Tag: 2018 BUDGET

  • Buhari yet to receive 2018 Budget – Udoma

    The Minister of Budget and National Planning, Udoma Udo Udoma, said on Wednesday that President Muhammadu Buhari is yet to receive the 2018 Budget recently passed by the National Assembly.

    The two chambers of the National Assembly passed the budget last week.

    Briefing State House correspondents at the end of the Federal Executive Council (FEC) meeting chaired by President Buhari, Udoma said the Executive arm of government is ready to work very fast on the budget as soon as it is received from the lawmakers.

    The Minister of Information, Lai Mohammed, said if not for the immunity the Rivers State Governor, Nyesom Wike, enjoys, he would have been invited over his allegation that the Federal government was planning to assassinate him.

    Mohammed said: “On the allegation raised by the governor of Rivers that he has information that he would be assassinated by the federal government.

    “I think one of the good things on being a governor is that you enjoy immunity from prosecution and arrest. Because I remember that few years ago when I made similar allegations I was invited to the Force Headquarters.”

     

     

  • FG must take loans to fund budget – DMO

    The Director-General of Debt Management Office (DMO), Patience Oniha, said on Monday the Federal Government must take loans to fund the budget and capital projects.

    Nigeria’s total public debt stock stands at N21.73 trillion as at the end of December 31 last year.

    Oniha spoke at the International Monetary Fund (IMF) Regional Economic Outlook for Africa with theme: “Domestic Revenue Mobilisation and Private Investment.”

    She said with the level of reserves, oil production and population, Nigeria cannot claim to be an oil producing nation like Saudi Arabia.

    “We have since realised we should not be benchmarking ourselves against these countries. We borrow because there is revenue shortfall. The National Assembly passed the budget last week and we know it was higher than what the executive presented. So, as a debt manager, what I am looking for is to see where the funding of that incremental size may come in from.”

    According to the DMO chief, federal government would take loans to make up for that shortfall in budget.

    “All of government’s borrowings were targeted at infrastructural development. Without borrowing, we won’t be able to deliver on the budget and I think we should be clear about that and a lot of that went into capital projects,” she added.

     

  • $51 oil benchmark okay for 2018 budget, say experts

    Experts have commended the decison to raise the oil benchmark from $45 to $51 per barrel for the 2018 budget passed on Wednesday by the National Assembly, more than six months after it was presented.

    The National Assembly passed the 2018 Appropriation Bill of N9.12 trillion, raised from the N8.61 trillion proposed by President Muhammadu Buhari on November 7, 2017.

    The budget expenditure was premised on oil price benchmark of 51 dollars per barrel as against 45 dollars proposed by the President.

    Crude oil production was bench-marked at 2.3 million barrels per day and exchange rate of N305 to one dollar.

    Acting Chairman Fiscal Responsibility Commission (FRC) Mr Victor Muruako, described the passge of the bill as “a relief to the nation.”

    Muruako said it would also bring hope to the populace and boost the economy.

    He described the crude oil benchmark at 51 dollars per barrel as the right thing to do, considering the current price of crude oil globally which yesterday hit the $80 threshold, the first time since 2014.

    “The crude oil price benchmark is very realistic because if you look at the current crude oil price you will see that 51 dollars is fair enough, because the essence of these things is not to have an unrealistic estimate.

    “Crude is going for 78 to 80 dollars per barrel and I think 51 dollars is even conservative but it is better to be on the safe side, so for me it is a commendable effort,” Muruako said.

    He also said the increase in the budget estimate by the National Assembly by N508 billion was in the interest of the country.

    The Lagos Chamber of Commerce and Industry (LCCI) also commended the oil benchmark.

    The Director-General of LCCI Muda Yusuf, said: “Given the development in the crude oil market, which has pushed oil price to about $80 per barrel, I think the decision of the National Assembly to increase the benchmark is understandable.

    “If the increase is in the areas that would make impact, particularly in the areas of infrastructure, security and health, it is welcome.

