Business
‘Budget Cycle Inconsistency, Hindering Economic Dev’
Over the years, the nation’s budget cycle has been inconsistent without a definite pattern, giving room for speculations and poor implementation.
According to data obtained from the Fiscal Responsibility Commission (FRC) 2016 Annual Report and Audited Accounts, from 2011 to 2017, the time of approvals of the budgets is well into the New Year.
The earliest was that of 2013 which was submitted to the National Assembly on Oct. 10, 2012 and assented to by President Goodluck Jonathan on Feb. 26, 2013, indicating a five month time lag.
All others were presented to the National Assembly in December and assented to in April, May or June.
In seperate interviews with the News Agency of Nigeria (NAN), experts said that the inconsistency does not bode well for the economy.
The Head of Research, BudgIT, Mr Atiku Samuel, said the economy depends on fiscal, monetary and trade policies to power it.
“Monetary authorities look closely at the budget for direction and that is why the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), was reluctant at its first meeting in 2018 to take action.
“Trade policy formulators sometimes bury decisions inside the budget.
“As such, the budget is an important planning tool within any functional economy”, he said.
He added that inconsistency in the budget cycle meant that both monetary and trade policy formulators could not act or take informed actions at the appropriate time.
“That typically cascades across the economy, making decisions irrational and sometimes irrelevant.
“The organised private sector also suffers. For instance, government spending accounts for about 50 per cent of construction related spending.
“If the budget is not presented and passed at the right time, an inconsistent pattern follows as we have in Nigeria and players in that sector will also have to restructure.
“They cannot recruit in anticipation of an increase in spending and that inevitably kills jobs.
“Some even sack workers because revenue is inconsistent, as we have seen in the construction sector.”
Samuel said that inconsistency in the budget cycle also renders fiscal stimulus ineffective and makes the pattern of spending difficult to trace and follow through.
He added that no investor likes volatility because it creates huge unmanageable risks.
Lead Director, Centre for Social Justice (CSJ), Mr Eze Onyekpere, a Civil Society Organisation (CSO), said the fact that the nation no longer had a fixed budget calendar had introduced inconsistency and uncertainty into the economy.
He said this trend had influenced poor economic performance in terms of Gross Domestic Product (GDP), growth and ability to meet sectoral objectives.
“This has also led to haphazard budgetary and economic policy implementation. Capital budget implementation has suffered under this budgeting scenario.”
He, however, said that the executive and legislative arms of government had specific roles to play in rectifying and addressing the budget calendar and implementation challenge.
“First, the executive have to start the budget preparation process early through the Medium Term Expenditure Framework (MTEF).
“The MTEF should be ready for the endorsement of the Federal Executive Council (FEC), on or before the end of the second quarter (June).
“It should be submitted to the legislature which should vet and approve of same before proceeding on their legislative break in July.
“Thereafter, the executive budget should be ready by the first week of September and submitted to the National Assembly which will then have four months to approve same before the end of the year.”
According to Onyekpere, there should be a commitment on the part of the legislature to approve the budget before proceeding on Christmas and New Year vacation.
This, he said, would enable implementation begin on Jan. 1 of the New Year.
The Acting Chairman FRC, Mr Victor Muruako, also said the trend reduces predictability and affects planning even within the Ministries, Departments, and Agencies (MDAs), and with those doing business.
“It is also not very encouraging to investors because government being the highest spender, it is good that there should be a level of predictability”, he said.
Muruako, however, said that though the inconsistency was not a good precedent, the commission was working closely with other MDAs, particularly the Ministry of Budget and National Planning, Budget Office of the Federation and Ministry of Finance to improve on it.
This, he said was to ensure stricter compliance with timelines so that the right thing would be done at the right time.
“It is an evolving thing and we are not there yet but I believe that with the level of commitment of the Federal Government, particularly the financial team, I see a silver lining in the horizon and we will definitely get there.
“We are hoping that we will soon see a January to December financial year, but there is need to improve the relationship between the executive and legislative arms of government, because that is another thing that affects it.”
He recalled that the budget was submitted to the National Assembly in the first week of November 2017, but was only passed by the legislature in May, adding that the legislature had a greater role to play.
Muruako said there was the need for better relationship between the executive and legislature so that there would be synergy.
He also said that if the legislative arm was involved from the point of formation or articulation of the estimates, there would not be need for too much scrutiny.
“The theory of separation of powers is there, but they are supposed to work as one.
“Anytime they are not working together, it is evident and this is affecting the nation, but I believe that democracy is still evolving here and we will get there soon,” he said.
The FRC report also said that a strict budget timetable should be incorporated into the Fiscal Responsibility Act (FRA), 2007.
It said that through that, relevant agencies would be committed to specific tasks, timelines and deadlines, which if enforced would help solve the perennial problem of late preparation and passage.
NAN reports that the 2018 Appropriation Bill of N8.61 trillion proposed by President Muhammadu Buhari, was presented to the National Assembly in November 2017.
It was, however, raised to N9.12 trillion and passed by the National Assembly on May 16.
Folarin writes for News Agency of Nigeria.
Folasade Folarin
In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.
Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.
The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.
Nkpemenyie Mcdominic, Lagos
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