DID PRESIDENT BUHARI REDUCE MINISTER OF FINANCE, KEMI ADEOSUN, TO A GLORIFIED FIGUREHEAD?

On the 11th of November 2015, Nigeria welcomed a Federal Executive Council as President Buhari formally admitted his new 36 member cabinet and assigned their portfolios. The president also reduced the number ministries to 24 from 32 by merging certain ministries and eliminating others. Nigerians lauded these moves which the President has pushed as a way of reducing expenditures after suggesting that Nigeria is broke.
Despite this positive step, some have questioned President Buhari’s moves, one of which is his decision to remove the budgeting processes from the Ministry of Finance, and to create an independent Ministry of Budget and Planning. Having these two ministries split is certainly not peculiar to Nigeria as there are a few countries around the world, like the United States and Australia who operate this sort of system. However, the difference is that these countries are better developed and have stronger institutions, accountability and transparency which leads to smoother coordination in the budgeting process. But in a country like Nigeria with weak institutions, dividing two functions that are part and parcel of the same thing is a possible recipe for disaster that might result in a dysfunctional and inefficient system — something Nigeria can certainly not afford that at this point.
Some developed countries like South Korea have attempted to split their finance ministry at some point, but after realizing that both are better under one roof, moved to merge the ministries. In 2008, the government of South Korea joined the Ministry of Finance and Economy and the Ministry of Planning and Budget (MPB) to create the Ministry of Strategy and Finance (MOSF) in order to put fiscal policy functions and inter-ministerial policy coordination under one roof. In countries where these twin ministries are run parallel to each other, the decision to split is mainly political, usually because the president intends to weaken the ministry of finance and control more of its functions. Is this the actual intention of President Buhari?

President Olusegun Obasanjo, attempted a similar move during his tenure when he opted to shift the office of budget to the presidency. This move was not welcomed by the country’s former finance minister, Ngozi Okonjo-Iweala, as she tendered her resignation in defiance. Now, President Buhari has succeeded in splitting the ministry leaving a number of questions unanswered. Who will be in charge of developing the macroeconomic framework that underpins the budget — the ministry of finance, or the ministry of budget? Also, who will have oversight over the budget execution?
Another unclear move by the president is his decision to place an relatively inexperienced person like Kemi Adeosun in the critical role of a finance minister. Considering the significance of the ministry of finance, one would expect a more seasoned candidate for a position responsible for the countries finances, macroeconomic outlook. Analysts have also commented on the fact that Adeosun is to work solo without a junior minister of state. This move by President Buhari has been described as a “first class blunder” by one of our contributors, Bayo Adeyinka who suggests that Adeosun lacks the pedigree of Nigeria’s former finance minister, Ngozi Okonjo-Iweala, and the gravitas of Charles Soludo, former CBN governor. Foreign media and financial experts have also questioned if she is capable of engaging international financial organizations and multilateral agencies effectively.
Adeosun might have a strong background in the UK’s private financial sector, and also a few years of experience as the Commissioner of Finance of Ogun state, but federal politics is a completely different game. Nigeria’s economic growth has slowed due to oil price drops, stringent but unclear monetary policy, and an economic policy that has been adrift since Buhari’s ascension to power. Now the country has a seemingly weak Minister of Finance — who has been stripped of an essential role such as budget planning and execution — expected to bring some sanity to the chaos. But without the tool of budgeting in her arsenal, the minister of finance is hampered in managing the fiscal imperatives of the economy.
According to an investor and financial expert who wished to remain anonymous, “the removal of the Budget Office from the Ministry of Finance is a huge mistake. A decision that seems motivated by a desire to whittle down the office of the Minister of Finance given the status of the previous minister, and less out of a genuine desire to actively manage fiscal policy in the government.”

