BY OIKONOMIA WITH LEKAN SOTE
After President Muhammadu Buhari presented a Budget Proposal Bill of N16.39 trillion for 2022, the usually rubberstamp National Assembly of Nigeria, apparently thinking that the Executive Branch was not spendthrift enough, upped the figure by N736 billion to N17.126 trillion. The budget deficit was raised from N6.26 to N6.39 trillion.
One would have thought that they broke ranks with the Executive Branch because of the arguments of patriots, like Tope Fasua, economist, chartered accountant, ex-banker, economic activist and presidential candidate of Abundant Nigeria Renewal Party, for a bigger budget, to boost the economy, appealed to them. But that wasn’t the case.
They rather raised practically all parameters of the Budget Proposal in order to raise the allocation of the NASS to feed their gluttonous appetite and unconscionable mercenary disposition to public funds by raising allocation to themselves from N125 to N129 billion, as they have always done.
If you go back in time you will confirm that they always found a way to increase statutory allocation to themselves. And as you know, no one quite knows their salaries which should be published for public consumption.
The ambitious NASS raised not only the oil price benchmark from N$57 to N62 per barrel but retained the crude oil production of 1.88 million barrels per day earlier projected by the Executive Branch. One would have thought that they would be guided by the inability of production to hit the 1.86 barrels per day that was projected for 2021.
Though ironically, as much as N12.6 billion and N25.8 billion were removed from the budgets for the railway and electricity projects, they went ahead to increase some overhead expenses by N21.72 billion! You would be surprised to know that despite the rife insecurity in the country, the NASS reduced provisions for some security agencies. They however increased capital expenditure from N4.89 to N5.47 trillion.
Some members of the NASS alleged that no less than 6,576 more projects were added (or padded, to use the appropriate nomenclature) to the budget without the knowledge of the majority of members. In confirming this, the President revealed that for these additional projects, the NASS reduced the provision for 10,733 of his projects.
He added that they made an unjustified increase to the Federal Government of Nigeria Revenue by N400 billion. Interestingly, the Senate spokesman, who vehemently denies the additional projects, which the President confirmed, had the temerity to ask the disgruntled lawmakers to provide concrete evidence of the padding.
This was the same way the padding revealed by Abdulmummin Jibrin, former Member of House of Representatives, representing Kiru/Bebeji constituency of Kano State, was denied. Soon after, constituency projects, like a dam, executed on the private farm of a principal officer were later revealed.
Of course, they made it look like they were thinking about the public good. To borrow a phrase from political thinker and utilitarian economist, Jeremy Bentham, they may have been thinking of the greatest good of the greatest number of Nigerians.
As much as many may think that even N17.126 trillion is too low for an economy of $429 billion Gross Domestic Product, the NASS members must also accept that they just handed the government of Major General Muhammadu Buhari (retd) the excuse for failure. They gave him oxygen to shift all blames, as he always did, on previous administrations.
You will remember that President Buhari government has the nauseating habit of forever blaming the Olusegun Obasanjo and Goodluck Jonathan administrations for its own lack of imaginative policies to lift Nigerians out of economic doldrums, insecurity and malevolent corruption and pilfering of their commonwealth, which he had promised to address in his campaign manifesto.
Indeed when the duo of journalists, Maupe Ogun-Yusuf and Seun Okinbaloye of Channels Television, asked the President why his government hadn’t fixed the problem of epileptic and inadequate electricity supply, he nearly went into a fit, trying to berate the Obasanjo Administration that is thrice removed from his own.
In the sound bite used as an insert in the interview, the President charged, “One of the former Heads of State (he probably meant, former President Obasanjo)… was bragging that he spent $16 billion on power,” and then asked, “Where is the power?”
To the observation that despite his promises to provide regular electricity, supply is no more than 4000 MW, despite installed generating capacity of 13,000 MW and transmission capacity of 7,500 MW, he, albeit rightly, blamed the previous administration that sold electricity producing and distributing companies to individuals who had neither the technical nor financial competences to run them.
“The 2022 Budget is designed to serve the interest of the ruling class and not for you the people. Perhaps the best every Nigerian must know is to find a way to survive 2022
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He insinuated that it would be difficult to undo the legal contractual agreements that would free the electricity companies from the vice grip of the oligarchs who got their deals simply because of patronage and not the capacity to add value.
In response to a question about the performance of the economy under his watch, he quickly gave the stock answer: Between 1999 and 2014, average production level of crude oil per day was 2.2 million and the price was an average of $100 per barrel.
His final stroke was, “When (our government assumed office in 2015), somehow, the militants were unleashed in the South-South, (and) production went down by half a million barrels per day and the price collapsed to about $37 per barrel.” He made it look as if there was a conspiracy to undermine funding for his government, and conveniently neglected to indicate that the price has gone up to $80 per barrel.
Many Nigerians, who know better than the legislators, have offered ominous commentaries on the increase of the budget by the NASS. Dr. Muda Yusuf, former Director General of Lagos Chamber of Commerce and Industry says: “It is not looking realistic. For even the original figure itself, we are still struggling on how to borrow to fund it… Also, with the effects of the (Covid-19) pandemic and the outlook for oil price and all its assumptions, it is not looking as bright as to justify an increase…”
The Punch newspaper Columnist and professor of economics, Sheriffdeen Tella, thinks the lawmakers are unrealistic. He says, “I think the legislators have their own thinking, which is not related to what the economy says.”
He then suggested that, “All (the legislators) seem to be thinking about how to get their own share, whether there is a shortfall or not.” He adds, “They seem to be oblivious to all the write-ups and suggestions regarding the budget so far. This is unfortunate.”
Johnson Chukwu of Cowry Assets Management Limited thinks the politicians are looking for money to fund 2023 General Elections. He says, “We should expect that we are going to have an expansionary budget for (2022), given that the year is a pre-election (year).
“So, (both the Executive and the Legislative arms of) the present government will engage in a lot of spending to improve their standing before the voting population.” In other words, the Nigerian people will be funding the elections of their future oppressors.
There you have it, folks. The 2022 Budget is designed to serve the interest of the ruling class and not for you the people. Perhaps the best every Nigerian must know is to find a way to survive 2022.
Welcome to 2022, year of annus horribilis!
