Editorial
For A Reasonable 2023 Budget
Nigeria’s plan to obtain another N11 trillion loan to finance the 2023 national budget leaves a bitter aftertaste. The nation’s dwindling economy obviously demonstrates that going for a fresh loan would further exacerbate the country’s financial adversity, as the monies borrowed before now have not been fully repaid. If the proposal to borrow in the 2023 fiscal year goes through, the present administration will leave behind massive debts for its successor next year.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, recently amazed Nigerians when she disclosed that the Federal Government would be unable to fund capital projects in the 2023 fiscal year unless it borrowed more than N11 trillion. Zainab, who said that the budget deficit for the 2023 fiscal year might run between N11.30 trillion and N12.41 trillion, noted that the government’s decision to continue payment of petrol subsidy would largely affect the projection.
Currently, the country’s total debt is N41.6 trillion. With the new borrowing for 2023, the cumulative debt will be N52 trillion at the time the administration will hand over to the next President on May 29, 2023. The minister, while presenting the 2023–2025 Medium Term Expenditure Framework and Fiscal Strategy Paper before the House of Representatives Committee on Finance, put the aggregate expenditure of the government for 2023 at N19.76 trillion.
Stakeholders fear that the economy is on the verge of bankruptcy because of the deepening debt crisis. Ahmed said crude oil production challenges and fuel subsidy deductions by the Nigerian National Petroleum Corporation (NNPC) Limited constitute a significant threat to the achievement of the nation’s revenue growth targets. They stated the need for bold, decisive and necessary action to address revenue loss and expenditure efficiency at national and subnational levels.
Indeed, the government’s suggested move smacks of gross insensitivity and a confirmation that President Muhammadu Buhari cannot manage Nigeria’s challenges. Nigerians must resist any further attempt by the current administration to enslave the country. Instead of plunging the nation deeper into irredeemable debt, it will be better for the President to honourably resign if the nation’s complex problems have overwhelmed him.
It is time everyone became conscious of the unfortunate economic implications of Buhari’s borrowing spree to avoid mortgaging the future of the unborn generations. We have pretended enough and for too long. At this rate of borrowing, Nigeria will soon be worse than a failed nation. We should no longer be making excuses about the despondency of our situation brought upon us by the current government. The situation is disconcerting and scary.
The new proposal to borrow would worsen the existing bad debt situation. Already, debt service has exceeded the government’s revenue going by the financial report of the Federal Government as of April this year. We are now at a debt threshold that is unsustainable. The economy is on the verge of collapse, while the increasing debt crisis could crystallise the insolvency risk. Therefore, elevated debt burden should be resisted strongly.
Regrettably, it implies that the entire capital budget, recurrent expenditure and part of the debt service, would have to be funded from borrowing. What is required is the political will to cut expenditure and undertake reforms that could scale down the size of government, reduce governance costs and ease the fiscal burden. Fuel subsidy has to be addressed as steps should be quickly taken to gradually exit the subsidy regime if the economy must not disintegrate.
The truth is that the Federal Government cannot cut costs; it keeps spending on unnecessary and unproductive items as if it was not aware that Nigeria has been grappling with a severe revenue crisis. The major source of its foreign exchange is oil export. To make issues worse, the country has been unable to meet its Organisation of Petroleum Exporting Countries (OPEC) allocated daily crude oil production quota for more than two years.
The sector is faced with unprecedented crude oil theft, while the governing authorities fail to make existing refineries work for domestic refining of crude. Our country already has a double-digit inflation figure as refined petrol sells for between N174 and N220 per litre above the official rate of 165/litre. Nigeria’s foreign exchange reserve is drying out because of poor forex earnings from oil that is spent on scandalous fuel subsidies through the back door.
It is spurious to think that Nigeria has a revenue concern. What it suffers from is the inability to reap its earnings because the government has not demonstrated enough capacity to either curb corruption or theft in the oil sector. Hence, the fiscal deficit would continue to soar as long as the authorities fail to creatively strengthen revenue generation by reducing corrupt practices, impeding oil theft and dealing with insecurity that has adversely manacled economic enterprises across the board.
Some financial and economic experts have warned the Federal Government to reduce its current level of borrowing, as a considerable chunk of government revenue is now being spent on debt servicing. This position is not distant from the truth. It is our view that rather than continue to rely on borrowing to finance its activities, Buhari should adopt other sources of funding for the infrastructure needs of the country. The government should broaden the sources of revenue for budget financing.
Significant areas the government could explore to free more funds for infrastructure development include reorganisation of the National Housing Fund, reorganising railway development to expunge it as a federal monopoly to bring in private sector investments, and opening the window of investments into the power sector, especially in transmission and distribution, among others.
