A Financial Analyst, Bandele Olusegun on Thursday faulted the entire budgeting procedure in Nigeria, referring to it as ‘guess work’ because the government does not apply analytics when planning the budget.
Speaking on Channels Television’s breakfast programme, Sunrise Daily, Mr Olusegun supported the National Assembly in its stance against the executive arm of government regarding the current state of the 2013 National Budget, which is yet to be passed.
“If the 2013 was properly done, there wouldn’t have been any need to amendment” he said, adding that “the National Assembly is doing its job.”
Mr Olusegun called on the Minister of Finance, Ngozi Okonjo-Iweala, to change the process of budgeting in the country. “A budget drawn up without data is not a budget, it’s a guess work”.
Nigeria is currently using cash based accounting system which he says allows for lapses in ensuring the completion of budgets.
He alleged that cash based accounting system allows for holes in the country’s accounts which in turn affects the budget. He said this is why there is ‘so much fraud’ in the budgeting process.
He suggested that the country adopts the accrual system which is the trend worldwide.
A former Bank Examiner, Bandele Olusegun on Wednesday faulted plans to cede banks’ supervisory function to the Chartered Institute of Bankers of Nigeria (CIBN).
Mr Olusegun, who was a guest on Channels Television’s breakfast programme, Sunrise Daily, said the CIBN does not have the resources to conduct examinations and supervision for banks in Nigeria.
“The CIBN cannot do it because of the fact that they wouldn’t have the resources to carry it out,” he said.
The former bank examiner said CIBN’s major source of revenue is from subscription from its members and that it takes an average of three months to conduct a proper bank examination which cost a lot of money the institute cannot afford.
The Chairman of the House Committee on Banking and Currency, Jones Onyereri gave hint of the plans of the National Assembly to cede bank supervision to the CIBN during the special ACIB induction for the pioneering graduates of the Chartered Bank MBA of the institute.
Mr Onyereri said the move would be the main focus of the lawmakers this year, to ensure that it excises the supervisory role from CBN.
The lawmakers had initiated moves to amend CBN’s Act that would have compromised the apex bank’s autonomy, but the plan was stalled due to stiff opposition from stakeholders.
The amendment, among other things, sought to remove the bank’s governor, deputy governors and executive directors from the bank’s board, provides for a former governor of CBN to chair the board, while also stripping the board the power of consideration and approval of its yearly budget.
A financial consultant, Eddie Osarenkhoe has cautioned the National Assembly not to allow their grouse with the governor of the Central Bank of Nigeria (CBN), Lamido Sanusi to influence their judgements in seeking the amendment of the act establishing the apex bank. Speaking on Wednesday as a guest on Channels Television’s breakfast programme, Sunrise Daily, Mr Osarenkhoe said rather than act on the spur of the moment, the National Assembly should consider and seek to improve the systems and processes in the CBN.
“The same CBN have been there all along and they (the National Assembly) never raised the eyebrow they’ve raised. Maybe it is because there was change in the headship and he (Mr Sanusi) came out with some strong policies which actually shook the economy that is why there was this uproar,” he said.
Two bills – one before the Senate and the other in the House of Representatives – seek to amend the CBN Act Cap C4, Laws of the Federation of Nigeria, 2004, to compel the CBN to submit its annual budget to the National Assembly and for matters connected thereto.
While the Senate’s bill was published in the National Assembly Journal Volume 8, number 54 of April 13, 2012, and registered as Senate Bill 75, the House of Reps’ bill seeks to amend Section 6(2) of the CBN Act (2007) to remove the CBN governor as chairman of the board and exclude the deputy governors and directors as members of the board. It was published in the same journal four days after – Volume 8, number 62, dated April 17, 2012, and dubbed HB.12.03.276.
Both bills seek to divest the board of the CBN of its powers to appropriate and approve the annual budgetary estimates of the bank, contrary to Section 6 (3) (a) of the CBN Act 2007 which stipulates that the board shall be responsible for the consideration and approval of the annual budget of the bank.