people by equipping them with adequate budgetary information to help demand service delivery.

    “Our goal is to empower communities through simplified access to budgetary information to enable them ownership of the enlisted projects till it is fully executed. The tracking exercise will engage 24 communities in FCT Abuja and Nasarawa States, examining where capital projects are awarded and would have community project tracking teams within the locality.

    “Tracka will collaborate with other stakeholders-Civil Society Groups, Religious and Traditional Leaders across the focus communities.

    “We will be engaging government officials and agencies via written letters to follow up on these projects and also engage digital citizens using social media as a feedback loop, and the reviews will be aggregated to build actionable intelligence.”

    Also, BudgIT’s Lead Partner, Oluseun Onigbinde, said it was important to challenge government officials to ensure that public funds were effectively used and not as a tool for corruption.

    “The program should challenge government officials to ensure that funds are expended effectively and not as a tool for corruption.

    “It is increasingly vital for Civil Society Organizations to engage government on the use of public funds to repress the ignorance of the people in public funds management, which is the tool, used by public office holders to deny the citizen of service delivery,” he stated.

     

  • BudgIT hails NNPC on plan to reduce gas flaring

    A civic technology organisation, BudgIT, has commended plans to end gas flaring by the Nigerian National Petroleum Corporation ( NNPC ).

    The organisation, in a statement by its Communication Lead, Abiola Afolabi, in Abuja on Wednesday, said the plan by NNPC to reduce gas flaring could not have come at a better time than this.

    The statement said gas flaring was not only ravaging lives in the host communities in Niger Delta, but also costing the economy over $2.5bn annually.

    “Yet the economic implications of ending this practice should significantly improve Nigeria’s power generating capacity.

    “Gas flaring also has significant impacts on the life expectancy of the ‘working poor’ and ‘have-nots’ who struggle to live within these communities,” the statement, said.

    It welcomed NNPC’s new three-point smart strategy aimed at ending gas flaring in Nigeria and also encouraged the corporation to release more information about the process, performance metrics, regulations and enabling laws that would aid in the fulfillment of this plan.

    The organisation said its recent report on gas flaring indicated that about 30 million people residing in the region were affected by unnecessary gas burning by oil companies in the region. 

    “It is therefore commendable that Dr Maikanti Baru in his speech at the 50th Offshore Technology Conference (OTC) laid out a three-point smart strategy aimed at ending the practice.

    “BudgIT is pleased with NNPC announcement to reduce gas flaring ahead of 2020 flare out deadline by the Department Petroleum Resources (DPR).

    “We urge the media, Civil Society Organizations, oil companies and the  government to ensure that this laudable initiative is monitored and implemented.

    “It is equally important to see a demonstrable plan with specified timelines of strategy implementation.

    “We believe the perennial issue of gas flaring can be contained if there’s a political will to implement the declared policies.

    “We urge the NNPC to release its monthly operational and financial reports to publish the reports for the first quarter of 2018 in line with its transparent, open and accountable practice,” the statement added.

  • Nigeria loses N2.5bn annually to gas flaring, says BudgIT

    A civic technology organization, BudgIT Nigeria, said on Thursday that Nigeria loses N2.5 billion annually to gas flaring.

    The organization which is interested in entrenching transparency in government budgets, disclosed this in a statement issued by its Communication Lead, Abiola Afolabi, and made available to reporters in Abuja.

    The statement called on the Federal Government to take action against the effects of gas flaring which it said continued to contribute to Nigeria’s environmental degradation while posing hazards to human health and loss of revenue to the government.

    While commending the government on some progress made in the fight against routine gas flaring in the last 20 years, the organization revealed that an analysis carried out by its Extractives Team showed that the volume of gas produced increased by 91.13% while the volume of gas flared reduced by only 38.06% between 2001 and 2016.

    “This implies that oil companies invested more money in gas production activities and are less concerned about sufficiently investing in technologies and infrastructure to control gas flaring.

    “What Nigeria has at the moment is potential for the consumption of un-flared gas. Therefore, the supply framework, infrastructure and market systems necessary for un-flared gas to reach its end users’ needs must be collectively and sustainably developed by all stakeholders,” the statement said.

    BudgIT called on the government to explore existing technologies and strategies to reduce the amount of gas flared into the atmosphere.

    “Although, some irresponsible oil companies are unwilling to make the investment necessary to deploy the right technologies and infrastructure in Nigeria.

    “Also, the guiding legal framework for deterring gas flaring must be reviewed to prevent companies from taking advantage of inherent loopholes,” the statement noted.

    The statement said BudgIT Team visited communities in the Niger Delta in April 2017 and observed several cases of gas flare near residential neighbourhoods, specifically Polaku and Ogu communities in Bayelsa and Rivers States respectively.

    “The effects of gas flaring are not limited to deformity in children, lung damage, pneumonia, asthma, bronchitis, blood disorders and a host of other fatal health conditions,” the statement added.

