‘With fuel subsidy removal, there shouldn’t be room for deficit in 2024 budget’

Former Commissioner for Finance, Abia State, Dr. Phillips Nto, in this interview, speaks on the 2024 budget, which is still in the works in the National Assembly. A development economist,World Bank consultant and university don, Nto notes that the deficit of N9.18 trillion in the N27.5 trillion budget raises posers about the whereabouts of the money saved from the removal of fuel subsidy. He also addresses other burning national issues, aligning himself with those who believe that Nigeria cannot unlock its potential unless the country is restructured.

Some critics say the 2024 budget is a budget of theory and hopelessness. What can be done to make it a budget that will inspire hope?
Doing a little analysis on the N27.5 trillion budget, it could be seen that the recurrent expenditure is N9.92 trillion while the capital expenditure is N8.7 trillion while debt servicing is N8.25 trillion. That cannot address economic growth that will alleviate poverty. A close look at the figures will show you that the budget handles more of the ostentatious lifestyle and welfare as well as comfort of the ruling class rather than the living condition of the poor masses. The debt servicing of N8.25 trillion as well as the deficit of N9.18 trillion will make me ask questions on the whereabouts of the money saved from the removal of fuel subsidy. For the budget to achieve the desired economic growth and address the welfare of the poor masses, more funds ought to be allocated to capital expenditure rather than recurrent expenditure. The percentage of capital expenditure should be more than recurrent. Even in the capital, more funds should be allocated to infrastructural development, education, agriculture and health. Let sectoral allocations have direct bearing on the poor masses, especially activating economic activities and thus creating jobs for the unemployed youths.

However, I still maintain that there shouldn’t be any room for deficit, which will give way to borrowing. If we put our acts together, there will be a lot of money to fund the budget rather than mortgaging the future of our future generation. Our political class should cut down frivolous expenditure that will not add value to governance. There are so many offices and agencies that are duplicated, which should be reviewed. The 2024 budget can only inspire hope when all its intents and purposes are centred on the welfare of the poor masses who are suffering unimaginably.

In many countries, when things are so tight for the poor masses, you see the political class sacrificing their personal comforts and remuneration to bridge the inequality gap. But here, the reverse is the case. The poor pay more taxes to sustain the luxurious lifestyle and comfort of those in government as well as their unnecessary overseas travels.

As a development economist, what exactly should the government do to revive the economy because Nigerians are truly suffering? 
The government should diversify the economy through investment in agriculture and provide an enabling environment for micro, small and medium enterprises to strive. The government should formulate sound policies and ensure strict implementation so as to enhance local production.

Agriculture alone sustained the pre and post colonial era in Nigeria. All the regions of the country then depended on agriculture and not crude oil.It is a fact that crude oil made us lazy and fueled massive corruption. Can the president double as Minister of Agriculture as it is for the Ministry of Petroleum? Which is supposed to be the bedrock of our economy? My prayer is that crude oil should quickly dry up. This is the only condition that Nigeria will return to the glorious era of agriculture.  The nation is blessed with enormous agricultural potential such as arable land and good climate. Also, other minerals in the country like gold, limestone, tin, etc, are abandoned. If you bring issues of solid minerals in the concurrent list, you see many states, especially in the North, doing better. 

The government should also ensure that epileptic power supply is a thing of the past. Power is very crucial in reviving the economy. No business can succeed without regular and adequate power supply. Many businesses, even large enterprises, are folding up because of the huge amount spent on diesel to power their production system.

I carried out a survey around the country some years back; power supply ranked as the number one problem facing all forms of business enterprises. As I said with regard to agriculture, the president can also double as Minister of Power or declare an emergency in the sector. The irony is that despite the fact that Nigeria is blessed with numerous energy sources like heavy sunshine from Sahara desert as well as that of dry season and hydro, or even from heavy wind from the ocean, Nigeria still generates power only through hydro and has one national grid for the whole country. This is laughable.

Another area the government should take a look at and tap from the great potential is the human capital. Nigerian professionals are greatly talented and are seriously sought for all over the world but are neglected here. The government currently is not paying serious attention to our education sector. The academic curriculum of various levels of education should be structured and overhauled to equip our youths to face challenges associated with skill development.  This is the only way to solve unemployment problems, which in turn will solve our security challenges.

Some Nigerian statesmen are calling for the restructuring of the country. Do you share the view that that is what the country requires to unlock its potential?
I have severally made my opinion clear on this issue of restructuring; so many people fear the term, ‘restructuring’. But it is a must if we are to move forward as a nation. You cannot continue to do things in the old fashion and expect a new and better result. Those who hate to hear restructuring or are opposed to it are the people benefitting from the current state. Can Nnamdi Azikiwe, Tafawa Balewa, Obafemi Awolowo, Amadu Bello, Michael Okpara, etc. in their resting places proudly say that this was the type of nation they desired and struggled for her independence?The answer obviously will be no.

They will be crying in their graves and regretting to have struggled for a nation where the poor cannot feed; cannot go to school, cannot go to hospital and are homeless. These great men  never prayed for a nation where the youth will graduate from school and rather than get a job in their own country from the factories they built then, will line up in the embassies struggling for visas to ‘japa’ to Europe and America. They never prayed for a nation where every month, federating units would assemble in Abuja to share money like an esusu organisation. America that we copy from, states do not gather in Washington DC every month to share money, same as the United Arab Emirates.