On the other hand, President Buhari’s nomination of Udo Udoma, a strong and respected former senator as the Minister of Budget and National Planning seems to be a winning move. As a former Vice Chairman of the Senate Committee on Public Accounts, Judiciary, Banking and Currency, Udoma has experience working with budgeting and the ministry of finance. He was also the Chairman of the Governing Board of the Securities and Exchange Commission which brings experience with and understanding of financial markets. However, Udoma cannot run the whole budgeting process by himself which raises the question of whether or not the new ministry has the skilled professionals needed for the kind of strategic budgeting the country requires. If the answer is no, then this move could also pose a systemic risk as decisions in this ministry are taken without a full understanding of the interconnectedness of numerous economic variables.
Menachem Katz, a financial expert and former IMF country director for Nigeria explained that the system of public service in Nigeria is such that it doesn’t allow for specialization, hence there is a dearth of well-trained economists within the economic team. Civil service staff are constantly moved around randomly preventing skills development and knowledge accumulation in specific areas or policy sectors. In developed countries such as the UK, ministries are run and staffed by skilled professionals in that particular space. There are also university to government pipelines where the government selects the best students from prestigious universities like Oxford and Cambridge to train and retain. “As long as they do not have such a system in Nigeria, the whole budget process will remain weak,” said Katz.
The finance minister and the minister of budget and national planning will have to harmonise goals and operations – albeit in separate ministries – if they are to get anything done. The finance ministry needs the Ministry of Budget to actively plan. The budgeting ministry needs the Ministry of Finance to effectively disburse funding according to its mandates. What happens if they don’t coordinate and they each try to extend their roles to make sure that they are in charge? In such a scenario, clearly the stronger person is bound to take charge, which in this case is Senator Udoma. This leaves Kemi Adeosun as a manager of parastatals that are already independently run by equally strong individuals – Nigerian Customs Service, the Federal Inland Revenue Service — and boxed in by equally substantial ministers at Trade and Investments, and Petroleum (run by the president himself, with the assistance of Ibe Kachukwu).

But if Adeosun is no pushover, and does not succumb to the looming pressure around her, it means President Buhari has successfully created a battlefield within his executive council. Or maybe not. If Udoma and Adeosun refuse to act with professional maturity and actually get work done, they’ll have to run to the President for his resolution of every point of conflict — which is perhaps what the president intends. This means that while some Nigerians are busy calling the move to separate the budgeting and finance ministries a blunder, it might well be an intentional one. President Buhari might be building a system in which he remains the final authority over finance, budget and national planning, leaving both ministers as glorified figureheads. The problem with this strategy is that if the president is busy, as his office often demands, things get stuck and nothing gets done. Whatever the intention, removing the ministry of budget and planning from the finance ministry without a carefully deliberated plan, does have grave implications for Nigeria’s economy.
Hadassah Egbedi
November 23, 2015

Sourced:
http://venturesafrica.com/features/president-buhari-just-might-have-reduced-nigerias-finance-minister-kemi-adeosun-to-a-glorified-figurehead/


Ladies and gentlemen, while we were basking over the hocus pocus of the delays in cabinet nomination, I think we missed the points highlighted in the above article, some of the concerns which are already becoming evident from the evidence of the past few weeks (2016 budget and the "alleged fiasco" from the UAE bilateral agreements signing) had made me go back and have a look at this article.

Lets deliberate.

Mods please kindly assist

I don't know about these finance and budgetary guys but I know that this show of shame won't and can never have me in anytime, anyday...

If he wanted, he ought to have held to the ministries like he did petroleum instead of making a joke of seasoned professionals.

I'd rather go the Obj-Okonjo way to save my reputation.

No!

blizard44:
I don't know about these finance and budgetary guys but I know that this show of shame won't and can never have me in anytime, anyday...

If he wanted, he ought to have held to the ministries like he did petroleum instead of making a joke of seasoned professionals.

I'd rather go the Obj-Okonjo way to save my reputation.

I am of the opinion they knew what they were signing up for, when your boss already refers to you as a "do-nothing noisemaker" what then are you expecting?

By running this show for months where permanent secretaries had to line up, one after the other for briefing gave a feel of one of those high-handed sovereign rulers africa became cursed with immediately post independence.

