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Editorial

2024 Budget: A government versus its people

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The President, Bola Ahmed Tinubu recently signed the N28.78 trillion 2024 Budget into law at the State House, Abuja after it had been passed by the National Assembly on Saturday.

The ceremony was witnessed by the President of the Senate, Senator Godswill Akpabio, and the Speaker of the House of Representatives, Hon Tajudeen Abbas.

The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; Minister of Budget and Economic Planning, Alhaji Atiku Bagudu; and the National Security Adviser (NSA), Malam Nuhu Ribadu were also in attendance.

Also on the ground were the Chief of Staff to the President, Femi Gbajabiamila; the National Chairman of the ruling All Progressives Congress (APC), Dr Abdullahi Ganduje; Chairman of the Senate Appropriation Committee, Senator Olamilekan Adeola, among others.

The parliament increased the budget submitted by President Bola Tinubu by the sum of N1.2 trillion.

The allocations to various Ministries Departments and Agencies (MDAs) has the Ministry of Defence recording the highest allocation of N1.3tn.This is followed by the Ministry of Police Affairs with N869.121bn.

The Ministry of Education got N857.134bn, the Ministry of Health and Social Welfare – N667.577bn and the Ministry of Interior – N362.552bn respectively.

The Ministry of Youths –N201.467bn, Office of the National Security Adviser –N199.763bn, Ministry of Foreign Affairs – N140.456bn.The Ministry of Agriculture and Food Security – N110.248bn.

The Office of the Secretary to the Government of the Federation – N100.248bn and the Presidency – N97.913bn.

A careful study of the 2024 budget seems to be more concentrated on political satisfaction than a people driven budget.

For instance, the National Assembly despite the outcries by the masses on the social media expectedly took good care of themselves. They ensured that a truly grand car park is provided for in the Budget Estimates for 2024. They need to have a car park that befits their status as federal lawmakers even if the constituents that supposedly sent them to Abuja are dying of hunger and starvation

Can you imagine that the National Assembly car parks and recreation centre will cost the taxpayers N10 billion, a sum that the country can ill-afford at this time. The federal lawmakers allocated N4billion for the National Assembly Recreation Centre; N4billion for the design, construction, furnishing and equipping of the National Assembly’s Budget and Research Office; N3billion for procurement of books for the National Assembly Library; N3billion Senate car park; N3billion for the House of Representatives car park; N3billion for the upgrade of key infrastructure in the National Assembly; and N3billion for the design, construction, furnishing and equipping of the assembly’s ultramodern printing press; N2.7billion for furnishing of committee meeting rooms and other offices within Senate building.

Sadly, it is not only the National Assembly that is the beneficiary of some highly ostentatious items in their budget, this is in spite of the dire state of the Nigerian citizen.

The budget by ministries and parastatals were also largely about taking care of those in power at the detriment of the people. A few such items readily come to mind when one takes a closer look at the budget. For instance, at a time, we are told that government has no business being in business, the Federal Ministry of Solid Minerals Development has proposed a budget of N2.38billion for the establishment of a Nigerian Solid Minerals Company Limited at the ministry’s headquarters.

This is in spite of the fact that most businesses set up by the Nigerian government have always failed and woefully too. It is not in doubt that it is difficult for any government to run a successful company in this country. The private sector should drive the diversification of the solid minerals sector. Therefore, the allocation of N2.38 billion for purposes of setting up a government owned company is certainly not well thought out.

In the 2024 budget N1.44 trillion was allocated to the education sector. As huge as this may appear at a glance, this was less than the required UNESCO benchmark which recommended that 25 percent of the national budget spent on education would do the education sector of developing countries a lot of good. Thirty-four years after the United Nations Educational, Scientific and Cultural Organisation, UNESCO, recommended that developing nations give up to 25 percent of their annual budget to public education, Nigeria’s allocation to the sector remains still less than 10 per cent.

