Archive for nigeriang

Bill for local government autonomy scales second reading

Bill for local government autonomy scales second reading

A bill seeking the
alteration of the 1999 Constitution to create absolute financial
autonomy for the 774 local government areas in the country scaled
through second reading yesterday in the House of Representatives.

Leading the debate
on the general principles of the bill, its sponsor, Barnabas Bala (PDP,
Kaduna) said that in spite of the 20.6 percent revenue allocation from
the federation account to the councils, not much has been achieved in
the transformation of the rural areas.

The lawmaker stated that between 1999 and 2008 alone,

about N5 trillion
was disbursed to the councils from the Federation Account, adding that
this figure does not include the internally generated revenue of the
councils.

Mr Bala, who
wondered why there have not been commensurate developments in the rural
Communities, called for the alteration of section 162 of the
constitution to substitute subsections 5 and 6 with new paragraphs.

According to him,
subsection 5 should be altered to read: “The amount standing to the
credit of local government councils in the federation account shall be
distributed among the local government councils in a manner to be
prescribed by the National Assembly,” while section 6 should read “Each
local government council shall maintain a consolidated local government
account into which shall be paid all allocations to the councils from
the federation account, state allocations and locally generated
revenue.” The lawmaker also called for the deletion of subsection 7and
8 of section 162.

He argued that the
proposed amendment when achieved, will grant the local governments
autonomy from the state governments, which he said have been running
the councils like government departments under their jurisdictions.

Slot for women

Also on Wednesday,
the House rejected another amendment to the constitution seeking to
make it mandatory for 35 percent to be reserved for women in all
federal government ministerial and other appointments.

Binta Garba (PDP,
Adamawa) who sponsored the amendment wanted the alteration of sections
14(3), 147(3) and 223(2b) by inserting relevant words to give the 35
percent reserved slot to women in government appointments.

She argued that if
the sections are amended it will be in tandem with various treaties and
conventions the country was signatory to.

Abike Dabiri-Erewa
(ACN, Lagos), Khadijat Bukar Abba-Ibraim (ANPP, Yobe) and Saudatu Sani
(PDP, Kaduna), all female, supported the bill.

Ita Enang (PDP,
Akwa Ibom), however, advised the House against passing the bill,
pointing out that it was contrary to the spirit of section 42 of the
1999 Constitution, which he said was against all forms of
discrimination.

The bill was defeated when the Speaker, Dimeji Bankole put it to vote.

Click to Read More Latest News from Nigeria

PDP leadership meets lawmakers

PDP leadership meets lawmakers

Members of the
National Working Committee of the Peoples Democratic Party (PDP)
yesterday met for several hours with the party caucus in the House of
Representatives.

This is coming just
after President Goodluck sought the approval of the National Assembly
for the extension of the implementation period of the 2010 Budget till
March 31, 2011.

Although the agenda
of the meeting between the lawmakers and the PDP leadership, led by its
national chairman, Okwesilieze Nwodo was not made known to reporters,
it was gathered that the controversial bill seeking to include the
lawmakers as members of their national executive committees of their
parties, was discussed.

It was further
learnt that the issue raised by the Central Bank of Nigeria Governor,
Sanusi Lamido Sanusi about the salaries and allowances of the
lawmakers, also came up.

Our correspondent
learnt that the leadership of the ruling PDP was desirous to be on the
same page with the parliamentarians on the issues, which it considered
could destroy the image of the party.

Before the meeting
went into closed-doors, Mr Nwodo commended the roles the PDP lawmakers
have played over the years on national issues, but observed that there
was an urgent need for them to close ranks in order with each other.

According to him,
with the impending general elections, it is imperative to keep all
party members, particularly the lawmakers informed of the challenges
facing the party.

Mr Nwodo noted that
such interactive sessions will allow members of the party to understand
the rules and guidelines which the party will adopt in the process of
conducting its primaries.

He praised the
lower legislative chamber for its intervention during the national
crisis arising from the absence of President Umaru Yar’Adua from the
country before he (Mr Yar’Adua) finally died.