NavierStokes:


I am of the opinion they knew what they were signing up for, when your boss already refers to you as a "do-nothing noisemaker" what then are you expecting?

By running this show for months where permanent secretaries had to line up, one after the other for briefing gave a feel of one of those high-handed sovereign rulers africa became cursed with immediately post independence.

They already know where they belong. Even the acclaimed lion-Rotimi Ameachi dare not voice out against the supreme leader pmb.

Must it be Ngozi or Charles always?

Let us try another hand and approach to financial management. At least better than having our local Chartered Accountants mount this portfolio.

She is young and can prove her mettle.

Keneking:
Must it be Ngozi or Charles always?

Let us try another hand and approach to financial management. At least better than having our local Chartered Accountants mount this portfolio.

She is young and can prove her mettle.

The article raises several salient issues such as issues of responsibility, monitoring budget implementation, increased bureaucracy and the possibility of a one-man show amongst others. Can we just see that this goes beyond a soludo or iweala or adeosun.
Very soon some will come here talking about a low oil price, forgetting that your approach to a problem is important, and also that prices were low and forecasted to go lower and stay lower for longer, even during the campaign days.

What was the essence of putting the economy on a standstill for several months just to appoint ministers.

With the slow speed at which the president is taking to address issues in all facets so far, we should be expecting the government to come up with an idea when we must have already been dead economically or come out stronger by our own doggedness and resilience (medicine after death).

I

NavierStokes:


The article raises several salient issues such as issues of responsibility, monitoring budget implementation, increased bureaucracy and the possibility of a one-man show amongst others. Can we just see that this goes beyond a soludo or iweala or adeosun.
Very soon some will come here talking about a low oil price, forgetting that your approach to a problem is important, and also that prices were low and forecasted to go lower and stay lower for longer, even during the campaign days.

What was the essence of putting the economy on a standstill for several months just to appoint ministers.

With the slow speed at which the president is taking to address issues in all facets so far, we should be expecting the government to come up with an idea when we must have already been dead economically or come out stronger by our own doggedness and resilience (medicine after death).

I

Did OBJ, Late Yar'Adua and Jonathan not run a one-man show? Has the government failed in meeting its financial obligations so far? Has the budget been passed? Are you aware that the government's part of spend in the fiscal year is "zero based budget approach"?

Agreed, oil prices have been forecasted to be extremely low this year, where is the saving all these years? Can Okonjo and Soludo tell us where it is?

Keneking:


Did OBJ, Late Yar'Adua and Jonathan not run a one-man show? Has the government failed in meeting its financial obligations so far? Has the budget been passed? Are you aware that the government's part of spend in the fiscal year is "zero based budget approach"?

Agreed, oil prices have been forecasted to be extremely low this year, where is the saving all these years? Can Okonjo and Soludo tell us where it is?

Zero based websites or BMW's or provision of recreational facilities?
My brother this is a government of "change" and should not be seen as exhibiting any of those your alleged tendencies of past administrations. Sadly your sai baba's "one-man-showship" is even worse, who ran a government for months with just a photographer(bayo omoboriowo) and 2 media aides ( garba and femi)? Who referred to ministers as noisemakers? Answer these honestly plus we need to ask a certain cbn governor how $117billion was used in his tenure to stabilise our currency.

->No one is capable of running a one man show in Nigeria, the complexity of the country will not allow for its success.
->This is why ministers should be given free will to use their experience and expertise to move the country forward.
->There is absolutely no need of appointing them if you don't allow them to function properly.

That Kemi is too young and inexperienced to be a Minister of Finance. I won't be surprised if she is "doing" a top gun in Ogun State to have got that position.

Omotolu:
That Kemi is too young and inexperienced to be a Minister of Finance. I won't be surprised if she is "doing" a top gun in Ogun State to have got that position.

The timing was very wrong, she is coming at a time when we need all the experience and clout we can get.

