The Dividends of Transparency: How Open Budgets Pay Off for Everyone

Earlier this week, Millions of Nigerians were without electricity after the national grid was shut down as part of a general strike over the rising cost of living. Nigeria is facing severe economic challenges, including a 37.92% food inflation rate in February 2024 and a massive strike for a 1,500% rise in the minimum wage; over 4.8 million people in Borno, Adamawa and Yobe states are at risk of severe hunger, with 16 local government areas already experiencing a critical nutrition situation. This situation is not unusual in most parts of the country as extreme weather events and high food, fuel, and farm inputs prices will drive 26.5 million people across the country into acute food insecurity.

In the face of these severe economic challenges, Nigerians are left questioning the government's response and potential solutions. The contrast between the dire economic situation and the lavish spending on presidential travels of about N8.64bn in less than three months, renovations of the vice president’s apartment costing over N7.0bn, and subsidising religious travels raises critical questions about governance priorities. In many countries, good governance is characterised by a focus on the well-being of citizens, where government actions are aligned with public needs and resources are allocated efficiently to social investments. The government is expected to prioritise essential services like healthcare, education, and food security over discretionary expenditures. This citizen-centric approach ensures that the government remains accountable and responsive to the people it serves.

Central to this model of good governance is the principle of budget transparency. When government expenditures are disclosed, citizens can see how public funds are allocated and spent, which builds trust and accountability. This transparency ensures that resources are directed towards critical areas like combating food insecurity and supporting economic stability rather than being siphoned off for less essential purposes. Additionally, involving the public in the budgeting process allows for a better understanding and prioritisation of the people’s needs, ensuring that policies are reactive and proactive.

Open government systems, which provide real-time access to information and facilitate citizen engagement, further enhance this process, creating a collaborative environment where the government and the public can work together to find and implement solutions.

When Nigeria signed up to the Open Government Partnership in 2016, as President Muhammadu Buhari announced in London, it was a peak and kick for civil society actors who started advocating for it as far back as 2012, a sceptical colleague asked what the significance of this partnership was and how it affected the cost of living. One of the responses provided then, the crux of this article, is that signing up for OGP means the Nigerian government is entering a pact with the citizens through a framework designed to make citizens an integral part of governance and ensure policymaking is inclusive rather than exclusively for the political elites.

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Eight years later, a lot has happened, and my colleague's question is still valid: How does that improve the cost of living? In a season where government revenue has significantly taken a hit, how well has the government improved the transparency of its commitment to citizens? The logic is simple: if you’re open and transparent about your finances, you can be trusted with many other things, including improving the cost of living.

Measuring Transparency and Inclusion Through Open Budget Survey

Imagine you're running a household. You must decide how much money to spend on food, school fees, rent, and savings. Now, think of Nigeria's government doing something similar, but on a much larger scale. The government decides how to collect money (taxes) and how to spend it (public services like roads, schools, and hospitals).

The Open Budget Survey (OBS) is the world’s only independent, comparative, and fact-based research instrument that uses internationally accepted criteria to assess public access to central government budget information, formal opportunities for the public to participate in the national budget process, and the role of budget oversight institutions, such as legislatures and national audit offices, in the budget process checks how well the Nigerian government shares this information and involves citizens in these decisions.

The OBS assesses three key areas: transparency, public participation, and budget oversight. A high score in these areas means the government is open about its financial decisions, involves the public in these decisions, and has strong systems to ensure money is spent as planned.

Here's what the 2023 survey found and what it means for you.

The 2023 OBS survey shows a decline in Nigeria’s performance, leaving much room for improvement. This decline directly affects the cost of living.

Transparency: Keeping Citizens in the Dark

The OBS gives Nigeria a transparency score of 31 out of 100. This score shows how much budget information is available to the public. Unfortunately, this score is relatively low, meaning the government isn't sharing enough details about where the money is coming from and where it's going.

When you don't know how money is spent, it's hard to trust that it's being used wisely. This can make you suspicious of government actions, which is a significant contributor to the agitation among informed citizens; if we know what we are making and how well we are utilising it, it is suitable for transparency. Without precise information, ensuring that the money is being spent on things that matter to you, like fixing roads or improving schools, is challenging.