According to the PDP boss, the intervention was historic because it sustained the unity of the country.

He also called for
the cooperation of the lawmakers on the issue of the national budget,
which has created rancour between the executive and the legislative
arms over the years, and urged the lawmakers to be ready to do their
best for the party and the country.

In a letter to the
National Assembly, Mr Jonathan said that the proposal to extend the
implementation of the budget was informed by the delays many of the
Ministries, Departments and Agencies (MDAs) have encountered in the
course of meeting the demands of the Bureau of Public Procurement
before projects are executed.

If the request is granted, the budget cycle will have been extended by an extra quarter for the second consecutive year.

Click to Read More Latest News from Nigeria

Government pledges more funding for HIV/AIDS control

Government pledges more funding for HIV/AIDS control

The Federal
Government has concluded efforts to ensure that HIV/AIDS has its own
budget provision in all the ministries, to further enhance its position
in the fight against AIDS, President Goodluck Jonathan said yesterday
in Abuja, on the occasion of the 2010 World Aids Day.

He also explained
the urgent need to scale up significantly towards the goal of universal
access to comprehensive prevention programmes, treatment, care, and
support by 2015.

“The federal
government is making every effort to ensure that HIV/AIDS has its own
budget provision in all the ministries and that adequate budget
provision is made for National Agency for the Control of Aids (NACA) to
further enhance its position in the fight against AIDS,” he said.

President Jonathan,
who was represented by the minister of health, Onyebuchi Chukwu, said
statistics have shown that only 14 percent of Nigerians have ever been
tested for HIV/AIDS, and that everybody needs to know his/her own HIV
status and take appropriate decision based on it, to cherish and guard
a negative result or to take steps to live positively with the virus.

“The sad thing,
however, are that many people still go about in ignorance, without the
benefit of knowing their status. I would like to seize this opportunity
to encourage every Nigerian, young and old, who has not yet known his
or her status, to heed the call to go for HIV counselling and testing,
to determine his or her status,” he said.

He said that in
order to stem the tendency to stigmatise and discriminate against one,
a bill on stigma and discrimination has passed through the House of
Representatives and is currently with the Senate.

Bill against discrimination

He expressed
confidence that the bill will be passed by the National Assembly, “and
l assure you l will sign it into law as soon as it reaches my office.”

The director
general of NACA, John Idoko, said there is increased funding for HIV,
with round 9 GF HIV grant recently signed worth $320 million for five
years, and an additional $3 million for quick wins PMTCT.

“World bank credit
of N225 million dollars for four years recently approved by the
government of Nigeria, and the USG and GON partnership framework for
2010-2015, also recently signed by the SGF, on behalf of the FGN,” said
Mr. Idoko.

He said that the
common goal of the agency is to halt and reverse the spread of HIV by
2015 and in so doing, also contribute to the developmental goals of the
nation, including vision 20/20/20.

Mr. Idoko said that
the HIV situation in Nigeria is already improving, as a result of the
progress already made, as recorded in the United Nations General
Assembly special session country report.

Click to Read More Latest News from Nigeria

HABIBA’S HABITAT: Well intentioned, but deformed leaders

HABIBA’S HABITAT: Well intentioned, but deformed leaders

Forgive them…they
know not what they do. I was recently in the company of a group of
mortgage bankers who were discussing the state of access to sufficient
and affordable housing in Nigeria. One of the elder participants shared
how he obtained a mortgage from the government as a young professional
starting his first job; the same home he lives in till today.

A younger member
made a passionate appeal for understanding of WHY? He was asking for
the How and Why successors of those patriotic and humane civil
servants, who worked so hard to bring affordable and plentiful home
ownership to our citizens, were not able to sustain what they put in
place. In those days, all that was needful to qualify for a mortgage to
buy or build a house was a pay slip.

Of course, this
same lament, ‘WHY?’, reverberates in every part of our lives that is
reliant on a functioning government and watchful regulators. With that
passionate and pained appeal in mind, I posed the question myself. Why?

I believe that one
explanation is the mindset of the people who have been in position of
leadership and influence in the public sphere over the last 50 years,
and in the last 10 years it has spilled over into the private sphere
too.

