Opinion
Priorities In 2014 Fiscal Budget
One of the benchmarks that govern the realities
of economic growth and development in a country is the effective planning and implementation of its annual budget. In different parts of the world, this is described as an official statement that streamlines government revenue and expenditure within a given period of time, usually one year. Two major factors have however questioned the reliability of such practice in this country, within the last few years: one, the excess of recurrent expenditure over capital expenditure; two, the late submission of the budget proposal for public scrutiny and time-friendly debates.
According to the Federal Republic of Nigeria 2010 Amendment Appropriation Act of July 2010 and April 2012; and the Federal Republic of Nigeria 2011 Appropriation Bill; as cited in an on-line article, the total budget for 2010 fiscal year was 4.4 trillion. Of this, recurrent expenditure ate up 2.1 trillion, l.5 trillion was devoted to capital expenditure, while less than one trillion balance was left in debt servicing and statutory transfers.
As the annual budget accelerated to 4.7trillion in the 2012 fiscal year, recurrent expenditure (this is the annual expenditure incurred on salaries of civil and public servants, including sitting allowances, foreign trips, foreign health services and welfare of the ruling few) moved to 3.3trillion, and only a total crumbs of 1.3trillion was left for capital expenditure such as housings, refineries, roads, bridges, rail tracts, etc.
In 2013, recurrent expenditure hit a collection of countering public views and waved shamelessly to 2.4trillion, but capital expenditure retained its humble position at 1.5 trillion, while 1 trillion was left in statutory transfers and debt servicing, placing the total budget at 4.9trillion. The implications of running such economic policy in this 21st century are deadly. First, there will be a steady revolving prospect of excess consumption over investment; second, the current global economic instabilities may consistently injure the country’s desire for self-reliance and food security.
The second factor that has questioned our yearly economic plan is the late submission of the budget proposal. Reasons behind such delay may be perceived either as a political strategy, aimed at avoiding public assessment and time-friendly debates; or as an inefficient administration in which major plans are given a fire-brigade approach. True, since the annual budget must not be skewed along lines of political, religious, ethnic or socio-economic interest, it becomes very imperative to provide a minimum of six month period of critical assessment, public debates and extensive consultation with key stake holders in various fields, before the final approval, legal acceptance and mass publication at the beginning of the fiscal year. In preparing the 2014 annual budget, the government should provide a platform for public debates; sourcing views and opinions from members of the public; and making decisions along lines of public interests through cross-fertilisation of ideas, views, opinions, facts and figures. So, submitting a budget proposal without a minimum period of six month critical assessment negates the public interest! Regarding the fact that Nigeria’s fiscal year runs from 1st January to 31st December, not releasing her fiscal budget at the beginning of her fiscal year may be against her economic interest.
Now, the annual budget for the 2014 fiscal year should balance between recurrent and capital expenditure.
This may be achieved in two ways: one, the government should set up modalities, aimed at rationalising Agencies of the Federal Government with overlapping functions; two, by promoting job creation and inclusive growth through investment in priority sectors such as human capital development, infrastructure, sophisticated equipment for security and counter-terrorism operations, manufacturing, solid mineral development, Information and Communication Technology, Aviation, Agriculture, etc.
The target is to cut down the high cost of governance in 2014 fiscal year, and limit government borrowing requirements in compliance with the Fiscal Responsibility Act, 2007; thereby promoting national economic growth and development; and shielding domestic economic policies against the tide of current global economic waves. Key sectors such as Education and Agriculture should not be sacrificed for administrative activities such as foreign trips and privet jets. The 2014 annual budget should provide a shared sense of economic growth and development among all classes of people in the country, and should not be skewed along lines of ethnicity, religion, politics, culture or socio-economic landmarks. It should move away from the circumference of previous fiscal plans; making a difference in transforming government endless economic promises into tangible and feasible realities; and setting the pace for more factual economic policies in upcoming years.
John Janes, a freelancer, lives in Port Harcourt
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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