President Muhammadu Buhari yesterday sought the National Assembly’s (NASS) approval of a supplementary budget of N2.557 trillion, according to a letter read out during plenary in the Senate.
In the letter dated February 10, 2022, which also seeks an amendment to the Appropriation Act passed in December 2021, Buhari explained that the budget is meant to provide for fuel subsidy from June to December 2022.
He requested that an additional provision for N2.557 trillion be appropriated for this purpose, following the federal government’s suspension of the plan to remove subsidy on premium motor spirit (PMS) also called petrol.
Recall that the Finance Minister, Zainab Ahmed, had said only N443 billion was available to fund subsidy in 2022, adding that the Nigerian National Petroleum Company (NNPC) Limited had requested for N3 trillion to fund fuel subsidy in 2022.
The government therefore requires the N2.56 trillion to make up N3 trillion needed to fund the subsidy.
Also, about N106.1 billion provided in the Supplementary Bill would be used as capital expenditure, and N43.87 billion for recurrent expenditure.
Amendments sought
While signing the 2022 Appropriation Act, the President had complained about the insertions, reductions and removal of proposals, which he said would affect the objectives of the Act to deliver.
Accordingly, the President also sought a review of the Finance Act 2021, as well as the removal of all capital projects that were replicated in the 2022 Appropriation Act.
He listed 139 out of the 254 projects in the budget worth N13.24 billion that should be deleted.
He emphasised the need to reinstate four capital projects totalling N1.4 billion in the Executive Proposal for the Federal Ministry of Water Resources; and N22 billion cut from the provision for the Sinking Fund to retire mature loans needed to meet government’s obligations under already Issued Bonds.
Buhari’s letter reads in part: “It is important to restore the provisions made for various key capital projects in the 2022 Executive Proposal (see details in Schedule l) that were cut by the National Assembly. This is to ensure that critical ongoing projects that are cardinal to this administration, and those nearing completion, do not suffer a setback due to reduced funding.
“It is equally important to reinstate the N25.81 billion cut from the provision for the Power Sector Reform Programme in order to meet the Federal Government’s commitment under the financing plan agreed with the World Bank.
“In addition, it is necessary to reinstate the four (4) capital projects totalling N1.42 billion in the Executive Proposal for the Federal Ministry of Water Resources that were removed in the 2022 Appropriation Act.
“Furthermore, there is a critical and urgent need to restore the N3 billion cut from the provision made for payment of mostly long outstanding Local Contractors’ Debts and Other Liabilities as part of our strategy to reflate the economy and spur growth (see Schedule I).”
It is equally important to reinstate the N25.81 billion cut from the provision for the Power Sector Reform Programme in order to meet the Federal Government’s commitment under the financing plan agreed with the World Bank.
NASS expenditure
Buhari further criticised the lawmakers for including National Assembly’s expenditure in the budget of the Executive, saying it negates the principles of separation of powers and financial autonomy of the legislature.
He therefore asked the NASS to transfer its expenditure of about N16.59 billion in the Service Wide Vote back to National Assembly Statutory Transfer provision.
He continued: “It is also imperative to reinstate the N22 billion cut from the provision for Sinking Fund to retire mature loans, to ensure that the government can meet its obligations under already issued bonds as and when they mature.
“The cuts made from provisions for the recurrent spending of Nigeria’s Foreign Missions, which are already constrained, are capable of causing serious embarrassment to the country as they mostly relate to office and residential rentals.
“Similarly, the reductions in provisions for allowances payable to personnel of the Nigerian Navy and Police Formations and Commands could create serious issues for the government. It is therefore imperative that these provisions be restored as proposed.
“It is also absolutely necessary to remove all capital projects that were replicated in the 2022 Appropriation Act; 139 out of the 254 such projects totalling N13.24 billion have been identified to be deleted from the budget.”
Additionally, Buhari identified some “significant and non-mandate projects” that were introduced in the budgets of the Ministry of Transportation, Office of the Secretary to the Government of the Federation, and Office of the Head of Civil Service of the Federation.
These are aside from several other projects that were included by the lawmakers in the budgets of agencies that are outside their mandate areas.
He therefore directed the Federal Ministry of Finance, Budget and National Planning to work with the relevant committees to comprehensively identify and realign all such misplaced projects.