One of the most
famous quotes from Abraham Maslow, the creator of Maslow’s Hierarchy of
Human Development Needs is, “If the only tool you have is a hammer, you
tend to see every problem as a nail.” I would like to believe that that
is one of the major problems with our leadership.

In the run-up to
independence from colonial rule, our politicians and community leaders
were subconsciously indoctrinated with ‘Divide and Rule’ as the
leadership tactic passed on from then governor-generals who were the
available leadership role models. Our soldiers have always been taught
‘Command and Control’ as the necessary leadership strategy for managing
troops.

Consequently, our
leaders have been using those tactics that are designed for use against
us, their people. We have been waging war against ourselves! Any other
explanation seems improbable. Are we prepared to accuse the generals
who were patriotic enough to lay down their lives for our country on
both sides of the Biafran war of not loving their nation? I have not
spoken to anyone who holds those views. They are the ultimate patriots.
So, why was it under their rule that our educational system was
decimated; that our traditional values and loyalties were warped?

Let’s look at the
politicians. The great trio who led us into independence were, in fact,
members of a pan-African movement comprising of great African men and
women, including my personal favourite, Funmilayo Ransome Kuti.
Yet,after 50 years of independence, why on earth is politics still
being played along ethnic lines? If the British returned today, they
would find the country operating almost under the same regional model
they left us with.

The democratic and
military governments simply stepped into the shoes vacated by them.
They are still extracting wealth to be warehoused beyond our shores.
They are still enshrouding themselves with cloaks of privilege and the
trappings of wealth amassed on the suffering of others.

Harmful to themselves

“Forgive
them…they know not what they do,” said Jesus, (a.k.a Isa to Muslims),
while being crucified on the cross. Do we forgive our leaders for their
willful ignorance,their criminal lack of awareness and their failure to
act even in enlightened self-interest? What respect can we have for
power ministers who have to resort to generators even in their own
homes; or health ministers who shudder at the thought of submitting to
medical treatment in their own hospitals?

Let’s not talk
about petroleum or agriculture. They have not even made life better for
themselves, not to mention for the rest of us. How many of them have
true wealth by the time they are pushed out of power and in the years
after?

Democracy demands
tolerance for contrary opinion. There must be division of power,justice
for all regardless of status and hierarchy and freedom of
information.Divide and Rule, and Command and Control are not democratic
leadership styles.Yet, they seem to be the only styles our leaders
know. Just as the soldiers crushed any perceived ‘mutiny’ against their
command without considering the merit of the challenge to their
authority; just so, our legislators wish to self-perpetuate, all in our
perceived interest to command and control party politics. It is truly
ironic. Why does this scenario keep repeating itself?

“The road to hell
is paved with good intentions” As Samuel Johnson is credited to have
said, many a good wo/man has come to a bad end for employing unjust and
dishonest means to achieve a good end. So our darling leaders, take
heed. You are there to represent us, to protect our freedom even from
yourselves and to seek justice for us. Have faith that if you do your
job well, and if we elect a similarly responsible person to succeed
you, that our country will develop and our lives will improve.

Trust in the system you are part of, and allow yourself to be
limited by its structure. Avoid changing the rules of engagement
half-way through the game. You alone, no matter how hard you try,
cannot deliver what we all require. Only with three independent organs
of government, regulated by the media as the fourth estate, with an
engaged and active citizenry, and vibrant party politics can we
succeed. How do you wish to be remembered – as a burden or as a welcome
relief? The time to choose is now.

Click to Read More Latest News from Nigeria

Second term for Greg Odutayo

Second term for Greg Odutayo

The three-man
National Delegate Council’s Electoral Panel, chaired by Nifemi
Richards, has returned Greg Odutayo unopposed for another two years’
tenure as the national president of the National Association of
Nigerian Theatre Arts Practitioners (NANTAP), the apex body for theatre
practitioners, at the just concluded national convention of the body.

Odutayo took office in 2008 at the Ekiti convention, where he secured a landslide victory over Biodun Abe as the president.