Consequently, of the N55.3 trillion allocated to the education sector by the federal government between 2016-2021, only N3.5 trillion had been given to the sector, and this represents less than 10 percent. In comparison, though Ghana and South Africa have not actually met up to the recommended 25 percent by UNESCO, they have done far more than Nigeria, allocating a maximum 23 percent and 16.7 percent respectively. In 2016, of the total budget of N6.06 trn, the sum of N369.6 billion or 6.7 percent of the budget was allocated to public education in the country. In 2017, N550 bn or 7.38 percent was allocated to education out of N7.29 trn budget, while in 2018, N605.8 bn or 7.04 percent was given to education out of N9.2 trn budget. In 2019, N620 bn or 7.05 percent was allocated to education out of the budget of N8.92 trn, while in 2020, N671.07 bn or 6.7 percent was given to education out of N10.33 trn budget. In 2021, N742.5 bn or 5.6 percent was allocated to education out of a budget of N13.6 trn.

On the other hand, according to reports by the World Bank, Ghana allocated 23.81 percent of its national budget for education in 2015, 22.09 percent in 2016, 20.1 percent in 2017 and 18.6 percent in 2018. For South Africa, it has kept increasing allocations to the education sector from R246 billion or 16.7 percent in 2018, R310 billion in 2019, R 387 billion in 2020 and projected that it’ll hit R416 billion by 2023/24.

Here we are in 2024, under the Renewed Hope Agenda of President Bola Tinubu we are still allocating less than 10 percent of our annual budget for education. Albert Einstein defined insanity as doing the same thing over and over and expecting different results.

If we can remove all the unnecessary allocations and channel them to education, we could be able to meet the UNESCO target, and thus, use education to overcome the poverty ravaging the country. Again, the federal government has failed for the umpteenth time to meet the Abuja Declaration by African leaders in 2001 and the World Health Organisation (WHO) benchmark to allocate, at least, 15 percent of yearly national budgets to health. In April 2001, the African Union (AU) countries met in Abuja and set a target of, at least, 15 percent of their yearly budget to improve the health sector.

Also, in the budget of the Federal Ministry of Finance, there is an item in the budget described as “Investment in Digital and Creative Enterprises (DICE) Training of entrepreneurs in creativity and digital technology- ministry headquarters.” This nebulous subhead is allocated a whopping sum of N45.50billion. Going down a bit on the Finance Budget, you see a similar item identified as “Investment in Digital and Creative Enterprises (DICE) Training of Entrepreneurs in Creativity and Digital Technology-Ministry headquarters,” this has the budget sum of N18.38billion. What could be the differences between the two items?

The Budget of a country is a serious business, those who prepare it and those who scrutinise it for passage into law must act in the best interest of the people, not on the whims and needs of politicians. The 2024 budget did not prioritise the people. That was clearly expressed by the budgetary allocations to the health and education sectors by this administration.

When one reads through the budget document, the signal one gets is that the government says one thing but intends to do another. When you juxtapose the budget with the New Year Address of Mr President, there is a wide disparity. The Renewed Hope Agenda is supposedly anchored on the people, but the 2024 Budget as passed is full of barrels of pork that will benefit only the politicians and those in the corridors of power. Therefore, this is not the kind of budget Nigeria needs at this time. We need a budget that is truly citizen centred.

Revenue projections have generally been ambitious and often unmet, even in aggregate. The impact of such projections is troubling as budget implementation is principally based on the revenue the government can raise. With net oil revenue falling on average in the last three years, serving as a generally unreliable source of government revenue, the Nigerian government’s focus should be directed beyond customs revenues and value-added taxes. It has been argued that collecting these taxes (still suboptimal in Nigeria) does not demonstrate state capacity and strength. The budget needs revenue projections aligned with fiscal realities, which must be done realistically and pragmatically. Best practice advises revenue projections to be “underestimated, than overestimated.”

