The Nation Newspaper

Tag: Education

  • Education: Stakeholders urges FG to declare state of emergency

    Education stakeholders’ in Abuja on Tuesday have called on the Federal Government to as a matter of urgency declare a state of emergency in the sector to give room for massive investment.

    Mr Simeon Abiina, founder of Elshadai Kiddies Varsity said adequate investment in the education sector would make the teaching profession more attractive.

    According to him, 20 per cent of the budget should go to the sector as this will increase investment in the research institute, training and retraining of manpower.

    “There should be a deliberate policy on the part of the Federal Government to develop the technical know-how, manpower and research institutes to forestall non-professionalism.

    “Government should help improve on the sector by declaring a state of emergency and investing in the sector.

    “Teaching profession should be made attractive, training and retraining of teachers as well as lucrative salary package will grow the sector, “he said.
    Mrs Olayemi Adeyemi, Headmistress, Methodist Primary School, Oke-Omi, Osun noted that declaring a state of emergency in the sector would fast track measures that would lead the sector to its greater height.

    Adeyemi called on the Federal Government to embark on an aggressive motivation for teachers across the state of the federation, especially at the primary and secondary school levels.

    She said that judging by the statistics of education graduates in recent times; “many are looking elsewhere for lucrative jobs because the remuneration in the system is poor’’.

    “It is worrisome to see that students don’t want to go into education-related careers because they believe teachers are the poorly paid in the society.

    “This trend, I believe must change; the career should be made to be one of the best, if not the best.

    “There should be an improvement in the quality of teachers by training and retraining, while new ones should also be recruited into the system.”

    She added that the government should also refocus its priority on the implementation of infrastructure in schools, and invest in building new ones.

     

  • Education: Between exclusive and concurrent list

    The theoretical and practical basis of the Nigerian federalism have for sometimes now been subject of severe and wide criticism. This is because the 1999 constitution which forms its framework has not only breached Kenneth Wheare’s rigid cast or formulations of federalism; it has also failed to even meet some degree of deviations other federalists have condoned. In construction, Nigerian federalism as at today is of course a centralizing one as the 1999 constitution portends and as the federal authority behaves occasionally. Indeed, it is because of the numerous perceived hiatus in the constitution which portray the country more as a unitary state that different socio-political groups have resorted to strident agitation for a sovereign national conference or constitutional re-engineering to address and redress the matter of appropriate structuring of the polity into a true federation in which more political powers and fiscal autonomy will be devolved in favour of the federating units.
    Not a few Nigerians were therefore flummoxed by a recent statement credited to the Honourable Minister of State for Education Professor Anthony Anwukah, (Published in the Nigerian Tribune of Thursday, January 19, page 34), calling for the removal of education from the concurrent legislative list to exclusive legislative list which is suggestive of the trinity of erosion of state powers; consolidation of Nigeria’s centralising federalism and accretion of federal power to control the states. In the context of Nigerian federalism, exclusive legislative list is the list on which matters over which only the federal authority can legislate are enumerated. This is contained in Part I of the Second Schedule of the 1999 constitution. There are 68 of such matters. Concurrent list on the other hand implies the list that bears the matters over which both the federal and state authorities can exercise legislative authority. It is also contained in Part 2 of the Second Schedule of the 1999 constitution. There are 30 of such subject matters. Furthermore, Section 7 of the constitution empowers the states Houses of Assembly to legislate on any other matter not included in the exclusive legislative list. In other words and impliedly, residual power lies with the states. Although, the Honourable Minister made the statement in an informal setting, at the send-off party organized in honour of the immediate past Executive Secretary of the National Universities commission (NUC) Professor Julius Okojie, his further pronouncement ex-cathedra, that he would get stakeholders to buy into the idea calls for caution. His words: “we have lots of problems facing education sector in this country. Over the last two weeks, I have been pondering on a particular idea, whether as a country, we can continue putting education on the concurrent list. It is coming to a stage where we have to brace up to the fact that education is a federal project and can no longer be left to the whims and caprices of the state. Like army and others that are federal projects, this country will brace up to the fact that education must be centrally run by the federal government and no longer run by the various states”. He concluded his off-the-cuff speech by saying that: “I am going to discuss this idea further with stakeholders. Education must cease to be on the concurrent list and be a concern to the people.”
    The questions that readily come to the fore are these: what are these problems with our education to which only the federal government has gotten the magic wand to solve? Are educational institutions being run by the federal government not facing huge problems today? How many federal universities for example are world class? Are the hands of the federal government not too full already? Does the present arrangement foreclose people’s involvement in education? What did the minister mean by whims and caprices of the states? Did he mean that state freedom amounts to arbitrariness? Are states educational systems not guided by national policy on education? Which level of education does the minister want ceded to the federal authority?
    Whatever answers the minister may have to these posers, the truth is that, in the face of the prevailing strident agitation for devolution of more powers to the states, this idea is objectionable more so for the following other reasons. One and as adumbrated earlier, it is a further erosion of the powers of the states. Two, adding education to the long list of the subjects of the federal authority will of course make governance too wieldy for the federal government and breed further neglect at the state level. For instance, today there are numerous federal roads located in all the states of the federation yawning for attention. Certainly, should education be left for the federal government only, it will suffer the same fate. Third, it will not allow for the reflection of the cultural values of each state in their educational systems. This will arise out of the uniformity such an arrangement will attempt to impose on all the states. This uniformity may in fact engender instability. For instance, imposing a uniform mode of dressing on schools nation-wide may create chaos. Apart from this, in all the known federations, education is either placed within the purview of the federating units only or on the concurrent list of both the federal and state authorities. For instance in Russia, education and matters of upbringing rest with the federating units; in Germany, the federal and the states exercise power over education in a concurrent order that is similar to what Nigeria currently has in place; in India, Canada, Australia and the United States, the federating units or states exercise power over education while the central authority just provides the necessary policy framework. If because of our social peculiarities, we are not bold yet to relinquish the control over education to the states completely, it seems that at this threshold of our national development and search for national integration, education should at worse remain a concurrent subject.
    The advantages it has afforded us so far are obvious. Among others, it has made the running of the educational institutions less financially burdensome for one level of government; it has given room for equalisation of opportunities for the educationally less developed states without unnecessarily holding down the educationally more developed states; it has created more room for better supervision and immediate attention to our schools; and of course it is one of the few subjects that the states handle and make Nigerians still feel that they are operating a federal system of government. The idea the minister is nursing therefore should not be allowed to grow wings. For it will amount to elimination without substitution. Already, Nigeria is a state walking in the shadow of death on account of its warped practice of federalism, and it is being chased by shadow states: Republic of Biafra, Arewa Republic, Oduduwa Republic and Gworza caliphate among others. Any move like the honourable minister’s idea, that can escalate this central-fugal tendency should therefore be carefully avoided.

