Connect with us

Business

‘Budget Cycle Inconsistency, Hindering Economic Dev’

Published

8 years ago

on

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

Related Topics:
Continue Reading

Business

Boat Mishap Kills Pastor, Wife And Church Members  In Brass Water

Published

6 days ago

on

May 18, 2026

By

A boat accident in Bayelsa state has killed a serving Pastor, Wife and other church members along Brass waterways
The sad incident happened at Odioama in Brass local government area of Bayelsa State when the Pastor, wife and  members of his church were in a programme.
?
?Tide confirmed that the lifeless body of the Pastor’s wife has been found and deposited in a mortuary while the remains of her husband ,the Pastor is yet  to be recovered
as search party are still ongoing.
Although the real cause of the boat Mishap is not yet known as at the time of this report,  our Correspondent gathered  that the identities of the Pastor, wife and church members were not disclosed to the public.
The mishap, Tide gathered occurred on Friday morning when the church members were on a boat transit
The Bayelsa State government and the state police command are yet to issue official statement’s  on the sad accident
By: CHINEDU WOSU
Continue Reading

Business

Rivers Workers Seek Scrapping Of Contributory Pension Scheme

Published

6 days ago

on

May 18, 2026

By

The Rivers State Council of  Nigeria Civil Service Union has called on the State Government to urgently scrap the contributory pension scheme, describing it as unfavourable to long-serving civil servants in the state.
Chairman of the union, Chukwuka Osuma, said this in an interview with newsmen in Port Harcourt,  recently.
Osuma said the current pension structure has continued to worsen post-retirement hardship for workers.
He noted that  the contributory pension scheme had failed to provide adequate retirement security for workers who had spent many years in service, especially those approaching retirement age.
According to him, civil servants who had served for more than 20 years were among the worst affected under the scheme, insisting that many retirees could no longer cope with prevailing economic realities.
He also  informed that the Union has made moves to showcase their concerns, pleading with Governor Siminalayi Fubara to abolish the pension policy and introduce a more favourable arrangement for affected workers.
“The union was not opposed to pension reforms, the contributory scheme should only apply to newly employed workers or those with fewer years in service”, he said.
Osuma explained that workers who had already spent decades in the civil service ought to remain under a more secure pension structure capable of guaranteeing stability after retirement.
The labour leader further noted that inflation and the rising cost of living had continued to erode the value of retirement savings, thereby increasing the suffering of pensioners across the country.
He also appealed to the state government to consider extending the years of service in the civil service from 35 to 40 years and the retirement age from 60 to 65 years.
Osuma argued that such adjustment had become necessary in view of present-day economic realities and changing conditions in the workplace.
The unionist also reviewed that similar policies had already been adopted in some sectors and jurisdictions, expressing optimism that the State could also implement the reforms for the benefit of workers.
He however, commended Governor Fubara for approving an N85,000 minimum wage for workers in the state, noting that the amount was above the national benchmark of N70,000.
Osuma also acknowledged the government’s efforts in the area of workers’ promotions and bonuses, but insisted that pension reforms and extension of years of service remained critical to the long-term welfare and stability of civil servants in Rivers State.
By: King Onunwor
Continue Reading

Business

FG Begins South-West Tour To Promote New Cooperative Bank

Published

2 weeks ago

on

May 13, 2026

By

The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.
 Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.
According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.
Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.
“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.
The minister noted  the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.
According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.
Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.
He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.
“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.
He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.
“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.
Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.
“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.
“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.
Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.
She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.
Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).
“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.
“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.
Continue Reading

Trending