The service-wide vote, established as a contingency fund to address unforeseen circumstances and events, has increased exponentially in recent years from N198.95 billion (2.18 percent of the budget) in 2018 to N757.19 billion (5.54 percent of the budget) in 2021 and more recently to N4.41 trillion (16.03 percent of the budget) in 2024. In addition, the service-wide vote provision contains budget lines that should be captured within MDAs’ budget and vague budget lines that create loopholes for impropriety and/or corruption. For example, the service-wide vote envelope in the 2024 appropriation bill contains N108 billion for “special projects” with the project code “ERGP9213044.” To worsen the situation, the federal government budget implementation reports often contain no information on how service-wide votes are utilized.

The budget, which is the most important government policy instrument, should and must be tailored towards stimulating broad-based economic growth, reducing inequality and poverty, addressing insecurity and Nigeria’s infrastructure gap, and developing human capital.

Editorial

Endless turnaround maintenance of Port Harcourt Refinery

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Since 2021 when the turnaround maintenance of the Port Harcourt Refinery started, there have been heaps of failed promises of the production commencement date.

First, it was former Minister of State for Petroleum, Timipre Sylva promising severally of commencement of productions of Port Harcourt Refinery, but these promises never came to limelight till he resigned for political calling.

Next was the Managing Director of Port Harcourt Refinery, Ahmed Dikko who at a time said the turnaround maintenance was 98 percent completed and would have commenced operations in December 2023. That promise again was unfulfilled.

The Group Managing Director of Nigerian National Petroleum Company Limited (NNPC Ltd), Mele Kyari equally said that Port Harcourt Refinery would start production in two weeks time, that elapsed in April, 2024. April has come and gone.

The Head, Corporate Communications of NNPC Ltd, Olufemi Soneye was also quoted to have said that the reason for non-commencement of operations of the Port Harcourt Refinery was regulatory and compliance tests. As it seems, all efforts to restart the operations of the Port Harcourt Refinery and by extension other refineries, have been futile.

Political watchers have adduced poor management, corruption, sabotage and lack of political will as some of the problems confronting smooth operations of our refineries. They particularly accused those benefitting from importation of petroleum products as being responsible for the non-functionality of the four refineries in Nigeria.

Political will, of course, plays a major role in shaping directions the policies go. Political will in this instance translates to good leadership, and in this case, the buck stops at the table of the Federal Government, particularly the President, who doubles as the Minister of Petroleum.

Petroleum being the mainstay of the country’s economy should be given all the attention it deserves. The reason being that virtually everything in the country is tied to the petroleum products situation.

Since the announcement of the removal of fuel subsidy on May 29th, 2023 by President Tinubu on assumption of office, life has not been the same in Nigeria. Cost of living has  risen astronomically, consequent upon the hike in price of petroleum products.

In the midst of plenty, courtesy of the abundant human and material resources, Nigeria is still often described as the poverty capital of the world. What an irony! Turnaround maintenance of the refineries subsists without end. Every hope is now placed on the Dangote Refinery, a private outfit. While the diesel price slash is commendable, how on earth will a single private entity take the whole country to Eldorado?

We cannot regulate what we do not produce, this is a natural principle that cannot be contravened. We only pray that Port Harcourt Refinery comes on stream someday.

We look forward to that time. Our position is that Government agencies saddled with the responsibility of providing fuel and other petroleum products to Nigeria must do their work and justify their pay.

This onerous task is mandatory and statutory to them and shall amount to disservice if they fail. Our prayer is not for them to fail, but that they fulfil their vows and make the country great for the overall interest of all.

Tecnimont, the Italian company undertaking the $1.5 billion rehabilitation project of the Port Harcourt Refinery has through its Local Managing Director, Gian Fabio Del Cioppo pledged to fulfil the terms of contract, so as far as we are concerned, there is nothing stopping the country from achieving the target of the turnaround maintenance project.

