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Opinion

Buhari: Borrowing To Bolster The Budget

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By Bala Ibrahim.

It is not the intention of this article to go into the merits of the mathematic behind the wisdom of borrowing by the Buhari administration to finance the budget, far from that. In fact, the writer is a fatal failure in Maths. The intention is to look at the economic dialectics behind the logic of borrowing, particularly in a weak capitalist economy like Nigeria, where private individuals or businesses own capital goods, and services are based on supply and demand in the general market. In the end, I hope to confuse, sorry convince, the reader on the patriotic purpose of PMB, the best President Nigeria ever had.

As usual, in Nigeria, every year after the presentation of the budget to the National Assembly by the President, the country goes into the gear of all manner of brouhaha, occasioned by the overexcited reaction to the magnitude of the money, or the mission statement therein, where sometimes, the critics permit their preconceived opinion, to play poisonous prejudice on the purpose and overall intention of the budget. Some people permit jaundice to becloud their vision, in such a way that makes them refuse to see the good purpose and direction, or the nice nitty-gritty of the economic mission.

In the past, the period and pattern of such palaver was unpredictably erratic. There was no fix time for the budget uproar. But since 2015, when destiny bestowed Buhari as a reasonable, responsive and responsible President of Nigeria, he rose to the occasion, by changing the timing and pattern of the budget presentation to the National Assembly. Before Buhari, budgets were presented to the National Assembly only when the Government of the day deems fit. There was no constant sequence in the budget cycle.

But with the coming of Buhari, a new feat was achieved, particularly in 2019, when the Ministry of Finance, Budget and National Planning, returned Nigeria to the budget cycle of January-December. It was an unprecedented achievement that has almost been forgotten in the country’s economic space. And kudos must be given to President Muhammadu Buhari.

I listened yesterday, to the concurrence and consistency of chorus, coming from the principal officers of the National Assembly, with regards the changes that have now arrived in the phases of the budget process. They said the country is now back to the days of correct budget preparation, correct budget legislation, correct budget execution, and correct budget accountability. And almost in unison, they gave the credit to President Muhammadu Buhari.

The general outcry of the critics of the budget is about the frequent borrowing of the Government, especially this particular one, where the Buhari administration said it plans to borrow more in order to finance the N6.258 trillion deficit in the proposed 2022 budget.

In addressing the borrowing issue, the Minister of Finance, Hajiya Zainab Ahmed said it was necessary that the government would continue to borrow to in order to fund developmental and infrastructure projects, as it does not get enough from it’s revenues. Hajiya Ahmed said Nigeria’s revenues could barely accommodate services, even as she emphasized that despite the concerns, the Government’s borrowings are still within acceptable limits.

“If we just depend on the revenues that we get, even though our revenues have increased, the operational expenditure of government, including salaries and other overheads, is barely covered, or swallowed up by the revenue. So, we need to borrow to be able to build these projects that will ensure that we’re able to develop on a sustainable basis. If you look at the total size of the borrowing, it is still within healthy and sustainable limits. As at July 2021, the total borrowing is 23% of GDP. When you compare our borrowing to other countries, we’re the lowest within the region, lowest compared to Egypt, South Africa, Brazil, Mexico, the very lowest, and Angola. Government has been borrowing before this administration and continues to borrow and it is important that we borrow to provide developmental projects in the form of roads, rails, bridges, power and water for sustainable development”-Minister Zainab.

It is an open secret that President Buhari intents on leaving behind a legacy of improved agricultural production, as currently, the agricultural sector contributes 23% of the GDP. Thanks to the President, for stimulating people to venture into large scale fertilizer blending and rice mills businesses. This is in addition to the Government’s rolling out of rail lines, some of which had been started several years ago, but abandoned, only for them to be completed by Buhari, through economically conscious and prudent borrowing.

To buttress the argument of the Buhari administration on borrowing to finance the budget, a chieftain of the All Progressive Congress, Prof Vitalis Orikeze Ajumbe, was not only supportive of the Minister of Finance, Hajiya Zainab Ahmed, but applauded the borrowing drive of the Government to fund capital projects.

Professor Ajumbe, a former Imo State Commissioner for Information and later commissioner for Internally Generated Revenue and Pension Matters, noted that despite the borrowings, Nigeria is not listed amongst the highest borrowers in the world. He argued that borrowings are proper and that all developing and developed countries in the world borrow to fund developmental projects. “Nigeria is not amongst the world’s top most debtor countries. It’s just No.8 in Africa to China with $4.8billion. Every developed and developing country in the World lives on borrowings. Angola, Ethiopia and Kenya are the top three African countries with highest debt profiles of $25 billion, $13.5 billion and $7.9 billion respectively”-Prof. Ajumbe.

In computing the academics of Nigeria’s economics, the general consensus amongst the economists is that, the country is blessed with the ingenuity of a prudence, that propels recession recovery. Nigeria had gone into multiple recessions, but courtesy of the economic sanity of the leadership, the Africa’s largest economy, unexpectedly always exits the recession quickly.