CEO of Royal Roots
Communication, producers of television series, ‘My Mum & I’ and
‘About To Wed’, Odutayo was commended for the achievements of his first
tenure. Among other things, the administration brokered an insurance
deal that theatre practitioners across Nigeria can benefit from. A
NANTAP website was launched; and the administration has been very vocal
in the agitation for an Endowment Funds for the Arts.

Other members of
the executive who also returned unopposed include the deputy president,
Toyin Ogundeji; secretary general, Steph Ogundele, director of
business; and Deji-Etiwe Suleiman, who was the immediate past chairman
of Lagos NANTAP.

The fresh faces in
the National Executive Council elected and sworn-in for the first time
on Saturday, November 20, include: Adesewo Adebayo, as assistant
secretary general; Lara Akinsola, as director of finance; Ofonime
Inyang, as director of research and documentation; Ozi Okoli of NN24,
as director of publicity; Idoyen Francis, as director of productions
and screening; Patrick Okonkwo, as director, copyright and royalties;
Yinka Aiyelokun, as the chief whip; while the duo of Faith Eboigbe and
Christopher Ifezime clinched the two ex-officio positions.

Chair of the
National Delegate Council, Segun Oyewo, challenged the executive to
move the association further up to take its pride of place in the
nation’s polity, as a major stakeholder.

“Our fate and
future we have committed into your hands today because we have absolute
trust in you. Make sure that you give this association all the best.
Two years is a long time and is so very short as well, but, it is not
how short, but how well. We wish you all the best and expect the best
from you,” he admonished.

The national
delegate council also appointed a five-man constitution review
committee, chaired by Nifemi Bruce Richards, to review the constitution
of the association. This followed an earlier failed attempt by the
Biodun Abe administration.

Other members of the review committee include: Lara Akinsola
(Lagos); Gold Ikponmwonsa (Abuja); Christopher Ifezime (Delta); and
Mufu Onifade of Lagos State. The committee is expected to liaise with
chapters across the nation for their contributions and then present the
reviewed constitution for ratification at the next National Delegate
Congress, holding in Abuja, in November 2011.

Click to read more Entertainment news

Call for mini-theatres nationwide

Call for mini-theatres nationwide

Nigerian theatre
practitioners have called on government to demonstrate a commitment to
the arts by providing cottage theatres across the country.

The call was made
during the annual Convention of the National Association of Nigerian
Theatre Arts Practitioners (NANTAP), which held in Lagos last week. Ben
Tomoloju, a veteran journalist, theatre director and playwright,
spearheaded the demand, as a way for federal, state and local
governments to aid the development of live theatre and complement other
social amenities.

Between sport and theatre

“While I commend
Governor Raji Fashola for his giant strides, I wish to state here that
he should make it a point of duty to establish theatre cottages across
the state, while the same should be extended to every part of this
nation,” he said. “Stadia are currently being built across this state,
but everyone cannot be a footballer. Our profession is capable of doing
more for the image of this country than football can ever do, yet we
don’t get the kind of attention and funding that football gets.” He
cited the example of such cottages in Germany; and suggested that the
proposed cottages or mini-theatres should be of various sizes, with 99
to 250 persons’ capacity.

Anchor of the CORA
Stampede session, Toyin Akinosho, had a slightly different view: “While
it is good to have these theatre cottages, I would rather prefer that
the government make a policy which excluded buildings that housed
theatre space from tax as well as grant such buildings land charges
exemptions.” Tomoloju’s call was backed by actor Dejumo Lewis, who
played Kabiyesi in the classic television series, ‘Village Headmaster’.
“This is the only way we can ensure the democratisation of the
theatre,” Lewis began. “We cannot x-ray democracy if we cannot achieve
the democratisation of the theatre which is our own immediate
constituency. We should not leave theatre in the hands of (just) Wole
Soyinka, Ben Tomoloju, Femi Osofisan, Ahmed Yerima or restrict it to
the National Theatre. No! Each local government in this country should
own a mini theatre. As thespians, we are the conscience of the people
and so our mission should not be limited to the centre, just as
carrying them out in those local areas becomes a challenge without at
least a mini-theatre,” he posited amidst thunderous applause and cheers
from delegates.

