Nigeria’s 2018 budget the most delayed in 19 years

Nigeria's 2018 budget is causing widespread concern as it continues to be delayed, making it the most delayed budget in 19 years. Despite assurances from Senate President Bukola Saraki that the budget would be presented last week, the country is still at a standstill without a ratified financial plan for the year. Eze Onyekpere, Lead Director of the Center for Social Justice, shed some light on the reasons behind this delay and the implications it is having on the country's economy. Onyekpere pointed out that there seems to be a disconnect between the executive and legislative branches of government and the expectations of the Nigerian people, private sector, media, and civil society. He highlighted the agreement made between the executive and legislature concerning the 2017 budget, where it was stipulated to run for 12 consecutive months from the date of the president's assent, which would expire in May 2018. This agreement seems to have led to a lackadaisical approach to the current budget situation. The blame game is also a prevalent factor in the delay, with both parties pointing fingers at the Ministry, Departments, and Agencies (MDAs). The legislature often argues that the MDAs cause delays by not providing the necessary information and documentation on time, further prolonging the budget approval process. Onyekpere dismissed this as a mere game played between the executive and legislative bodies, leaving the rest of the country puzzled and frustrated. Additionally, the inconsistency in Nigeria's fiscal year and budget presentation schedule has been a long-standing issue. The lack of adherence to the medium-term expenditure framework and fiscal responsibility laws has resulted in a chaotic budget process. Onyekpere highlighted that even last year's budget presentation in November, which was considered early, was actually late according to the law. The National Assembly needs sufficient time to review and approve the budget, ideally completing the process before their Christmas vacation to ensure the budget kicks in on the 1st of January. The impact of this delay on Nigeria's economy is significant. The lack of a clear economic policy direction, which should be a priority legislation after the Constitution, leaves stakeholders, citizens, and investors in the dark about the country's financial direction. This uncertainty can lead to a lack of confidence in the economy, hindering investment and growth prospects. The continual delay in budget approval sets a negative precedent for fiscal responsibility and governance in Nigeria. It is imperative for the executive and legislative branches to prioritize the budget approval process and adhere to established fiscal laws and frameworks. Realigning the financial year to provide certainty and consistency in budget presentations is crucial to ensuring a smooth and timely budget approval process. By streamlining the budget process, Nigeria can foster economic stability and investor confidence, driving growth and development in the country.