Analysis of Nigeria's Proposed 2020 Budget
Nigeria’s President Muhammadu Buhari has presented the 2020 budget and this edition of Morning Crossfire analyses it. The show hosts Wemimo Adewuni and Sheriff Quadri are in the studio with two resource persons, Rotimi Sankore and Gbolahan Olojede.
Wemimo says it’s not a bad idea if we call it ‘budget 101’. The attempt here is to restore the country to the January to December cycle. Of course, Gbolahan Olojede says that budgets are meant to make Nigerians disciplined. “But if they pass a law that agrees with the January to December thing, then we should have the budget signed and in place as at January 1.”
He said that if happens that six months into the year the budget is not signed or ready, it will look as if the government doesn’t have the right intentions with the budget to guide Nigeria into the right destination. “We must first get back to the pedestal where we can say that a budget is passed into law at the very beginning of the year,” he says.
“It should bother everybody that we are still having challenges on 2019 budget and yet we are talking about 2020 budget. But if we are able to get this budget into the treasury by December, whatever is left of is returned back and can be recycled.”
Gbolahan affirms that the huge numbers (10.33 trillion naira) should not alarm anyone because when we convert that 2020 budget to the 2012 budget, they are still on the range.
According to Rotimi Sankore, Nigeria is not an industrialized nation that can manufacture all the heavy-duty machinery, all the consumer electronics that everybody needs or desires. “So, the dollar equivalent is a pretty good indicator of whether there has been progress or not. Like Gbolahan says, in dollar terms, the budget has remained relatively at the same level.
Nigerians are alarmed that government has been spending so much money and nothing is really getting done but the fact is; Nigeria has not been spending more when the dollar factor comes in. Gbolahan even says Nigeria doesn’t even have money to spend.
“The important thing is that the strategic deployment of resources needs to reduce the deficits in key indicators,” Rotimi says.
Yet, it is evident that Nigeria is not spending like South Africa. Why is that? Watch Morning Crossfire below.
President Muhammadu Buhari, on Tuesday presented the year 2020 budget proposal to a joint session of the National Assembly. During the budget presentation, PMB announced that N125bn was allocated to the National Assembly while N110bn was allocated to the Judiciary.
President Buhari announced the following allocations to respective ministries: Works and Housing – N262 billion Transportation – N123 billion UBEC – N112 billion Defence – N100 billion Agriculture – N83 billion Water Resources – N82 billion Education – N48 billion Health – N46 billion North East Dec Commission – N38 billion SIPs – N30 billion FCT – N28 billion Niger Delta – N24 billion.
Morning Crossfire with Wemimo Adewuni (@wemimospot) & Sheriff Quadry (@SheriffQuadry), alongside Rotimi Sankore (@RotimiSankore) & Gbolahan Olojede
Written by Jude Chukwuemeka