    •Dr. Adebisi writes from Federal College of Agriculture, Akure, Ondo State.

  • Ahmed seeks Saudi’s support for education

    Kwara State Governor, Abdulfatah Ahmed, has urged the Saudi Arabian government to support the state in the development of education, agriculture and manufacturing.

    He made the plea at the foundation laying ceremony of the Darul-Kitab University, Agbeyangi in Ilorin East Local Government Area of the state.

    The governor also urged the Saudi authorities not to withdraw support for the proposed university in its bid to provide functional education.

    He was optimistic that when the university takes off, it will boost human capital development and make Kwara a hub of tertiary education.

    He promised that the government would continue to support efforts aimed at improving access to quality education as basic ingredient for development at all levels.

    Earlier, Senior Adviser to King Salman AbdulAziz of Saudi Arabia, Sheikh Abdullah Al-Mutlaq hailed the proprietor of the yet-to-take-off university for his initiative.

    He assured that his country would continue to support the university in expanding the frontiers of knowledge.

  • Firm builds education software to replace imports

    In all-inclusive school management software designed by an indigenous IT firm, ATB Techsoft Solutions, promises to save Nigeria billions that it would have cost to import such application from abroad.

    The school management platform, called Eduware, takes care of a wide-range of administrative and academic tasks that schools carries out on daily basis.

    The software has solutions to manage admissions, student records, online course registration, course time table, online tests and examinations, automated result processing and display, e-learning, finance, student affairs, human resources, and online library for schools at various levels – primary, secondary and tertiary.

    Unveiling Eduware along with three other products (FINULTIMATE, ULTISURE and ULTIFLUX) at a press conference last Thursday, CEO of ATB Techsoft Solutions, Mr Abiodun Atobatele, said by developing the software applications, the firm has helped to find local solution to the high cost of purchasing them abroad, thereby boosting the country’s drive for local content.

    “What we have done is to offer software solutions of higher standard and functionality to the market as against what most organisations are purchasing offshore and at a much lower cost. This means Nigerian organisations do not have to spend hundreds of thousands of dollars to procure Software abroad.

    “According to the National Office for Technology Acquisition and Promotion’s (NOTAP) official estimate, organizations in Nigeria spend over $1billion annually to procure software. Our unique solutions are coming at a time to ease Nigerians’ business demand for forex. The only way we can create thousands of technology jobs in Nigeria is when the government, through enforcement of existing laws and regulations on local content, makes it compulsory for companies to buy Software developed in Nigeria by Nigerians,” he said.

    Atobatele said it took seven years of painstaking work to develop Eduware (and others).  He also assured schools of the software’s ability to accommodate/harmonise data from various sources, as well as store, and secure them – thanks to its partnership with Microsoft, which provides its access to the Microsoft Azure Cloud services.