So, we ask: where is the vaunted expanded production and revenue with which to pay the loans? The country is not yet paying back these loans; neither does it have sufficient funds to pay the interests on the loans. This government will easily go on record as having mortgaged the present and the future of Nigeria with its profligate expenditure and mercenary management of the economy.
We hope it will be restrained from doing more harm before leaving office. The National Assembly must not endorse another borrowing but rather institute an impartial panel that will probe and investigate all the monies generated from NNPC Limited, taxes and excise duties, contracts awarded, monies produced from gold and other solid minerals, Abacha’s loots and others recovered by the regime.
Editorial
Whither Tinubu’s Duty-Free Food?
The delay in implementing President Bola Tinubu’s directive for zero customs duty and value added tax on food imports is unacceptable and highlights a concerning lack of urgency within the Federal Ministry of Finance and the Nigerian Customs Service. Over two months after the announcement, the policy remains stalled, despite the President’s clear intention for immediate enforcement. This prolonged delay, especially given the policy’s temporary nature (July – December), is inexplicable and detrimental to a hoi polloi already grappling with a severe economic crisis.
While the Comptroller-General of Customs attributes the delay to the Ministry of Finance finalising details, this explanation is insufficient. The dire need for food relief demands swift action, especially in the face of soaring fuel prices, rampant inflation, and skyrocketing food costs. The President’s promise of subsidised rice at N40,000 per 50kg bag remains elusive as well, pushing many Nigerians further into hardship. Accusations of deliberate slowdowns motivated by the government’s revenue goals are alarming and warrant serious investigation.
A circular from the Presidency has clarified the approved food items eligible for duty exemption, specifically maize, millet, rice, wheat, husked brown rice, grain sorghum, and beans. This strategic move aims to alleviate the financial burden on consumers and enhance food security. Previously subjected to import duties between five and 30 per cent, these commodities will now be more accessible, potentially stabilising prices in the local market.
It seems the execution of the policy is encountering obstacles due to bureaucratic processes. If the government fails to address this crisis with comprehensive and effective measures, the consequences could be catastrophic. The simmering discontent amongst Nigerians could easily boil over into widespread protests and social unrest, further destabilising an already fragile nation. Ignoring the cries of its citizens and the looming threat of social upheaval would be a grave mistake with potentially devastating ramifications.
Public officials insulated by privilege and detached from the everyday struggles of the people, have fostered a dangerous disconnect. For too long, they have failed to truly understand the harsh realities faced by the majority of Nigerians, the daily grind of poverty, the constant battle for survival, and the crushing weight of economic hardship. However, the current multifaceted crisis, with its clear manifestation of suffering, should serve as a jarring wake-up call, even to the most arrogant and out-of-touch.
The government’s ill-conceived and draconian policies, implemented without adequate consideration for the people, have created an intolerable situation that can no longer be swept under the rug or dismissed with platitudes. The widespread suffering is a stark indictment of their negligence, demanding a fundamental shift in perspective and a renewed commitment to the welfare of the Nigerian people.
The recent #EndBadGovernance protests serve as an obvious reminder that disregarding the plight of the people is a dangerous gamble. When basic needs like food and security are unmet, and the cries for change are silenced, the simmering discontent inevitably boils over. Escalating hunger and desperation create a fertile ground for unrest, a truth tragically illustrated by the protests. If the government continues to turn a blind eye to the suffering of its citizens, more widespread and possibly violent demonstrations are not only likely, but inevitable.
Furthermore, attempting to quell dissent through intimidation and persecution of protesters is a recipe for disaster, as it only serves to further inflame tensions and breed resentment. The path to stability lies not in suppression, but in genuine engagement with the concerns of the people and a commitment to addressing the root causes of their suffering.
The Federal Ministry of Finance, led by Olawale Edun, has a crucial role to play in improving the image of this government. Minister Edun and Customs Comptroller-General, Wale Adeniyi, must prioritise the fight against hunger by expediting the zero duty policy. This policy will allow the importation of food at a reduced cost and ease the burden on struggling families.
Officials must accord precedence to the well-being of citizens over bureaucratic processes. The current economic hardship is undeniable, and the callous indifference displayed by those in power, who seem shielded from the harsh realities ordinary Nigerians face, is deeply troubling. The government must act decisively to expedite this critical policy and provide the much-needed relief to a population struggling with hunger, poverty, and misery. Continued delay is a betrayal of Tinubu’s promise and a grim reminder of the disconnect between those in power and the suffering Nigerians.