When you buy fish at the market, you probably don't think much about the government's budget. However, a strong connection exists between how the government manages its money and the prices you pay for everyday goods. The Open Budget Survey (OBS) shines a light on how transparent and accountable the Nigerian government is with its budget, which has real implications for your cost of living.

Government transparency helps lower living costs by reducing corruption and spending public money wisely. When government actions are open to the public, officials are less likely to misuse funds. This means more money goes to important services like healthcare, education, and infrastructure, improving their quality and making them more affordable.

Public Participation: Voices Unheard

Nigeria scores only 19 out of 100 for public participation. This score tells us how much the government involves people in budget decisions. Right now, there are very few opportunities for regular citizens to have a say. Many key activities leading up to the final budget sideline citizens; the ideal scenario should involve citizens contributing to the projects the government intends to implement and the quality of services that the government provides.

When the budgeting process is participatory, it’s easier to hold officials accountable and ensure they do their jobs right. This leads to better policies and services that meet people's needs. When this happens, the economy will be more stable and attractive to investors, creating more jobs. There will be more liquidity (cash flow), not just for the government but also for citizens; this helps people save money and improves their standard of living.

When citizens can't participate in the process, the government says your opinion doesn't matter, which is not a democracy. This contributes primarily to the disconnect between citizens and government because citizens are disenfranchised from their civic responsibilities. In addition, Important voices, especially from marginalised communities or people groups such as PWDS, aren't heard. This means their needs might be overlooked in budget planning.

Budget Oversight: Spending with caution

Nigeria's budget oversight score is 61 out of 100, meaning there is some level of checking on how money is spent, but it could be better. The primary bodies involved in oversight are the National Assembly and audit institutions. Oversight ensures the money is used as planned and not wasted or misused. Good oversight means better services and infrastructure, as funds are used effectively. It helps hold the government accountable for its spending, ensuring that promises made in the budget are kept.

What went Wrong? : Why Nigeria performed poorly

Nigeria’s transparency score of 31 in the OBS 2023 is substantially lower than in 2021 when the last survey was done. This is because the In-Year Reports and Mid-Year Review were not published online promptly. Aside from that, some of the critical indicators of a transparent budget process were either published late or the published documents did not provide the information in a more straightforward, less technical manner that citizens can easily understand. In addition, the Nigerian government did not provide enough opportunities for the public to participate in the different stages of the budget process meaningfully. While the oversight of the National Assembly and Audit institutions has been very good this year, they need to do more to improve civil society and the general public’s input in their oversight function

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What Needs to Change?

1. Access to information: The government should publish detailed and timely reports about collecting and spending money. This includes making sure all critical budget documents are easy to access online.
2. Involve More People: The government must create more opportunities for citizens to participate in budget discussions. This can include town hall meetings; virtual consultations can also be considered to cater to the demographics that have access to the internet; and the government can also, in collaboration with civil society, utilise civic tech tools that allow people to report on government projects. Special efforts should be made to hear from marginalised communities, ensuring their needs are considered in budget decisions.
3. Improve Oversight: The National Assembly and the supreme audit institution should have stronger roles in monitoring and reviewing how the budget is implemented. ?

a.???? The national assembly must allow members of the public or civil society organisations to testify during their hearings on the budget proposal before its approval. The assembly must also continue inviting civil society, media, the private sector, citizens, and other stakeholders to public budget hearings to discuss proposed budgets by the Federal Government.

b.???? Nigeria's Office of the Auditor-General for the Federation should establish formal mechanisms for the public to assist in developing its audit program and contribute to relevant audit investigations.

What can you do?

·?????? Be an Active Citizen: Stay informed about current events and government activities through reputable news sources, community meetings, and discussions. Participate in public consultations, town hall meetings, and social media discussions to voice your concerns and hold leaders accountable. Join or form advocacy groups to amplify your efforts to push for positive changes. Educate others about governance issues, rights, and responsibilities to empower more community members.

·?????? Volunteer and Support Community Organizations: Engage with and support nonprofits and community organisations working towards social development and good governance. Volunteer your time, donate, and collaborate with others to strengthen efforts to create positive change in your community.

·?????? Follow the Centre for Inclusive Social Development : Stay informed and engaged by following the Centre for Inclusive Social Development on all platforms. We provide information in a very simple and relatable format to help you understand governance issues, your roles, and your responsibilities in making Nigeria a better nation. We can create positive change and build a brighter future for all Nigerians.