The only clog would of course be lack of political will, which we know could be cultivated. So let all hands be put on deck to achieve results.

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Editorial

Gas explosions: Nigeria and its avoidable tragedies 

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Nigerians die daily for reasons  so avoidable it would make  a 19th century peasant weep.  The deaths are often a product of systemic wickedness, nonchalance, and greed. Too often have gas explosions claimed the lives of Nigerians untimely. Whether it is the leaders refusing to enforce the checks and balances for personal gain, or citizens selling defective gas cylinders, it all balls down to a collective aversion for kindness.

The internet is rife with news of this tragedy occurring in a Sisyphean cycle. Jolted by the cries of the populace, the leaders promise reprieve, release press statements and in the weeks that follow, little to nothing happens. “One must imagine Sisyphus happy,” Camus wrote. Unfortunately, our Nigerian dead imagine nothing.

While people relaxed from their labour, were preparing for the Workers Day celebrations, nine people including a pregnant woman were injured in Tuesday’s gas cylinder explosion at Alaba Lane, Alayabiagba Community of Ajegunle-Apapa, Lagos.

“The fire explosion started around 1:30 pm and immediately, two tricycles were burnt, school children coming back from school were affected. A particular young man was seriously affected as his body was peeling off, but rushed to the Gbagada General Hospital,” according to reports.

The usual suspect is, of course, negligence, as the Director of Lagos State Fire and Rescue Service, Margaret Adeseye, puts it: “preliminary investigation revealed that several various gas cylinders traded within the neighbourhood have one triggered from a susceptible leakage leading to the snapping of a high tension cable and resultant Fire.”

The explosion razed down “four commercial tricycles, six lock-up shops, a bungalow part of properties, while salvaging adjoining structures including a major fuel service station.” Children were hurt, the future of the nation plunged, as usual into avoidable misfortune.

The way out is through. The press releases are wonderful PR statements but they do not bring back the dead, as was the case in Ogun State recently where a truck explosion cost the nation another life. The leaders must enforce the checks and balances put in place. The law is no decoration.

We mustn’t wait until a politician’s family member is involved in a tragic gas accident before “banning” (as is the default response of the Nigerian leadership). The leaders must realise that such misfortunes are contagious, and money is hardly a bulwark against 3rd degree burns in a nation where all its doctors are fleeing.

Renewed Hope requires renewed action. This is all that Nigerians ask of its leaders. All agencies responsible for monitoring trucks, cylinders need to work together to defeat this peculiar evil. Like COVID-19, gas explosions are no respecter of persons.

Of course, citizens too must do their part and resist the allure of profit over the death of others. A society without empathy is headed for a dystopia. It will not matter the price of petrol or electricity tariff, if all that matters is the pursuit of super profit at the expense of one’s neighbour. We owe it to the dead to live fully and graciously. To escape, as we should, avoidable tragedies.

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Editorial

Nigeria must act now to mitigate flood disasters

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As the rainy season looms ahead, a palpable sense of concern grips the nation.The recent cautionary message from the                      Federal Government to 31 state governors  regarding the looming threat of floods from April to November serves as a wake-up call, demanding swift and concerted action from both state and federal authorities.

Presented by Minister of Water Resources and Sanitation Joseph Utsev, the 2024 Annual Flood Outlook paints a bleak picture, underscoring the urgent need for preemptive measures. It is not merely an emphasising advisory; it is a resounding call to arms.

The spectre of past flood calamities in Kano, Taraba, Lagos, and other states still haunts our collective memory.

The haunting images of devastated homes, displaced families, and shattered livelihoods serve as poignant reminders of the human toll exacted by our complacency.

It is imperative that we glean lessons from these tragedies and take proactive steps to forestall the impending catastrophe.

The warning issued by the Federal Government is crystal clear: floods are imminent, and the time to act is now.