    BudgIT’s Lead Partner, Oluseun Onigbinde said: “BudgIT is calling on the Federal Government to muster the political will necessary to execute Nigeria’s gas master plan and to enforce regulations aimed at tangibly achieving Zero Routine Gas Flaring.

    “Also, proceeds from gas flare penalties can be channeled towards funding health-related research in the Niger Delta region, to protect the residents and improve their living conditions.”

  • Nigeria loses N2.5bn annually to gas flaring – BudgIT

    A civic technology organization, BudgIT Nigeria, said on Thursday that Nigeria loses N2.5 billion annually to gas flaring.

    The organization, which is interested in entrenching transparency in government budgets, disclosed this in a statement issued by its Communication Lead, Abiola Afolabi, and made available to journalists in Abuja.

    BudgIT urged the Federal Government to take action against the effects of gas flaring which continued to contribute to Nigeria’s environmental degradation.

    While commending the government on some progress made in the fight against routine gas flaring in the last 20 years, the organization revealed that an analysis carried out by its extractives team showed that the volume of gas produced increased by 91.13 per cent while the volume of gas flared reduced by only 38.06 per cent between 2001 and 2016.

    “This implies that oil companies invested more money in gas production activities and are less concerned about sufficiently investing in technologies and infrastructure to control gas flaring.

    “What Nigeria has at the moment is potential for the consumption of un-flared gas. Therefore, the supply framework, infrastructure and market systems necessary for un-flared gas to reach its end users’ needs must be collectively and sustainably developed by all stakeholders,” the statement said.

    BudgIT urged the government to explore existing technologies and strategies to reduce the amount of gas flared into the atmosphere.

     

     

     

  • BudgIT seeks transparency on N1.4tn spent on fuel subsidy

    A civic technology organization, BudgIT Nigeria, has asked the Federal Government and the Nigerian National Petroleum Corporation ( NNPC ) to open up on the N1.4 trillion spent on fuel subsidy between 2016 to 2017.

    The organization, a statement by its Communication Lead, Abiola Folabi, in Abuja on Wednesday, said it was in the interest of the publics for the NNPC and the government to explain how it arrived at the figure.

    It noted that the amount spent on fuel subsidy with those two years was more than what the country intends to spend on Education in the proposed 2018 Budget (N605.8 bn).

    The statement reads: “The Minister of State for Petroleum Resources, Ibe Kachikwu, recently disclosed a total of N1.4tn is being spent annually by the Nigerian National Petroleum Corporation ( NNPC ) as the subsidy for Premium Motor Spirit ( PMS ). This amount is significantly more than what Nigeria intends to spend on Education in the proposed 2018 Budget (N605.8 bn).

    “It is in the interest of the public that detailed information of the amount spent on fuel subsidies such as the beneficiaries, the pricing template for arriving at the subsidy rates and the volume of petroleum products utilised should be made open and that these transactions are carried out transparently. 

    “There is a growing deficit in trust due to lack of due process in the NNPC; in March 2018, the corporation announced it spends N774m daily, roughly N23.99bn monthly as subsidy on 50 million litres of PMS consumed across the country. The public knows very little information on the beneficiaries of the subsidy payments and control process instituted to prevent theft of these funds.

    “BudgIT notes that the subsidy payments have been a contentious issue for the last 30 years. Analysts have called for its cancellation due to the lack of accountability and transparency in the administration of these funds. Also, there are arguments that the subsidy regime constituted double taxation on the populace who pay the actual market price for PMS due to lack of adequate monitoring by the Department of Petroleum Resources ( DPR ).

    “Evidence shows that amount spent on subsidising PMS is always riddled with corruption. We noted this is 2011 prior to the elections and we are worried this opacity is preceding the 2019 elections again. We are worried at the use of public resources without legislative appropriation or requisite transparency.

    “BudgIT understands that NNPC in recent times has initiated a couple of actions in trying to meet up with the global of standards of transparency and accountability including actions like publishing its monthly report on its financial and operational activities. Notwithstanding this, the lack of information on the subsidy regime, including the amount paid and the beneficiaries are locked away from public scrutiny.

    “Therefore, BudgIT urges the Federal Government, NNPC, DPR, National Assembly, the National Economic Council ( NEC ) and State governments to release details on the breakdown of the amount spent on subsidy, the beneficiaries, the pricing template for arriving at the subsidy rates and the volume of petroleum products utilised.

    “For increased efficiency of the NNPC, there is an urgent need to plug the loophole created by the subsidy regime in the oil sector; we call on all Nigerians to demand appropriate systems to ensure that oil revenue is judiciously managed and utilised for the good of the people.”

  • BudgIT to FG, others: Invest in people

    A civic organization, BudgIT Nigeria, has called on the Federal, State and Local Governments to invest on Nigerians.

    The organization, which is interested in entrenching transparency in government budgets, noted that investing in people would guarantee a safe and sustainable country.