Funding the arts

The agitation for
an endowment fund for the arts came up for discussion during the
convention, as practitioners lamented the damage done by lack of funds
on various projects. Delegates drew attention to the fact that most
theatrical, artistic and cultural activities in Nigeria are funded by
foreign agencies from US, UK, Japan and most recently, the Chinese. “It
is pathetic to note that we still leave the funding of our cultural
activities in the hands of the West. I don’t believe in our going
cap-in-hand to beg these organisations for funding. We should begin to
look inward. We should become our own cultural ambassadors and move our
profession forward,” said one theatre artist.

President Goodluck
Jonathan’s recent announcement of a $200 million grant for the
entertainment industries, also came under the radar. Greg Odutayo,
NANTAP’s National President, cautioned that care must be taken for the
money not to be hijacked, as he reiterated the industry’s dire need for
government support. “While we must commend the president’s gesture, the
$200 million grant for the entertainment industry is not the same as
our demand for an Endowment Fund for the Arts,” he declared. Another
member was of the opinion that the announcement was only a political
move by the president to curry favour from the entertainment industry
ahead of the 2011 election.

Credible elections

Ben Tomoloju
however charged all thespians at the interactive session to see
themselves as important agents in the quest for free, fair and credible
elections. “As theatre practitioners, we are stakeholders in the
Nigerian project and we have to play our role assiduously. Rather than
standing by the wings, we should put our profession to work to
conscientise and inform the people on the need for a violence-free
election come 2011,” he advised, adding that the election process
requires a lot of public awareness and INEC or government alone cannot
do it. “With small drama sketches, radio drama or television drama
series, we can make a lot of difference,” he concluded.

Click to read more Entertainment news

Jonathan meets with senators

Jonathan meets with senators

President Goodluck Jonathan last night met with senators of the People’s Democratic Party as part of his drive to recruit sympathizers to his 2011 presidential ambition.

The meeting was held behind closed doors at the Apo Mansion official residence of the Senate President, David Mark with almost all the PDP senators in attendance.

Mr Jonathan, who arrived at the Senate President’s residence at about 7.13 pm, went straight into the meeting with the senators after he was received by the Mr Mark and his Deputy, Ike Ekweremadu. He also left briskly without a word to the press. The senators, however, stayed back a little longer.

NEXT, however, learnt the meeting largely discussed the ambition of the president ahead of the PDP’s national convention and the 2011 general election. It was gathered that the meeting took off with issues of internal democracy within the party but, shortly after, veered into campaign for the President.

Mr Jonathan was quoted by a source at the meeting as having said that it is necessary for him to meet with the Ssenators, considering their role in the party as well as the country.

NEXT also learnt that Dalhatu Sarki Tafida, Director General of the Jonathan/Sambo Campaign Organization, who was on the president’s entourage did most of the talking which centered mainly on the campaign.
The president, it was gathered, solicited for the support of the senators and assured the leadership of the senate that he would put in a word with the national leadership of the PDP over their ambitions to return to the senate.

It is however unclear if the meeting discussed the mounting opposition to the amendment of the 2010 Electoral act, which seeks to give the senators an overwhelming power in the party structure and an automatic voting delegate ticket at voting congresses of the party.

It was also gathered that the meeting could not discuss the ill-feeling of the national assembly over what they considered a deliberate attempt by some members of the Executive to demonize them. The meeting, which ended at 8.27pm, was also attended by former Chairman of the Board of Trustees of the PDP, Tony Anenih.

Click to Read More Latest News from Nigeria

Ministries, agencies fail to utilise half of 2010 budget

Ministries, agencies fail to utilise half of 2010 budget

The
Federal Government yesterday defended its performance in implementing
the 2010 budget, saying that only 46.9 percent of the total
appropriation for its ministries, departments, and agencies has been
utilised till date.

Ibrahim
Dankwambo, the Accountant General of the Federation (AGF), said in
Abuja that this translated into only about N351.59 billion, out of
about N749.74 billion that was cash-backed for various projects
embedded in the 2010 budget.

