Editorial
Budget 2012 And The Transformation Agenda
The National Assembly of the Federal Republic of Nigeria last week announced the passage of a budget of N4.8trn for the year 2012. Coming only two weeks to the end of the first quarter of the year, the budget raises concerns that need to be addressed.
While it may have been accepted by all that the one that fails to plan may have planned to fail, no one has come up with the fate of the one that consistently makes his plans come out late. But everyone knows that it cannot go without a consequence, a costly one.
It is regrettable that Nigeria has not been able to help herself in the area of late budgeting. It is even more so under an administration that pledges to be transformational. Knowing how the economy revolves around the government and its policies, people in government must endeavour to overcome this snag.
All over the world, governments, organisations and even individuals target the end of year to make plans for the succeeding year. For some serious minded economies like that of the United States of America, their budgets for the next year comes out nearly six months before.
This allows for all the players in the economy to perfect their roles before the time for execution. Consequently, when the time comes, the plan for the year kick-starts with purpose and on target. But coming out late with ones budget is to stand isolated and to miss the competitive bargaining of resources when it mattered.
Being an economy that depends almost wholly on government is bad enough, but to also fail to capture the interest of the private sector and other countries to develop our economy that requires a lot of outside input, is nothing short of shooting one’s self in the foot.
But that is not the only area of concern; the allocation of resources have continued to worry many Nigerians. The development of infrastructure is still very critical in Nigeria. But to allocate only N1.519trn to capital development and to allocate N2.425trn to recurrent expenditure does not portray Nigeria as a country that wants to develop in a hurry.
Again, it appears the authorities want to keep things the way they were or have not found ways of focusing on development rather than heap money on a system that is not producing for Nigeria. In fact, we expected that by now the number of MDAs would have been cut down to reduce the sum spent on administration.
Also worrisome is the relapse to excessive debt that now attracts N559.6bn for debt servicing. Sadly, this sum is higher than N372.5bn that is allocated to statutory transfers.
It is impressive that the National Assembly tried to reduce deficit in the budget, but the raising of the benchmark for crude at the international market to $72 to achieve the goal, also opens another window for fears.
Last year, the benchmark was $75 per barrel and there were fears in some quarters that the budget could blow in Nigeria’s face if pressures at the crude market pushes the price below $80. Pegging it at $72 is still too close to crisis as the volatility of the market remains high.
Although the budget is expected to do well, because a number of the projects it is to service are on-going, the performance rate of the 2011 budget is yet to be ascertained. Similarly why some projects under that budget were not handled even when the country did not lack revenue has not been addressed.
We think it was high time Nigeria took budgeting more seriously if any appreciable improvement is to be recorded in the country. Clearly, both the executive and the legislature can do better to announce budgets in December to allow wider participation in the economy.
Also worrisome is the retention of an ever-bloated administrative machinery. The culture of setting up more agencies to handle issues that specific ministries can take up can only create the avenue for a few people to be serviced with funds that can provide services to all under capital projects.
This administration prides itself to be a transformative one. We hope that at least the transformation would be seen in the implementation of the budget.
Editorial
Checkmating ‘One-Chance’ Menaces In PH
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.
Editorial
Making Rivers’ 2026 Budget Count
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