BUHARI: STILL IN CLOUD NINE?

Last December, while commenting on Nigeria's 2016 budget after it had been presented to the law makers, Henates concluded the post titled "Buhari: Budget of illusions" thus:

"Unfortunately, none stays in cloud nine forever. Indeed, soon enough 2016 realities will slap his excellency from his self imposed illusions. Pity by then, he would have frittered away completely the tremendous goodwill that came with the romance of majority of Nigerians with Buhari and change as a mantra"

Now, it looks like in this regard, Henates misfired because President Buhari does not seem to be out of his reverie despite all 2016 offered.

First, in recent months Vice President Osibajo has been busy telling everyone that Nigerian needed N7tr budget to get out of recession in 2017. That is after 2016's N6tr budget with about a trillion deficit financing projection, did not deliver the goods as hoped.

Second, when the Emir of Kano, Muhammadu Sanusi, alerted the nation about federal government account with the Central Bank being already overdrawn by N4.7tr in breach of the law, government reply raised more questions than answers.

In a formal statement, it was argued that the said account was overdrawn by N1.47tr only and this still left N1.193 tr to the credit of the federal government in the Treasury Single account if the N1.47tr was offset.

In other words, government had only obtained credit in its main account with the CBN against about N2.66tr still untouched in TSA. Hence no breach of the CBN act which, Sanusi argued, capped the Bank's credit to government at not above 5% of previous year's revenue.

Unfortunately, it looks  more like someone was trying to justify a bad case. This is because the TSA, though in the name of the federal government contains money that belongs to it, state and local governments and government agencies.

That's why in the first place the Presidency could not help itself to the trillions it needed direct from the TSA.

So technically, N1.47tr was overdrawn by December 2 2016 and this is even well above 5% of total N6tr budget of 2016 not to talk of 5% of 2015 revenue.

Besides, budget 2016 had earmarked about N1tr deficit financing and so, it seems like 2016 revenue projection fell far short.

Well how short? Was it not huge enough to stop orders for new war planes and ammunition and deemphasize crocodile and python smiles and resort more to serious dialogue and reconciliation?

Not huge enough for a more comprehensive economic package announced by the President in place of piecemeal policy shifts like the newly announced ban on vehicle imports through land borders?

Not huge enough to stop government from dreaming daily of social intervention programme to ameliorate poverty and pains until the economy recovers at least?

Is it true, like Sanusi says, that out of every N100 revenue, the government now spends N40 on debt servicing and N60 on salaries? If yes, will the solution come from more debts especially in the range of $30 bn now being talked about?

In the end, it all boils down to this: year 2016 and its pains failed to slap the President and his men from cloud nine. They are still enjoying the scene offered by illusions.

So with or without oil price increase, over to year 2017.