Nigerians are optimistic that the 2021 budgets of the federal and state governments, which contain pragmatic policy proposals, projects and programs, ostensibly aimed at lifting Nigerians out of the stranglehold of the second economic recession, will not be derailed. In other words, the executives of the two tiers of government are expected to work their talk.
According to the National Bureau of Statistics [NBS], Nigeria officially entered into another recession, which stemmed from a negative growth in the Third Quarter Gross Domestic Product, GDP in 2020. Experts are of the view that COVID-19 pandemic further eroded the little economic gains the country had recorded after its shaky exit from the 2016 recession.
It is instructive to recollect that the primary cause of the parlous economy was the nose-diving of oil price in the international market sequel to the global lockdown to minimize the spread of the deadly pandemic. The global lockdown led to cessation of businesses, service industries, manufacturing and marketing of products across the world.
The Nigerian economy became the worst hit because it largely depends on crude oil sales for foreign exchange earnings and balance of payment. Thus, having been exposed to the vulnerabilities and shocks in the international market, the 2020 budget was badly affected which is compounding the hardship of the masses.
While the advanced countries of the world have well designed social welfare programmes for the masses, distributing palliatives to the people to lessen the drudgery of staying idle in their homes, many Nigerians were not so fortunate on that score and the lockdown had deleterious effects on them. This is because many people eke out living through daily menial jobs like wheelbarrow pushing and sale of foods in the market, institutions of higher learning and motor parks.
The global impact of COVID-19 cut Nigeria unprepared due to the persistent neglect to diversify the economy as is the norm in countries that practice federalism in practical terms. The glib talk that diversification has been carried out in the agricultural and solid minerals sectors have not yielded the desired impact on the overall wellbeing of the poor masses.
It is preposterous to talk about restructuring agriculture and solid minerals sectors while these sectors are within the purview of the sub-national governments. In other words, agriculture is supposed to be operated by the state governments since the lands belong to the state and federal governments.
For instance, if the agricultural sector is managed by the state governments alone, they will have the constitutional imprimatur to drive away the menacing herdsmen who drive their herds into the farms and kill farmers who challenged them. Since the state governments hands are tied in security, the unchecked menacing herdsmen will worsen the spiraling of food prices and famine staring Nigerians in the face.
It is apposite, therefore, that government should walk its talk on the provisions in the budget so as to stave off the parlous economic situation. There is need to realign the national priorities, ostensibly, to tackle the apparently intractable and pervasive insecurity threatening to create socio-economic and political upheaval in the country. The binge foreign loans for certain road infrastructure that cut across neighbouring countries should be channeled to tackling the insecurity across the country.
Since security is the primary responsibility of government, it has become inevitable to decentralize the security architecture which calls for the restructuring of governance to reinvent true fiscal federalism.
WRITTEN BY POLYCARP ONWUBIKO
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