Atiku
Abubakar, former vice president and Peoples Democratic Party (PDP)
presidential aspirant, recently stirred the hornet’s nest when he took
a swipe at the country’s economic health, accusing the present
administration of not implementing the 2010 budget.

Olusegun
Aganga, the finance minister, while debunking Mr. Atiku’s claims, noted
that the budget performance in the ministries, departments, and
agencies is expected to reach about 64.6 percent level by the end of
the third quarter of the year.

Notwithstanding,
the utilisation rate under the 2010 budget is generally considered very
low when compared to the N913.36 billion, or 76.6 percent achieved
under the 2009 budget last fiscal period.

Details
of the N4.6trillion 2010 budget, which was signed into law by President
Goodluck Jonathan on April 22, following a protracted disagreement with
members of National Assembly over certain inclusions in the original
appropriation, provided for a capital vote of over N1.7trillion (about
30 percent of the total budget outlay), with the balance meant to take
care of overheads.

Improved performance expected

But,
according to Mr. Dankwambo, government was optimistic that the
performance, in terms of the utilisation of the capital vote by the
ministries, departments, and agencies, would improve significantly
before the end of the year, pointing out that the low utilisation rate
was attributable to the political crisis that engulfed the country in
the wake of the ill-health of former President Umaru Yar Adua, which
culminated in his demise late last year.

“The
sum of N1.19 trillion was cash-backed in year 2009, of which N913.26
billion, or 76.6 percent was utilised. For 2010, the sum of N749.74
billion was cash-backed, of which N351.59 billion was utilised as at
30th October, 2010. This translates to a capital performance of 46.9
percent,” Mr. Dankwambo said.

He
described 2010 as a special year, considering, he said, the enormous
challenges government encountered in the course of inaugurating a new
president and reconstitution of a new Federal Executive Council (FEC),
arguing that the type of budget utilisation rate is not too bad,
considering the peculiar political challenges the country had.

On
the capacity of the ministries to utilise these balance of the funds
before the end of the year, Mr. Dankwabo said the issue was not in
their capacity to use the money, but on the type of projects the
appropriations were for, adding, “We are just entering the period of
dry season, with more companies awarded various contracts. So, in the
next few weeks, we will see improvements in the utilisation rate of the
capital votes.”

Also,
he said that the statutory allocation released by his office to the
three tiers of government between January and September totaled N2.7
trillion.

Click to Read more Financial Stories

Banks continue search for new investors

Banks continue search for new investors

The much awaited
sale of seven rescued banks is gradually unfolding, as the various
parties put finishing touches to the deal. While some prospective
financiers, particularly foreign investors, don’t want to stake their
funds, some local entities are making efforts to tidy up loose ends.

After injecting
N627 billion to resuscitate Intercontinental, Oceanic, Finbank, Union
Bank, Afribank, Bank PHB, and Spring banks last year, the Central
Bank’s plan is to allow new core investors that would entrench a new
culture of corporate governance, which the regulator said was lacking.

After several
months of negotiation, Lamido Sanusi, the Central Bank governor, said
recently that bids have been received for the affected banks from two
foreign institutions and some local banks. However, no foreign
institution has made its intention pubic. FirstRand, the South African
bank, regarded as one of the bidders, has said it is not bidding.

No foreign interest

Sam Moss,
spokesperson for Firstrand, said the institution is not interested in
any of the rescued banks, even though it has already registered its
presence in the country’s financial sector. JP Morgan, another foreign
financial institution, has also said it is not interested in any of the
rescued institutions.

“While we are not
purchasing a local bank, we do have relationship with some of them and
helping to build capacity,” said Tosin Adewuyi, JP Morgan’s senior
country officer in Nigeria.

However, the
International Finance Corporation (IFC), the investment arm of the
World Bank, may be backing the sale of the rescued banks, with the
recent signing of cooperation agreement with First City Monument Bank
(FCMB). The agreement, which comes with a $70 million investment in the
bank, also includes a clause for future partnership. A statement by the
bank says the areas of partnership include “acquisition finance of a
distressed bank.” FCMB is one of the bidders for Finbank.