Editorial
Whither Tinubu’s Duty-Free Food?
The delay in implementing President Bola Tinubu’s directive for zero customs duty and value added tax on food imports is unacceptable and highlights a concerning lack of urgency within the Federal Ministry of Finance and the Nigerian Customs Service. Over two months after the announcement, the policy remains stalled, despite the President’s clear intention for immediate enforcement. This prolonged delay, especially given the policy’s temporary nature (July – December), is inexplicable and detrimental to a hoi polloi already grappling with a severe economic crisis.
While the Comptroller-General of Customs attributes the delay to the Ministry of Finance finalising details, this explanation is insufficient. The dire need for food relief demands swift action, especially in the face of soaring fuel prices, rampant inflation, and skyrocketing food costs. The President’s promise of subsidised rice at N40,000 per 50kg bag remains elusive as well, pushing many Nigerians further into hardship. Accusations of deliberate slowdowns motivated by the government’s revenue goals are alarming and warrant serious investigation.
A circular from the Presidency has clarified the approved food items eligible for duty exemption, specifically maize, millet, rice, wheat, husked brown rice, grain sorghum, and beans. This strategic move aims to alleviate the financial burden on consumers and enhance food security. Previously subjected to import duties between five and 30 per cent, these commodities will now be more accessible, potentially stabilising prices in the local market.
It seems the execution of the policy is encountering obstacles due to bureaucratic processes. If the government fails to address this crisis with comprehensive and effective measures, the consequences could be catastrophic. The simmering discontent amongst Nigerians could easily boil over into widespread protests and social unrest, further destabilising an already fragile nation. Ignoring the cries of its citizens and the looming threat of social upheaval would be a grave mistake with potentially devastating ramifications.
Public officials insulated by privilege and detached from the everyday struggles of the people, have fostered a dangerous disconnect. For too long, they have failed to truly understand the harsh realities faced by the majority of Nigerians, the daily grind of poverty, the constant battle for survival, and the crushing weight of economic hardship. However, the current multifaceted crisis, with its clear manifestation of suffering, should serve as a jarring wake-up call, even to the most arrogant and out-of-touch.
The government’s ill-conceived and draconian policies, implemented without adequate consideration for the people, have created an intolerable situation that can no longer be swept under the rug or dismissed with platitudes. The widespread suffering is a stark indictment of their negligence, demanding a fundamental shift in perspective and a renewed commitment to the welfare of the Nigerian people.
The recent #EndBadGovernance protests serve as an obvious reminder that disregarding the plight of the people is a dangerous gamble. When basic needs like food and security are unmet, and the cries for change are silenced, the simmering discontent inevitably boils over. Escalating hunger and desperation create a fertile ground for unrest, a truth tragically illustrated by the protests. If the government continues to turn a blind eye to the suffering of its citizens, more widespread and possibly violent demonstrations are not only likely, but inevitable.
Furthermore, attempting to quell dissent through intimidation and persecution of protesters is a recipe for disaster, as it only serves to further inflame tensions and breed resentment. The path to stability lies not in suppression, but in genuine engagement with the concerns of the people and a commitment to addressing the root causes of their suffering.
The Federal Ministry of Finance, led by Olawale Edun, has a crucial role to play in improving the image of this government. Minister Edun and Customs Comptroller-General, Wale Adeniyi, must prioritise the fight against hunger by expediting the zero duty policy. This policy will allow the importation of food at a reduced cost and ease the burden on struggling families.
Officials must accord precedence to the well-being of citizens over bureaucratic processes. The current economic hardship is undeniable, and the callous indifference displayed by those in power, who seem shielded from the harsh realities ordinary Nigerians face, is deeply troubling. The government must act decisively to expedite this critical policy and provide the much-needed relief to a population struggling with hunger, poverty, and misery. Continued delay is a betrayal of Tinubu’s promise and a grim reminder of the disconnect between those in power and the suffering Nigerians.
Editorial
For Credible Rivers LG Polls
All looks set for the conduct of the Rivers State local government election scheduled to take place tomorrow in the 23 local government areas of the state. A total of 18 political parties will vie for various council positions in the polls to be conducted on Saturday. The Rivers State Independent Electoral Commission (RSIEC) had initially listed 19 political parties for the election, but the Peoples Democratic Party (PDP) discontinued the contest. Chief Emeka Beke’s faction of the All Progressives Congress (APC) has said that it will participate in the ballot.
