Nigeria: Shackled by wasteful spending culture In 2012, the Nigerian government welcomed the people into a new year by announcing the removal of petrol subsidy. It was an eventful year, which could go down in the country’s modern history as one that saw overwhelming nationwide protests because Nigerians subsequently took to the streets to protest the move. The total removal of fuel subsidy would have seen the price of petrol more than double at the fuel pump. However, there was an underlying yet salient issue that infuriated the people and further inflamed the crisis- the news that President Goodluck Jonathan and his Vice, Namadi Sambo’s feeding for the year would cost taxpayers approximately N1bn. The budget breakdown showed that the first family had planned to spend N477m on foodstuff and catering material supplies for the president’s office; N293m on “refreshment and meals” for his office and home; and an extra N45.4m to be used for purchasing “kitchen equipment” for his house alone The second family’s “refreshment and meals” were to cost N20.8m, and kitchen equipment to cost another N45.4m. Meanwhile, Sambo’s foodstuff, catering and material supplies, were estimated at N104m and cooking fuel was to cost N6.2m. Majority of the public were not pleased with the news and they acted so on the streets- many brandishing placards to convey their moods. The news was seen by many as an affront by the Federal Government on a people who had suffered a lot from a succession of poor governance. Nigeria is Africa’s largest oil-producer and its 37.2 billion barrels of proven oil reserves put the country’s reserves in second place on the continent, behind Libya. Yet in spite of its impressive potential, Nigeria is the only member of the Organisation of Petroleum Exporting Countries that imports refined fuel and still experiences scarcities. In addition, Nigeria’s huge status as the world’s most populous black country and ‘African giant’ had hardly made any positive impact on the average citizen. So the news that Nigeria’s president and his vice would be spending about N1bn on feeding in a year could not have come at a worst time than when citizens faced the prospect of paying more than double the price for fuel. Although by May 2012, government had made cuts on the controversial ‘feeding allowance’ which had earlier been presented in the 2012 budget, not many people were still satisfied. By then, the initial feeding allowance had been cut down to N857m following public outcry. Many citizens still described the new budget as “outrageous”, considering that about 70 per cent of the people were estimated to be living below one dollar (N160) a day. Many also saw the feeding allowance as a continuation of a succession of wasteful governance in the country. Therefore, not many accepted government’s argument that the money freed up in the process would go into the provision of roads and other public infrastructure. The elaborate feeding allowance seemed to confirm the people’s fears. Government’s decision to cut down the controversial presidential feeding allowance was also not helped by the news that United States of America’s first family pays for their own food in the White House. A 2009 report by Mental Floss, an American magazine that seeks to present facts, said US President, Barack Obama and his family, like former first families, would pay for their own food while living in the White House. The report which was published when Obama had just been elected president, said, “President Obama may have his own executive chef now, but when his family and personal guests eat what’s coming out of the kitchen, he’ll have to foot the bill himself. Luckily for him, though, the government picks up the tab if he’s having a state function at the White House, which could get pricey since the White House’s website touts that its five chefs can crank out dinner for 140 or hors d’oeuvres for over a thousand people.” Addressing the question on how US government keeps track of America’s first families’ bills in the White House, the report stated, “Apparently, the White House functions like a luxury hotel in this regard. At the end of each month, the President receives a bill for his food and incidental expenses.” Following the protests, President Jonathan had in a nationwide broadcast said, “I have directed that overseas travels by all political office-holders, including the President, should be reduced to the barest minimum. The size of delegations on foreign trips will also be drastically reduced; only trips that are absolutely necessary will be approved.” But if all the public cries and condemnations that followed the 2012 budget amounted to anything, it did not show to have counted for much as the government budget for the following year suggested. For 2013, the presidency budgeted over N1.3bn for food stuff and refreshment, including the purchase of computers and furniture. The Senate had queried the Presidency over the budget during the 2012 budget defence by the then Permanent Secretary, State House, Dr. Tunji Olaopa, before the Senate Committee on Federal Character and Intergovernmental Affairs. A member of the committee, Senator Isa Galadu, had reportedly stated, “the huge allocation for foodstuffs in a country where 70 per cent live below a dollar per day and 90 per cent below two dollars per day is outright outrageous. I do not understand why you have allocated N293m for refreshment, apart from the foodstuffs allocation.” The committee chairman, Senator Dahiru Kuta, also reportedly asked why N265m and N295m were to be spent on computers and furniture, for the State House and an unspecified residence, respectively. “The purchase of residential furniture for N295m, is it for the residence of Mr. President? You also have N265m for computers. You bought computers last year. Do you still want to buy computers this year again?” he had asked. But Olaopa had responded that government was committed to reducing expenditure at the State House as shown by the N18.3bn allocated to the State House in 2012 as against N20bn the previous year. A further breakdown of the budget revealed by October 2012, showed that the State House Headquarters were billed to spend approximately N407m on foodstuff, which put the amount at N1.12m a day and about N327m or N896,315 daily on refreshments and meals. The budget also made a provision of N112.5m for Sambo to spend on the purchase of food for the year. This amounted to an average of N308,219 per day. The budget breakdown also showed that Sambo would spend approximately N123m on refreshment and N7.02m to buy cooking gas. The current Permanent Secretary, State House, Emmanuel Ogbile, however, told the Senate during another budget defense session, that the controversial N1.3bn would not even be enough. “I have taken pains to explain that this money is not just to fund the residence of the President and that of the Vice President. The experience I have had is that this fund is grossly insufficient. It is not even enough. it is also from the budget of N1.305bn that we take care of the Federal Executive Council which holds every Wednesday,” he had said. link: punchng/news/presidencys-n1bn-annual-feeding-allowance/
Posted on: Wed, 30 Oct 2013 14:49:18 +0000
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