2012 BUDGET: NIGERIA’S WORST BUDGET EVER!!! SEE THE WASTE


Posted On Friday, January 13, 2012 By Japh. Under ARTICLES   



Dr. Ngozi Okonjo-Iweala's office is responsible for the budget



These are critical times. Nigeria has never been in a situation like this in my life time. Apart from the period of the civil war, this is the most critical time to be a Nigerian. Our resources have been mismanaged and now we are broke! Our people are being killed not just by extremists but also by the very government that swore to protect lives and property. This piece is about the 2012 budget and its sad realities.

The Basics:

1. The budget of N4.749 trillion assumes an oil price benchmark of $70 a barrel, oil production of 2.45 million barrels per day and zero deduction from Federation Revenues for the fuel subsidy.

2. Despite the above assumptions, the budget contains a deficit of 2.77% of GDP. (The nominal GDP has been estimated by National Bureau of Statistics (NBS) to be about N36 trillion in 2011), so essentially about N1 trillion of the budget is to be borrowed, or relies on exceptional income like privatization proceeds, loans and grants-in-aid.

3. Accordingly, out of the capital budget proposal of N1.32 trillion, only about N300 billion will be available from our federal revenues. If the “subsidy” is not withdrawn, the deficit will be even higher and the FG would then contravene the 3% cap on deficit in the Fiscal Responsibility Act 2007.

4. None of the so-called SURE projects have any NEW source of revenue to finance them other than what have been described above UNLESS:
(1) the oil price benchmark is raised above $70 or
(2) the Naira-Dollar exchange rate allowed to slide thus raising more Naira for the government.

The above assumptions are far-fetched in the current global economy.

Some examples of wasteful spending decisions are itemized below:

5. A review of the budget provisions of 21 out of 50 Ministries, Departments and Agencies revealed the following amounts for some recurrent and capital expenditure items:

• Travel – local and international N13 billion

• Stationery, Magazines, Newspapers, etc. N4.5 billion

• Maintenance of vehicles, furniture, etc. N17 billion

• Training N5 billion

• Fuel and Lubricants for cars, generators, etc N4 billion

• Miscellaneous: welfare packages, refreshments, meals, etc N9 billion

• Acquisition of Computer Software N2.5 billion

• Research and Development: whatever that means! N27 billion

6.

The actual provisions in the budget would be at least twice these amounts, and total about N160 billion of waste. This amount is equal to the amount budgeted for the power sector!

7.

Some examples of some of the wasteful spending under “Research & Development” are N2.498 billion for “citizen’s call centres” under the Ministry of Communications & Technology, N1.2 billion in the Ministry of Agriculture to incorporate commodity marketing companies! The Ministry of Foreign Affairs wants to spend N322 million to acquire “computer software”. This is very expensive software indeed!

8. A lot has already been written about the budgets in the Presidency. The following are some weird examples of what has been included in the State House (Villa) budget:

9. Overhead is about N7.2 billion, or about N20 million per day to keep our President and VP happy. Their local travel budget is N724 million or N2 million per day, including weekends, while
their international travel budget ix N951 million or nearly N3 million per day.

10. The president’s office has N285 million to hand out as “welfare package”, N265 million to buy computers, N150 million to buy scanners, N161 million for buses, N295 million for new furniture, and N1.8 billion to “maintain existing furniture, office and residential quarters”.

11. The intend to buy desktops for N300,000 each, laptops for N314,000 each and scanners for a whopping N190,000. The public address system in the President, VP’s office and Banquet Hall will cost N150 million! The SGF wants to spend N65 million on tree planting. Note that planting a million trees in Abuja over 4 years cost the FCT Administration less than N50 million then!

Conclusion: There is a lot of waste, and misplaced spending priorities in the Budget which can be reviewed to free more funds to finance subsidies, capital investment and improved governance. Do you remember #budgetscam ? This is worse than that!