Ahead of tomorrow’s council election, various lawsuits have resulted in conflicting rulings about how the election should be conducted. A recent judgment by a Federal High Court in Abuja has prohibited the Independent National Electoral Commission (INEC) from providing the voters register to RSIEC and instructed the police to withdraw security for the ballot. Similarly, the court has barred RSIEC from getting the voters register from INEC. However, in a counter ruling, a High Court in Port Harcourt has mandated that the state electoral commission continues with the election, requiring INEC to hand over the voters register and ordering police protection for the event.
As voters in the state prepare to head to the polls tomorrow, the conflicting rulings and legal battles have cast a shadow of uncertainty over the election process. With INEC and RSIEC at odds over claims regarding the issuance of the voters register by the former and security arrangements for the ballot, there is a need for clarity and resolution to ensure a free and fair election. The conflicting court rulings have added further complications to an already challenging situation, raising concerns about the integrity of the electoral process. As all stakeholders navigate these legal challenges, the focus remains on upholding the democratic principles and ensuring that voters are able to cast their ballots without interference.
Intense preparations have characterised Saturday’s polls. The election is expected to be conducted in line with the provisions of the Rivers State electoral laws. Speaking at a meeting with stakeholders, the RSIEC chairman, Justice Adolphus Enebeli (Rtd), hinted that the commission had complied with relevant sections of the law in all its preparations for the task. He implored political parties and politicians to ignore acts that could jeopardise the electoral process.
While we wholeheartedly endorse the move to ensure that democratic practice, norms and values always prevail at the local government level, we are truly elated by the level of earnestness and commitment exhibited so far by the Justice Enebeli-led commission to conduct credible, free and fair election in the 23 local government councils. Indeed, RSIEC can execute credible elections if it resists pressures from different quarters.
Despite the Federal High Court order, the state electoral commission’s parley with security agencies, especially with the police, and other stakeholders is, to say the least, heart-warming and reassuring. We expect this cooperation and partnership to continue even after the election. Going by Enebeli’s antecedents, we strongly believe that the commission will not fail to provide a level playing ground for political parties and politicians to test their popularity in a free, fair and tension-free contest.
The state electoral body must, therefore, strive to adopt an open-door policy where complaints would be entertained on their merit during and after the election. As anticipated, we hope the commission embarked on massive voter education and training of electoral and ad hoc staff that would man the 23 local government areas. It is advised that adequate preparations should be made for the security of sensitive and non-sensitive electoral materials, particularly given the tensed atmosphere in the state.
RSIEC is reminded that the success or otherwise of any election depends largely on the authenticity of the updated voter’s register which the commission has reportedly obtained ahead of the election from the Independent National Electoral Commission (INEC). The news that as many as 18 political parties in the state will participate in the council polls is cheering. The parties are urged to support and cooperate with the commission in ensuring a smooth and credible election.
It is expedient that Governor Siminalayi Fubara releases all the funds appropriated for the conduct of the local government election to the commission and ensure that he does not interfere in the workings of the RSIEC, or even influence the outcome one way or the other. Members of the commission should work harder to uphold the law without fear or favour; let or hindrance.
Incidents of missing ballot or result sheets, late arrival of materials and other logistics will only serve to discourage the electorate who already entertain a deep mistrust for the electoral process in the country. The lack of confidence in the system is largely responsible for the attitude of most Nigerians refraining from playing an active role of either voting for candidates of their choice or vying for political office. RSIEC must guard against those lapses.
Politicians, on their part, must understand that irrespective of their party affiliations, the common goal is the provision of good governance for the people. An election should never be a ‘‘do or die affair’’ and no aspirant is worth spilling blood for. Political positions are a call to service, not personal enterprises motivated by profits or bloody sports for which violent and fatal competitions are means. Experience has shown that arms provided for political thugs during elections, end up being tools for robberies and kidnappings after the election.
The idea of security agents acting the script of political actors should no longer amount to something in our polity. The nation currently faces perhaps its worst security challenges, and the police as well as other security agencies need the trust of Rivers people to enable them to carry out their duties effectively throughout the polls.
Law enforcement agents must protect both voters and election materials because it is their constitutional role to do so. The recent #Endbadgovernance protest, along with the violence that ensued, is a manifestation of the dissatisfaction of Nigerians with police operations. These security agencies must learn to commit themselves to their constitutional obligation and oath in the sustenance of democracy, rather than to any government official.
We must realise that ultimate power rests with the people, and the best way to exercise this power is through the electoral process. Hence, Rivers people must own the electoral operation, first by acquiring their permanent voters’ card, turn out en masse tomorrow to vote for candidates of their choice, and guarantee that their votes count. They have to elect responsible and responsive persons whose utmost interest will be the security and welfare of the people.