The Politics of Budget Padding and Nigeria's National Development
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International Journal of Advanced Research and Development International Journal of Advanced Research and Development ISSN: 2455-4030; Impact Factor: RJIF 5.24 Received: 16-11-2019; Accepted: 20-12-2019 www.advancedjournal.com Volume 5; Issue 1; January 2020; Page No. 47-56 The politics of budget padding and Nigeria’s national development in the fourth republic: 2016 “budget of change” in focus Monday E Dickson1*, Okon Eminue2 1 Department of Political Science, Akwa Ibom State University, Obio Akpa Campus, Nigeria 2 Department of Political Science and Diplomacy, Veritas University, Abuja, Nigeria Abstract This study examined the challenges posed by “budget padding” on Nigeria’s national development. The paper adopted the descriptive research technique and gathered relevant data from documentary sources. The study contextualized budget within the vortex of national development and highlighted the numerous discrepancies and anomalies detected in the 2016 Draft Estimates, which threw up over N284 billion worth of padding. Aided by conspiracy theory as the framework for analysis, the study identified Bureaucrats, National Assemblymen, contractors and businessmen as constituting “the budget mafia” that perpetrated budget padding. Findings from the study revealed that from inception of Nigeria’s Fourth Republic in 1999, the National Assembly’s consideration of successive annual budgets have been enshrouded in pathological secrecy, bolstered by the in-built principle of separation of powers, checks and balances and bedecked by “padding”. The article concluded that “budget padding” is one of the most obvious forms by which budget-related corruption had underdeveloped Nigeria. The study recommended, among other pro-active measures, the discontinuation of Constituency Projects, which it identified as the veritable source of “budget padding” in Nigeria in recent years. Keywords: budget padding, bureaucrats, national assemblymen, contractors, constituency projects 1. Introduction of and use of economy class by civil servants (translating to In 2015, after General Muhammadu Buhari (rtd) was elected a saving of N23 billion annually) (Eminue, 2016, pp. 7-13) President of the Federal Republic of Nigeria under the to mention but a few, all in an effort to reduce the size and platform of the All Progressives Congress (APC), he cost of governance. proposed a three-point agenda, which were the fulcrum of Despite these achievements, allegations of “budget padding” his campaigns, namely: security, economy and the anti- in the 2016 Appropriation Act raised several issues over the corruption. Of note, Buhari vowed to root out corruption, role and ambit of the bureaucrats, legislature, contractors revive the economy and defeat the Islamist Boko Haram and businessmen in the Appropriation process. It will be insurgency (BBC News, 27 February 2019). In its first term recalled that Hon. Jibrin Abdulmumin, former Chairman of of four years some scholars and analysts posit that the the House Committee on Appropriations had levelled Buhari administration had recorded some modest accusations of “budget padding” against the Speaker and achievements, namely: vigorous prosecution of the War some principal officers of the House of Representatives in Against Corruption with remarkable recovery; great the 2016 Appropriation Act. Hon, Abdulmumin alleged that improvement on the security situation, with the ‘degrading the budget was padded with billions of Naira spread across of the Boko Haram terrorists’ in the North-East region; the over 2,000 fictitious constituency projects (Legist, 2019) [51]. establishment of Treasury Single Account (TSA) and Therefore, the paper’s focus is on the impact of “budget sealing of loopholes through which corruption was padding” with particular reference to Nigeria’s 2016 Budget perpetrated in the past; the introduction of Bank Verification christened “Budget of Change” on Nigeria’s national Number (BVN) and the Integration Personnel and Payroll development. Information Services (IPPIS), which have assisted in the elimination of 43,000 “ghost workers” from the payroll of Conceptual Clarifications the Federal Civil Service, saving the country at least N4.2 This study is premised on three interrelated concepts, billion monthly. Others are strict compliance with First-Line namely, “budget”, “budget padding” and “national payment into the Federation Account; the re-organization of development”. There is therefore, the need to define, the Nigerian National Petroleum Corporation (NNPC) with examine and explain these concepts for purpose of clarity. a view to making the organization more transparent and Generally, budget is a statement of monetary plans that is effective