    ATB’s Chief Software Architect, Patrick Anaih, said Eduware could function for one and even a group of schools.

    “Eduware connects each department to the school and the school to the students and parents, where necessary, to provide them with information sharing, easy retrieval of information for prompt decision-taking and it is user-friendly. You can have a single deployment of Eduware institutions with a chain of schools from primary school to university level. However, the application is enterprise-based and it does not only work with academic processes but also with administrative operations which include finance and online library,” he said.

    Microsoft Director of Small, Mid-market Solutions and Partners Group, Oluwawemimo Adeniyi, who was at the launch, said its partnership with ATB allows the firm to use its cloud services to meet the unique needs of its differentiated products.

    “Our unique approach to the cloud spans three areas that, when combined, give customers choice and flexibility with the cloud: enterprise capabilities, hyper-scale cloud infrastructure, and comprehensive hybrid solutions. Across these three areas, we bring the benefits of cloud speed, scale and economics,” she said.

  • Ex-education ministers dies at 83

    Ex-minister of state for education, Alhaji Saka Saadu is dead. He was aged 83.
    Late Saadu, who served at different times as permanent secretary and secretary to Kwara state government  died on Monday in Ilorin, the state capital
    He was an alumnus of the University of Ibadan.

    Spokesman of the Saadu family of Aseleke compound, Okekere, Ilorin , Alhaji Bolaji Saadu announced the death of the former minister.
    Janaza prayer for the deceased took place on Monday at the his family residence.
    In a condolence message, the Kwara state governor, Alh Abdulfatah Ahmed  described the death of former minister as a shock and great loss to the state.
    Ahmed in a statement signed by his chief press secretary, Alhaji Abdulwahab Oba said the late educationist would long be remembered for his outstanding contributions to the development of education in Nigeria.
    According to him, as a public officer, the late  Saadu was “an administrator per excellence and the state would no doubt miss his wealth of experience in repositioning the state’s civil service”.
    He described the deceased as a community leader and devoted Muslim, who lived an exemplary life in the service of Allah and his community.
    The governor prayed Allah to grant the deceased eternal rest and give the family the fortitude to bear the loss.

  • ‘Overseas education thriving despite recession’

    Despite the recession, MOD Education, a firm that places Nigerian students in colleges and universities abroad, plans to bring representatives of 14 foreign tertiary institutions to Nigeria for a multi-city international education fair.

    The fair, which begins today, will hold in Lagos, Abuja, Warri, Port Harcourt, Calabar, Kano and Kaduna – where MOD Education also has offices – until January 28, this year.

    CEO of MOD Education Mr Mike Dosunmu, said at a briefing that out of the 14 institutions,10 would be from the United Kingdom, while the  others would come from the United States, Canada and Australia.

    Dosunmu said apart from talking about their institutions and programmes on offer, the representatives would offer on-the-spot admission to qualified candidates and visa counselling, among others.

    Dosunmu said recession had not stopped Nigerians from pursuing their education abroad as MOD Education helps to negotiate scholarships, discounts and flexible payment plans for students.

    “We have constantly negotiated the best deals for our students. They are constantly awarded scholarships, discounts on their tuition and of course there is also a relaxed payment plan. Nigeria being in recession is temporary and things will definitely improve.This phase is going to pass, so we are managing it until it phases out and in doing that our students are getting the better end of the stick not the shorter end,” he said.

    Apart from providing access for the teeming number of qualified youths that cannot be absorbed by tertiary institutions in Nigeria because of space, Dosunmu added that getting a foreign education would be beneficial to Nigeria as students benefit from cutting-edge research and tuition.

    “In Nigeria, innovations are led by businesses. But over there, innovations are led by the universities. They provide the latest in terms of research and knowledge. So students benefit from that,” he said.

     

  • ‘Nigerian education needs sound data system’

    Nigeria must urgently adopt evidence-based data system to develop the education sector, a former minister of education, Mrs Oby Ezekwesili, has said.

    She said this at a stakeholder roundtable on promoting citizen agency in the Nigerian education sector organised by The Education Partnership Centre (TEP) in Abuja.

    Mrs Ezekwesili said the government in the past paid little attention to evidence-based approach to education, which she said was not sustainable.

    She said education reform without adequate data would waste time, resources and manpower.

    “Assumptions are not enough in running education systems that work. It has to be based on evidence, and that evidence must be supported by strong data capabilities and that is where the work of LEARNigeria is fantastic; because it is about citizens being the ones to generate good data and see what the data tells them and the necessity for change,” she said.

    Earlier in her remarks, Managing Director of the TEP centre, Modupe Adefeso-Olateju, called for collaboration between the private and public sector to reduce the challenges affecting education.