IFC support

IFC’s country
manager for Nigeria, Solomon Adegbie-Quaynor, said, “IFC is committed
to supporting the full recovery of Nigeria’s banking system, and our
investment in First City Monument Bank reflects this strategy.”

“The CBN cannot
sell any bank because it does not have the power to sell what does not
belong to it. The only instrument is for the CBN to liquidate and
transfer to the Nigeria Deposit Insurance Corporation and these two
options will be too heavy considering the current condition of our
economy,” said Sunny Nwosu, coordinator of one of the numerous
shareholder groups recently.

Boniface Okezie,
another shareholders’ group coordinator, said pending court cases would
stall any attempt by the CBN to sell the banks. He said CBN has not
disclosed how much each of the banks require to recapitalise, which is
why the shareholders are in court to prevent the sale.

Mohammed Abdullahi,
CBN spokesperson, said so far, the banks were making appreciable
progress in reaching agreement with potential core investors.

“Individual banks
can tell you how far they have gone. They are talking with people, and
it has reached advanced stage,” he said.

He, however, said the banks are in a better position to talk on how far they have gone with the various bidders.

Click to Read more Financial Stories

Nigeria spending raises concern

Nigeria spending raises concern

Nigeria expects its
budget deficit to widen to 6.1 percent of GDP this year, more than
double the level set under a fiscal responsibility act three years ago,
as government spending rises ahead of elections next April.

Revenue shortfalls
from the oil and gas sector, unexpected wage increases, and election
costs will contribute to the widening deficit, Finance Minister,
Olusegun Aganga, said in an annual briefing on sub-Saharan Africa’s
second biggest economy.

Government revenue
is projected at 3.18 trillion naira, with expenditure expected to be
5.16 trillion, Mr. Aganga said in the review, released on Monday.

Analysts have
expressed concern about the state of public finances in Africa’s most
populous nation, as presidential, parliamentary, and state governorship
elections approach.

Recurring
expenditure accounts for more than half of the country’s overall
spending, meaning it is paying more to keep government running than it
is investing in badly-needed infrastructure and other capital projects.

Government
borrowing has risen sharply, increasing by more than 50 percent since
the start of the year, compared to private sector credit growth of just
three percent over the same period.

The government has
said it will also issue bonds to pay workers at former state telecoms
company, Nitel, and to fund part of the electoral commission’s budget,
further increasing domestic debt.

Still, the head of
the debt management office has pointed to a debt-to-GDP ratio of 16
percent that is expected to remain stable next year, depending on the
rate of economic growth, suggesting Nigeria could easily raise more
debt if needed.

But authorities
have also spent billions of dollars of oil savings since the start of
the year alone, and seen foreign exchange reserves fall 20 percent
year-on-year by mid-November to $34 billion.

Ratings agency,
Fitch, last month, cited those factors when it cut its sovereign credit
outlook for Nigeria to negative from stable.

Oil savings dwindle

The Excess Crude
Account (ECA), into which Nigeria saves revenues above a benchmark oil
price, has dwindled from $20 billion at the start of late President
Umaru Yar’Adua’s term in 2007, to around $4.4 billion when President
Goodluck Jonathan took over in May, and less than $1 billion now.

The government says
the ECA has served its purpose as an account to be used to protect
Nigeria against a fall in commodities prices or a global downturn.

But analysts say
the reduction is alarmingly sharp during a period of relatively high
oil prices – Thursday’s price of $85 a barrel is a 40 percent premium
on the $60 assumption in the 2010 budget – and a recovery in Nigerian
oil production.

Mr. Aganga said
last week Nigeria’s foreign reserves were well below where they ought
to be, and that a plan was in place to restore them.

He has also said
spending for next year will be capped at 4.56 trillion naira, as the
government seeks to rein in expenditure over the next three years.

Parliament approved spending of more than 4.8 trillion naira for 2010, up more than 50 percent on the previous year.

Click to Read more Financial Stories