By Olusola Daniel<\/p>\n
An unbiased examination of the 2014 budget proposal presently under
\nconsideration of the National Assembly will reveal that it is not doomed
\nafter all, as those opposing it would have us believe. From all
\nindications, the budget has a potential to lay a great foundation for the
\ngrowth of the Nigerian economy.<\/p>\n
Being one of those who become upset about the negative headlines and
\nop-eds that tend to portray the Finance Minister as incompetent in the
\npreparation of this budget, I decided to go online and download the
\nbudget. After dissecting it, I came to the realisation that those opposing
\nit are making much ado about nothing. This is a budget that is
\ncomprehensive and detailed down to how much is spent on buying cutleries.<\/p>\n
I was awed and motivated to write this piece by the level of thought that
\nmust have gone into preparing the budget. I will attempt to look at some
\nof the budget\u2019s highlights. But before that, it is imperative that we
\nunderstand that the budget is not simply a set of revenue and expenditure
\nplans by government. Rather, it is a statement about government\u2019s fiscal
\nand related policies which are intended to move the economy forward.
\nTherefore, the budget is not only about the resources being allocated to
\nvarious sectors alone, but also about fiscal policies aimed at stimulating
\ngrowth across various strata of the economy.<\/p>\n
From this context, an informed analyst will understand that for any budget
\nto be given a pass mark, some fundamentals must be present. Fundamental
\nquestions such as what are the fiscal policies and related polices being
\nput forward to advance the economy? Of course, we must look at the
\nfigures; but it is equally important to look at the policies. The 2014
\nbudget scored a great point in both counts.<\/p>\n
Mortgage
\nFor an average Nigerian, owning a house is a tall dream that seems
\nunattainable. It is like climbing Mount Everest on an empty stomach.
\nUnderstanding the magnitude of this challenge, the Jonathan administration
\ninitiated a policy that collaborates with the private sector as well as
\nWorld Bank\u2019s setoff loan of $300 million for this purpose. The money is to
\nbe used to set up a Mortgage Refinance Company to cater to the affordable
\nhousing needs of the Nigerian masses.<\/p>\n
At the inauguration of the mortgage firm by President Jonathan in Abuja
\nthree weeks ago, the Finance Minister was reported to have assured that
\nthis scheme will be driven by integrity.<\/p>\n
The government has also put in place supportive policies for the housing
\nsector, whilst aiming to catalyse eight times more than what is allocated
\nfor housing in the budget by supporting the private sector to be the
\ndeliverer and creator of jobs.<\/p>\n
The Nigerian Mortgage Refinance Institution will have $250 million as seed
\ncapital. It will float bonds for another N50 billion. That is already
\nalmost N100 billion in capitalisation. Juxtapose that with the N12.9
\nbillion that sits in the 2014 budget, it reveals that these are catalysts
\nto bigger government policies that liberate more resources and create
\njobs. Now, I see reason why the 2014 budget is termed budget for job
\ncreation and inclusive growth.<\/p>\n
Agriculture & Reinforced Sectorial Initiatives
\nIn Agriculture, the government has affirmed that it will continue to focus
\non sectoral initiative with a plan to empower 750,000 young Nigerians to
\nbecome Nagropreneurs. In addition to the establishment of a wholesale
\ndevelopment finance institution aimed at granting Nigerian entrepreneurs
\naccess to affordable financing, the budget holds hope for the producing
\nsectors of the economy, including agriculture.<\/p>\n
The government is establishing a Fund for Agricultural Finance in Nigeria
\n(FAFIN) with $100 million. It will focus on SMEs and boost manufacturing
\nin these SMEs by implementing the Nigerian Enterprise Development
\nProgramme (NEDEP) to help SMEs with business development support,
\nprovision of access to finance and training. This will support young
\npeople who are involved in the SMEs sector.<\/p>\n
Infrastructure
\nA closer look at the budget also reveals that it beefs up investments
\ntowards completion of critical infrastructure projects including those in
\nthe power, rail, roads and aviation sectors.<\/p>\n
Undeniably, the 2014 budget presents a ray of hope for the Nigerian
\npeople. It is a budget that is building the foundation for a robust
\neconomy that provides good jobs and wealth for the Nigerian people. As a
\nnation, we need to examine things by ourselves and not act solely based on
\nwhat people say.<\/p>\n
What people say are often garnished with agenda, opinions and political
\nleanings! I have read it for myself; the 2014 budget is not as bad as we
\nare being made to believe by the opposition politicians.<\/p>\n
There is hope in the 2014 budget.<\/p>\n
Olusola Daniel is a political observer and advocate for community
\ndevelopment. He writes from Lagos, Nigeria and tweets from @OlusDaniel.<\/p>\n","protected":false},"excerpt":{"rendered":"
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