Omotolu:
That Kemi is too young and inexperienced to be a Minister of Finance. I won't be surprised if she is "doing" a top gun in Ogun State to have got that position.

I won't say her age is the problem, lets just agree we had better people in her position before and even if she got her position because it was zoned to Ogun state, I strongly believe Ogun has people of more international clout and pedigree in the financial sector than Mrs Adeosun. Political partisanship aside, our economy is in a mess and she obviously doesn't have a handle on anything going on around her. The day I gave up on her was when she said she had no clue on where funds that were being returned to the country were a whole finance minister.... Smh

My problem with some yorubas is they have a very strong tendency to be sentimental beyond the confines of reason. I read a response the other day where a fellow smugly said...whether she is qualified or not, whether the economy crumbles or not, she must finish her tenure. I couldn't believe it. What most of us are saying...objectively is; they are hundrends of experienced yoruba men and women around the world who can fill in that position if it most be zoned to SW...doesn't have to me Mrs. Adeosun because a certain party chieftain wants her there at all cost despite her lackings.

Relic2020:
My problem with some yorubas is they have a very strong tendency to be sentimental beyond the confines of reason. I read response the other day where a fellow smugy said...whether she is qualified or not, whether the economy crumbles or not, she must finish her tenure. I couldn't believe it. What most of us are saying...objectively is; they are hundrends of experienced yoruba men and women around the world who can fill in that position if it most be zoned to SW...doesn't have to Mrs. Adeosun.

Well said Brother, it is a people that are alive that will go on to talk about tenure, right now we are battling for survival and should have the best at the helm of affairs only after then should we be seen talking about zoning and any associated balderdash.

keneking come anwser question, sanusi spent 117billion dollars to defend our local currency n was applauded by zombies n apc crown his efforts with emirship position, why always put d blame on madam ngozi okonjo n gej?
why am I sharing country with demons n hypocrites God?
why na?

are people still blaming Kemi Adeosun after reading the above article?
Is it not clear that Buhari has set her up? In fact,if this revelation is anything to go by,it is clear that nobody,be it Iweala or Soludo can do more than Adeosun in this present set-up.
Buhari is playing god but it is nigerians that will bear the brunt of his mischievious attitude to important issues.

Sealeddeal:
are people still blaming Kemi Adeosun after reading the above article?
Is it not clear that Buhari has set her up? In fact,if this revelation is anything to go by,it is clear that nobody,be it Iweala or Soludo can do more than Adeosun in this present set-up.
Buhari is playing god but it is nigerians that will bear the brunt of his mischievious attitude to important issues.

Left for him he would have picked all his aides and ministers from within the "katsina mafia".

Relic2020:
My problem with some yorubas is they have a very strong tendency to be sentimental beyond the confines of reason. I read a response the other day where a fellow smugly said...whether she is qualified or not, whether the economy crumbles or not, she must finish her tenure. I couldn't believe it. What most of us are saying...objectively is; they are hundrends of experienced yoruba men and women around the world who can fill in that position if it most be zoned to SW...doesn't have to me Mrs. Adeosun because a certain party chieftain wants her there at all cost despite her lackings.

You people should STFU, can you honestly tell me what kemi as done wrong since she became the finance minister that warrant you people saying she doesn't have the experience, she is barely 3 month into her tenure and all hell has been let lose from people like you that she does not have the required experience. What did we get from the experience of Ngozi or Soludo in the last 16 years, we are where we are today because of there so call stupid experience.

I think its is high time Igbo people stop this "I better past my neighbor" attitude. For me you are only castigating kemi because she is not from your side, because i don't see what magic anybody could have done in 3 month to turn the fortune of Nigeria overnight as you expect her to do. When we had the opportunity, your lord and experienced Ngozi could not do jack.

So please lets try our local inexperience Minister, since all international experience had failed us.


God bless Nigeria

Could the mods kindly take this to the frontpage.

I see Mrs Adeosun resigning if the negative attention around her doesn't stop. Let's hope she doesn't .