    “As at the time the budget was presented to the National Assembly, oil price was below $50 per barrel, so the adjustment is laudable,” he said.

    Yusuf urged the Federal Government to guard against a future recurrence of the budget delay process, adding that the delay might affect timelines for the delivery of capital projects and create uncertainties in the economy.

    “It is becoming a culture that we always have budget delays, which I do not think is good for our economy,” he said.

    President of the Chartered Institute of Bankers of Nigeria (CIBN) Prof. Segun Ajibola, describd the provision of N2.8 trillion for capital expenditure in the Budget as low.

    Ajibola in an interview with the News Agency of Nigeria (NAN) said: “Looking at the provision for the capital expenditure, one will say it is low because there are lots to be done in economy today in terms of capital projects.

    “In terms of infrastructure, we have power projects, railway, refineries, manufacturing and agriculture projects.

    “These are capital related projects that require substantial allocation from the budget.

    “When one looks at the state of economy today, one will say the provision of capital expenditure is low,’’ he said.

    Ajibola, however, called for timely release of funds to implement the capital projects.

    “We are in May now; we don’t want to hear that funds are not released for capital projects in October.

    “If that is the case, that means nothing can be achieved in the implementation of the 2018 budget,’’ the don said.

    “They are projects-hiked adjustment; they are adjustment that can be measured.

    “Also, I want you to know that the implementation of budget is done by the executive not the legislature, so the President will still do some consultations before signing the Budget.’’

    The don assured that the country’s rising debt profile of N21.7 trillion was nothing to worry about, though on the high side.

    He said it was not much to worry about because the quality of the debt was spent on projects so that the dividend of borrowing would come handy to an average Nigerian.

    “We also know that some of the debts are transmitted from local to foreign through Euro bond to reduce the debt burden.

    “It is also a good development when you look at the budget and debt services; we can say that the debt is channeled toward development,’’ Ajibola said.

  • Breaking: Senate passes 2018 budget

    The Senate on Wednesday finally passed the 2018 budget.

    The budget was increased from the earlier proposal of N8.612 trillion presented by President Muhammadu Buhari in December last year to N9.120trn.

    The Senate dissolved into Committee on Supply to do the clause-by-clause consideration of the budget.

    Read Also:National Assembly raises 2018 budget to N9.1tr

    Breakdown of the proposal show are N530,421,368,624 for Statutory Transfer; N2,203,835,365,699 for Debt Service; N3,512,677,902,077 for Recurrent Expenditure, N2,873,400,351,825 for Capital Expenditure, Fiscal Deficit of N1,954,464,993,775 and 1.73 percent Deficit to GDP.

    Earlier, Chairman, Senate Committee on Appropriations, Dajuma Goje, revealed that increase in the budget by N508 billion was done in consultation with the executive arm of government.

    House of Representatives headed by the Speaker, Yakubu Dogara also passed the budget.

    13-clauses accompanying the bill were also approved and passed.

    The House suspended it’s rules to immediately take the third reading of the bill and set up a conference committee headed by the Chairman House Committee on Banking and Currency, Jones Onyeriere to harmonize with the Senate.

    Before the passage of the appropriation bill. The House went into a closed -door session.

    In a bid to stop the payments of unappropriated subsidies and other payments not approved by the National Assembly, the lawmakers inserted the clause ” The minister of Finance shall ensure that only funds appropriated under this act are released to the appropriate

    Dogara said there was no request for subsidies and that it can only come through supplementary budget and that the House cannot give approval for what was not requested  “we’re not Father Christmas here, ” he said.

    The budget is to run from the date in is assented into law till June 30th, 2019.

  • National Assembly raises 2018 budget to N9.1tr

    More than six months after President Muhammadu Buhari presented the 2018 expenditure profile for lawmakers’ consideration and passage, the bill was laid at the Senate and the House of Representatives yesterday.

    The document was presented to a joint sitting by the President on November7, last year with a plea that the lawmakers should expedite action so that the country could return to the traditional January to December budget cycle.

    On presentation yesterday, the estimate was jacked up by N508 billion to take it to N9,120, 334,988,225 from the N8.6 trillion presented by the President.

