#1NIGER DELTA BUDGET MONITORING GROUP'S Presentation to Senate's Committee on Appropriation on Budget 2020 Proposal of the FG By Dr. George-Hill Anthony Executive Director/Chief Executive Officer Email: [email protected] www.nigerdeltabudget.org NDEBUMOG REGIONAL ACCOUNTABILITY CENTRE SHADOW NDEBUMOG BUDGET GROUPS NIGER * DELTA BUDGET * GROUP & Justice $N MONTORING Transparency#2Outline • • Nigeria's national budget as a (collective) burden for all but enjoyed by a few. ⚫ Circles of budgetary repetitions-fiscal proposals (MTEF/MTSS/FSP), vote books versus actuals, etc Niger Delta's development conundrum -A region of trillions but with excruciating poverty... • Reducing duplicated line(s) items. Prioritizing citizens' needs! • Budget should be used as a fiscal tool for reduction of inequality- end tax incentives, unaccounted fiscal cakes to subnational states- actors, suffocative PPPs and concessionings, etc • Connect communal end users in tracking Nigeria's fiscal derivatives • Recommendations#3Nigeria's national budget as a (collective) burden for all but enjoys by a few. . • No nation, can be developed, with a fiscal structure of around 70/30% recurrent and capital, as it is the situation with Nigeria. Yet, some government agencies, may be planning further recruitments, whilst, there are inadequate policemen and women to fight growing crimes, irrespective of about the 70% of Nigeria's budget already gulped by recurrent. • The National Assembly need to do something (fiscally) drastic, before Nigeria's 90% or more goes percentage of recurrent, either, on personnel/overhead/(in) security consumes our land. Unfortunately, Nigeria may not attain fiscal stability, if the National Assembly do not consider a (attenuative) political sacrifice...#4Circles of budgetary repetitions- fiscal proposals (MTEF/MTSS/ FSP), vote books versus actuals, etc • • ⚫ Does Nigeria implement and pursues a holistic fiscal goals? • Are agencies adhering to MTEF/MTSS Plans Who reconciles vote books versus actuals and follows the audit trails? ⚫ Can the above be achieved, if conflict of interest. gallops targeted results? Fiscal and audits remediations, should form part of the pursuits for Nigeria's salvation#5Niger Delta's development conundrum-A region of trillions but with excruciating poverty... ⚫ There are some interventionist agencies for the Niger Delta. Yet, development hasn't really started for the region, even, as the (developed) world is fast moving to alternative energy. What then happens, when Niger Delta's oil becomes irrelevant, with millions of citizens languishing in poverty, whilst a section of the youths' future are already frittered through being paid to idle- away by watching over oil pipelines that funds Nigeria's economy, when their peers in other parts of the world are already researching into tomorrow's development resolutions, even 50 years ahead of us, weighing in on a world that artificial intelligence and alternative energy already matters tomorrow.#6Niger Delta's development conundrum-A region of trillions but with excruciating poverty... • • ⚫ Whilst, either, misused of funds, poor /inadequate AIEs or outright duplication of programs/projects may have contributed to frustrate Niger Delta's development. However, the National Assembly needs to do more on projects/programs reconciliations. for the region and should enacts/amend existing legislations to allow communities to have a say in monitoring and evaluating developmental programs that affects them. Such will assist to reduce duplications and other fiscal abuses. ⚫ There are several projects/programs that our organization could have flagged, as proposed for FGN's 2020 budget proposal. But for time constraint, we left flagging such programs/projects. Notwithstanding, there are a few projects/programs proposed, which we will urge the National Assembly to look into previous years releases for such programs/projects. These are:#7Niger Delta's development conundrum-A region of trillions but with excruciating poverty... -Construction and supervision of Gberegohor-Ogragbene Road in Delta state proposed for N500m for 2020. In 2017, this project (FMOND13056815) had N300m budgeted for it. In 2018, this project had N1.6billion (ERGP12104087), 2019, this project had N400m (ERGP12129358) budgeted for it. -National Assembly should also follow up on Reconstruction/rehabilitation of Enugu-Port Harcourt Expressway. This road seems to be an unending circles, spanning over a decade. There are Sukuk's interventions that are ongoing on the road. National Assembly need to keep track, to avoid fiscal adulterations, going by the fact, in 2019, there are (distinct) envelopes that are also allocated to this road. Please refer: ERGP12130251,ERGP1230220, ERGP12130216, ERGP12130203. -At a time, there are much pressure on Nigeria's road, National Assembly need to fast track processes of revamping the nation's railways. Before the coming of PMB's government, enormous resources were already expended on several railways' projections, which, should not be left to flush-down. Take a look:#8Reducing duplicated line(s) items. Prioritizing citizens' needs! • For example, in 2014, there are indications, there were awards of contracts for consultancy services for Feasibility Studies for a Standard Gauge -New Rail in Batches 1 & 2, Lots 1A-C to the following companies and amount: 1. 2. 3. 4. 5. 