    “If Nigeria is going to move forward educationally, the public and the private sectors need to do more together to support and collaborate in a way that ensures that we can maximise the strengths that both sectors have,” she said.

  • Aregbesola honoured for education reforms

    Osun State Governor, Ogbeni Rauf Aregbesola, has bagged the 2016 Governor of Year Award in Education of the African Education Monitor (AEM) magazine for “guiding the state towards educational prosperity.”

    AEM Publisher, Mr Oludaisi Adetarami, said Aregbesola deserved the award as the state’s investment in education had yielded positive results – including being named one of four states with the best policies on female child education.

    Adetarami said: “We painstakingly studied and analysed the Osun education policy and we found out that the policy adopted by the state is not only in conformity with international best standards, but a sine qua non to achieving  a sustainable education system.

    “As we all know that today, Osun is being ranked among the best four states in Nigeria on female child education, these among others, are the outward manifestations of Governor Aregbesola’s contributions to education.

    “The successes recorded in education in Osun had showcased the untiring interests of the state in the provision of educational infrastructure developments which the state viewed as basis for all round transformation, growth and development.”

    Responding to the award, Aregbesola described education as an opportunity for happiness and fulfillment of life deserving ultimate priority.

    Aregbesola said his desire to transform Osun into a major player in the education sector informed his progressive policies.

    “Education is the tool required by an individual to live a purposeful, productive, beneficial and rewarding life through which life is productively navigated to the benefit of self, society and the world at large.

    “We must, therefore, put in our best as governments, individuals, stakeholders and agencies to revamp the education sector by seeing it as the only mechanism to development. It is only educated society that would meet the needs of the present digital world,” he said.

    The governor assured that he would not relent in investing a large percentage of the state’s resources in education.

