Nigerian Government Highlight Potential Benefits from Budget 2012

The Federal Government of Nigeria unveiled a strategic budget and the Subsidy Reinvestment and Empowerment (SURE) Program, aimed at catalyzing economic growth and improving the quality of life for its citizens. These initiatives are designed to address critical sectors, enhance infrastructure, and stimulate job creation, reflecting a comprehensive approach to national development.

Budget 2012: A Roadmap for Economic Growth

The 2012 budget, dubbed the "Budget of Fiscal Consolidation, Inclusive Growth, and Job Creation," laid out a framework intended to stabilize Nigeria's economy and foster sustainable development. Here are the key potential benefits highlighted by the government:

1. Infrastructure Development:

   • Transportation: Significant allocations were made for the improvement of road networks, railways, and airports. This investment aimed to enhance connectivity across the country, reduce transportation costs, and facilitate commerce.
   • Power Sector: The budget emphasized boosting the power supply by investing in power generation, transmission, and distribution infrastructure. Reliable electricity was expected to spur industrial growth and attract foreign investment.

2. Education and Health:

   • Education: Increased funding was directed towards education to improve facilities, provide teaching aids, and enhance teacher training programs. These investments aimed to elevate the standard of education and equip the youth with necessary skills.
   • Healthcare: The budget allocated resources for upgrading healthcare facilities and expanding access to medical services, particularly in rural areas. This was expected to improve overall public health and productivity.

3. Job Creation and Social Welfare:

• Agriculture: Investments in the agricultural sector aimed to boost productivity and create employment opportunities, particularly for the youth. Initiatives included subsidies for inputs, training programs, and support for small-scale farmers.
• Entrepreneurship and SME Support: Funding was designated for programs that support small and medium-sized enterprises (SMEs), providing access to credit, training, and market opportunities. This focus on entrepreneurship was intended to diversify the economy and reduce unemployment.

Against the backdrop of the recent debate on the removal of fuel subsidies, and the calculated misinformation being peddled by opponents of this policy, it is pertinent to highlight, in more tangible terms, some of the significant allocations that have been made to essential sectors of the economy, both in the 2012 budget as well as the recently-launched Subsidy Reinvestment and Empowerment Programme (SURE-P). This programme is a 3—4 year programme designed to mitigate the immediate impact of the removal of fuel subsidy and accelerate economic growth through investments in critically-needed infrastructure.

The SURE Program: Channeling Subsidy Savings

The Subsidy Reinvestment and Empowerment (SURE) Program was introduced to reallocate savings from the reduction of fuel subsidies towards critical development projects. The potential benefits of the SURE Program, as highlighted by the government, included:

1. Enhanced Public Services:

   • Healthcare: The SURE Program aimed to fund the construction and rehabilitation of hospitals and clinics, ensuring better access to medical services, particularly for the underserved populations.
   • Education: Funds were earmarked for building new schools, refurbishing existing ones, and providing educational materials, which were expected to improve the learning environment and outcomes.

2. Infrastructure Projects:

   • Transportation: The program focused on road construction and maintenance, enhancing the national transportation network. Improved roads were anticipated to facilitate trade, reduce travel time, and lower vehicle maintenance costs.
   • Water Supply and Sanitation: Investments in water infrastructure aimed to provide clean and reliable water supply and improved sanitation facilities, thereby reducing waterborne diseases and enhancing public health.

3. Economic Empowerment:

   • Youth and Women Empowerment: The SURE Program included specific initiatives to empower youth and women through vocational training, entrepreneurship support, and microfinance schemes. These initiatives were designed to promote self-sufficiency and economic participation.
   • Job Creation: By funding infrastructure and development projects, the SURE Program aimed to create numerous job opportunities across various sectors, addressing the high unemployment rate and stimulating economic growth.

It is noteworthy that, while the 2012 budget allocated the best possible amounts to these critical projects, additional resources are allocated to the same projects in the SURE programme to ensure that they are completed at faster rates than envisioned in the 2012 budget. Some of the projects and allocations are as follows:

Works

• N11bn is allocated to the Abuja-Lokoja road in the 2012 Budget, with an additional N14bn from the SURE-P.
• N6bn is allocated to Benin-Ore-Shagamu, with an additional N16.5bn to be financed through SURE-P.
• N3bn is allocated to Port-Harcourt–Onitsha road, with an additional N5bn from the SURE-P.
• Similarly, N18.5bn is allocated to Kano-Maiduguri road, with an additional N1.5bn from SURE-P.
• Provision is made in the 2012 budget for construction of the Second Niger Bridge (N2bn) and Oweto Bridge (N3.5bn). An additional N5.5bn and N4bn would be spent on both bridges respectively from the SURE-P.
  • Provision of N23.5bn is made for maintenance of roads and bridges across the country through Federal Road Maintenance Agency (FERMA).
    