Now you know why government doesn’t mind killing all of us because they will not free funds from the loots of their corrupt friends, they will not cut their salaries and allowances and they will not reduce their number of aides. Instead of all that, they’d rather hurt Nigerians by all means possible.

You can share this information with as many people as possible. Information has proven useful in this struggle.

#OccupyNigeria we will not tire, we will not falter, we will not fail

http://omojuwa.com/?p=2308

Fresh Air! Pless Umblella! Pless Umblerra

fresh air no be small!

Seun, Put this on the front page so nigerians can see where their money is going!!!!

hmmm, the only thing I have to say is that the pix of the finance minister is just cute!

laz_inc:

hmmm, the only thing I have to say is that the pix of the finance minister is just cute!

Oh, yeah? With her dyed eye-brow, abi?

A budget that has not been APPROVED why don't we write our representatives not to approve the budgeted amount instead of screaming blue murder everbody has a responsibility for good governance

^^^ Your suggestion sounds great but seems too vague. Give it some teeth.

@Topic, if this is true, then surely it's an outrage!

OP, una don carry una yeye fabrication come again.
Are you guys really stupoooiiddd?

The Office of the Coordinating Minister of the Economy recently released a breakdown of Potential Benefits from Budget 2012 and the SURE Program. Check out the release below and please pass it on.

Against the backdrop of the recent debate on the removal of fuel subsidies#, and the calculated misinformation being peddled by opponents of this policy, it is pertinent to highlight, in more tangible terms, some of the significant allocations that have been made to essential sectors of the economy, both in the 2012 budget as well as the recently-launched Subsidy Reinvestment and Empowerment Programme (SURE-P). This programme is a 3—4 year programme designed to mitigate the immediate impact of the removal of fuel subsidy and accelerate economic growth through investments in critically-needed infrastructure.

[b]It is noteworthy that, while the 2012 budget allocated the best possible amounts to these critical projects, additional resources are allocated to the same projects in the SURE programme to ensure that they are completed at faster rates than envisioned in the 2012 budget. Some of the projects and allocations are as follows:

Works

N11bn is allocated to the Abuja-Lokoja road in the 2012 Budget, with an additional N14bn from the SURE-P.

N6bn is allocated to Benin-Ore-Shagamu, with an additional N16.5bn to be financed through SURE-P.

N3bn is allocated to Port-Harcourt–Onitsha road, with an additional N5bn from the SURE-P.

Similarly, N18.5bn is allocated to Kano-Maiduguri road, with an additional N1.5bn from SURE-P.

Provision is made in the 2012 budget for construction of the Second Niger Bridge (N2bn) and Oweto Bridge (N3.5bn). An additional N5.5bn and N4bn would be spent on both bridges respectively from the SURE-P.

Provision of N23.5bn is made for maintenance of roads and bridges across the country through Federal Road Maintenance Agency (FERMA).



Agriculture & Rural Development

The total allocation to the sector is N78.98bn
N4bn is allocated to research and mechanisation
Provision of N1.22bn is made for the construction of access roads to each of the 6 Staple Crop Processing Zones.
Value Chain: N720 million is allocated to the development of value chains in cocoa, rice, maize, livestock, cotton and others sectors.
N1bn is allocated to the Price stabilisation scheme.
N610 million to facilitate for the access to credit, fertilizers and seeds.
An additional sum of US$500m is expected from Development Finance Institute to support the sector.
Transport

Rail lines: The 2012 budget allocates N3.95bn, N3.15bn and N3.35bn to the construction and completion of Abuja-Kaduna, Lagos-Ibadan and Ajaokuta-Warri rail lines respectively. In addition, the SURE-P allocates N11.6bn to the Abuja-Kaduna line and N9.3bn to the Lagos-Ibadan line.
Provision of N800mn is made for the procurement of wagons, coaches and locomotives.
Dredging project: N1.2bn is allocated to the dredging of Lower River Niger (Warri-Baro).
Education

The total allocation to the sector is N400bn
N11.6bn is allocated for existing universities.
N7.7bn is allocated for the restructuring to Unity Schools.
National Teachers Institute: The 2012 budget allocates N3.5bn to the retraining of teachers for basic education and training in innovative teaching.
Moreover, an additional N24.6bn will be spent on vocational training centres from the SURE-P.

