Jigawa spends 63% less than its agriculture budget in four years

A budget analysis of the Jigawa State Ministry of Agriculture shows there is a significant difference of 63% between the actual and budgeted spending from 2018 to 2021. 

This was revealed in a recently released report by the International Budget Partnership (IBP) in collaboration with the Dataphyte Research Team. 

This means that the agriculture sector of the state spent only N370 for every N1000 it budgeted for Agriculture during this four-year period. 

The 63% deviation from the approved budget is well above the Public Expenditure and Financial Accountability (PEFA) 2016 standard of 5% for best practice expenditure, and the minimum budget deviation requirements of 15%. 

These expenditure deviations raise concerns about budget credibility and effective resource allocation.

The negative values in the deviation column indicate that the actual spending was less than the budgeted amount for that particular year. The percentage deviation gives an idea of the extent of the deviation as a percentage of the budgeted amount.

A further breakdown of the budget components of the 63% deviation between the actual and the budgeted spending, as shown in the table below, reveals the Jigawa state Ministry of Agriculture underspent, on average, 5% of its personnel budget, 68% of its budget on agriculture projects, 69% of its budget on agriculture supplies, 81% of its budget on agriculture infrastructure, and 89% of its budget on other miscellaneous items, 

These shortfalls in expenditure affect the state’s budget’s credibility and question the competence of the Jigawa government’s financial managers. The wide margin of failure to meet the PEFA standard benchmarks highlights the considerable difference, suggesting possible underutilisation or misallocation of resources.

Jigawa’s Agric Budget Performance grew Worse in 2022, even among pairs in the North-West

Dataphyte’s follow-up of the 2022 budget performances of North-West states shows that the agricultural sector fared poorly across the region.

“All the seven states that make up the region implemented less than 39 per cent of their budget for agriculture. The highest was Kebbi with 38.45 per cent while Jigawa had the lowest with a 12.49 per cent performance by the end of the third quarter of 2022,” Dataphyte reported.

This shows that Jigawa’s Agriculture budget credibility grew worse from an average of 63% lag between actual expenditure and budgeted expenditure between 2018 and 2021 to a lag of 73% as of the third quarter of 2022.

Jigawa spent N896.17 million of its pro-rated N7.15 billion for the first three quarters, while Kebbi State expended N3.12 billion of the N8.12 billion earmarked for the sector in the first three quarters. 

Katsina State spent 31.68 per cent of its agriculture pro-rated budget, while Kano’s was 25.18 per cent of the pro-rated budget.

Other Findings from the IBP Report

To address systemic difficulties in the Ministry of Agriculture’s financial processes, it is imperative to comprehend the causes behind the budget gaps.

The researchers found out that the issues contributing to Jigawa’s poor budget include duplication of projects, late release of funds, and human resource capability challenges.

Late cash releases affect project implementation, particularly in the time-sensitive agricultural sector, leading to suboptimal outcomes for farmers.

Human resource capability challenges, including a lack of quantitative and qualitative analysis skills, contribute to delays in budget implementation and impact credibility.

Coordination issues, such as duplication of projects and bureaucratic hurdles in procurement processes, further hinder effective budget execution.

The research recommends specific measures for Jigawa state to improve budget credibility, including supplementary budgeting, transparent prioritisation processes, improvements in the intergovernmental fiscal system, and enhanced inter-ministry coordination. 

Implementing these recommendations is vital for addressing the identified challenges, fostering sustainable development, and achieving effective resource allocation in both the Ministry of Agriculture and the broader budget of Jigawa state.