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2018 Budget: Financial Experts Want Change In Disbursement, Implementation
Some financial experts have said the Federal Government must change its approach towards the implementation and disbursement of the annual budget for it to impact positively on Nigerians.
The experts stated this in interviews with newsmen in Lagos, yesterday while reacting to the passage of the 2018 budget by the National Assembly, six months after it was presented by executive.
Mr Emeka Madubuike, immediate past President, Association of Stockbroking Houses of Nigeria (ASHON), who bemoaned the late passage of the budget, said implementation and disbursement were critical at the moment.
“It is not passing the budget that is the issue, the key thing is implementation. We have seen several budgets in this country but what is the impact?” Madubuike asked.
He said the country still had serious infrastructure gap, noting that proper implementation would help in reducing the infrastructure deficit for people to have hope in the country.
Madubuike called for synergy between the executive and legislature, noting that both arms were serving Nigerians.
“This distinction between the Senate and the executive is just an excuse and must be addressed in the interest of the country,” he said.
Prof. Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University, Keffi, said the passage of the budget would increase the tempo of economic activities and speed up recovery efforts.
Uwaleke said the increased allocation for capital projects would lift the stock of infrastructure if well implemented and spur growth.
He said the passage of the budget would reduce uncertainties in the business environment and boost investors’ confidence.
Uwaleke also expressed optimism that the capital market would react positively to the passage of the budget.
The Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, said the approval of the budget was good for the economy to boost activities and support economic recovery and development.
Omordion said the timing and upward adjustment of the budget figures were wrong considering that the budget stayed over six months before it was approved.
He called for proper monitoring of the budget to ensure effective implementation, noting that N1.5 trillion spent on infrastructure in the 2017 budget had not reflected on the economy.
Omordion said roads and power with direct bearing on the economy had remained in the worst state in spite of huge borrowing amidst rising oil prices.
According to him, the N9 trillion budget is part of preparation for 2019 elections for the executive and legislatures to do one project or the other for the people ahead of the elections.
“For the budget to make meaningful impact on the life of Nigerians and the economy, government must change its disbursement and implementation style so that project execution will be fast,” Omordion said.
He explained that the adjustment of oil benchmark price to 51 dollars per barrel against the initial 45 dollars per barrel was good considering the rallying in oil price.
Omordion said it was a good way of reducing borrowing to finance deficit budget and also to accommodate the N543 billion increment to execute their own constituency projects.
The Senate and the House of Representatives on May 16, passed the 2018 budget, raising it by N500 billion.
Both houses approved a budget that rose from N8.6 trillion to N9.1 trillion, six months after it was presented by the executive.
President Muhammadu Buhari presented the budget to a joint session of the National Assembly on Nov. 7, 2017.
Both houses of the National Assembly received the budget report of their appropriation committees.
At the Senate, the chairman of the Senate Committee on Appropriation, Mr Danjuma Goje, said the increase of N500 billion was done in consultation with the executive.
He said the increment was informed by a decision to increase oil benchmark from the proposed 45 dollars to 51 dollars.
The exchange rate of N305 to a dollar and production of 2.3 million barrels of oil per day were adopted as proposed by the executive.
Goje said the funds that would accrue from the increment would be spent on some projects already earmarked by the committee.
He said the surplus fund was spread on some ‘critical sectors’ in consultation with the executive. He gave a breakdown of how much would be spent on different sectors.
According to the report, N42.72 billion will be spent on security, N57. 15 billion on the 1 per cent vote for health as mandated by the National Health Act and N106.50 billion for the Ministry of Power, Works and Housing.
Other areas are; education, N15.7 billion, Judiciary, N10 billion and Niger Delta Development Commission (NDDC), N44.20 billion.
He added that the increment would allow for a N50.88 billion deficit reduction.
In the final breakdown, the Senate passed a 2018 budget of N9, 120, 334, 988, 225 of which N530, 421, 368, 624 is for statutory transfers as against N456, 458, 654, 074 proposed by the executive.