Health

N4.6bn is allocated to the Polio eradication programme
N3.5bn is allocated to the procurement of HIV/AIDS Drugs
The sum of N174 million is allocated to Integrated maternal, newborn and child health strategy, including capacity building, and promoting school health initiatives.
N8.42bn is allocated to Federal University Teaching Hospitals.

N6bn and N3.6bn are allocated to the procurement of vaccines and midwifery service scheme respectively.

An additional N73.8bn will be spent on Maternal and Child heath from SURE-P.



Aviation

Various Airports: N22.2bn is allocated for the modernization of airport terminals and upgrading of facilities in the six geopolitical zones of the country.

Federal Capital Territory Administration

N3.1bn is allocated to the construction of a 20,000m3/hr lower Usuma dam Water Treatment Plants.

N2.5bn is allocated to the construction of Cultural and Millennium Tower.

N1.25bn is allocated to the Development of Idu Industrial Area (1b Engineering Infrastructure).

Various road projects including the completion of roads B6, B12 and circle road (N4bn), rehabilitation and expansion of airport Expressway (N7.53bn).

Niger Delta
East-West Road (Section I—V): The 2012 budget allocated N22.2bn to this road. In order to accelerate its completion, an additional N21.7bn is allocated in 2012 from the SURE programme.

Water Resources
N1.2bn is allocated to the construction of Central Ogbia Regional Water Project.
A total of N4bn are allocated to the construction of dams.
Other provision for water facilities (i.e. regional water supply scheme) of N8bn.
Rehabilitation of river Basin authorities (12 nos) of N13.91bn.



Moreover, over the period 2012-2015 an additional N205.5bn will be invested in rural water scheme, water supply scheme, irrigation scheme and other water related projects from SURE-P.
[/b]
These projects will not only significantly improve the country’s infrastructure, but will also create millions of jobs for Nigerians. This struggle is not between the government and Nigerians, because government is squarely on the side of the people. The fight is between the government and Nigerians on one side, and persons who are bent on continuing their age-long “milking” of the system for their personal benefits on the other side.

Please let us support government’s efforts at defeating these persons, and creating a better country for all Nigerians.

Source:

http://www.cp-africa.com/2012/01/13/nigerian-government-releases-potential-benefits-from-budget-2012-and-the-sure-program/

BlackPikiN:

Source:

http://www.cp-africa.com/2012/01/13/nigerian-government-releases-potential-benefits-from-budget-2012-and-the-sure-program/

Soon, real soon, all that chump change they're giving you poverty stricken mor*ons to mortgage your future to them will be no more. You know why? They keep up with the foo*lishness, they'll be too busy trying to save their own skins than worrying about internet propaganda.

Se, the rubbish you posted up there is the budget, abi? "Potential Sure Benefits"? Thats what you're coming on here to post to counter what I posted? you think everyone is as dumb as yourself? Well, I shouldn't be asking that after all your Oga and his wife claim they have Phds and they think they're smarter than the world. Soon, all of you will realize that the rubbish you carried out in your back-water where GEJ refused to do any single tangle thing and instead pocketed all the Billions of Dollars Bayelsa State was allocated during his tenure cannot be replicated with Nigeria as a whole.

Una go find out real soon. Yeye people.

BlackPikiN:

The Office of the Coordinating Minister of the Economy recently released a breakdown of  Potential Benefits from Budget 2012 and the SURE Program. Check out the release below and please pass it on.


Provision of N1.22bn is made for the construction of access roads to each of the 6 Staple Crop Processing Zones.