Omotolu:
That Kemi is too young and inexperienced to be a Minister of Finance. I won't be surprised if she is "doing" a top gun in Ogun State to have got that position.

You are sick and stu*pid. Just look at the lunacy of your comment. Because at your old age you have not accomplished what she has. Failure like you

Kemi is fine for that position. The article is right. She does not have any power in the government other than manage cash. The planning ministry is supposed to plan the economy based on indices from other ministries and especially the trade and investment. I believe Buhari may be interfering too much in their decisions. They need to work together with the finance minister given the charge to oversee the economic team. While Buhari plays a final decision making role with advice from Osinbajo.

Relic2020:
My problem with some yorubas is they have a very strong tendency to be sentimental beyond the confines of reason. I read a response the other day where a fellow smugly said...whether she is qualified or not, whether the economy crumbles or not, she must finish her tenure. I couldn't believe it. What most of us are saying...objectively is; they are hundrends of experienced yoruba men and women around the world who can fill in that position if it most be zoned to SW...doesn't have to me Mrs. Adeosun because a certain party chieftain wants her there at all cost despite her lackings.

Your first paragraph sounds like the kind of nonsense we heard about our sister Stella Oduah, I'm yet to hear any Yoruba person say the words you have accused the tribe of saying or even having an opinion similar.

I have my reservations on Mrs Adeosun like many others, but I'm willing to give her a try, what we lack in Nigeria is not necessarily good leadership at the top but when the employees at the ministry are not adequately trained and qualified. When mass communication students get jobs in the ministry of finance performing duties they are not qualified for in that we have a problem.

I'm sure Mrs Adeosun is adequately skilled and willing to advance to match the requirements of the task at hand. There are many Nigerians like soludo and Rewane GMB needs to have as senior advisers because these guys have been trained in the Nigerian system and understand it intricately. A flaw I see in both NOI and Kemi Adeosun who are imports

baby124:

You are sick and stu*pid. Just look at the lunacy of your comment. Because at your old age you have not accomplished what she has. Failure like you

....you said this to yourself "you are sick and Stu*pid. Just look at the lunacy of your comment. Because at your old age you have not accomplished what she has. Failure like you".

Crap.

OrlandoOwoh:
Crap.

Hehehe

Meanwhile in my friend's church today.....

Keneking:


Did OBJ, Late Yar'Adua and Jonathan not run a one-man show? Has the government failed in meeting its financial obligations so far? Has the budget been passed? Are you aware that the government's part of spend in the fiscal year is "zero based budget approach"?

Agreed, oil prices have been forecasted to be extremely low this year, where is the saving all these years? Can Okonjo and Soludo tell us where it is?

You are daft.
When the governors threatened court action saying excess crude account is unconstitutional and admission twisted the government into sharing and depleting the account now u are here blaming as usual which is typical of a programmed zombie. The Nigerian constitution dies not allow for savings on whatever form. It is built on a parasitic relationship of SHARE IT!

Meanwhile in friend's church today.....

what is the problem of BIAFRA? they are envy kemi because she a yoruba they keep uttered that she not qualify to be a minister of finance tell me the archievement of ngozi as a finance minister

Lighthouseman:

You are daft.
When the governors threatened court action saying excess crude account is unconstitutional and admission twisted the government into sharing and depleting the account now u are here blaming as usual which is typical of a programmed zombie. The Nigerian constitution dies not allow for savings on whatever form. It is built on a parasitic relationship of SHARE IT!

Yes the excess crude account is unconstitutional. It is not the sharing of the excess crude account that was the main problem of the governors, it was the unilateral withdrawals by the Jonathan's administration without permission from the governors that caused mistrust between the FG and states. Nobody could trust Okonjo Iweala and Jonathan with their share of federal allocations.

The governors share of the excess crude account is only about 24% while the FG's share is about 52%, why did the FG andnot save some of the FG's share in a special account for the rainy day. Was it the states that was responsible for the FG not being able to save it own share of allocation and still run a deficit budget?