For every fiscal year, the Federal Government of Nigeria goes through the rituals of drafting the appropriation bill usually based on number of barrels of crude oil sold for that year. For example, Nigeria’s 2012 budget of N4.749 trillion is premised on an oil price benchmark of $70 a barrel for a total production of 2.45 million barrels a day and at an exchange rate of N155/$. The 2011 budget was predicated on oil production of 2.3 million barrels per day at a benchmark price of $65 per barrel and at an exchange rate of N150/$. The budget of 2010, which doubled previous appropriation bills in a grand style and continued until date projected on 2.35 million barrels of oil production a day, at a benchmark price of $67 a barrel for a total of N4.6trillion and eventually overstretched to N5.160trillion.

Meanwhile, according to the revenue schedule of the Federal Inland Revenue Service (FIRS), contributions in terms of revenue to the economy for seven years between 2004 and 2010 nearly equalled or surpassed the national budget. For instance, the tax revenue schedule showed that in 2004, FIRS made a total of Nl.19 trillion in revenue, whereas the Federal budget was Nl.18trillion. In 2005, it contributed Nl.74trillion while the budget was N1.61trillion. Again, in 2006, FIRS made Nl.86 trillion against the Federal budget of Nl.188trillion. Furthermore, in 2007 it made Nl.84trillion as against the federal budget of N2.3trillion recording a marginal difference.

In 2008, the revenue of FIRS rose to N2.97trillion whereas the federal budget was N2.45trillion. In 2009, FIRS revenue was N2.19trillion and the federal budget was slightly higher to N2.87trillion, again recording another marginal difference.

However, in 2010 the revenue collected by FIRS was N2.83trillion whereas the federal budget rose to alarming N4.6trillion and eventually ran into a deficit of N5.160trillion.

In presenting the 2010 budget to the National Assembly, President Jonathan, then acting president had this to say, “I sign this Budget into law authorising aggregate expenditure of N4.6trillion, so that this appropriated expenditure may be rapidly utilised to accelerate initiatives to enhance the pace of development of our nation”. Unfortunately, those promises to accelerate growth initiatives and development are yet to be felt even though, he implemented two jumbo budgets; the third one is now running. We have heard so much about transformation agenda with nothing on ground to justify the jumbo budgets no matter the rhetoric.

In his reaction to the 2010 budget, Kabiru Mato, a political science lecturer at University of Abuja said, “The tragedy of it all is that there seems to be already a high rate of scepticism among Nigerians because every year they vote such a large sum of money and say they are going to put infrastructure in place. But at the end of the day, the money is exhausted and the infrastructure is not in place. And that is why electricity is still an issue, roads are still an issue, the issue of public transportation is virtually non-existent in Nigeria.”

Two years down the line, the above commentary remains very relevant because the same challenging issues remain unchanged or worst-off. This is in spite of the high hope and massive expectations of many Nigerians prior to 2011 election. Security, today has become epidemic as Boko-Haram is mortally endemic and rampaging, education and health are in shambles, the promise to revive the rail system remains a mirage; power sector remains comatose with records of frequent systemic failure despite unbundling and privatization. Funny enough, the National Electricity Regulation Commission (NERC) continues with same old lies that investors will only come when tariff is increased. Same falsehood orchestrated in the petroleum sector during the oil subsidy palaver.

Sadly, it is only in Nigeria that investors want to recoup their investments within one or two years of entry because the underhand of Esau remains present. Genuine investors invest long-term, knowing the potentials of the market they are entering. They depend on government incentives and other collaterals like tax shelter to remain in business, create and add value firstly, increase price when necessary, breakeven possibly after five years and look forward to recoup investment within ten to fifteen years. In Nigeria, it is a different ball game debarring international practice, where a big thief catches a smaller thief; the big thief gets off-hook and celebrates valour for impinging the credibility of a smaller thief in subjugation to critical issues.

Recently, the oil marketers gave a signal to stop importation of refined oil come July 2012 because they have not been paid for previous imports. It is unconscionably wasteful that Nigeria continues to import a God given liquid-gold deposited in abundance to bless the weak as well as the strong. It is equally callous and unpatriotic for our leaders to refuse to harness our common wealth for the benefit of all and sundry. Do we not know that over 33 derivatives come from crude oil alone that few segments come back to us as imports? When will this rat race end and when will the wasteful spending stop? Bring the entire World Bank crew to the country full-time under an insincere and parlous system will only produce garbage out.

