Governments around the world today are faced with enormous challenges and
these challenges seem to be ubiquitous; they come as extra hidden packages. The
more we pursue developmental goals and good governance the more these challenges
continue to rear their ugly heads.
However, I will be drawing lessons from the south-eastern country of
Malawi to espouse and analyze some of the common challenges we face as countries
within the continent. Malawi is over 118,000 km2 with an estimated population of more than
13,900,000. Its capital is Lilongwe, which is also
Malawi's largest city; the second largest is Blantyre and
the third is Mzuzu.
Nigeria and Malawi have very little things
in common asides issues of poverty, HIV/AIDS, leadership, etc. Malawian
President Joyce Banda stated that her cash-strapped
government will sell the presidential jet controversially bought by her
predecessor. The president succeeded late president Bingu wa Mutharika after he
died from a heart attack in April. President Joyce championed a national
austerity drive which includes cost-cutting schemes and getting rid of
government luxury vehicles and the plane, which are symbols of power and status
in this poor nation where nearly 40% of the 13 million people scrape by on less
than a dollar a day.
Couple of days ago, the Nigerian president presented the 2013 annual
budget to the National Assembly. While many praised the executive for the timely
budget presentation and also acknowledged the improvement in budgetary
allocations. This time education got the highest, a very laudable step taken by
the FG towards education in recent times. However, many have been quick to
notice that while many countries of the world are taking austerity measures
very seriously, Nigeria’s case seems to be the reverse. Allocations like
feeding in the ASO ROCK, fire extinguishers and refreshment have over a billion
each in allocation. This has prompted more and more questions about the need
for government to make tougher austerity measures. Malawi as a country that
relies on exportation of agricultural produce and foreign donation for economic
gains; and have in recent times taken measures to cut cost. President Joyce
Banda recently announced a 30% pay cut for her and the VP. Presidential pay cut
is of course not new to Nigeria; late president Umar Yar’adua also did slash
his pay as president, however, I think making meaningful austerity measures
goes beyond pay cuts but looking into other aspect of governance where expenses
can be whittled down meaningfully. Although, economically and demographically
both countries cannot be compared, nevertheless, there’s need for Countries in
Africa and particularly Nigeria to begin to cut down on unnecessary spending and
acquisitions. A thorough job must be done by the national assembly to ensure
that allocations must be justifiable, with an end result of enhancing
productivity in all sectors.
It is also quintessential to note that Nigeria operates an incremental
budget, which in my opinion needs to be checked. More disturbing is the rising recurrent
expenditure which the budget depicts; many countries are working towards
downsizing civil service workforce thereby making it more efficient and
effective. Good governance isn’t tied to how many individuals government can
employ into its coffers but creating an enabling environment where citizens can
thrive in whatever economic engineering they engage and where foreign investors
can operate without impediments or negative forces.
FINALLY, issues of domestic debt seem to be on the front burner, the
legislative and executive arms are still battling to reach an agreement on what
benchmark the 2013 budget should be hinged. Running a deficit economy (i.e
spending above earnings), excess crude account, sovereign wealth funds, etc,
are issues that will remain with us for a while, until something fundamental is
done to correct the way our economy is been managed. Based on the last release
by the Debt Management Office (DMO), Nigeria’s domestic debt stood at over six
trillion naira, which is very disturbing. There must a balance as to how we
manage our God given resources and it is never a must to operate an incremental
budget on a yearly basis. As a matter of information Niger republic, Nigeria’s close
door neighbor has proposed a budget for 2013 seven percent (7%) lower than the
previous. Governments at all levels must do everything possible to cut down
spending at all cost and there must be justification for every penny spent- ACCOUNTABILITY!
Olojo V.
Oct, 2012
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