Nigerian 2015 budget wasteful, frivolous with needless votes — CSOs

ABUJA — A coalition of civil society organisations under the auspices of Citizens Wealth Platform, CWP, yesterday, warned that the challenges currently facing the Nigeria economy will persist for a long time to come unless the wastage associated with governance and the frivolities, wasteful and unclear expenditures in the 2015 budget presently before the National Assembly are addressed. Speaking at a briefing in Abuja on the need to restructure the 2015 budget, Mr. Eze Onyekpere, Convener of the CWP and Lead Director, Centre for Social Justice, Abuja, said: “We are living in very hard and difficult times; the economic and social fabric of Nigeria is under pressure— declining crude oil prices, reduced demand for our major export commodity, continued export of refined crude petroleum and import of refined products. “The Naira has taken a bashing and has been devalued twice in the last four months while the budget proposal seems to have been set upon unrealistic and unrealizable oil benchmark. There are still all manners of frivolities, wasteful and unclear expenditures prevalent in the budget.” Review can save Nigeria N395.57bn Onyekpere disclosed that the 2015 budget is rife with a number of unnecessary expenditures, adding that the country will save N395.574 billion if a review of some of the provisions and elimination of certain unnecessary spending in the budget are undertaken. He explained that the sum will be saved if the N91.08 billion budgeted for kerosene subsidy is scrapped; if the sums of N732.42 million and N328 budgeted for food and catering and welfare packages in the presidency respectively are reduced; if the N150 billion budgeted for the National Assembly is reduced by half. Structural challenges He further highlighted the fact that structural challenges exist with the budget preparation process, stating that the template sent to Ministries, Departments and Agencies, MDAs, for budget preparation seems to be deficient, as it does not differentiate between MDAs, considering their statutory duties and peculiarities. He said: “Thus, every MDA must ask for a vote for security services, uniforms, printing of security and non-security documents, maintenance of IT equipment and all manner of consultancy services. “MDAs ask for a vote for welfare after they have made full provisions for the salaries and remuneration of their staff. Pray, what manner of welfare is this that is not covered by the staff remuneration? “There are provisions for medical expenses and supplies after full provisions have been made for contributions to the National Health Insurance Scheme. In a period of austerity, MDAs still dedicate millions of Naira to the repair of office furniture. But how much do you need to buy new furniture? “MDAs demand money for refreshment and meals as if they are running a restaurant chain. Nigeria still intends to pay pilgrimages against the constitutional bar on adopting state religion. Is there no terminal date for the Amnesty Programme that continues to gulp billion sof naira every year.” Advises FG to adjust priorities Onyekpere, however, advised the Federal Government to adjust its priorities and restore the capital budget to not less than 25 per cent of overall expenditure, cut down the recurrent expenditure through the implementation of recommendations of the Oronsaye Committee and recover the N160 billion stolen by ghost workers. On the issue of debts and borrowings, Onyekpere advised: “Debts and new loans should only be incurred in accordance with sections 41 to 44 of the Fiscal Responsibility Act, FRA. On no account should debts be incurred for recurrent expenditure. “For improved transparency in debt management, the Fiscal Responsibility Commission and the Debt Management Office should consider a collaboration to publish the details of Nigeria’s debts and the projects for which the loans were incurred.”