FAAC shared N673bn among Federal, States and LGAs in January 2012 when Nigerians said no to subsidy removal.
In April 2016, FAAC shared N299bn among Federal, State and LGAs.
With pipeline vandalism to Chevron and Shell facilities, our production levels has dropped to the lowest level since 1994.
Yet, our salary bills has increased, expenditures increased, employment numbers increased, debt servicing bill increased, defense budget significantly increased due to war against terrorist in the North and economic saboteurs in the South, cost of fighting corruption has increased, etc.
What does all these mean?
1. The revenue shared in Jan 2012 was more than twice the revenue shared in April 2016. So, revenue received is not enough for the 3 levels of government.
2. Subsidy may have been possible in 2012 and money left to build a new refinery. Now, we don’t have enough to pay our basic overheads. So, subsidy is not possible.
3. Money to be shared in July 2016 is being estimated to be around N200bn because of low production levels. Can you imagine deducting say N40bn for subsidy from N200bn when N299bn was way below budget benchmarks for the 3 levels of government?
3. The 2016 budget is most likely to fail because it is based on a daily oil production of 2.2m bpd and we are now under 1.5m bpd.
4. Government planned to borrow N1.8trn to fund the N6.06trn budget but from the look of things, it may need much more.
5. Government needs to invest money borrowed mainly into sectors that will get the economy moving. Agriculture, roads, Power, Housing and Rail are most urgent.
6. Government needs to ensure more taxes, VAT, custom duties are collected.
7. Corruption has to be reduced significantly by government officials at all levels and cost of governance has to be reduced. I usually wonder why top government officials must have Prado and Landcruiser Jeeps as official cars. Why not an Innoson Jeep or saloon?
8. Government must lead the way in buying Made (or assembled) in Nigeria goods to support local manufacturers and help the naira.
9. Government quickest source of additional revenue is to do deals with those who looted money recently. It potentially can raise anything from N2-3trn to deliver on our budget plans. This is why the corruption cases is most urgent.
10. Government needs to secure deals with countries with seized loots of Nigerians that will ensure swift return of such loot. We can generate N1trn from this just in 2016.
11. Diversification takes time but if government starts now, we could begin to reap benefits in additional revenue streams from next year.
12. Government needs to communicate more effectively to Nigerians and mobilise them to support their efforts to move us forward towards development.
13. Nigerians need to drop partisanship and put on national (Nigerian) consciousness. Most of our problems can provide great opportunities for citizens to create solutions and an income generating channel.
14. These are unprecedented times but also one of our best opportunity to finally break our circular movement and head towards development. That can only happen if government and citizens change their attitude towards NIGERIA.
15. We all need to pray for God to give our leaders wisdom and courage to lead us towards development and for us to get up and contribute our quota.
Arise and build your nation.