in its operation, and the de-regulation of the prepared in advance of a forthcoming period, usually one downstream segment of the petroleum sector; introduction year. It include planned revenues and expenditures (the of cost-saving measures such as reduction in the number of profit-and-loss account), which show the income that each Ministries from 42 to 25 and of Ministers from 42 to 36 part of an organization is expected to generate and the total with the corresponding streamlining of Executive cost that it is authorized to incur (Brookson, 2000, p. 6) [26]. Departments and Parastatals; limitation placed on medical Put differently, a country’s budget is a financial plan or an tourism by Government functionaries as well as regulation itemized estimate of expected revenue and expenditures for 47 International Journal of Advanced Research and Development http://www.advancedjournal.com a given period, usually one year. Hence, it is a political decisions concerning development as well as national document couched in figures which serves as a fulcrum for development have varied considerably, the term the fulfillment of the peoples’ aspiration, redemption of “development” as used in this context denote “change”, political promises and overall development of the nation. “growth”, “progress”, and industrialization on one hand. It Budget is also a management tool for economic planning stressed technological advancement and focused on social and control, a device for ensuring continuous monitoring, well-being, on the other (Fingerlind & Saha, 1983, p. 4; supervision and evaluation of performance of the national Okereke & Ekpe, 2002, p. 8) [63]. Corroborating the above economy (Federal Republic of Nigeria, 1983, pp. 7-8). A viewpoints, Khalid, Ahmed & Mufti (2015, p. 47) [49], budget is an embodiment of a country’s strategic and policy declare that development involves changes or advancement priorities, so that once the priorities are distorted, planned in a nation aimed at improving the political, economic and targets can hardly be met. To that extent, a budget is social lives of the people. Therefore, Dudley Sears (cited in intimately associated with policy success or failure, for, as Inuwa, 2007 [45]; Khalid, Ahmed & Mufti, 2015 [49]; Subba, one scholar has succinctly observed: 2019) define development as a change process geared at Any talk of policy success or failure in developing countries improving or making better, the life and environment of is always with reference to budget, project and programme man and involves the creation of opportunities for the implementation. Policies are translated into reality through realization of human potentialities (Sears, 1985). Evolving project and programme implementation, and the very from above therefore, national development can be success or failure of a policy is determined by the way and explained to mean totality of improvement in collective and manner in which budgets, projects and programmes are concrete terms across socio – economic, political, executed or not executed (Egonmwan, 2000, p. 175) [35]. technology as well as religion and is best achieved through Moreover, from the standpoint of President Buhari’s Federal strategies mapped out by government as contained in the Government, budget is a serious article of faith with the nation development plans (Akindele, Oginni, & Agada, Nigerian people (Akinloye, 2016 [10]; Ojeifo, 2016 [60]; 2013) [9]. It implies development of a nation as a whole or Isaiah, 2016). In particular, Nigeria’s 2016 “Budget of all-round and balanced development of different aspects and Change” is a testament of groundnorm by which facets of the nation viz. political, economic, social, cultural, Government would seek to fulfill its own side of the “Social scientific and material. Thus, the overall object of national Contract with all Nigerians” – a document everyone expects development is human development, the purpose of which is to remain sacrosanct. to empower citizens. In a related development, “padding”, as it pertains to the budget, implies “something added dishonestly on an 3. Theoretical Framework expense account”, loading or inflating a bill of expenditure - The Conspiracy Theory provides frame for analysing which is tantamount to an exaggeration or inflation. “padding” in Nigeria’s 2016 Budget Proposals and its According to The Chamber’s Dictionary, 10th edition (2008, implications for nation’s national development. Propounded p. 1081), to pad means “to increase an amount due to be by Michael Barkun – a Jewish Professor emeritus of paid by adding false charges” or what Temionu (2016) [74] Political Science at the Syracuse University in his, A termed “false entry”. From the above explanations, one can Culture of Conspiracy: Apocalyptic Vision of Contemporary rightly infer that “budget padding”