It seems budget defense is all the news. And why wouldn’t it? As Nigeria closes the chapters of an arduous 2020, all eyes are on the 2021 budget. Already we noted the budget’s reliance on borrowings and its economic implications. But perhaps what’s of moot are the misplaced priorities of some government workers, as evidenced by their expenditure. And in other news, we question the cost of trivialising healthcare, fatal.
2 NTA Workers Dead
One would think the household network, Nigerian Television Authority (NTA) to be a dream job with high salary and top-notch welfare. But that is not the case for the NTA Lagos office in Ahmadu Bello way, Victoria Island. According to SaharaReporters, two workers died in October from avoidable circumstances. Another is reportedly down with a partial stroke. And despite making revenue, the station is in shambles, riddled with broken props and rodent infestation. Not to mention its non-functional staff clinic and absence of worker insurance.. According to sources at the network, the pay is embarrassingly low and reporters rely mainly on ‘brown envelopes’ shared during assignments to get by. The question, however, remains: what the current Minister of Information, Alhaji Lai Mohammed, has done about this? Answering the question, Sahara alleges the Minister has never visited the station since 2016.
7.5% VAT
Recall, in January the government increased Value After Tax (VAT) from 5% to 7.5%. Well, there are ongoing rumours that there could be another increase. However, the Minister of Finance, Ms Zainab Ahmed, rebuffed these claims during the budget defence. She said there is no plan to increase the VAT or any tax at all, as 2021 is a year of recovery for the government and businesses alike. Some members of the panel also queried Ms Zainab for the underfunding of some agencies in the 2021 budget. Chief of this was the office of the Accountant General of the Federation. There were also concerns that inadequate funding to this office could lead to leakages. The minister responded to this with a simple phrase “we know the budgeted fund is not sufficient, no agency gets enough”. In conclusion, the panel requested that the accountant-general submit a memo outlining reasons the proposed budget is not enough.
₦2.1bn Budget for furnishing
Here we go again with frivolous items in the 2021 proposed budget that leaves us scratching our heads in confusion. The Nigerian Electricity Regulatory Commission (NERC) has asked for ₦2 billion in the 2021 budget to furnish and partition its Abuja headquarters. Remember, we already established that the 2021 budget relies heavily on borrowings. The NERC chair, James Momoh, stated this during the house of representatives 2021 proposed budget defence on Wednesday. Mr Momoh added that the renovation will make the office more conducive for the workers. But could not provide the total contract sum when the Committee chair, Magaji Aliyu, requested it. In response, the committee told Mr Momoh to return with the contract sum lest they absent the proposal from the 2021 budget.
2.5% Healthcare Deduction
One would think increasing funding to the healthcare sector was the logical move, given the effects of the pandemic to an already overburdened sector. However, that is not the case. Instead, the 2021 budget features a removal of 2.5% healthcare security funds. The minister of health, Dr Osagie Ehanire and the Director General, Nigeria Centre for Disease Control (NCDC) Dr Chikwe Ihekweazu questioned this decision. They both urged the government to reconsider and think of what this could mean for the healthcare sector. Also during the budget defense, Dr Chike queried the implication of this deduction, given the effects of the pandemic which is still present. The funds are for public health emergencies, so removing them would be counterintuitive. He added that Nigeria must remain vigilant, as there is still a hike in COVID-19 cases in other countries. And that this was an opportunity to upgrade and uplift the healthcare system.