Business Post Contributor
By Jerome-Mario Utomi
In the history of humanity, there are just and unjust laws; just laws are man-made code that squares with morals and uplift human personalities; unjust law on the other hand is a code that is out of harmony with moral laws.
Again, globally speaking, another major observation similar to ‘just and unjust laws’ is in the area of fiscal policies. With particular reference to budget, experience has so far shown that while some budgets are crafted to promote the life chances of citizens, others create scenarios that make fiscal powers to be concentrated at the ‘upper level’’, leaving the lower-level units with little or no fiscal dependence, perpetuate poverty and promote socioeconomic powerlessness.
A typical example of a budget that amply squares with morals and is capable of uplifting human personalities, particularly in the Niger Delta region, is the Niger Delta Development Commission (NDDC) N1.91 trillion 2024 budget, emphasizing priorities like security, job creation, youth and women empowerment, social welfare, education, and infrastructure, recently presented and defended before the Senate Committee on Niger Delta Affairs, by the NDDC’s governing board and management.
The budget which the Senate had subsequently in its wisdom, and in line with draft propositions, approved N1,911,844,833,046, made provision for securing the sum of N1tn to be sourced from the development and commercial banks. It also planned expenditure for 2024 totals N1.911 trillion, with revenue projections including N12 billion from the previous fiscal year, N170 billion from federal government arrears and recoveries, N1 trillion from borrowing, N324 billion as federal government contribution, N25 billion from the ecology fund, N375 billion from oil companies, and N5 billion as internally generated revenue.
Among other provisions, the agency plans to allocate N38.545 billion for personnel costs, N29.246 billion for overhead costs, and N8.785 billion for internal capital. A significant portion of the budget, N1 trillion, is earmarked for funding legacy projects through loans from commercial and development banks, with an additional N835.222 billion designated for various initiatives.
Essentially, one need not be an economist to figure out that the budget which was christened a “Budget of Renewed Hope Agenda,” highlighting its focus on transformation rather than mere transactions, is majorly a people-focused budget laced with the capacity to sustain a robust foundation for sustainable economic development of the region.
With the approved sum, the commission aims to complete more than 200 kilometres of roads across the Niger Delta by the end of the 2024 fiscal year. However, Dr Ogbuku cautioned that resources are limited and not all demands can be met, emphasizing a focus on the needs of a greater number of people.
Going by the content as approved, it is obvious that the time for achievement of meaningful developmental success in the region is here. With the current sum approved, the current leadership of NDDC will bring a significant rejuvenation and transit to the region not only from infrastructural backwardness but from ‘transaction to transformation’.
Beyond this awareness, also worth underlining is Dr Ogbuku’s cheerful highlight about the commission’s achievements, where he reportedly noted that by April 30, 2024, the NDDC had received N683.2 billion in revenue, approximately 78% of the targeted N876 billion. This, according to him, included N146.4 billion from the federal government and N394.5 billion from oil and gas companies, with a carry-forward of N105 billion from 2023.
Another action by the Commission that qualifies as a right step taken in the right direction was the new awareness that the 2024 budget, as passed, will focus on critical infrastructure, adopting a Public-Private Partnership (PPP) model to drive sustainable development in the Niger Delta. ‘The NDDC is also collaborating with the Niger Delta Chamber of Commerce, Trade, Mines, and Agriculture, as well as various organizations and state governments, to enhance regional development’.
Still on the Public-Private Partnership (PPP) model to drive sustainable development in the Niger Delta, worthy of celebration is the Commission’s planned partnership with the Industrial Training Fund to engage the region’s youth, aiming to reduce crime and economic sabotage.
More specifically, the piece considers this move as a key because we have been warned in recent times by development professionals that any development plan or initiative without youth education, empowerment and job creation plan will lead the nation nowhere.
Aside from the Senate Committee Chairman Asuquo Ekpenyong, commending the commission’s innovative programs like lighting up the Niger Delta and youth education initiatives, another area of interest to me as a media professional was the Commission’s prompt explanation to the general public the reason behind its plans to source N1 trillion from development and commercial banks, which it says are fund for the completion of ongoing legacy projects.
The commission in a statement signed by its Director, Corporate Affairs, Pius Ughakpoteni, said it appreciated the concerns expressed in some quarters over the plan to obtain the credit lines.
NDDC said: “It is important to clarify that this fund will be deployed to complete a total of 1,006 legacy projects spread across the region, which includes roads, bridges, electricity projects, school buildings, hospitals, shore protection and reclamation, among others.
“The arrangement is for the budget to be funded through statutory provision and borrowings to curb the inflation rate and ensure that quality projects are delivered to the Region on time.
“While emphasizing public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in regional roads to enhance transportation and other sectors.
The commission said: “We urge our stakeholders to appreciate the fact that Regional Development needs a robust funding mechanism to effectively address specific and urgent development needs in the Niger Delta region.
“Obviously, timely and flexible financial decision-making is crucial to responding effectively to dynamic regional challenges. The funding plan is meant to insulate the NDDC from the inflationary pressure which is impairing the ability of the Commission to complete its development projects on schedule, it concluded.
For me, this shows a commission that recognizes that information is the life wire of every business; and that to manage a business means managing its information properly.
Finally, the piece on its part holds the opinion that the present development translates to big congratulations for the people of the Niger Delta region-particularly, as the recently approved budget will assist the leadership of the Commission to work smarter, automate for efficiency, and open avenues for streams of sustainable development for the region and its people.
Utomi is the programme coordinator of Media and Policy for Social and Economic Justice Advocacy (SEJA), Lagos. He can be reached via [email protected]/08032725374