Value Chain: N720 million is allocated to the development of value chains in cocoa, rice, maize, livestock, cotton and others sectors.

N1bn is allocated to the Price stabilisation scheme.

N610 million to facilitate for the access to credit, fertilizers and seeds.


N3.1bn is allocated to the construction of a 20,000m3/hr lower Usuma dam Water Treatment Plants.

N2.5bn is allocated to the construction of Cultural and Millennium Tower.

N1.25bn is allocated to the Development of Idu Industrial Area (1b Engineering Infrastructure).


N1.2bn is allocated to the construction of Central Ogbia Regional Water Project.

Very soon, they'll pull this off their website (like they did the budget) when they realize that its fraught with all kinds of jargon that when thrown in their face will explode more violently than a Molotov Co*cktail.


N720 Million for the development of value chains, abi?

N610 million to facilitate for the access to credit, fertilizers and seeds, no be so?

But for Patience Jonathan to get fat and add extra layers of stomach, Nigerians are being asked to cough out N1Billion[b] JUST FOR HER MEALS ALONE!!![/b] We never add the N300Million cutlery or N500Million newspapers o!!!

Wow. SMH. Everyday for the owner. . . . .

kingoflag:

Very soon, they'll pull this off their website (like they did the budget) when they realize that its fraught with all kinds of jargon that when thrown in their face will explode more violently than a Molotov Co*cktail.


N720 Million for the development of value chains, abi?

N610 million to facilitate for the access to credit, fertilizers and seeds, no be so?

But for Patience Jonathan to get fat and add extra layers of stomach, Nigerians are being asked to cough out N1Billion[b] JUST FOR HER MEALS ALONE!!![/b] We never add the N300Million cutlery or N500Million newspapers o!!!

Wow. SMH. Everyday for the owner. . . . .

N720 million for value chain and N500 million for newspaper?
N610 million for credit, fertilizers and seeds but 1 billion for feeding 2 families?

MAY AMADIOHA DESTROY WHOEVER PREPARED THAT BUDGET!

I just dislike this woman with passion,

10. The president’s office has N285 million to hand out as “welfare package”, N265 million to buy computers, N150 million to buy scanners, N161 million for buses, N295 million for new furniture, and N1.8 billion to “maintain existing furniture, office and residential quarters”.

11. The intend to buy desktops for N300,000 each, laptops for N314,000 each and scanners for a whopping N190,000. The public address system in the President, VP’s office and Banquet Hall will cost N150 million! The SGF wants to spend N65 million on tree planting. Note that planting a million trees in Abuja over 4 years cost the FCT Administration less than N50 million then!

Lord have mercy!

OAM4J:

Lord have mercy!

hmmm indeed

You are yet to see anything. Let 2015 draws nearer, that is when you will see a 'real' PDP oriented budget. By then, PDP would be in need of serious cash to bribe and blindfold you all into plessing umblela.

All of you don enter am.

As the partridge sits on eggs,
and hatches them not; so he that
gets riches, and not by right,
shall leave them in the midst of
his days, and at his end shall be
a FOOL (Jer 17:11)

LET US IMAGINE THE LEVEL OF UNEMPLOYMENT IN NIGERIA AND SOME PEOPLE STILL MAKE THINGS TO BE DIFFICULT.

THIS IS WHAT BABA WROTE:

An analytical piece by Tobi Akiode.He has obliged to sharing this with as many Nigerians as possible. Pls share with frends and the public in general