The Nigeria Hydrological Services Agency’s classification of 148 local government areas across 29 states, including Lagos, Kano, and Delta, as high flood-risk zones emphasising the gravity of the situation.

Every moment of inaction heightens the risk to countless lives and properties. State governors, local authorities, and relevant agencies must set aside differences and collaborate effectively to implement robust flood preparedness and mitigation measures.

From infrastructure reinforcement to early warning systems and community awareness campaigns, a comprehensive approach is imperative to safeguard vulnerable communities.

As responsible stewards of our nation’s welfare, we cannot afford to be caught off guard. Let us heed the warning, unite in purpose, and proactively address this looming threat.

The cost of inaction is too grave to contemplate, and the time to act decisively is now. This is not a drill.

The minister’s revelation that 31 states face high flood risks, while all 36 states and the Federal Capital Territory will experience moderate flooding, demands immediate attention and collective action.

“The high flood-risk states are Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Imo, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kogi, Kwara, Lagos, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Rivers, Sokoto, Taraba, Yobe,” the Minister said.

We cannot afford to wait until the waters rise and lives are lost. The time to act is now. It’s imperative that federal and state governments, agencies, and local communities join forces to mitigate the impact of floods.

This requires a coordinated response, including public awareness campaigns, infrastructure upgrades, emergency preparedness plans, and investment in flood mitigation projects.

The future of our nation depends on it. Let us heed the warning and take proactive steps to build a more resilient Nigeria, where lives and properties are protected from the ravages of flooding. The clock is ticking; let us act now to avoid a catastrophe.

While 31 states face high flood risks, the remaining five states must also be proactive in their preparations. It’s not enough to simply warn residents to relocate from flood-prone areas; state governments must provide safe and conducive spaces for relocation, complete with essential services like relief materials, healthcare, and security.

This will help mitigate the trauma faced by displaced families. Citizens, too, have a critical role to play. They must be willing to relocate from their homes and comfort zones to prevent avoidable deaths and losses. The stark reality is that flood disasters are devastating, as seen in 2023 when 45 lives were lost, 171,545 persons displaced, and 22,666 homes partially damaged, with 5,358 others completely destroyed.

The economic toll was equally staggering, with a $4.6 billion bill that significantly dented Nigeria’s GDP. Let us learn from the past and take collective responsibility for flood preparedness. State and federal governments, agencies, and citizens must work together to build a more resilient nation, where lives and properties are protected from the ravages of flooding. The time to act is now.

In 2022, flooding claimed 662 citizens; 2.43 million others were displaced and 3,174 were injured nationwide, per NEMA.

The financial losses were estimated at $9.12 billion by the Federal Government, and by a United Nations agency at $7 billion. A UN report stated that food insecurity was aggravated in the country as 569,000 hectares of farmland were destroyed by the flood.

According to the then Minister of Water Resources, Suleiman Adamu, 178 LGAs in 32 states were declared “highly probable flood risk states.”

Although climate change remains a global concern, leading to flash floods, droughts, forest fires, and cyclones, the government must not make excuses.

They need to take lessons from previous floodings and replace their nonchalance with strategic actions and campaigns. They must do all they can to avoid the repetition of losses of lives and properties.

The citizens must play their part by clearing drainage in their vicinity, cultivating good waste disposal and environmentally friendly culture. To entrench this, the government must place strict surveillance and enforce stiff penalties against erring residents.

State governments should demolish structures erected on flood paths to enable rainwater to drain appropriately.

NGOs in the environmental niche should activate campaigns distilled in local languages through the media to prepare citizens for the flood.

The federal and state governments should be proactive in the deployment of ecological funds to provide guardrails against natural disasters. This must be used for pre-emptive measures like building bridges, desilting rivers, evacuating canals and drainage, and building dams and levees. The dams would help preserve excess rainfall to irrigate farmland during the dry season.

The government must fully embrace its onerous duty to safeguard lives and properties.

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