N2, 203, 835, 365, 699 was budgeted for debt service as proposed while N190, 000, 000, 000 was budgeted for sinking fund for maturing loans.
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The Niger Delta Development Commission (NDDC) has signed a Memorandum of Understanding (MoU) with the Rural Electrification Agency (REA) to expand access to reliable and sustainable electricity across the Niger Delta region.
The agreement, signed at the headquarters of the REA in Abuja, was targeted at strengthening institutional collaboration and accelerating development in underserved communities in the region.
A statement by the Director, Corporate Affairs of the NDDC, Seledi Thompson-Wakama, said the pact underscores renewed efforts by the two federal interventionist agencies to deepen cooperation and fast-track infrastructure delivery.
Speaking at the signing ceremony, the Managing Director of the NDDC, Dr Samuel Ogbuku, described the MoU as a strategic step towards realising the Commission’s vision to “light up the Niger Delta” in line with national priorities on distributed energy expansion.
Ogbuku said the agreement represents a shared institutional responsibility to deliver reliable energy solutions that will enhance livelihoods, stimulate local economies and create broader opportunities across the nine Niger Delta states.
According to him, electricity remains a critical enabler of national development, supporting job creation, healthcare delivery, education and inclusive economic growth.
He noted that the collaboration would help unlock the economic potential of rural communities while advancing broader national development objectives.
The NDDC boss added that the Commission has consistently adopted partnership-driven approaches in executing projects in the region and is prepared to support the implementation of the MoU by leveraging its community presence and infrastructure development capacity.
He reaffirmed the Commission’s commitment to working closely with the REA to ensure the timely and effective execution of the agreement.
The NDDC delegation at the event included the Executive Director, Projects, Dr Victor Antai; Executive Director, Corporate Services, Otunba Ifedayo Abegunde; Director, Legal Services, Mr Victor Arenyeka; Director, Finance and Supply, Mrs Kunemofa Asu; and Director, Liaison Office, Abuja, Mrs Mary Nwaeke.
In his remarks, the Managing Director of the REA, Dr Abba Abubakar Aliyu, described the MoU as a natural collaboration between two agencies with complementary mandates, reflecting a shared commitment to expanding access to sustainable electricity in rural communities.
Aliyu said the Niger Delta remains central to Nigeria’s economic fortunes and must be supported by infrastructure capable of driving productivity, enterprise and improved living standards, adding that the partnership signals readiness to deliver stable power to communities that have long awaited reliable electricity supply.
By: King Onunwor
Artificial intelligence is often viewed as a catalyst for electrification and subsequently decarbonization. Yet one of its most immediate effects may be the opposite of what many assume. The rapid buildout of AI infrastructure is increasing demand for reliable power, and that reality could strengthen the role of natural gas and other dispatchable energy sources for many years.
Investors focused on semiconductors and software valuations may be overlooking a key constraint. AI runs on electricity, and those electricity systems operate within physical and economic limits.
The energy sector has spent much of the past decade grappling with slow load growth. That is now changing, in a way that is reminiscent of the sharp rise in oil demand—and subsequently price—in the early 2000s.
Training large language models and operating advanced AI systems requires enormous computing resources. Hyperscale data centers are expanding rapidly, with developers requesting gigawatt-scale interconnections from utilities. In several regions, electricity demand forecasts have been revised upward after years of flat expectations.
This shift is significant because AI workloads create continuous, high-density demand rather than intermittent usage. Data centers cannot simply power down when the electricity supply becomes constrained. Reliability becomes paramount.
Wind and solar capacity continues to expand, but intermittent generation alone cannot meet the firm capacity needs of AI infrastructure without significant storage or backup generation.
Battery storage is improving, yet long-duration storage remains costly at scale. Nuclear projects face long development timelines and complex permitting hurdles. Transmission expansion also lags demand growth in many regions.