Majority voted President Goodluck Ebele Jonathan to office because they thought that he would be different, a new dawn that will do things not as usual and with hope that the jumbo budgets will strike a new balance. Nevertheless, they are wrong. People say it is the system. Some states in Nigeria are doing far better today than previously, yet they are in the same system. Lagos State, for instance is a microcosm of Nigeria, and currently incomparable to the days when Chief Otedola and some others held firm as governors. One can see meaningful development that truncates possible underhand even where it exists.

What many expect are things that other citizens take for granted elsewhere. Build new refineries, repair existing ones, encourage rich states to build their own refineries or jointly. Fix our power sector, fix our roads, build new ones, take charge, and give citizenry sense of security, project effective education, better the health system, provide affordable and sustainable housing scheme, develop our agriculture, and truly tackle corruption. Would these be too much to ask from a president that seems to know his onions and manages the economy of the eighth largest exporter of crude oil in the world?

I watched the 7pm Presidential chat of Friday June 24, 2012 and noted that only one caller got through to the president. I personally made frantic efforts to get through myself without success. Agreed, the networks have been unstable and very unreliable lately but the situation negatively portrayed the state of our infrastructures; where nothing seems to work, even at the very eye of the highest office holder of the largest black nation in the world. Ordinarily, I found it quite disturbing, and see it as part of the inadequacies of the people who work for the president.

The provocative questions therefore are thus, if FIRS has been making these huge and impactful contributions to our economy during the reign of Amazon, Ifueko Omoigui-Okauru, it is desirable to know how these contributions reflect in the yearly budgetary routine always predicated on sale of certain million barrels of crude oil multiplied by an estimated international market price.

Nigerian Customs Services (NCS) claimed to have generated a total of N4 trillion as revenue within a period of ten years between 2000 and 2011. Of this amount, N2.58trillion went directly into the Federation Account while a total of N1.6trillion went into other accounts on behalf of other agencies of government they claimed. Averagely for each of the years mentioned is N400 billion in revenue to the government.
One desires also, to know what happens to other viable institutions that substantially are required to contribute to the national treasury such as Nigerian Ports Authority (NPA), Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA) and many others. How much do these institutions bring to the coffers of the government in revenue?

Why have our infrastructures still paralyze despite the three Jumbo budgets pass?

Why the national security question is appalling, dangerously escalating and unsettling despite so much assuages from the government?

Our current foreign reserve said to be hovering around US$35 billion or so. Does our foreign reserve reflect the revenue contributions from relevant government agencies; more so with the shocking revelation that both the Central Bank of Nigeria (CBN) and the National Petroleum Corporation (NNPC) denied ownership of a secret crude oil proceeds account domiciliary with the JP Morgan Chase; each claiming ignorance and shoving responsibility of the illegality to the other. What a tragedy for those who manage our national life and trust. We hope the truth will eventually come out someday so Nigerians know who the operator of the account is and how the account ran since 2002 contrary to statutory requirement.

While the burning pertinent questions beg answers, the Peoples Democratic Party (PDP), the giant clay footed, self rechristened largest party in Africa should begin and hastily too, pack their luggage in preparation to leave the scene along with their principals within the next 24 months unless of course, they have trump-card to pull around their shaky toted Transformation Agenda.

Unfortunately, which among the opposition parties will give the desirable direction Nigerians yearn, taking cognisance of various inconsistencies abound in both the oppositions and the ruling party. I agree wholly with Simon Kolawole in This Day Sunday July 1, 2012 column, SimonKolawoleLive where he asked “Is the Opposition Really Serious?” This is a daunting question confronting the opposition hierarchy unless they wake-up today, quickly get their houses in order, rebound to fathom a purposeful leadership that is visibly lacking in the past 13 years. It is a wakeup call to all of them because Nigerians will not subscribe to half-baked gang-up or unholy alliances geared selfishly to wrestle out power to further jaundice our national future. Even at the imperativeness of holistic change glaringly obvious after thirteen now tarry fifteen years, the mantle must only go to proven patriots of no-business-as-usual, however ill prepared but only through the ballot boxes.

For the existing Landlord, leave, they must because many are ready to help clean off the annoying rubbish and nauseating walk path they may leave behind.

By
Isy C.A. Enwere
ICT Consultant & Social Commentator and writes from Lagos
isyenwere@gmail.com
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