  • Ayotunde Yoloye and the future of education

    Ayotunde Yoloye and the future of education

    Like literature, history, medicine and the arts, the field of education, also has its unique icons—intellectuals, practitioners and theorists—who translated theories and practices into a passionate agitation for the transformation of education as a driver of change in Nigeria. Several names come straight to mind—Babatunde Fafunwa, Alvan Ikoku, Samuel Bajah, and of course, Ayotunde Yoloye.
    The recent demise of Emeritus Prof. Emmanuel Ayotunde Yoloye is an occasion, both for celebration and for reflection. It calls for celebration because we have an opportunity to reminisce on the life and time of a teacher of teachers, whose entire life, private and professional, tells a story of passion and commitment. His professorial status was really a trajectory of a lifelong dedication to a cause. Indeed, Professor Yoloye represented a trajectory of accomplishments that is worth celebrating.
    Professor Emmanuel Ayotunde Yoloye—father, husband, teacher, science educator, evaluator extraordinaire, educational psychologist, professor of professors and “the Bloom of Africa”—lived a very good life that was attested to by all. But that is not the reason I want to celebrate him. Rather, I find in Prof. Yoloye a solid template that combined theory and practice, and research and policy in a dynamic framework that enabled education to speak directly to developmental issues in Nigeria. This is significant for me as a researcher, political scientist, policy worker, and public administration reformer, who has been walking the tight rope between theory and practice for a long time. Bridging the gap between research and policy is a delicate endeavour. It requires a sensibility that is neither too academic nor too professional, yet a smooth blend of the two that makes one a genuine member of both worlds. That is one of the uniqueness of Prof. Yoloye’s life. I enjoyed the privilege of inviting him as a significant member of the Technical Advisory Team, which supported an endeavour that I co-ordinated between 1999 and 2002; the Education Sector Analysis (ESA) project. The study backstopped education strategy development and policy work in the Federal Ministry of Education at the time. His wisdom, erudition, expertise and time were crucial items that I drew on in the landmark project which attempted to bridge the data gap in the education sector as well as create a baseline statistics upon which many policy designs affecting pre-primary, basic and upper secondary schools, vocational/technical, and higher education, cross-cutting reform issues, etc. were fashioned.
    However, more than the celebration that attended Professor Yoloye’s exit was the need to reflect on his legacy and what that translated to in terms of larger concerns surrounding Nigeria’s development. As an educationist, Yoloye occupied a field, unlike literature and medicine, which speaks directly to the development of Nigeria, especially in terms of human capital development and learning achievement.
    Take a famous example. Prof. Babatunde Fafunwa is renowned today because of his bold attempt at relating education to national development through the mother tongue experiment. The critical issue he confronted was that of how to create a critical mass of human capital that would take on the burden of national development in all spheres of human endeavour, and the role of mother tongue in such a project. What role, in other words, does culture play in manufacturing a vibrant and knowledgeable workforce that could relate her peculiar cultural undercurrent intimately with Nigeria’s development challenges? Prof. Yoloye was doubly relevant because he dedicated his professional academic life to another significant dimension of this project.
    He was effectively a part of the long lineage of Nigerian educationists, including Prof. Chike Obi, who were convinced of the relevance of science education to a profound transformation of Nigeria’s development profile in the twenty first century. Yoloye and others should be seen as the lone voices in the wilderness calling on the nation to engage its own reluctance and take the bull by the horn. They are right, and STEM (science, technology, engineering and mathematics) education now makes the case that these foresighted precursors have been making for years. STEM signals the triumph of an educational and curriculum policy that attempts to generate competitiveness in school with regards to the study of science and technology and the implication of such a curriculum for national development.
    This makes it doubly tragic that a country like Nigeria that urgently needs to upgrade its development profile has not deemed it fit to engage the policy end of the STEM challenge nor seek to unpack the relevance of Yoloye’s science education research as basis for deep-seated reform. This research is all the more requisite because it advocates the teaching of science from the primary school level within the frame of integrated science, which was one of his inventions, and wherein the scientific spirit could first be firmly ingrained in the educational quest of the children.
    His involvement in science education at the primary school level was indeed, revolutionary since it led to the transformation of the lukewarm attitude to science education. Through the African Primary Science Programme (APSP) and then later, the Science Education Programme for Africa (SEPA), Prof. Yoloye and others breathed proactive life into curriculum, teaching methods, teacher trainings, enrichment of science education and the development of publishing initiatives for science education project.
    From a pan-African perspective, Yoloye’s original research passion, intelligence testing, allowed him to unravel the fallacy behind Eurocentric biases, which undermines the African’s capacity for abstract and scientific thinking. Science, indeed, is a universal endeavour and Nigerian children have a right to its promises as a prelude to Nigeria’s human capital flowering.
    Prof. Ayotunde Yoloye had more in terms of educational legacy that speaks to Nigeria’s human capital impasse. It is as if he had been telling us all along that if Nigeria is to transform her development fortunes and achieve the capacity to make her educational dynamics the hotbed of human capital development, the best place to commence is not only the active cultivation of science education, but also the active measurement and evaluation of educational processes, institutions and programmes.
    Educational evaluation is a gatekeeping mechanism in education that allows for adequate quality control of educational programmes and the evaluation of student learning dynamics. If education must become a fulcrum for development advancement in Nigeria, then educational evaluation becomes a crucial ingredient in the reform of Nigeria’s educational sector. Innovative progress in education requires a rigorous evaluation framework that balances new ideas with environmental imperatives. And Yoloye saw this necessity and dedicated his entire career to pushing the boundary of theories and practices in this regard.
    It should be straightforward, for instance, to connect Yoloye’s research outputs in educational evaluation, his promotion of science education and his advocacy of mastery learning into a firm and robust educational philosophy around which a STEM framework for curriculum transformation in Nigeria could be grounded. Mastery learning foregrounds a pedagogical strategy that inculcates a mental and practical reassessment of learning. At a primary school level, mastery learning provides sufficient motivation that allows young minds to achieve the mastery of scientific attitudes and challenges. If science itself is considered broadly as the mastery of the universe and its physical laws, then a pedagogy premised on mastery learning as the foundation of science education promises a lot for the reassessment of Nigeria’s educational policies and philosophy.
    Ayotunde Yoloye had many policy initiatives, especially with regard to the evaluation of educational programmes and curriculum development. But the large and damning question is whether we have integrated his ideas on curriculum development, measurement and evaluation and science education while he was still alive to pragmatically refine, redefine and reassess them. Now, Professor Emmanuel Ayotunde Yoloye is gone. And he left a body of insightful and revolutionary ideas and practices around which a solid educational practice in Nigeria could be built. Alongside other education icons in Nigeria, there really is no need to reinvent the wheel of educational advancement beyond the pragmatic frameworks which these patriotic educationists have provided. Yoloye did not stand alone; he was one great name in a firmament of other great names who have invested a lifetime in education reform in other to excavate a rich package of ideas and ideals around which Nigeria can overcome its development lethargy. If we must develop, we must rigorously guide the content of our educational programmes. This is one of the significant lessons Yoloye was asking us to learn as a nation. Emeritus Professor Emmanuel Ayotunde Yoloye has truly gone, and we mourn and celebrate his passing; but it is not too late in time to put his legacies and ideas to good use to salvage our educational predicament.
    •Dr Olaopa is the Executive Vice-Chairman, Ibadan School of Government and Public Policy (ISGPP).

  • Interior, education, defence, health get 70% in ‘Budget of Recovery and Growth’

    Interior, education, defence, health get 70% in ‘Budget of Recovery and Growth’

    A breakdown of the N7.298 trillion ‘Budget of Recovery and Growth’ proposal by Budget & National Planning Minister Udoma Udo Udoma in Abuja yesterday. 