    Following the laying of the report of the Appropriations Committee of the House by its Chairman Mustapha Dawaki yesterday, Deputy Speaker Yussuff Lasun, who presided over plenary, said the report would be considered between today and tomorrow and passed.

    “Members are advised to pick up copies of the budget report from 8am tomorrow (today), then we converge in the afternoon to consider it and pass it on Thursday,” he said.

    The document was also laid at the Senate by Appropriations Committee Chairman Danjuma Goje.

    Senate President Bukola Saraki did not make any remarks on when the report would be adopted.

    According to the document, N530,421,368,624 was proposed for statutory transfer; N2,869,600,351,825  for development fund for capital expenditure; N3,516,477,902,077  for recurrent (non-debt) expenditure; N2,203,835,365,699 is for debt service; and N199b  for sinking fund for maturing loans.

    The assumptions  and  projections were based on a benchmark crude oil price of $45 per barrel; oil production estimate  of 2.3 million barrels per day; exchange rate  of N305 for 2018; Real GDP growth of 3.5 per cent; and inflation rate of 12.4 percent.

    The  proposed aggregate expenditure of N 8.612 trillion, which was 16 per cent above 2017 budget estimate, will comprise  Recurrent Costs of N3.494 trillion; Debt Service of N2.014 trillion; Statutory Transfers of about N456b; Sinking Fund of N220b to retire maturing bond to local contractors; and  Capital Expenditure of N2.428 trillion, excluding the capital component of statutory transfers.

    On the Recurrent expenditure, a substantial part is for the payment of salaries and overheads in key ministries that provide critical public services.

    In that category, N510.87b was proposed for Interior; N435.01b for Education; N422.43b for Defence; and N269.34b for Health.

    Key Capital spending allocations in the 2018 Budget as presented by the President  include: N555.88b ( Power, Works and Housing); N263.10b  (Transportation); N150b (Special Intervention Programmes); N145b (Defence); N118.98b (Agriculture and Rural Development); N95.11b  (Water Resources); N82.92b (Industry, Trade and Investment); N63.26b (Interior); N61.73b (Education); N109.06b  (Universal Basic Education Commission); N71.11b (Health); N40.30b (Federal Capital Territory); N100b  (Zonal Intervention Projects); N45b (North East Intervention Fund); N53.89b (Niger Delta Ministry); and N71.20b (Niger Delta Development Commission).

    In addition, N9.8b was proposed for the Mambilla hydro power project, including N8.5b as counterpart funding, N12b counterpart funding earmarked for transmission lines and substations as well as  N35.41b for the National Housing Programme.

    As part of key projects and programmes to be implemented in 2018, the President proposed N10b for the 2nd Niger Bridge; N300b was proposed for the construction and rehabilitation of strategic roads.

    For regional spending priorities for peace, security and development, N65b was proposed for the Presidential Amnesty Programme. It is retained in the budget.

    The Capital provision for the Ministry of Niger Delta was  increased to N53.89b from the N34.20b provided in 2017. The completion of the East-West Road had a provision of about N17.32b.

  • NASS jerks 2018 budget to N9.120 trillion

    The 2018 budget has been jerked to N9,120,334,988,225 by the House of Representatives.

    According to the document laid on Tuesday, N530,421,368,624 was proposed for statutory transfer; N2,869,600,351,825 for development fund for capital expenditure; N3,516,477,902,077 for recurrent (non debt) expenditure while N2,203,835,365,699 is for debt service; and N199b for sinking fund for maturing loans.

     

    Read Also : Senate to receive report on 2018 Budget today

     

    Details later…

  • Senate receives report on 2018 Budget today

    As plenary resumes on Tuesday, the Senate is set to receive the report on the 2018 Budget proposal.

    This is coming six months after the Budget was presented by President Muhammadu Buhari in November 2017.

    Mr Olu Onemola, Special Assistant on New Media to the President of the Senate, took to his twitter handle @OneMolaOlu to share a picture of the Order Papre for Tuesday which showed that the draft report will be laid on the floor of the Senate.