And some of the credit goes to the guts of Buhari, for adopting the template of responsive and responsible borrowing, including that of borrowing to bolster the budget.

Opinion

Exposing the fraud in NASS budget-Jaafar Jaafar

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By Jaafar Jaafar

In an unprecedented budget fraud, the National Assembly has appropriated N370 billion on running costs, contingency, vague and duplicated projects for the Senate and House of Representatives in the 2024 Appropriation Act.

I’m not talking about the hundreds of billions of naira padded in other ministries, departments and agency, but what they budgeted for their welfare and running of the National Assembly.

In the N370 billion NASS budget, the lawmakers duplicated projects and created new, unnecessary projects that increased the budget from N170billion in 2023 to N370 billion this year.

In budget (under Statutory Transfers ), the NASS budgeted 36,727,409,155 for the National Assembly Office; N49,144,916,519 for the Senate; N78,624,487169 for the House of Representatives; N12,325,901,366 for the National Assembly Service Commission and; N20,388,339,573 for Legislative Aides.

A senator recently told me that each of them (and members of the House of Reps) is entitled to five aides, while the four presiding officers (Senate President, Speaker and their deputies) have at least 3,000 aides. In total, you are talking about over 5,000 aides!

Despite the foregoing, the NASS budgeted N30,807,475,470 for “General Services” and N15billion as “Service-Wide Vote” – known in administrative parlance as “contingency” or “security vote”. The NASS never had anything like service-wide vote in the past as “service-wide vote” is always exclusive to the Executive arm. Insiders said this is a clear case of budget padding as the purpose for the huge appropriations are vague.

Even the retired clerks and perm secs (despite receiving their pensions) are not left out in this public funds buffet as they got N1.2billion padded for them.

Apart from padding the intangibles, the NASS will spend N4billion to build recreation center; about N6billion to furnish committee rooms for the two chambers and; another N6billion to build car parks for senators and members (don’t ask me whether they lack any parking space).

And despite this, the lawmakers padded N30 billion in the FCDA budget for “Completion of NASS Chambers” and N20billion for “completion of NASS Service Commission”! In the same budget, the lawmakers set aside another N10billion (under NASS budget) for the completion of National Assembly Service Commission building! How did this happen? No be juju be dis?

Still hungry to devour public resources, the avaricious parliamentarians budgeted another N3billion for the “Upgrade of NASS Key Infrastructures”. How come? What about the N30billion budgeted for “Completion of NASS Chambers”?

NASS Library Complex, named after President Tinubu’s Chief of Staff, Femi Gbajabiamila, got N12billion as take-off grant and another N3billion for purchase of books.

Like other institutions under NASS, the National Institute for Legislative and Democratic Studies got N9billion without clearly stating how or where the resources will apply to. The same institute also got another N4.5billion (is this ‘jara’?) for completion of its headquarters.

Despite the dedicated powerline and powerful generators backing up power supply in the National Assembly, the lawmakers budgeted N4billion to install solar power system. I guess this will give them a reason to pad billions for the purchase of batteries every year.

The committee that superintended this butchery of public resources, the Appropriations Committees of the Senate and the House of Reps, got N200m each for a job well done.

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Opinion

Workers’ Day and The Nigerian Workers In Perspective

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By AbdurRaheem Sa’ad Dembo

Every 1st of  May workers celebrate their day globally .It is always a day of reflection, celebration and emancipation of workers around the world.

In Nigeria,May Day as a holiday was first declared by the People Redemption Party (PRP) Government of Kano State in 1980.Afterwards it became a national holiday on May 1, 1981

Before venturing to restrict myself to Nigerian workers let me take a broad look at how May Day emerged in the world.Workers’ Day, stemmed in part, from an ancient European Spring festival,but its modern manifestations arise from the organised efforts of socialist and communist groups to establish a time for honouring workers and the working class.To be specific, the holiday was first promoted by the International Workers Association in 1904 to commemorate the slaughter of protesting labourers in Haymarket Square in Chicago ,United States of America in 1886 and it was to be a day to push for the eight-hour work day and other demands.

The date May 1st was chosen because,in the USA, the eighth- hour workday first came into effect on that date in 1886.It was predicated on the demands of the Federation of Organized Trades and Labour Unions.There was a general strike and a riot in Chicago in 1886, and eventually, the eight -hour workday was legally recognised.

Many people tend to attend the National May Day celebration in Abuja and other State capitals.The president or State Governors would be there as the case may be to make a speech, and thousand would fill the Eagle Square or state stadium to listen to the President or Governor.Some people attend number of other events that hold across Nigeria on May Day,organized by schools,labour unions,hospitals,and other various institutions.People use the day for relaxation since it is a public holiday.