    Background & context

    AS you are aware, the 2016 Budget was presented to the National Assembly by Mr. President on 22nd December, 2015. The budget was however not signed into law until May 6, 2016; effectively therefore, the 2016 Budget has only been operated for about seven months. Nevertheless, as will be evident from the review of this year’s budget performance that I will get to shortly, we have made reasonable progress on its implementation.
    The 2017 Budget was presented to the National Assembly by His Excellency, Mr. President on 14th December, 2016. The budget reflects our commitment to restore the economy to the path of sustainable and inclusive growth. Efforts have been made to ensure that the budget aligns with Nigerian’s Economic Recovery and Growth Plan (NERGP).
    My profound appreciation goes to President Muhammadu Buhari and Vice President Yemi Osinbajo under whose leadership the 2017 Budget was prepared. I also wish to thank my cabinet colleagues for their understanding, especially as we all had to work within very tight schedules in the preparation of this budget.

    Review of 2016 Budget
    performance
    The 2016 Budget, christened the Budget of Change was the first full year budget of the Buhari administration. It was prepared against the background of general slowdown in global economic growth and massive decline in crude oil prices. It was based on the Zero Base Budgeting (ZBB) principle which requires that Ministries, Departments and Agencies (MDAs) justify every item of revenue and expense, as well as projects/programmes in the budget, a departure from the traditional incremental budgeting approach that simply adjusts (usually upwards) amounts included in the previous budget. The 2016 Budget was predicated on certain key parameters, including:
    (i) Benchmark oil price -US$38/b
    (ii) Oil production 2.2mbpd
    (iii) Exchange rate N197/USD
    (iv) Deficit (Fiscal Deficit to GDP ratio) – N2.20 trillion (2.14 per cent of GDP)
    (v) Inflation N9.81per cent
    (vi) GDP Growth Rate 4.3 per cent

    Performance against set target

    With respect to the set targets, the performance as at Q3 is as follows:
    2016 Budget
    Performance against Set Targets
    S/No Description (FY 2016 Budget) Q3 Target Actual (as at Q3 2016)
    1 Real GDP Growth (%, YoY) 4.37 -1.55
    2. Oil Production (mbpd) 2.2 3. Oil Price ($pb) 38 42.09
    4. Inflation Rate (%) 9.81 17.85
    5. Exchange Rate (N/$) 197 305
    6. Revenue (N’trillion) 3.86 2.89 2.17 (75%)
    7. Expenditure (N’trillion) out of which;(a) Capital Expenditure N’trillion) 6.061.77 4.551.33 3.58 (79%)0.75.6*(56%)
    8 Fiscal Deficit/GDP (%) -2.14 -1.44
    •Capital spending as at end of October 2016 was N753.6 billion

    Oil revenue performance
    The oil revenues decreased sharply in 2015 and 2016 because of oil production shut-ins and sharp decline in oil price since 2014. The oil price steadied at an average of $110 per barrel from 2012 to 2014, but dropped to a record low of $29 per barrel in February 2016, a drop of 70 per cent. Although for most part of the year, crude oil prices exceeded the 2016 benchmark price of $38 per barrel, there has been a significant shortfall in projected revenue caused by the disruptions in crude oil production as a result of militant activity in the Niger Delta.

    Revenue performance as at Q3
    The federal revenues have been low because of the sharp decline in oil-production. In particular, the revenue target for January to September 2016 was N2.8 trillion as against the sum of N2.2 trillion realised during the period. The projected independent revenue was N1.1 trillion as against N0.2 trillion realised during the period. The projected revenue for Custom was N0.3 trillion as against N0.2 trillion realised, while the projected non-oil tax receipts for the 1st – Q3 of 2016 is N0.8 trillion as against N0.5 trillion realised during the period.

    Background to the
    2017 Budget

    Global economic activities remained sluggish in 2016. In particular, Global GDP growth rate is projected at 3.1 per cent for this year from 3.2 per cent in 2015. Due to:
    (i) Lower-than-expected economic activity in the U.S
    (ii) Uncertain economic, political and institutional implications of BREXIT
    (iii) Slowdown in China’s growth
    (iv) Weak demand in advanced economies and its spill-over effects
    (v) Geopolitical tensions in several countries
    In spite of the foregoing developments, the global outlook remains bright. In this regard, global GDP growth rate is expected to rise to 3.4 per cent in 2017.

