Keeping Track of Spending

Take some time out of your day and read this article from Daily Trust.

There are other jumbo spending packages not mentioned by Daily Trust, particularly spending at the second- and third-tier, as well as spending that was not disbursed by the Central Bank of Nigeria.

I wonder (and worry) sometimes if anyone knows how much money our three tiers of government receive and spend. Crime films popularized the notion of mobsters keeping two sets of accounting "books", one for the taxman and one for their internal use. I doubt our governments keep records of the many off-the-books transactions, but the official numbers used by the Minister, Commissioners and Supervisory Councillors of Finance are not fully reflective of reality.

Nevertheless, we must make every effort to keep track of what our three tiers of government say they are spending, what they say they are spending it on, what was actually spent, and what were the measurable outcomes of the spending.

Highlights from Daily Trust's article on the subject of earmarked spending and credit facilities in the last couple of years):

Four Banks' Bailout: =N=650 billion (US$4.3 billion)

Banking Sector Toxic Asset Bailout (AMCON): =N=1.037 trillion (US$7 billion)
The AMCON-led bailout was in the form of bonds yielding 10.125% due 31st December 2013.

Aviation Intervention Fund: =N=300 billion (US$2 billion)
Intended more to bailout banks stuck with non-performing aviation-related loans

Electricity/Power: =N=300 billion (US$2 billion)
CBN and Bank of Industry credit facility

SME/Manufacturer's Loan Restructuring Facility: =N=200 billion (US$1.3 billion)
The Daily Trust article was not very clear on whether this was the same as, or different from, Textile Industry intervention funds (nor were they clear on whether the Textile Industry fund was =N=100 billion or =N=200 billion).

Entertainment Industry: =N=30 billion (US$200 million)
The Daily Trust Article incorrectly said $200 million is equal to =N=150 billion. The value of the Naira moves up and down, but $200 million is more or less about =N=30 billion.

Commercial Agriculture Credit Scheme: =N=200 billion (US$1.3 billion)
Who is getting this money? What are they using it for?

Automobile Intervention Fund (speculated): =N=550 billion (US$3.7 billion)
To encourage Nigerian consumers to buy Made-In-Nigeria cars, buses, etc.