ITS NO MORE ABOUT SUBSIDY ALONE:
# # The American President has only 2 aircraft, our president has 9in his fleet and voted money recently to buy 1 more!
# # The British prime Minister has only 2 official cars, our president has 23 in his pool and only recently voted 300m naira to buy 2 more bullet/bomb proof ones!
# # Senators in the US earn about$6,000 dollars monthly and dats about what a university professor,or a director in a state dept, or a doctor wt 20yrs experience, or a teacher wt 25yrs experience earn too, but in Nigeria a senator earns245million Naira per annum! Dats d salary of 25 vice chancellors, or 50 medical doctors, or 60 directors, or 500 schl teachers!
# # The US, almost d size of Africa with about 500million people have 24 ministers, and 32 govt parastatals and commisions, Nigeria has 42 cabinet ministers, and over 50 government parastatals!
# # America with about 500million people and more mileage to drive consumes 39million litres of petrol daily, Nigeria with 150million people 60% out of which live in remote areas, yet our govt tells us we consume about 35million ltrs of petrol daily!
IS SUBSIDY REALLY THE PROBLEM OF NIGERIA?

'When you marry an illiterate woman as a wife, you will definitely make stupid decisions like jonathan'-wole soyinka spoke!
http://www./forum/showthread.php?t_id=18146&page=1

wasteful and selfishly apportioned to better the upper class only.

emtar:

LET US IMAGINE THE LEVEL OF UNEMPLOYMENT IN NIGERIA AND SOME PEOPLE STILL MAKE THINGS TO BE DIFFICULT.

THIS IS WHAT BABA WROTE:

An analytical piece by Tobi Akiode.He has obliged to sharing this with as many Nigerians as possible. Pls share with frends and the public in general

ITS NO MORE ABOUT SUBSIDY ALONE:
# # The American President has only 2 aircraft, our president has 9in his fleet and voted money recently to buy 1 more!
# # The British prime Minister has only 2 official cars, our president has 23 in his pool and only recently voted 300m naira to buy 2 more bullet/bomb proof ones!
# # Senators in the US earn about$6,000 dollars monthly and dats about what a university professor,or a director in a state dept, or a doctor wt 20yrs experience, or a teacher wt 25yrs experience earn too, but in Nigeria a senator earns245million Naira per annum! Dats d salary of 25 vice chancellors, or 50 medical doctors, or 60 directors, or 500 schl teachers!
# # The US, almost d size of Africa with about 500million people have 24 ministers, and 32 govt parastatals and commisions, Nigeria has 42 cabinet ministers, and over 50 government parastatals!
# # America with about 500million people and more mileage to drive consumes 39million litres of petrol daily, Nigeria with 150million people 60% out of which live in remote areas, yet our govt tells us we consume about 35million ltrs of petrol daily!
IS SUBSIDY REALLY THE PROBLEM OF NIGERIA?

'When you marry an illiterate woman as a wife, you will definitely make silly decisions like jonathan'-wole soyinka spoke!
http://www./forum/showthread.php?t_id=18146&page=1

Nt the problem bt corruption.

ziccoit:

You are yet to see anything. Let 2015 draws nearer, that is when you will see a 'real' PDP oriented budget. By then, PDP would be in need of serious cash to bribe and blindfold you all into plessing umblela.

All of you don enter am.

We don enter am true true

lord GOD have mercy; this is geting me mad

emtar:

LET US IMAGINE THE LEVEL OF UNEMPLOYMENT IN NIGERIA AND SOME PEOPLE STILL MAKE THINGS TO BE DIFFICULT.

THIS IS WHAT BABA WROTE:

An analytical piece by Tobi Akiode.He has obliged to sharing this with as many Nigerians as possible. Pls share with frends and the public in general

ITS NO MORE ABOUT SUBSIDY ALONE:
# # The American President has only 2 aircraft, our president has 9in his fleet and voted money recently to buy 1 more!
# # The British prime Minister has only 2 official cars, our president has 23 in his pool and only recently  voted 300m naira to buy 2 more bullet/bomb proof ones!
# # Senators in the US earn about$6,000 dollars monthly and dats about what a university professor,or a director in a state dept, or a doctor wt 20yrs experience, or a teacher wt 25yrs experience earn too, but in Nigeria a senator earns245million Naira per annum! Dats d salary of 25 vice chancellors, or 50 medical doctors, or 60 directors, or 500 schl teachers!
# # The US, almost d size of Africa with about 500million people have 24 ministers, and 32 govt parastatals and commisions, Nigeria has 42 cabinet ministers, and over 50 government parastatals!
# # America with about 500million people and more mileage to drive consumes 39million litres of petrol daily, Nigeria with 150million people 60% out of which live in remote areas, yet our govt tells us we consume about 35million ltrs of petrol daily!
IS SUBSIDY REALLY THE PROBLEM OF NIGERIA?