    

Agriculture & Rural Development

• The total allocation to the sector is N78.98bn
• N4bn is allocated to research and mechanisation
• Provision of N1.22bn is made for the construction of access roads to each of the 6 Staple Crop Processing Zones.
• Value Chain: N720 million is allocated to the development of value chains in cocoa, rice, maize, livestock, cotton and others sectors.
• N1bn is allocated to the Price stabilisation scheme.
• N610 million to facilitate for the access to credit, fertilizers and seeds.
• An additional sum of US$500m is expected from Development Finance Institute to support the sector.

Transport

• Rail lines: The 2012 budget allocates N3.95bn, N3.15bn and N3.35bn to the construction and completion of Abuja-Kaduna, Lagos-Ibadan and Ajaokuta-Warri rail lines respectively. In addition, the SURE-P allocates N11.6bn to the Abuja-Kaduna line and N9.3bn to the Lagos-Ibadan line.
• Provision of N800mn is made for the procurement of wagons, coaches and locomotives.
• Dredging project: N1.2bn is allocated to the dredging of Lower River Niger (Warri-Baro).

Education

• The total allocation to the sector is N400bn
• N11.6bn is allocated for existing universities.
• N7.7bn is allocated for the restructuring to Unity Schools.
• National Teachers Institute: The 2012 budget allocates N3.5bn to the retraining of teachers for basic education and training in innovative teaching.
• Moreover, an additional N24.6bn will be spent on vocational training centres from the SURE-P.

Health

• N4.6bn is allocated to the Polio eradication programme
• N3.5bn is allocated to the procurement of HIV/AIDS Drugs
• The sum of N174 million is allocated to Integrated maternal, newborn and child health strategy, including capacity building, and promoting school health initiatives.

• N8.42bn is allocated to Federal University Teaching Hospitals.
• N6bn and N3.6bn are allocated to the procurement of vaccines and midwifery service scheme respectively.
• An additional N73.8bn will be spent on Maternal and Child heath from SURE-P.

Aviation

• Various Airports: N22.2bn is allocated for the modernization of airport terminals and upgrading of facilities in the six geopolitical zones of the country.

Federal Capital Territory Administration

• N3.1bn is allocated to the construction of a 20,000m3/hr lower Usuma dam Water Treatment Plants.
• N2.5bn is allocated to the construction of Cultural and Millennium Tower.
• N1.25bn is allocated to the Development of Idu Industrial Area (1b Engineering Infrastructure).
• Various road projects including the completion of roads B6, B12 and circle road (N4bn), rehabilitation and expansion of airport Expressway (N7.53bn).

Niger Delta
East-West Road (Section I—V): The 2012 budget allocated N22.2bn to this road. In order to accelerate its completion, an additional N21.7bn is allocated in 2012 from the SURE programme.

Water Resources
N1.2bn is allocated to the construction of Central Ogbia Regional Water Project.
A total of N4bn are allocated to the construction of dams.
Other provision for water facilities (i.e. regional water supply scheme) of N8bn.
Rehabilitation of river Basin authorities (12 nos) of N13.91bn.

 Moreover, over the period 2012-2015 an additional N205.5bn will be invested in rural water scheme, water supply scheme, irrigation scheme and other water related projects from SURE-P.

These projects will not only significantly improve the country’s infrastructure, but will also create millions of jobs for Nigerians. This struggle is not between the government and Nigerians, because government is squarely on the side of the people. The fight is between the government and Nigerians on one side, and persons who are bent on continuing their age-long “milking” of the system for their personal benefits on the other side.

The 2012 budget and the SURE Program represented a strategic approach by the Nigerian government to foster economic growth, enhance public services, and create job opportunities. By focusing on critical sectors such as infrastructure, education, healthcare, and economic empowerment, these initiatives were poised to deliver tangible benefits to the Nigerian populace. The government's emphasis on fiscal consolidation and inclusive growth aimed to set Nigeria on a path towards sustainable development and improved living standards for its citizens.

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