These constraints make dispatchable power sources critical. Natural gas plants can ramp quickly, operate continuously, and be deployed faster than many alternatives. As a result, gas-fired generation is increasingly viewed as a practical solution for supporting AI-driven load growth.
This does not undermine the role of renewables. In many markets, new renewable capacity is paired with gas generation to maintain grid stability. The key point is that AI-driven electrification is likely to increase fossil fuel usage in the near term.
Construction timelines favor gas-fired generation when demand rises quickly. Existing pipeline infrastructure reduces barriers to expansion. And for operators of data centers, reliability often outweighs ideological preferences. Downtime is simply too expensive.
Utilities are also revisiting resource plans as load forecasts rise. That shift may drive increased investment in transmission, grid modernization, and flexible generation assets.
The Decarbonization Story Is Complex
A common narrative holds that AI accelerates the transition away from fossil fuels because it increases electrification. The reality is more nuanced.
If electricity demand outpaces the buildout of low-carbon capacity, fossil generation may still increase in absolute terms even as renewables gain market share. Total emissions could rise, but the carbon intensity of the energy system may trend lower as cleaner sources make up a larger share of supply.
Ultimately, energy systems evolve based on engineering and economics, not just policy goals or market narratives.
Rising power demand could benefit utilities investing in transmission and generation capacity. Natural gas producers and midstream companies may see structural demand support from increased power-sector consumption. Equipment suppliers tied to grid reliability and gas turbines could also gain from the shift.
Longer term, advances in nuclear, storage, or efficiency may change the trajectory. For now, the immediate response to surging electricity demand is likely to rely on technologies that can be deployed quickly and reliably.
Artificial intelligence may reshape the economy in profound ways. One of the least appreciated consequences is that it may extend the relevance of natural gas as the world builds the energy backbone required to power the next generation of computing.
By: Robert Rapier
Ogun State is set to join the comity of oil producing states in the country following the discovery and subsequent approval of commercial oil exploration activities in the Eba oil well, in Ogun Waterside Local Government Area of the state.
A technical team from the Nigerian National Petroleum Company Limited (NNPCL) has visited the area as preparations are in advanced stage for commencement of commercial drilling operations in the state.
The inspection followed President Bola Ahmed Tinubu’s approval for commercial exploration, forming part of the federal government’s efforts to deploy the required technical capacity and infrastructure for production.
Officials of NNPCL carried out the exercise alongside representatives of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and national security agencies to evaluate the site and confirm its readiness for drilling activities.
The delegation was led by Project Coordinator for Enserv, Hussein Aliyu, who headed the NNPCL Enserv technical team.
Other members included Wasiu Adeniyi, Onwugba Kelechi, Engr. Rabiu M. Audu, Ojonoka Braimah, Ahmad Usman, Akinbosola Oluwaseyi, Salisu Nuhu, James Amezhinim, Yusuf Abdul-Azeez, Amararu Isukul and Livinus J. Kigbu.
Speaking, Governor Dapo Abiodun, described the development as a landmark achievement for Ogun State, saying “the commencement of drilling at Eba would stimulate economic growth, create employment opportunities and attract increased federal presence to the state’s coastal communities.
Abiodun also expressed appreciation to President Tinubu for his support toward the development of frontier oil basins and the equitable spread of the nation’s energy resources.
Recall that geological reports had earlier confirmed the presence of hydrocarbons within the Ogun Waterside axis, leading to preliminary surveys and technical engagements by NNPCL.
The Ogun State Government also carried out an independent verification of the oil well’s coordinates, affirming the discovery is located within the state’s boundaries.
To secure the project, naval security personnel have been deployed to the site for over 18 months, with the support of the Ogun State Government, to protect the facility and its environs.
The Eba oil well is regarded as part of Nigeria’s strategic move to expand oil production beyond the Niger Delta region.
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