    Team Lead of the organization, Seun Onigbinde stated this in Lagos on Wednesday at an event tagged “Investing in the People of Nigeria.”

    BudgIT, in a statement in Abuja, explained that the event was organized in the context of the presentation made by the richest man in the world, Bill Gates, to the expanded session of the National Economic Council.

    Speakers at the event noted that governments at all levels needed to invest in health, education and other sectors that equalize opportunities for more Nigerians.

    “Participants watched the entire presentation and provided immense feedback on the need for governments to prioritize the welfare of the people,” the statement said.

    Research Associate at the Clinton Health Access Initiative, Adebola Williams, who was also the keynote speaker at the event said it was up to Nigerians to make the human capital investment a sustainable cornerstone of our growth. 

    Also, an experienced Impact Investor, Bisi Ogunwale, lamented the decay in the education sector due to weak investments in the sector.

    Ogunwale said: “About 1.5million people write JAMB every year, while only around 30% of that find their way into the tertiary institutions.”

    A frontline photographer, Fati Abubakar, noted that poor investments in young people in the North East created the current insurgency that had claimed lives and ruined every sector.

    “Radicalization started because we did not invest in our people; it followed from idleness and lack of role models,” Abubakar said.

    While an Oxford-trained scientist, Ify Aniebo, said investing in healthcare in Nigeria must also include investing in health professionals, training and research.

    Also, Head of Research at SBM Intelligence, Cheta Nwanze said: “We need to up our productivity however we can to be able to invest in education to meet our expanding population; do we have the political will?”

    The statement reads: “BudgIT intends to expand the conversation to other cities in Nigeria, curating feedback for the Nigerian government.

    “This is to strengthen the political will and the long-term thinking that ensures that Nigeria invests as its expanding young population.

    The statement added that the event had many young Nigerian citizens engaging on the urgency to harness the expanding population of the country, build a nation that values talent and invest in the social infrastructure of its people.

  • Oriade constituency health centre lay desolate despite N20m allocation

    Oriade constituency health centre lay desolate despite N20m allocation

    In Dagbaja, a predominantly  farming community with a population of over 5000  people in Oriade local government area in Osun state;  a health care facility in need of urgent rehabilitation  has been left in ruins  despite  a N20 million allocation in the 2017 budget for constituency projects.

    BudgIT’s Project Tracking Officer,  Akinyemi Olusina paid a visit to Dagbaja community to intimate the rural dwellers  on the awareness of the rehabilitation of  the clinic   nominated by  Honorable  Oluwole Oke,  a member of the national assembly  representing Obokun/ Oriade Federal Constituency. Olusina  observed that the rehabilitation of the said  health centre  is yet to kick off, forcing community members to make do with antiquated  beds, bad toilets and  obsolete equipments

    A community member, Mrs Sariyu Omilana mentioned  that although Hon. Oluwole Oke visited the community to announce the rehabilitation of the clinic,   the budgeted amount for the project was not made public.

    Lamenting the decaying state of the clinic, she said; “The Federal government stopped equipping the medical health  centre long ago. The clinic does not have anti-malarial drugs neither is there immunization for  children. There is also the absence of medical personnels and this has led to loss of lives in emergency cases”.

    Mrs Omilani further added that  no trace of reconstruction has been seen around the clinic  since the time Hon. Oke visited the community last year to announce the commencement of the rehabilitation. She however promised that the community would reach out to the lawmaker to remind him of his promise.  

    When Tracka visited the community on the 2nd of December for sensitization,  copies of the 2017 printed budgets were distributed to indigenes in order to enlighten them on how democracy ought to  promote  good governance and accountability from representatives at the federal house of assembly.

    Record also shows that the Dagbaja health centre which serves other communities  in Oriade local government as well as some suburbs in Akure ought to cater for  about 6000 patients.  At the moment,  patients do not  have access to  adequate treatment owing to the absence of drugs and modern medical facilities.

    As at the time of the visit, the health centre only distributes  mosquito nets and offer  first aid treatment to patients. The only toilet in the facility has fell into disrepair  even as the roof of the building is almost  falling apart.  The paintings on the  clinic walls  have  worn off  while the springs of the bed are broken, casting the image of a clinic with a sordid case of neglect and abandonment.   No hospital equipment or drugs were found within the dispensary of the clinic.

    There is no gainsaying the fact that non actualization of budgeted government project as  a result of   lackadaisical attitude is becoming a norm for most  federal lawmakers in the country. The attitude is not only jeopardizing the expectations of citizens but also truncating the benefits that should accrue to citizens participating in the local democratic process.

    It is instructive to also mention that during the course of Tracka’s advocacy in the community, indigenes also lamented a seven year absence of electricity, good  roads, and potable water.   The community also desires good schools that will help in the development of analytical skills and educational character in their wards.

    Tracka is a community of active citizens monitoring  the implementation of capital projects   in rural communities in order to ensure service delivery whilst demanding accountability in governance.