'When you marry an illiterate woman as a wife, you will definitely make silly decisions like jonathan'-wole soyinka spoke!
http://www./forum/showthread.php?t_id=18146&page=1

the horror of this revelation. Oh the horror.

@ Blackpikin

All the things the govt have said they will do in the SURE projects 2012, were all in the 2011 budget. Have they achieved any of them in 2011, the answer its a Capital NO.

Fuel subsidy does not exist. This is an increase in pump price. If it were Fuel subsidy removal why would PPPRA still peg price?

they are bunch of theif, may god punish them all. whatever wealth they have gathere, they wil not live to spend it

This is why we need to overthrow this government. The amount of stealing is completely unsustainable and we are heading towards disaster if something isn't done soon. We can't afford to wait until the next election. Nigeria cannot survive another 3 years of this.

We may never get an opportunity like this again. Let's not waste it on fuel subsidy alone. we can sweep out all these criminals ruling us and put an end to high level corruption.

FOOD FOR THOUGH BY LRNZH on The Economist website

The basic salary of a Nigerian Senator (Aug. 2010) is about N29.5 Million ($196,000 USD) per annum. The yearly allowances for the same Senator is about N225 Million  ($1.5 Million USD).[/b]Total LEGAL earnings: [b]N254 Million  ($1.696 Million USD) per annum for a single Senator in Nigeria.

Nigeria per capita GDP (2010): $2,500 USD
Nigeria (population: 155 Million ) has 109 Senators
Minimum wage of an average employed Nigerian: $1,350 USD per annum
Social Security: None

For reference the US President earns $559,000 USD per annum (incl. allowances)
A US Senator earns between $175,000 and $200,000 USD in a year
US per capita GDP (2010): $47,200 USD
US (population: 312 Million) has 100 Senators
US minimum wage: $15,000 USD
Social Security: Old-age, Disability, Unemployment, Medicare etc

If The Nigerian Gov't cannot cut down the huge costs of maintaining its large size why does it expect the Nigerian populace to bear the cost of its failures?

Where refineries are truly functional in Nigeria fuel prices won't jump from 65N/litre to 141N/litre in one day due to a deregulation.

Pro-subsidy removal (in its present form) supporters forget that 141N/litre is not a true petrol market price but set by the PPPRA. That is not deregulation but just price increase.
They are also quick to point to the deregulation of the Telecommunication sector in 2001 as an example of why the fuel price increase as carried oun on Jan 1 is right.
Telecomms is not a necessity. The rich were the first to adopt it and as prices fell due to competition, the less privileged joined.
Petrol cannot be treated the same way. The effects will be felt immediately by all and sundry.
Also, Gov't did not set prices for handsets or sim cards like PPPRA did for petrol (true-deregulation).

My call is (within two years)
refurbish the 4 existing refineries first
deregulate the downstream (petrol prices won't be as high as 141N/litre)
then privatise the fully functional refineries.

The Petroleum Industry Bill provides a framework for a proper deregulation of the downstream.

It is not easy to oppose a Gov't, they're doing their job but in this case it is glaring that there are better alternatives than to raise fuel prices (hence commodity prices) impromptu by 120%. Period.

These our government officers are THIEVES,
OMG!!! IMAGINE FAT,HUGE,OROBO TAKE HOME PAY, CHAI GOD GO PUNISH THEM ALL. SOMEBODY SAY AMEN

Lets minimize the talking! I couldnt even finish the lagoors above.