Photo by Şahin Sezer Dinçer on Unsplash

Economy

2021 Appropriation Bill: will time “justify” a ₦676.3 million sitting allowance?

By Aderemi Ojekunle

October 14, 2020

Some experts defended the 2021 Appropriation bill’s reliance on debt, noting “time will justify the borrowings.” Well, the question on our minds is how time could justify a ₦676.3 million sitting and honorarium allowance to the presidency.

In the 2021 Appropriation Bill, the Federal Government (FG) of Nigeria proposed ₦676.3 million as sitting and honorarium allowances for the 2021 budget. Contained within are allocations for the Office of the President, Vice- President, Chief of Staff to the President, and the State House headquarters. 

Alongside other miscellaneous expenses, the 2021 budget shows misplaced priorities by policymakers.

Last week, President Muhammadu Buhari presented a record ₦13.8 trillion ($34.3 billion) budget to the National Assembly for scrutiny. Hinged on the Nigeria Economic Sustainability Plan (ESP), the Nigerian President said the budget plan provides a clear road map for post Coronavirus economic recovery. 

But, in reality, all indications point to an economic downturn, the second in the space of four years. However, the government says it hopes to bounce back in 2021.

₦673.3 million for sitting and honorarium allowance

Analysis of the budget document shows there’s something in it for everyone; members of Aso Rock, that is. So, the Office of the President, Vice President, Chief of Staff, and State House Headquarters all get a cut.

For instance, almost half a billion naira would go to the State House headquarters. The operations of the President would receive ₦164.18 million, the Vice President (₦20.26 million), and the office of the Chief of Staff to the President (₦13.55 million).

Dataphyte Analysis/ 2021 Appropriation Bill

₦504,391 per day for Refreshment & Meals For Presidency

Apart from the sitting and honorarium allowance, the budget also made provision for welfare packages, refreshment and meals, foodstuff, and catering materials. These provisions were for the same key offices – President, Vice President, Chief of Staff, and State House – in the Presidency.

Overall, the budget’s meal-rated spending increased by over 100 percent to ₦906 million, amounting to ₦2.4 million a day.

Specific analysis of the budget proposal showed that the State House Headquarters would spend ₦135.67 million for refreshment and meals. This is equivalent to ₦371,694 per day. The State House Operations of the President would gulp ₦25.65 million while the Office of the Vice President would spend ₦18.26 million. And for the Office of the Chief of Staff,  ₦4.51 million. Overall, the total sum of ₦184.1 million served as line items for refreshments and meals in the 2021 budget. By implication, the government has earmarked ₦504,391 per day on meals and refreshments in the 2021 appropriation bill for Aso Rock.

2021 Budget serviced with debt

Despite petty allocations, funding for the 2021 budget relies predominantly on borrowing. Every year, the federal government makes budget proposals beyond what it could afford. According to plans, the government would borrow ₦4.28 trillion to service the 2021 budget. Nothing is wrong with borrowings if it would put rapid development and infrastructure at the frontline. The cost of feeding the statehouse could help the government increase its reach on the National Home-grown School Feeding Programme. It would also nourish over 2.6 million children at ₦70 per meal daily.  

Also, the cost of allocating ₦673.3 million for sitting and honorarium allowance could help solve other social-economic crises with current realities. To stimulate and sustain the economy, in line with the Nigeria Economic Sustainability Plan (ESP), the    Nigerian government must prioritise its budgets towards a citizen-focused policy. They must work with economic realities to solve social-economic issues.

Just as Mr Andrew Nevin, Chief Economist at PwC Nigeria, put it, Nigeria’s economy needs double-digit growth over a consistent period to meet with the people’s aspirations. Mr Nevin advised that the country needs hefty capital spending to drive growth and lift millions out of poverty.