Buhari, it was learnt, is likely to meet with the ministers in charge of the four ministries – Babatunde Fashola, Audu Ogbeh, Adamu Adamu and Isaac Adewole – to hand down a presidential directive to this effect. “Nigerians will see a clear departure from the past when the budget is unveiled; and it is in line with the economic realities of the moment,” an official of the Budget Office of the Federation confided in New Telegraph.
The planned national budget of the country for the 2016 fiscal year has been put, tentatively though, at N8 trillion; almost a hundred per cent increase from the current budget of N4.4 trillion. In the 2015 national expenditure profile, the first four sectors with huge allocations are education – N419 billion (9.6 per cent); defence – N358 billion (8.2 per cent), police – N334 billion (7.7 per cent) as well as health – N257 billion (5.9 per cent).
In the same budget, while the agriculture sector had N39.1 billion budgetary allocation, representing 0.9 per cent, the power sector was allocated N30. 9 billion representing 0.7 per cent. In particular, the agriculture sector’s allocation shows a cut of about half of the 2014 budgetary allocation even as recurrent expenditure took the lion’s share of N32, 207, 900,120 leaving only N6, 944,000,000 for capital projects.
There is also drastic reduction in the amount allocated to fertilizer and improved seeds. Undoubtedly,the smallholder farmers who constitute 70 per cent of the farming populace faced greater challenges as a result of the poor budgetary allocation to the sector. According to the official, who is familiar with the ongoing preparation for the 2016 budget, defence and police are to give way to the power and agriculture sectors in the top four of the budgetary chart.
He, however, did not disclose the place of the displaced sectors in the allocation ladder. The source said: “In the last 10 months, you can see that the challenges of the fall of the oil prices have become more pronounced and biting. It was a widely held notion within official circles that the issue of the dwindling oil prices was going to stop.
“However, the case became worsened to the extent of what the states are currently facing. So, if you have to prepare for tomorrow, I think it should have started since yesterday; and that is what the president is trying to do in this regard. “Although the 2016 budget is yet to be completely packaged, there is a marching directive from the president that power and agriculture must be top priorities in the document and he has assured of maximum implementation.” In the proposed fiscal document still kept under wraps, the two sectors have been benchmarked for a minimum of 10 per cent each of the total budget.
This will not be less than N200 billion for each of the beleaguered sectors. “This is very critical because even Maputo Declaration of minimum of 10 per cent has not been attempted before. So, this government is taking the challenge to ensure adherence to that declaration.
“The two sectors, that is agriculture and power, are likely to get at least 10 per cent of the total budget. And if this is achieved, it means a minimum of N200 billion is likely to go to each of the two ministries. “When we met with the president three weeks ago, he harped on the need to enforce a national attitudinal direction, a positive one of course, towards agriculture. If his (Buhari) plans are implemented, they will take the shine away from oil in the next four years.
“The issue of power was also discussed and the president, even before the appointment of Fashola, had promised to get a goal getter; someone who will be prepared to step on toes to achieve a bit of stability in the power sector.” New Telegraph gathered that Fashola and his counterpart in the Petroleum Ministry, Dr. Ibe Kachikwu, are already mulling ways of ensuring maximum supply of gas in the face of the low level waters that has affected the capacity of the hydro dams.
It was learnt that both Fashola and Kachikwu have met on how to ensure steady supply of gas to electricity generating companies (GENCOs). Meanwhile, the Minister of State for Agriculture, Senator Heineken Lokpobiri, has assured that the sector will reclaim its status as the nation’s greatest foreign earner.
The minister told New Telegraph on the telephone that it was high time Nigerians changed to agriculture for national development. “I think the nation has the greatest of potential to return agriculture to its former place of importance in the economy; it used to be the main driver of the economy and will return to that status as the bedrock of the economy in the next four years.
“I believe that the president has good intentions to diversify the economy and the focus has been the agriculture sector. So, the issue is now our national and collective attitudinal change and orientation to face the sector for better tomorrow. “The commitment of the president and even Chief Audu Ogbeh are not hidden and the passion they both have is clearly in the direction of change that will engender a shift from the oil-dominated economy to agriculture. I know we shall get there with the needed synergy by God’s grace,” he said.
