Editorial
2014 Budget: Checking Output Disruptions
Within the realms of governance, as
applicable in normal human affairs, a
problem identified is believed to be one half-solved. The optimism built around the second half is rooted in the expectation that appropriate attempts will be made to seek solutions to address any such human challenges.
Nowhere is the need to address problems identified in a timely fashion more paramount and imperative as it is with public administration in the management of human and material resources. This is why governments all over the world devote ample time and resources for proper research at the planning and budgeting stages of their intended fiscal spending.
It is also for this reason that the collation of projects for budgeting should be the result of proper study of problems of the preceding fiscal calendar, solutions found to address existing bottlenecks and most importantly provide a necessary framework for proper execution of budgetary projections.
Apparently, such vigorous procedure unveiled the threat which oil theft posed to the economy. It was found that there was disturbing decline in the country’s foreign exchange earnings, on account of dwindling production capacity of oil, said to be actuated by many variables, chief among which are near frequent vandalisation of petroleum product pipelines and indeed theft by trans-national syndicates:. That was about two years ago.
So frightening, it was, that budgetary projections could not be backed by required allocation, just as projected production levels fell to frightening degrees. To make-up for such pitfalls, economic planners resorted to tampering with excess crude reserves, with the attendant states’ and federal government bickering over resource allocations observed in the breach.
That the same complaints would be made during the running 2013 fiscal Budget was not contemplated since relevant government agencies had assured Nigerians of frantic efforts to address the problem that was identified to be caused by oil theft. Expectations were that necessary safe-guards should have been made to avoid a any repeat of the hiccup of the previous fiscal calendar.
Among such largely reported plans were, equipping the Navy and other security agencies for better sea border policing and protection of petroleum production facilities, improved surveillance of petroleum pipelines as well as vigorous efforts at checking illegal bunkering in the Niger Delta.
This is why many are worried at the recent alarm raised by the Finance and Supervising Minister of the Economy, Dr. Ngozi Okonjo-Iweala to the effect that the Federal Government would draw-down its oil savings in Excess Crude Account (ECA) in order to compensate for yet another drop in revenue. That, she explained, was to keep the budget deficit under control.
The reported shortfall according to the Finance Minister, was due to yet another output disruptions amounting to about $12 billion.
At the beginning of the 2013 fiscal year, Nigeria had $9 billion in the ECA with the same budget based on an oil price of $79 per barrel, and at a daily output of 2.53 million barrels, Nigerians expected foreign exchange earnings in excess of $80 billion in exports. And with oil prices stabilising reasonably for a long period, at well above $100, the reported shortfall is indeed counter-productive. And at best, avoidable.
This is because, whatever the output disruptions were in the past, The Tide believes that they would have been addressed, since the problem was highlighted in the 2012 budget and for which proactive steps were contemplated to ensure a successful 2013 Budget.
The Tide is worried that consistently falling back on the ECA on account of failure of relevant security agencies to deliver on their constitutional responsibilities of protecting key national assets can only affect the prospects of the Sovereign National Fund, which has reasonably contributed, in part, to the relative stability of the Naira against other foreign currencies.
Therefore, as President Jonathan prepares to present the 2014 Fiscal projections to the National Assembly, next week, Nigerians expect elaborate account of how output disruptions would be checked and if possible avoided. At a time of repeated claims by economic planners of a healthy economy, such disruptions depict lack of seriousness in tackling a problem, long identified and therefore, should have been easier solved.
The Federal Government must therefore fight and win the war against oil theft now or tell Nigerians, it cannot be done.
Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
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