6. Lot 1A- Feasibility Studies for Standard Gauge New Rail (Kano-Dayi- Katsida-Jibiya) Messrs Team (Nigeria) Limited. Amount N141,229,200.00 (6months). Lot 1B- Feasibility Studies for Standard Gauge New Rail Line (Illela-Sokoto- Jega-Yauri-Makera) Messrs CrestHill Engineering Limited. Amount N170,000,000.00 (6months). Lot 1C- Feasibility Studies for Standard Gauge New Rail Line (Aba-lkot Ekpene-lbiono-Itu-(Spur Uyo)-(Odukpani-Calabar) Messrs Team (Nigeria) Limited. Amount N94,498,425.00 (6months). Lot 1A- Feasibility Studies for Standard Gauge New Rail Line (Kano-Nguru- Gashua-Damaturu-Gamborun Ngala-(707 km approx.) Messrs CPCS Transcom Limited. Amount N242,644,096.07 (6monthts). Lot 1B- Feasibility Studies for Standard Gauge New Rail Line (Calabar- Ikom-Obudu-Ogoja-Katsina Ala-Wukari-Jalingo-Yola-Maiduguri-(1,069 km approx.) Messrs Siraj Engineering Limited. Amount N314,183,010.00 (6months). Lot 1C- Feasibility Studies for Standard Gauge New Rail Line (PH-Aba- Umuahia-Enugu-Makurdi-Lafia-Jos-Kuru-Bauchi-Gombe-Biu-Maiduguri (1,552 km approx.) Messrs CPCS Transcom Limited. Amount N378,541,309.34 (6months).#9Reducing duplicated line(s) items. Prioritizing citizens' needs! -2017 (FMOTY55239790) N65m-Feasibility studies for New Standard Gauge Rail Line, being; Aba-Ikot Ekpene, Ibiono, Itu (Spur to Uyo) Odukpani-Calabar. The project, may have been conceptualized by previous government. However, there is need for it to be actualized. -2017-Port Harcourt-Aba, Umuhia-Enugu- Markudi-Lafia-Gombe-Biu-Maiduguri's Rail line is essential. There was a Feasibility Studies in 2017 (FMOTY17966454) about this project for N150m. -2017-Feasibility Studies (FMOTY64724651) for New Standard Gauge Rail Line Calabar-lkom-Obodu-Ogoja-Wukari-Yola-Maiduguri N130m. Will all these Feasibilities Studies" funds be wasted, if these projects, does not take off or be completed? -2018 (ERGP13113761) Rehabilitation of Track from Port Harcourt to Markudi N997m. ERGP29113777-Upgrading of Signaling and Telecom System on Eastern Line Port Harcourt-Maiduguri, including revised estimated total cost for extension to Western Line N1.7billion. -2019-The above Signaling project, equally have a provision of N2billion (ERGP29127515 in 2019. -2019, there was budget of N67.17 billion for funding of Lagos-Kano, Port Harcourt- Maiduguri, Ajaokuta-Itakpe Railway Lines. National Assembly, should activate processes to get these railways to work. Stages for releases of these funds may not be known, but railways are among solutions at redeeming Nigeria's roads... However, communities, around these (railways) corridor, should be carried along on monitoring, evaluating, ownership, security and long-term protection of these national assets.#10Reducing duplicated line(s) items. Prioritizing citizens' needs! • Even as this paper, do not want to over flocked duplicated items, in the 2020 budget proposal, about N110 billion or more is projected for Roads across each geo-political zone. However, a critical review of previous years budget(s), we came across budgeted figures for- Construction of Kaduna Eastern By-Pass (C/No 5346) that had N1.3 billion in 2018 (ERGP12106713). In 2019, another N1 billion (ERGP12130899) was budgeted for this (same) project. This project, equally, is among projects, which N110 billion is contemplated for (FY) 2020. Therefore, National Assembly, may need, to reconcile factors about this project with agency involved. ⚫ Other projects, which may be duplicated, or poor funds releases, may have hindered implementation, needs thorough analysis or checks by your appropriation committee. • National Assembly, should further look into allocations by MDAs for procurement of generators, side by side, with other allocations for components of the power sector ( already privatized), to gauge, if Nigeria's power sector is existing on borrowed ropes, and yet, sucking additional funds from the government, year after year...#11Budget should be used as a fiscal tool for reduction of inequality- end tax incentives, unaccounted fiscal cakes to subnational states-actors, suffocative PPPs and concessionings, etc • • Granting of radical tax incentives to a selected few, should be stopped. Such is a violation of social rights, fiscal and economic freedom of all. Inclusion of end users and CSOs in the tracking of fiscal incentives to states, should be among preconditions for granting of such incentives by the Federal Government. PPPs and some concessions are a collective burden that even some of our unborn children may pay, hence, it should not be shadowed with secrecy or bureaucratic barriers. National Assembly should compel MDAs to open PPPs negotiations to Public Hearings. Some concessioning through PPPs, such as, Lekki Deep Sea Port that may have been entered in 2013 for 45 years at the sum of USD1,354,500,000.00 is scary. Perhaps, it may have been reviewed, as we do not have additional information concerning this and other concessionings. Notwithstanding, National Assembly, should open PPPs processes for citizens interrogations, before final consummations by government MDAs. Some of the PPPs are debts on the heads Nigeria's unborn children.#12Connect communal end users in tracking Nigeria's fiscal derivatives Communities and civil society groups should be encouraged to be partakers in the fiscal processes. Monitoring of capital projects by communities and civil society on real time, with such fiscal intelligence, available to NASS and other agencies shall help Nigeria's fiscal path...#13Recommendations . In truth, National Assembly needs a Budget and Research Office, hence, processes for institutionalization of NABRO, should be fast-tracked. • Communities and civil society involvements in budget monitoring and tracking, will reduce amounts, expended by agencies of government on capital projects M & E. ⚫ National Assembly, should encourage professionalism and nationalist passion and should reconsider, making most request from the citizenry, pro bono, irrespective of the time and logistics involve(d). • Budget is a critical tool in the fight against insecurity ravaging our nation. Budget is the foundation of life and should be placed right...#14End Thank you for your time and for the invitation, extended to us for this presentation by the Appropriation Committee. Senate's