    The 2018 Budget has been on the front burner in recent times as many people have blamed the National for purposely delaying the budget as using it as a tool against the Executive.

    However, the National Assembly had maintained that the delays were due to the Ministries, Departments and Agencies of government (MDAs) who have failed to submit their details within the stipulated time.

    The President of the Senate and head of the National Assembly, Dr Bukola Saraki had assured that the Budget will be treated with the uttermost urgency which it deserves.

    Read Also: 2018 budget: Senate, Reps, request N2bn more for Tourism sector

    Below is the breakdown of the 2018 Budget.

    Budget size: N8.612 trillion (16 % higher than 2017 estimates)

    Assumptions, projections
    ==================
    • Benchmark crude oil price-US$45 per barrel
    • Oil production estimate – 2.3 million barrels per day
    • Exchange rate – N305/US$ for 2018
    • Real GDP growth of 3.5 per cent
    • Inflation Rate of 12.4 per cent

    Expenditure Estimates
    ================
    The proposed aggregate expenditure of N 8.612 trillion (16 per cent above 2017 budget estimate)
    will comprise
    • Recurrent Costs of N3.494 trillion
    • Debt Service of N2.014 trillion
    • Statutory Transfers of about N456 billion
    • Sinking Fund of N220 billion (to retire maturing bond to local contractors)
    • Capital Expenditure of N2.428 trillion (excluding the capital component of statutory transfers).

    Recurrent Expenditure
    =================
    A substantial part of the recurrent cost proposal for 2018 is for the payment of salaries and overheads in key ministries providing critical public services such as:
    • N510.87 billion for Interior
    • N435.01 billion for Education
    • N422.43 billion for Defence
    • N269.34 billion for Health

    Capital Expenditure
    ===============
    Key capital spending allocations in the 2018 Budget include:
    • Power, Works and Housing: N555.88 billion
    • Transportation: N263.10 billion
    • Special Intervention Programmes: N150.00 billion
    • Defence: N145.00 billion
    • Agriculture and Rural Development N118.98 billion
    • Water Resources: N95.11 billion
    • Industry, Trade and Investment: N82.92 billion
    • Interior: N63.26 billion
    • Education N61.73 billion
    • Universal Basic Education Commission: N109.06 billion
    • Health: N71.11 billion
    • Federal Capital Territory: N40.30 billion
    • Zonal Intervention Projects N100.00 billion
    • North East Intervention Fund N45.00 billion
    • Niger Delta Ministry: N53.89 billion
    • Niger Delta Development Commission: N71.20 billion.

    Key projects and programmes to be implemented in 2018:
    =========================================
    • N9.8 billion for the Mambilla hydro power project, including N8.5 billion as counterpart
    funding
    • N12 billion counterpart funding for earmarked transmission lines and substations
    • N35.41 billion for the National Housing Programme
    • N10.00 billion for the 2nd Niger Bridge
    • About N300 billion for the construction and rehabilitation of strategic roads

    Regional Spending Priorities for Peace, Security and Development
    ==============================================
    • N65 billion for the Presidential Amnesty Programme has been retained in the 2018 Budget
    • Capital provision for the Ministry of Niger Delta increased to N53.89 billion from the N34.20 billion provided in 2017
    • Completion of East-West Road, with a provision of about N17.32 billion in 2018

     

    (NAN)

  • Six months after, stage set for 2018 Budget passage

    At last, the stage is set for the passage of this year’s budget. The Senate and House of Represenatives yesterday confirmed that the bill will become law next week. VICTOR OLUWASEGUN writes on the executive/legislative feud that held the economy down for more than five months.

    AN end is in sight to the delay in the passage of this year’s budget. The N8.612 trillion 2018 Appropriation Bill will be passed next week, the House of Representatives assured yesterday.

    The promise from the lower chamber of the National Assembly came on the heels of a similar assurance from the Senate.

