Feature/OPED
INEC’s Bogus Budget and Nigeria’s Socioeconomic Misfortune
By Jerome-Mario Chijioke Utomi
Torrent of criticism/knocks from good spirited Nigerians has trailed the bogus budget proposition of N305 billion for the 2023 general elections by the Independent National Electoral Commission (INEC) recently submitted to the National Assembly.
It is equally not surprising to see some supporters of the government argue that in a democracy, government agencies and commissions such as INEC are at liberty to take or discard advice and public opinion as public opinion does not always provide clear-cut policy guidance.
It is also not impossible to see in the coming days, Nigerians who will advocate that even in situations where public opinion is clearly in favour of a certain course of government action, the authorities may decide otherwise-particularly when they realize how uninformed, superficial, and changeable most opinions really are, the government may reject people’s opinion as a result of its own convictions, the recommendations of the public service, the pressure of advocacy groups and lobbyists, or the rigidity of the ruling party.
But in spite of these slanted and asymmetrical arguments, looking at INEC’s action from all ramifications, one thing seems to stand out; the electoral umpire, against all known logic, came up with such a bogus demand without minding that the federal government’s debt servicing to revenue ratio recently jumped from 54.66 per cent to 72 per cent, and at a time when the nation is going through a harsh economic situation in the country, a state of depression (or is it a recession) that has been designed by yet to be established architects, is in my view not only shocking but a sign that our leaders are not ready to serve the masses, serve the economy or feel the pains poor Nigerians stoically endures.
Going by media reports, the Senate Committee on Appropriations had invited INEC to present the budget so as to include it in the 2022 budget billed for passage by both chambers of the National Assembly.
During the presentation, INEC Chairman, Mahmood Yakubu, among other remarks explained that the N305 billion was different from the N40 billion yearly budget of the electoral body. He noted that while N100 billion had been released to the commission out of the total projected expenditure, it would not be enough for adequate preparation towards 2023.
Before diving into particulars that render the present development a reality to worry about, it is important to underline the fact that the 2023 general elections are not only important to the nation Nigeria but key to determining the future of the nation’s existential journey particularly as no nation can rise/develop above the quality of its leadership. It is not only our patriotic duty to give the project the objective attention that it deserves; it is our moral duty at the most fundamental level.
However, it is said that in strategy formulation, timing is key.
Likewise, more than anything else, for INEC to present such bogus and thoughtless budget for election in a nation where poverty daily drive citizens into the ranks of the beggars, lends credence to the age-long belief by Nigerians and development professionals that there is something deeply troubling about public leadership in Nigeria; their relationship with reason, their disdain for fact and lack of curiosity about any new information that might produce a deeper understanding of the problems and policies that the nation is supposed to wrestle with.
Cast a curious look at this development, one cannot but raise certain questions.
Is the election that expensive? If yes, and requires/demands such a volume of money, it will again necessitate the question as to how come some African countries that are more impoverished than Nigeria able to organize electoral exercises in their country.
Is the 2023 election the first general election to be held in the country? Is INEC saying that the nation did not make gains in the time past that they can build on? What really shot the present budget up? Is it logistics, security or human resources considerations? If logistics, what about the items such as ballot boxes etc bought/used for the previous elections? Can’t INEC find ways of deploying previously bought items/equipment to use?
There is a lot that is wrong with our country. But one thing that bothers me in addition to the above is that this development is not an isolated case.
Just recently, Nigeria’s National Population Commission, (NPC), going by media reports, in a similar style said it requires about N400 billion to organize the national census scheduled for May 2022, just months to the onset of the 2023 general elections.
The headcount and general elections the reports noted were given as the reason for the failure of the National Assembly to pass the next year’s annual budget, in keeping with the resolve of the federal legislators to maintain a January-December budget cycle. The cost of prosecuting the census represents an 83.38 per cent jump from the N217 billion proposed for the exercise about four years ago, in what is blamed on a combination of inflation, Naira devaluation, and the cost of engaging over 1.5 million personnel.
Yes, the truth, the bitter truth is that the census is known to provide the most important population statistics required for planning and development in any country. But the validity of this claim notwithstanding, it will again elicit the posers as to; how many are we in Nigeria to require such a budget? What is the cost implication for conducting headcount per citizen? If this is confusing, why can’t NPC as a body engage the best minds to help get the answers and deploy the resources we need to move into the future?
In many ways, the present administration may have a sincere desire to move the nation forward, but there are two major militating factors. First, there is no clear definition of our problem as a nation, the goals to be achieved, or the means chose to address the problems and to achieve the goals. Secondly, the system has virtually no consideration for connecting the poor with good means of livelihood-food, jobs and security. This is the only possible explanation for this situation.
Finally, as the debate rages, one point INEC, politicians and of course Nigerians must not fail to remember is that ‘a precondition for an honest government is that candidates must not need large sums to get elected, or it must trigger off the circle of corruption. Having spent a lot of money to get elected, winners must recover their costs and possibly accumulate funds for the next election as the system is self-perpetuating.’
Jerome-Mario Chijioke Utomi is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), Lagos. He could be reached via [email protected]/08032725374.
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism8 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking6 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN