By Remi Idowu
Now that the 2016 National Budget has been passed into a statutory law by the President, it is about time to start assessing and monitoring the performance or otherwise of a government that met a comatose economy exactly one year ago. In any sane climes, the passage of the first budget marks and illustrates the direction of a new government among other variables. For those of us who are patient enough to start the assessment process of this administration that must run through a –four- year marathon race, it is the right moment to begin to beam our search-lights and watch if what we were promised during electioneering campaign period are being gradually delivered or will be delivered. Buhari’s first budget is a clear pointer as to the course he intends to take the nation through.
The 2016 Budget,( a- 6.02 Trillion naira) or what I decide to call Buhariconomics, is the first of its kind in the history of Nigeria; the biggest, the most thoroughly fought and the most transparent in content and in purpose. No wonder those evil servants (sorry, the Civil Servants) and their collaborators at the national assembly whose natural game was paddling and more paddling to fleece us of Trillions of Naira year- in, year- out without any challenge by the equally devilish previous governments since Independence did everything to stall, derail and deny us of a budget that could set the tone for people’s liberation from wants, hunger and stagnation. For those of us who fought the last clueless regime to surrender, we should say a big thank you to a leader who stood his ground to deliver this budget from the jaw of the devourers.
What then is Buhariconomics ?
It is an economic philosophy that has budgeted 92.3% (422 billion naira) out of a total allocation of 456.94 billion naira in the Ministry of Works, Power and Housing towards capital development.
Under the Ministry of Transport, 93% (188.67 billion naira) is committed to capital projects out of a total allocation of 202.3 billion naira. The two examples, among others illustrate a strong commitment to infrastructural revolution on our desolate roads, epileptic power supply, stone-aged railway system and dilapidated public housing.
A social welfare package of 500 billion naira would start given succour to our less privileged and vulnerable citizens at the rate of 5,000 naira per person on a monthly basis. As meagre as this could be to some, it goes a long way in addressing critical survival needs of people with a nil-income which they now stand to benefit from on a monthly basis.
Buhariconomics means zero tolerance to corruption, sleaze and outright robbery of our commonwealth. It is now business as usual for public servants as well as politicians, bankers, business men and women to start accounting for their sources of ill-gotten wealth and pay back whatever they must have stolen from the public joint accounts. There is no more save haven for looters and their buddies all over the world; Buhariconomic’s dragnet is now on the loose piping over their bank accounts globally.
Buhariconomics entails efficiency agenda in our day-to day activities in Nigeria; financial efficiency in our ministries has scooped in 2.2 Trillion naira through the TSA ( Treasury Single Account). This single master stroke of a system has robbed our crafty civil servants of their usual annual Christmas bonanza at the expense of the general populace. What about the implementation of the BVN that has exposed over 24,000 ghost federal government workers and now saving the government over 2.29 billion naira on salaries every month?
Our FX( foreign exchange earnings) are under lock and key far away from fraudulent CBN officials, their commercial bank collaborators, doggy Bureau de change outlets and phoney business entities whose stock in trade was to buy at official rates and then bring back through the back door into the black market at an exuberant spread.
Devaluation of naira remains a taboo to this administration and its justifiable in doing so. Devaluation only makes sense where a country has products and services to export at competitive rates to other nations. The advantage of that means more products are sold at cheaper prices that should translate into economic growth and increased revenue for the government in form of foreign currencies. In Nigeria’s situation however, crude oil is our major export product accounting for 70% of our foreign earnings. Crude oil prices however, are determined at international market for all crude oil producing countries, meaning prices are the same for all. Devaluation therefore will not increase our export earnings since a barrel of crude oil remains the same for all the sellers including Nigeria.
That is, a barrel of crude oil is the same price for Nigeria, USA, Saudi Arab and the rest of the world. There is no justification or advantage therefore to devalue naira unless we have other products like agricultural products to sell outside Nigeria at competitive rates. The answer is no as we do not even have enough to feed ourselves. We import rice including toothpick!
Buhariconomics’s position not to devalue the naira remains credible, sensible and to Nigeria’s advantage when one consider the effect of devaluation on imported goods that we consume as a nation. Nigeria is a chronic example of an import- consuming nation. We virtually import everything including items that we are endowed with, petroleum and agricultural products. The implication of this is a drain on our FX as imported products become more expensive as a result of a devalued currency.
Buhariconomics as the solution to our immediate and future economic survival.
While PMB and his team are busy making efforts in sorting out our infrastructure which in itself would create millions of jobs for our restless youth, open up our inter-lands for easy access of goods and services; blocking financial loopholes, grafts and corruption are areas this government is tackling vigorously to guarantee our collective survival agenda based on home-grown solutions. We must start looking inwards to feed ourselves rather than be import-dependent nation. It saves us the wasteful spending of our hard-earn foreign exchange and also helps us to grow and strengthen our economy. A sustainable and viable economy grows by investments and patronage of home –grown products /services and less consumption of foreign goods and services.
Our sole reliance on crude oil revenue for many decades is being addressed with a focused determination by this administration to explore and encourage untapped mineral resources and broaden our revenue base. It is projected that Nigeria could generate well over $25 billion annually by 2025 from the mining sub-sector of Nigeria’s economy alone when properly harnessed and managed through continuous investments.
In the area of agriculture, self sufficiency in food production is central to this administration; the Federal government has in view one hundred percent self sufficiency policy in rice production from 2018 as part of home- grown agenda of Buhariconomics. The nation is currently spending billions of naira on importation of agricultural products we should have comparative advantage in the global market.
Transparency in oil industry and export substitution of refined petroleum products rather than importation is an integral component of Buhariconomics. NNPC has been unbundled to drive-in efficiency and profit making ventures.
EFCC is up and alive to its statutory responsibilities in prosecuting looters and recovering of our common patrimony. The judiciary is wakening up to its roles as the third- tier of the government. Our military personnel have been able to curtail Boko Haram insurgency to a minimum impact.
Yes, there are challenges in the last few months with fuel scarcity, power failure, vandalism of our pipelines and high inflation, but this government is focused , truthful and has the capacity to overcome if most of us remain patriotic and resilient enough to follow through in faith and in action. Nigeria, your time has come to rise and shine, together we can do it.
*Idowu, a socio-economic policy consultant & a practitioner in housing, lives in London E-mail: remidowu@yahoo.co.uk.