If I were within the circle of President Muhammadu Buhari advisers, I would have suggested that 2016 budget should be tagged; Budget of Progressive Idealism. This is simply because the budget as presented by the President is a clear departure from the past. It is a bold step and very novel in our developmental stride as a nation.

There have been main two major schools of thought in tackling the challenges of our infrastructural deficits. The fact remains that Nigeria has huge infrastructural needs to move us away from our current status to our desired development. A World Bank report released in 2014 put the cost of Nigeria infrastructural deficit at $3 Trillion. This is about six times more of our Gross Domestic Products (GDP). Considering our low GDP to Revenue Ratio and as well as our conservative low GDP to Debt ratio which currently stood at 14%.

The Argument:

First Argument- Do we borrow heavily to finance our infrastructural deficit and expect that economic activities which will be spurred by this borrowing will generate enough revenue to pay back in the nearest future? This argument is spearheaded by in recent times by governor’s forum of 2007-2015. The eggheads of this argument are Babatunde Fashola and Rotimi Amaechi (and now the government of APC though reluctantly).
This school of thought believe that we need to fast-track our development, accelerate our economic growth to double digits and move away from the conservative budgets that impact little on the lives of Nigerians. They believe we need take responsibility for our development, source for our money though with interest. They believe there is no free fund anywhere. They cannot understand why Chief Obasanjo led by Iweala will pursue forgiveness when we can use the fund to buy-back the debt to improve our infrastructure. They are at the fore-front of ‘sharing excess crude oil’, they are against sovereign wealth funds and they are always borrowing from every available source in their respective state governments. A good example is Babatunde Fashola that accrued largest debt for Lagos during his terms Lagos Government.

.Second Argument
Or do we borrow in piece-meal while we grow our economy consistently, developing at a slow pace, while we manage to at the same time save for future generation? The eggheads of this argument are Chief Olusegun Obasanjo, Dr. Goodluck Jonathan and Dr. Ngozi Okonjo-Iweala and largely Peoples Democratic Party.

This school of thought believe we must avoid piling up debts. This is what motivated the famous debt forgiveness early 2000s spearheaded by Chief Obasanjo and Dr. Okonjo-Iweala. This school of thought believe in seeking for cheap funds abroad and as well as looking for ready development partner to invest in Public-Private Partnership. This school of thought believe in search endlessly for ‘free lunch’ from countries like China.

2016 Deviation

The 2016 budget as presented by President Muhammadu Buhari clearly deviate from the usual practise, though not as much as many within his camp would have wanted, but it clearly signalled the direction Progressive Idealism will tend in the coming year. The weight of budget deficit of N2.2 Trillion on our economy in the face of rising recurrent debt services of N1.34 Trillion in the face of dwindling oil revenue on our economy in the coming days will give a tell-tale of which of the two arguments best suit our national development.

The Pitfall

I am of strong opinion, though, that our type of democracy, the social imbalance in our society and our penchant for considering quota system rather than economic benefits in allocation and location of resource and infrastructure may be an impediment to borrowing heavily at once.
Also the quick rate of regime change in Nigeria may also be another stumbling block to borrowing heavily at once. It is worthy of note that in the last 16 and half years, Nigeria has had 4 different Presidents, each of the Presidents have different points of focus. Most heavy infrastructural projects may require years to complete.

Conclusion:
The argument has kept on going back and forth in our government circle for a long time. President Buhari gave us the opportunity to see this other side of the argument. We have seen what piece-meal borrowing has been able to do to our economy: stable growth of 6-7% of our GDP, stable economic outlook, healthy debt-to-GDP ratio, piece-meal infrastructural development, corruption and nepotism.
I am eager to see what the giant leap in borrowing will give to the 170 million Nigerians.

You know why nobody comment after 30 min?
It is because you are inconsequential in the scheme of things.

Who are you and what are you to title a topic as "my take"

IdisuleOurOwn:
You know why nobody comment after 30 min?
It is because you are inconsequential in the scheme of things.

Who are you and what are you to title a topic as "my take"

Thank you for your insight. Correction has been made.
Thank you.

Thank you my brother! Give your write up a befitting TITLE. Let's try the other face progressive not conservative! With a sincere leadership, God wil help. God bless!

lawydewy:
Thank you my brother!
Give your write up a befitting TITLE.
Let's try the other face progressive not conservative!
With a sincere leadership, God wil help.
God bless!

Noted.