    Should both chambers keep to their words, the passage will be coming almost six months after it was presented by President Muhammadu Buhari to the joint session of the National Assembly.

    The bill, tagged: “Budget of Consolidation” has been na issue of controversy between the executive and the legislature, with one blaming the delay on the other.

    But barring the unforeseen, bill will be passed into law next week, the Chairman, House Committee on Media and Publicity, Abdulrasak Namdas, told reporters in Abuja yesterday.

    Namdas was echoing Senate’s spokesman Aliyu Sabi Abdullahi, who had earlier assured on the passage by the National Assembly.

    The House of Representatives spokesman said: “By the Grace of God, we will lay the budget on Tuesday (next week) and then try to pass it that same week.

    “But where laying it on Tuesday and I can assure you that within that same week, we’re going to pass it. We tried to do that, but you know, the budget is a voluminous document.

    “Actually, we’ve been working hard so that we can beat the deadline, and hopefully this time around, I can assure you that by next week, everything about the budget will be concluded and passed.”

    On the proposed three-day suspension of legislative activities to protest the killings across the country, Namdas said the protest will take effect after the passage of the Appropriation Bill and follow no definite pattern.

    “If you recall, there had be conflicting dates given by the House on when Nigerians should expect the passage of the Appropriation Bill.”

    As controversy over the budget raged, House of Representatives Speaker Yakubu Dogara once announced that the budget would be ready by late April, a promised that was quickly countered by the Chairman, House Committee on Appropriation, Mustapha Dawaki. He said the budget would be ready in May.

    In March, Dogara told his colleagues at plenary that the bill would be passed on April 24.

    The Chairman of the House Committee on Media &Public Affairs, who spoke earlier with The Nation on the telephone, said the bill would be passed in April.

    He said: “The Bill will be passed before the end of April, I assure you. I will be briefing and updating you at every stage.”

    The bill passed second reading on the floor of the House on December 5, 2017 and the Speaker’s pronouncement that the budget would be passed on April 24 was made on March 20.

    There were hopes of an early passage for the budget after it was proposed to the National Assembly in November last year by the President.

    But there were enough reasons to fear that the bill was going to suffer delay just like previous proposals.

    A member of the House, Nicholas Ossai (Delta-APC), blamed the the delay to annual budget passage on the fault of the executive.

    “It’s this characteristic refusal of the Ministries, Departments and Agencies (MDAs) to defend their budgets before the relevant committees of the National Assembly that results in late budget passage.”

    Ossai said that last year’s passage, like the previous proposals, was presented late to the parliament for consideration and passage.

    He said: “The executive ought to bring the budget in the first week of October to give three months for the legislature to address the issues critically, looking at the books and performance of preceding budget.

    “Sometimes you blame the executive because you invite them to come and expatiate on the budget items and they find it very difficult. I don’t know what they are hiding from the legislature.”

    At a joint public hearing on the budget on March 27, the Chairman of the House Committee on Appropriations, Mustapha Dawaki, foreclosed the possibility of passing the bill before this month.

    According to him, the National Assembly agreed that since the budget could not be passed by March 31, the life of the 2017 budget must be extended to May 31.

    Dawaki disclosed that the Accountant-General of the Federation (AGF) has been put on notice about the extension of last year’s budget till May 31.

    He said: “We are told that the office of the accountant general is expected to close the account as at March ending.

    “So, we have written a letter yesterday, drawing his attention to the fact that the budget should be extended to May 31.”

    Despite the increase in capital project allocations, the budget has a huge recurrent, as a huge chunk of it has been allocated to key ministries for salaries and overheads.

    For instance, while interior ministry has N510.87 billion, education has N435. 01 billion, defence (N422.43 billion), Health (N269.34 billion).

    The personnel cost, according to the executive, is projected to spike by 12 per cent in the 2018 Budget and overhead will increase by N26 billion in the current year. All these show a rise in government’s spending on its workforce.

    But the ordinary man’s concern has been the prolonged delay in budget passage, which they believe stripped them of the dividends of democracy.

