As crude oil paralysis rattles Nigeria, the government has gone to review the 2020 budget. After the review, many components will go including some federal jobs, National Assembly constituency projects and capex: “As Nigeria faces a fiscal crisis caused by COVID-19 pandemic and the measures to contain it, the Buhari administration has conducted a review of the 2020 budget, which, if carried out, may be the first step required along governance reforms to cut waste and direct revenues for development”.
“All Government Owned Enterprises (GOEs) will be required to cut their capital expenditure and overhead budgets by 25%, even where their budgets have already been approved by the National Assembly,” the memo further stated.
Covid-19 is evil – there is no debate about it. But like I have noted, it would offer opportunities for the U.S. to revamp its healthcare systems and push Europe into a new model of economic prosperity by investing in infrastructure and critical systems. For Nigeria, the only right-of-the-number-line outcome we can get from this demon of disease is reform of our insanely crazy bureaucracy and processes. Of course, if the oil spikes above $50 per barrel, the national masquerades will return from Osogbo, Kano, and Umuahia with recklessness of waste and no directions. But while that happens, the cuts happen because like masquerades, it is all a makeup show which comes and then disappears!
Because of Covid-19, America will revamp its healthcare system, Western Europe will push for new vistas on human welfare and Japan will strengthen how its industries work. Yes, Covid-19 will possibly give the U.S. a ticket to rebuild its infrastructure, as it looks for ways to quickly jump start and re-grow its economy. Indeed, the world will not miss this moment, which even though extremely unfortunate, has come!
Who could have believed that rich men can stay home to use local hospitals? An abomination a few months ago, but we have had governors who were touched and treated by “local” doctors, and they are well! Who could have imagined that all the politicians with fraud related legal problems are suddenly healthy, and none of their lawyers have asked the courts to grant them permissions for medicals in Europe or the U.S.?
People, there is an opportunity here – to rebuild our healthcare, schools, etc, and engineer a restoration in Africa. We must not miss the moment, no matter how the push is coming!
There are already reforms on the fuel subsidy and the IMF has pushed for electricity pricing reform to provide a recent emergency loan. These things are coming as a result of Covid-19.
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It’s the reason why some Nigerians are praying for collapse of Oil prices, it’s not that they hate Nigeria, rather they believe it’s the only way to get the politicians to put on their thinking cap; and from recent happenings, those from this camp aren’t wrong.
As for me, I wanted perhaps the impossible: high Oil prices and at the same time political leadership with sense, unfortunately it doesn’t look like it could happen.
The question is, must it take a dry purse for us to recognise that we have been misbehaving for so long in this country? And if so, what has changed, what stops the polical leadership from returning to their old ways once the oil prices tick up considerably?
It took Covid-19 for Nigerian government to finally recognise that Pilgrims Welfare Boards have been a colossal waste of public resources for years, yet we kept them. We even had State governments sponsoring hundreds of people for personal voyage to Mecca and Jerusalem, and we thought God is really happy with us? We have exhausted our credit long time ago.
Everyone seems to be home now, so what happens once the Americas, Europeans, Saudis and Emirates open their borders again? You can guess.
25% cuts don’t go far enough, Oil fell by higher margins…