    The domestic
    environment in 2016

    The challenges in the domestic environment include:
    (i) Crude oil production shut-ins resulting from vandalism of oil facilities. In particular, four strategic oil fields affected including, Trans-Niger Pipeline and Nembe Creek Trunkline axis as well as the Qua-Iboe Terminal
    (ii) Insurgency in parts of the North East
    (iii) Fuel shortages and increase in electricity tariffs, kerosene and PMS prices in the first half of the year
    (iv) Foreign Exchange (FX) scarcity.
    The foregoing factors have constrained fiscal operations, real sector activities, and the external accounts. Other challenges in the domestic economy included:
    (i) Contraction in growth (-2.24 per cent in Q3)
    (ii) High unemployment rate (13.9 per Higher inflation rate (18.5 per cent as at November 2016)
    (iv) Pressures on foreign reserves ($25.04 billion as at 14th December)
    (v) Slowdown in corporate sector resulting in lower credit quality and rising non-performing loans.

    The Nigerian Economic
    Recovery & Growth
    Plan (NERGP)

    A Medium Term Economic Recovery and Growth Plan (ERGP 2017 – 2020) is being finalised which addresses the current economic challenges and is aimed at restoring growth. The Plan builds on the existing Strategic Implementation Plan (SIP) and contains strategic objectives and enablers required to revive the economy. The strategic objectives of the NERGP are: (i) Pulling the economy out of recession; (ii) Investing in our people (iii) Laying the foundation of diversified, inclusive and sustainable growth.
    The NERGP focuses on five broad areas namely:
    (i) Macroeconomic Stability
    (ii) Competitiveness
    (iii) Growth and Diversification
    (iv) Social Inclusion
    (v) Governance & Enablers

    The 2017 Budget proposal reflects many of the reforms and initiatives in the SIP and NERGP and in the 2017-2019 Medium Term Sector Strategies (MTSS), as well as the 2017-2019 Medium Term Fiscal Framework. A Multi-criteria analysis (MCA) approach was adopted to prioritize and select 2017 capital projects for 14 large capital spending MDAs involved in the MTSS. Projects were linked to government policies and strategic priorities. MDAs that were not involved in the MTSS process used the Rapid Appraisal Project Identification and Prioritisation System (RAPIPS). Zero-Base Budget (ZBB) principles were used in preparing the Budget. ZBB ensured that expenditures in the 2017 Budget are linked to government’s strategic reforms and initiatives for economic recovery.

    Approach to the 2017 Budget

    The 2017 Budget is designed to expand partnership between public and private sectors, including development capital to leverage and catalyse resources for growth.
    Other key objectives of the budget include:
    (i) Focusing on critical on-going infrastructure projects such as roads, railways, power, ICT, etc., that have quick positive effects on the economy;
    (ii) Utilising Special Economic Zones and Industrial Parks as vehicles to accelerate domestic economic activity for innovation and wealth creation;
    (iii) Contributing to food security and creating platform for agro-business in agriculture supply chains through the Agriculture Green Alternative Plan;
    (iv) Establishing a Social Housing Fund to deepen the mortgage system and expand its availability across all states of the Federation;
    (v) Encouraging and stimulating the growth of small and medium scale industries for innovation, job creation, productivity and wealth creation; and
    (vi) Providing social safety nets for poor and vulnerable Nigerians.

    Key assumptions and
    macro framework for the
    budget

    The key assumptions and macro-framework for the budget are:
    (i) Oil production – 2.2mbpd
    (ii) Benchmark oil price
    – $42.5/b,
    (iii) Exchange rate – N305/US$
    (iv) Inflation rate- 15.74 per cent
    (v) GDP Growth Rate
    – 2.5 per cent
    (vi) Nominal Consumption (N’trillion) – 87.95
    (vii) Nominal GDP (N’trillion) -107.96

    Key budgetary reform
    initiatives

    The key budgetary reform initiatives to improve the revenue base of the country include:
    (i) Subjecting the JV operations to a new funding mechanism, which will allow for cost recovery. Additional oil-related revenue include: royalty recoveries, marginal field licenses, early licensing renewals, etc;
    (ii) Sustaining the use of TSA to monitor the financial activities of over 900 MDAs from a single platform;
    (iii) Broadening the tax base, improve effectiveness of revenue collecting agencies, improve tax compliance etc;
    (iv) Reducing leakages by tacking trade mis-invoicing and introducing the single window to drive customs efficiencies;
    (v) Improving the performance of independent revenue of government by ensuring that all MDAs (particularly revenue generating MDAs) present their budget in advance, and remit their operating surpluses as required by the FRA;
    (vi) Extension of the Integrated Personnel Payroll Information System (IPPIS) to all MDAs.

