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Viewing cable 09LAGOS361, WHERE DOES ALL THAT MONEY GO? THE MOVE TOWARD

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Reference ID Created Released Classification Origin
09LAGOS361 2009-09-15 15:41 2011-08-26 00:00 UNCLASSIFIED Consulate Lagos
VZCZCXRO6030
RR RUEHMA RUEHPA
DE RUEHOS #0361/01 2581541
ZNR UUUUU ZZH
R 151541Z SEP 09
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 0947
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 0535
RHEHNSC/NSC WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHMFISS/HQ USAFRICOM STUTTGART GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
UNCLAS SECTION 01 OF 02 LAGOS 000361 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV EFIN KDEM SOCI NI
SUBJECT: WHERE DOES ALL THAT MONEY GO?  THE MOVE TOWARD 
PARTICIPATORY BUDGETS 
 
REF: LAGOS 98 
 
1. (SBU) Summary:  On August 27-28, the Senate Appropriations 
Committee held a zonal consultative meeting on inclusive 
budgeting in Osun state, inviting state governments, civil 
society organizations, and media from the southwest to 
provide input into the 2010 federal budget.  The federal 
government's efforts were welcome, as organizations urged the 
Senate to enact legislation that would require inclusive 
budgeting at the federal and state levels.  Anambra state has 
already initiated participatory budgeting and made 
improvements in public finance and development planning. 
Ogun and Lagos states have also made efforts to include 
stakeholders in the budget process, a positive move towards 
fiscal accountability and transparency at the state level. 
End Summary. 
 
2. (SBU) On August 27-28 in Oshogbo, the capital city of Osun 
state, the Senate Appropriations Committee hosted the 
southwestern states in a two-day session on the 2010 federal 
budget.  This zonal planning meeting is part of a United 
Nations Development Program (UNDP) initiative to advance 
inclusive budgeting at the federal level.  On the first day, 
the representatives of the six southwestern states discussed 
state and regional priorities in future federal budget 
allocations.  On the second day, the Senate Chairman on 
Appropriations, Senator Iyiola Omisore, sought input from 
civil society organizations and the media on the 
participatory budget process. 
 
3. (SBU) On September 2, Abiodun Oyeleye, director of the New 
Initiative for Social Development, an Ekiti-based 
organization, told Poloff that civil society groups urged the 
Senate to pass a law on participatory budgeting.  This would 
encourage the House Assembly in each state to implement 
inclusive budgeting at the state level.  Participants argued 
that integrating the public into the process would ensure 
that funds marked for development would actually reach their 
designated communities.  They also emphasized the need for a 
federal budget and tracking commission to monitor 
expenditures and budget implementation. 
 
4. (SBU) While involving states in the budget process is the 
most recent development at the federal level, some states in 
southern Nigeria have already begun to feature inclusive 
practices in their own state governments.  Anambra is the 
first of the southeastern states to incorporate participatory 
budgets and improve public finance through a partnership with 
the European Union,s Support to Reforming Institutions 
Program (Reftel).  Since 2008, Governor Peter Obi (All 
Nigeria People,s Party - ANPP) has sought input from civil 
society and local government areas in the budget process, 
which has improved transparency and disclosure of state 
financial accounts.  By accepting change in public finance, 
the Governor has found that his own integrated development 
strategy has been more effective as more stakeholders support 
his plans.  D.B. Afam Obi (People's Democratic Party - PDP), 
Deputy Speaker of the Anambra State House of Assembly, told 
Poloff that the participatory budget was an important way for 
the House of Assembly to hold the Governor accountable, since 
all of the stakeholders had a say in the process.  Afam Obi 
added that when the House was passing the 2009 budget, they 
looked at how successful the Governor had been at 
implementing the budget promises made to local governments 
and communities projects. 
 
5. (SBU) In the southwest, Ogun state has implemented budget 
sessions open to the public where the ministries, proposed 
budgets are negotiated.  Kayode Samuel, Ogun State 
Information Commissioner, told Polspec that Governor Gbenga 
Daniel (PDP) has sought to involve stakeholders in all parts 
of the budget process and shares budget information when 
requested.  In Lagos, Governor Babatunde Fashola (Action 
Congress - AC) invites civil society groups to attend and 
voice concerns at budgetary sessions.  While both of these 
states allow communities and civil society to voice their 
budget priorities, neither state yet releases enough 
information to be held accountable for how funds are actually 
spent.  As many of the southwestern and southeastern states 
receive low federal allocations compared to their 
oil-producing neighbors, the transparency of the state budget 
process is all the more important in tracking where the 
 
LAGOS 00000361  002 OF 002 
 
 
limited funds are allocated. 
 
6. (SBU) There is still work to be done in other states in 
the region, Ayo Adebusoye of Nigerian Network for NGOs 
(NNNGO) told Poloff.  In one NNNGO community project in Oyo 
state, the local government development committee said it was 
not willing to confront local and state governments, as 
budget tracking would be perceived as antagonistic. 
Adetokunbo Mumumi, Executive Director of the Socio-Economic 
Rights and Accountability Project (SERAP), told Poloff that 
in their awareness campaign in Lagos state, they found that 
citizens are afraid to confront local government leaders 
about the misuse of funds.  SERAP and similar organizations 
have embarked on campaigns to train communities on their 
rights to be included in the budgetary process and hold 
public leaders accountable for how funds are spent. 
 
7. (SBU) Comment:  While the federal inclusive budgeting 
effort is still in its nascent stage, civil society groups 
and state governments alike are pleased to have a say in 
where the money goes.  Most importantly, states like Anambra 
and Lagos show that incorporating civil society into public 
finance is not all bad - in fact, it appears to lead to 
greater support for the governors, own projects.  At the 
least, it gives communities the opportunity to identify 
priorities at the local and state level, broaden the 
participation of the public in the budget process, and 
promote availability of budget information to the public. 
While a small step in the quest for transparency, 
participatory budgeting is a positive move toward building 
democracy at the state and federal level.  End Comment. 
 
8. (U) This cable has been coordinated with Embassy Abuja. 
BLAIR