    The sectoral allocations show that 30.8 per cent is allocated to capital projects. For instance power, works & Housing got N 555.88 billion; transportation (N263.10 billion); Special Intervention Programmes (N150 billion); defence (145 billion); agriculture & rural development (N118. 98 billion); water resources (N95.11 billion); industry trade & investment (N82.92 billion) and interior (63.26 billion).

    Others are: education (N61.73 billion); Universal Basic Education Commission (N109. 06 billion); health (N71. 11) billion; Federal Capital Territory (N40.30 billion); Zonal Intervention Projects (N100 billion); Northeast Intervention Fund (N45 billion); Niger Delta Ministry (N53. 89 billion) and Niger Delta Development Commission (N71. 20 billion).

    Other projects being held up by the late budget passage include the N9.8 Mambilla Hydro Power Project; N8.5 billion counterpart funding for transmission lines and N12 billion counterpart funding for substations; the N35.41 National Housing Programme; N10 billion for the 2nd Niger Bridge and the N30 billion for “strategic road construction and rehabilitation.”

  • National Assembly fails to pass 2018 budget

    The National Assembly yesterday failed to pass the 2018 budget as announced by House of Representatives Speaker Yakubu Dogara on behalf of the leadership.

    President Muhammadu Buhari submitted the budget to the lawmakers on Novenber 7, 2017 with the appeal for its passage latest in January to enable the government to return to the January to December budget cycle.

    However when ut was being delayed, the lawmakers accused heads of soe government agencies and some ministers of failing to defend their proposals, forcing thepresodent to direct their appearance before the lawmakers.

    Senate President Bukola Saraki also accused some committees of delaying work on the document.

    It was learnt yesterday that reports of subcommittees were still being collated by the Appropriation Committees for onward submission to the Senate and House in plenary.

    The source who said that a lot of work still needed to be done on the submissions by subcommittees noted that “I am sure that the Appropriation Committees of the two chambers are working round the clock to effect their submissions.”

    With the failure to pass the budget yesterday, it is not clear the new date that would be chosen to clear the fiscal document.

  • 20 Senate committees delaying 2018 budget passage, by Saraki

    SENATE President Bukola Saraki yesterday named 20 critical sub-committees of the Senate delaying the passage of the 2018 budget.

    Saraki, who spoke on the worrisome development at plenary, warned that the committees must not continue to hold the country to ransom by their apparent refusal to submit their budget reports.

    The Senate President said he had no option than to openly name the sub-committees to ensure that the needful was done in the country’s interest.

    He mandated the committees to ensure that their reports were submitted to the Senate Appropriation Committee without failure today.

    This revelation is coming more than five months after the 2018 budget was presented to a joint session of the National Assembly by President Muhammadu Buhari.

    Buhari had, on submission of the Appropriation Bill on November 7, 2017, sought the leave of the National Assembly to consider and approve the fiscal document by January 2018 to ensure that the budget run its full course of 12 calendar months.

    The request was not kept as the National Assembly earlier blamed heads of Ministries, Departments and Agencies (MDAs) for allegedly refusing to appear before sub-committees to defend their budgetary votes.

    The Senate President named Defence, Army, Air Force, Navy, Industry, FCT, States and Local Governments, Culture and Tourism, Petroleum (Downstream), Petroleum (Upstream), Niger Delta, Sustainable Development Goals and Primary Health Care & Communicable Diseases as committee that have not submitted their reports.

    Others are Health, Capital Market, Tertiary Institutions and Tertiary Education Trust Fund (TETFUND), Federal Roads Maintenance Agency (FERMA), Works, Power and Cooperation and Integration committees.

    Saraki said: “I am sorry to have chosen this method. I have no alternative than to list these committees so that these chairmen can know that they are holding all of us back. The listed committees have not submitted and they must submit unfailingly tomorrow (today).

    “These 20 committees must ensure that their reports are submitted on Friday. We have a deadline, which we have committed to. You can’t hold us back. You must submit unfailingly by Friday.”

    The two chambers of the National Assembly have scheduled April 24 to pass the 2018 budget.