    2017 Budget revenue
    proposals – Where the
    money is coming from
    An overview of the
    revenue framework

    Based on the key assumptions and budgetary reform initiatives, the 2017 Budget envisages a total FGN revenue of N4.94 trillion, exceeding FY 2016 projection by 28 per cent. The projected revenue receipt from oil is N1.985 trillion and non-oil is N1.373 trillion. The contribution of oil revenue is 40.2 per cent compared to 19 per cent in 2016 financial year driven mainly by JVC cost reduction, higher price, exchange rate and additional oil related revenues.
    The details of the revenue as summarised below:

    2017 Budget expenditure
    proposals – Where the
    money is going

    21. The 2017 Budget has an outlay of N7.298 trillion. This represents an increase of 20.4 per cent over the 2017 budget provision of N6.06 trillion. The details are:
    (i) Statutory transfers of N419.02 billion
    (ii) Debt service of
    N1.66 trillion (22 per cent);
    (iii) Sinking fund of
    N177.46 billion (2.4 per cent)
    to retire certain maturing bonds;
    (iv) Non-debt recurrent
    expenditure of N2.98trillion (40.8 perc ent); and
    (v) Capital expenditure of N2.24 trillion (30.7 per cent) inclusive of statutory
    transfers.

    Financing the deficit

    The overall projected budget fiscal deficit of N2.36 trillion for 2017, which is about 2.18 per cent of GDP. This is within the threshold stipulated in FRA. The budget deficit is to be financed mainly by borrowings which have been projected at N2.32 trillion. Of this amount, N1.067 trillion (46 per cent of this borrowing) is intended to be sourced externally, while N1.25 trillion will be sourced domestically. The debt service to revenue ratio is projected to be about 33.7 per cent in 2017 financial year.

    Break down of recurrent
    (non-debt) expenditure

    The recurrent non-debt expenditure of N2.98 trillion is made up of:
    i. Personnel costs – N1.86 trillion (63%)
    ii. Overhead – N229.81 billion (7%)
    iii. Service-wide vote pensions – N89.98 billion (3%)
    iv. Consolidated Revenue Fund Pensions – N191.63 billion (6%)
    v. Other Service-wide Votes – N116.50 billion (5%)
    vi. Presidential Amnesty
    Programme – N65 billion (2%)
    vii. Refund to special accounts – N50 billion, and (2%)
    viii. Special intervention Prog. (recurrent) – N350 billion (12%)
    The largest recurrent allocations are for the following four MDA’s namely:
    i. Ministry of Interior – N482.37 billion;
    ii. Ministry of Education – N398.01 billion;
    iii. Ministry of Defence – N325.87 billion;
    iv. Ministry of Health N252.86 billion.
    These four MDAs collectively take up about N1.46 trillion (about 70 per cent) of the combined provision for personnel and overhead). They have the largest share because of the size of their personnel. Some of the agencies and parastatals under these MDAs are yet to be captured on the Integrated Personnel Payroll Information System (IPPIS) platform. The sum of N2 billion has been provided in the 2017 Budget for the capturing to ensure all personnel that are not enrolled on the platform are captured.

    Capital expenditure
    in the proposed budget

    The administration has committed to allocating at least 30 per cent of the budget to capital from 16 per cent allocation in 2015. In dollar terms, the 2017 Budget proposal at ($23.80 billion) is lower than 2016 estimates ($30.76 billion). As a percentage of GDP, we have grown the size of the Budget from 4.7 per cent in 2015 to 5.9 per cent in 2016 and to 6.7 percent in 2017. Compared with South Africa (20.7 per cent) and Ghana (19.2 per cent) as at 2015, this is very low. The ratio of capital spending in total increased from 16 per cent in 2015 to 30 per cent in 2016 and 30.7 per cent in 2017. The increase in infrastructure spending is expected to enhance revenue generation opportunities and over time significantly reduce deficit.

    MDAs capital allocations
    by pillar

    A significant part of the budgeting provision was allocated to reflect the Administration’s development priorities. This is aimed at engendering good governance practices and providing enablers for economic recovery and growth. Some of the key sectoral capital allocations in the 2017 Budget are as follows:
    (i) Infrastructure 56%
    (ii) Governance and security
    20%
    (iii) Economic reforms/growth 12%
    (iv) Social development seven per cent
    (v) States and regional
    development
    four per cent
    (vi) Environment one per cent

    Major MDAs’
    capital allocations

    There is a need to emphasize that the thrust of the 2017 Budget is to partner with private and development capital to leverage and catalyse resources for growth. By setting aside N2.24 trillion (inclusive of capital in statutory transfers), which is 30.7 per cent of the total budget for capital expenditure, the objective, as set out in the SIP, of devoting at least 30 per cent of the budget to capital expenditure has been achieved. Much of the capital provision is directed at those projects which will facilitate economic growth, diversification, competitiveness, ease of doing business, social inclusion, jobs as well as governance. This will ultimately engender the attainment of the Sustainable Development Goals (SDGs). In this regard, focus will be on initiatives in sectors such as agriculture, manufacturing, solid minerals, and services. Consequently, capital allocations to MDAs within these sectors were significantly enhanced.