To be honest, restructuring is a must, like I said earlier. Former President Goodluck Jonathan’s confab did an excellent work, which if implemented, will make Nigeria great again. Let us go back to it and adopt it hundred per cent. That is my formula for restructuring. All aspects of our governance should be reviewed, including the constitution, procedure for elections, the judiciary and the police. Even the university system where I work requires restructuring to develop human capital that can meet global needs.

What exactly do you see as the problem with Nigeria? 
Leadership! Our major problem is leadership. Right people and righteous people are not in the leadership of Nigeria. Biblically, when a righteous person is in power, the people rejoice, but the implication is that when the wrong person is in power or authority, the people suffer. This is the situation here.

The country is blessed with everything required for life but lacks leadership to provide direction and coordination. We need a leader with ideology to harness and unlock the untapped potential; a leader that is out to serve and not rule. We need a leader who goes for the best and not blindfolded with nepotism and tribalism; a leader that will manage the nation’s diversities. Such a leader will not rig elections; such a leader will not allow corruption to thrive; such a leader will provide a comfortable environment for both the rich and the poor to breathe. The leader will not think about himself, his party or his people but Nigeria.

If not for bad leadership, how will a country with numerous natural resources allow poverty to rule it?  If not for bad leadership, how will a nation with enormous fertile land be wallowing in hunger? If not for bad leadership, how will a nation with both hydro and solar energy sources be bedevilled with darkness? If not for bad leadership, how will human being selected into office overlook the poverty in their constituencies and accept SUVs of N160 million? If not for bad leadership, how do we carry numerous delegates to Dubai to discuss climate change even when we don’t have serious climate and environmental problems in Nigeria? If not for bad Leadership, why are we not tapping from our talented and active youth population? Obviously, our problem is leadership. Once we get leadership right, everything will be right.

What then is the solution? 
The solution is simple. Let’s put Nigeria first and go for the best leaders in every aspect. Serious and advanced countries in the world like America move all over the world to buy the best brains. Such countries don’t compromise good brains in all aspects of their existence, be it politics, military, health,technology,academics, etc.But, in Nigeria, the major qualifications are tribalism and religion.
Look at a country like the United Kingdom that is traditionally a Christian country that overlooked religion to elect a prime minister that is not a Christian. Their interest is performance.

What is your assessment of the off-season elections that recently took place in Imo, Kogi and Bayelsa states? 
Candidates and parties have won and lost, but the issue remains whether the elections met the aspirations of Nigerians. The question is whether the elections were conducted in line with international best practices? Can the Independent National Electoral Commission (INEC) objectively give itself a good pass mark in the conduct of the elections? Those that won may claim that INEC did a good job while those that lost will say that INEC compromised. The issue is was INEC transparent and fair?

How did security agencies conduct themselves? Was voting free?
I heard about vote buying and yet I don’t know how many people were apprehended and prosecuted. I heard about compromise by electoral officials and yet no one was called for questioning.I even saw aviral video of a security agent caught in ballot snatching, yet there is no disclaimer. For me, this off-season election ought to be an improvement in the last general election, but the irony is that parties in power use every available instrument to hold onto power in states under their control. It is widely believed that the electoral body and security agencies assumed partisanship in the states to favour sitting governors. For me, this off season election even fell below my expectations, as a result of over deployment of security agencies, which led to voter apathy in the three states. The electorate lost faith in the process.

Is there any loophole in the Electoral Act 2022 that you think should be plugged to make elections more transparent, credible and less violent? 
I am not a lawyer to say anything is lacking in the Electoral Act, but morally speaking, I may say integrity is lacking in the implementation of the act by INEC. Integrity is also lacking in the interpretation by the judicial system. Political elite have also not fared better. During the voter education by INEC before the general election, INEC told us that the 2022 Electoral Act covered everything that would make them transmit election results electronically, but what happened? If elections could be conducted the way they explained to the public,which made many Nigerians to show interest, everything would have been okay. However, the Nigerian factor did not allow the electoral body to undertake a credible election despite whatever that is in the electoral act.

In summary, for there to be a credible election, everybody including voters, the electoral umpire and security agencies must put Nigeria first and not their pocket. If elections are conducted in a free, fair, transparent and credible manner, it will reduce litigation. My call is for a total overhaul of INEC to make it more responsible. There must be a sanction where a compromise is established. 

What is your take on the bombing error by the military in Tudun Biri community in Kaduna State? 
It is regrettable and sad that there was such a military error. However, I blame it on human factor as the military cannot play God; it cannot be perfect. It is just unfortunate that the apologies, regrets and compensations cannot bring back the lives lost.  I pray God to grant the dead a peaceful repose. 

Let such a calamity not happen again in our national history.While I condole with the families of the bereaved, I caution against playing politics or bringing in tribal sentiments in such a national tragedy. However, subsequent operations by the military should be handled with the highest level of precision.  Government should assist to rebuild the damaged community as soon as possible in addition to providing palliatives and succour to the families of the deceased.

Former Commissioner for Finance, Abia State, Dr. Phillips Nto, in this interview, speaks on the 2024 budget, which is still in the works in the National Assembly.
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