In Nigeria,some people participate in nationwide marches and rallies on workers’ Day or Labour Day.More often their major concerns are usually to clamour for an increase in the minimum wage,an end to workers being left unpaid for months,the need for government action to address the high unemployment rates of recent years ,and the necessity for government action to address the high unemployment rates of recent years, and the need to move Nigeria off of over dependence on petroleum exports.

On a May Day in Nigeria, politicians and labour leaders will give out speeches on the strength and the challenges of Nigerian economy , and on how to improve it for the general good of the country.

It is significant to say that Nigerian workers both in public and private sectors are facing enormous challenges.The disparity in the salary structure and irregular payments of salary as witnessed before the coming of Buhari’s administration in 2015, where a lot of state Governors could not pay their workers for several months.

The Buhari administration ensured that bailouts were given to states to enable them offset their unpaid salaries to workers.That was a plus for the Daura man administration.

Meanwhile, President Tinubu’s administration has also sustained the legacies of prompt payment of workers salaries in the last one year.It is expected , because even as Lagos State Governor he had no history of owing workers.

In a larger context, welfare of Nigerian workers are not properly taken care of, most especially those in private sectors.There are situations where teachers in private schools are being paid peanuts as salaries,whereas the owners or proprietors charge the parents homongous school fees.This is not a hearsay I was once in that shoe as an English language teacher.

The area where the civil servants in both Federal and States are feeling the heats is the non regular payment of promotion arrears.According to sources some agencies under federal government are being owed promotion arrears since 2018.This is not a healthy practice, though some sources said the federal government has put the payment in batches and it is now being paid bit by bit.In some states the promotions are not even implemented let alone payment of its arrears

As Nigerian workers join others around the world to mark 2024 workers’ Day,it is expected that the ongoing negotiation by the federal government and labour leaders on new minimum wage will yield good results.

It is imperative to say that the Federal Government should fix the economy for the collective good and progress of the country.No minimum wage can ameliorate poverty, if there is consistent economic instability.

The level of inflation ravaging Nigerian economy is worrisome.Any minimum wage that is less than hundred thousand naira today won’t make any appreciable impacts in the lives of average Nigerian workers.

Essentially,Corruption can only be tackled effectively and holistically,if there is a reasonable living wage for the civil servants.You can’t fight corruption in a country where workers welfare and retirement package are relegated to the background.According to the human rights lawyer,Femi Falana ” corruption cannot be meaningfully fought by governments that pay poor wages to workers,owe workers and pensioners arrears.”

To the NLC and TUC leaders, providing sincere leadership is key to the quality ,emancipation and progress of Nigerian workers.Adam Oshiomhole was an example of a good labour leader in the history of Nigeria.He stood for the workers even in the face of oppression.So the current leaders should take a cue from his tireless comradeship for the benefit of Nigerian workers.

 

Nigeria is a blessed country and a land of prosperity; her workers have no reason for penurious lives.

Happy Workers’ Day

abdurraheemsaaddembo@gmail.com

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Opinion

Minimum Wage Increment: Be Proactive My Governor.

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Governor Abba Kabir Yusuf

 

By-Abba Hamisu Sani

1st of May every year is a special day for workers in Nigeria working with the government or with the Private sector.

The main issue ahead of this year’s celebrations is the expectation of the new minimum wage Increment.

President Bola Tinubu is expected to announce the new salary scale as Vice President Senator Kashim Shatima hinted recently that by the 1st of May, the new minimum wage will be ready for implementation.

Here I want to salute the courage exhibited by the Edo State governor Godwin Obaseki who has increased the minimum wage for workers in the state from 40,000 naira to 70,000 naira ahead of the 2024 Workers Day celebrations.

This prompted my attention to urge my state governor Abba Yusuf to follow the suit of Edo State governor in this direction.

Kano workers suffered a lot in the hands of the immediate past administration, ranging from different kinds of deductions which causes uncertainty on the amount to be collected by a worker and even pensioners every month.

Governor Abba if you do the same as Obasaki, the Kano people will be happy with you as it will boost the state economy and currency circulation.

It is very imperative at this time to be proactive and not wait for the Federal government announcement before taking your step in making Kano workers happy.

Infrastructural development is quite needed but at this time social security is the most critical as it has been said “A hungry man is an angry man”.

Workers’ salaries are too low to cater to their basic needs, such as food, rent, transportation, and school fees for their children while they see politicians cruising in jeeps and other expensive cars.

Finally, Governor Yusuf remember that these workers have sacrificed a lot during the 2023 elections to see that you emerged as Kano governor.

Is very important to consider their plight at this moment of critical economic hardship.

I urged all comrades in different forms of struggle including civil society Forum to join me in pushing the Kano State government to implement a new minimum wage in a dignified manner as the Edo State governor did.

Abba Hamisu Sani is a
Media Consultant /CEO Time Base TvAfrica & Africa Press.
Can be reached via timebasetv@gmail.com

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