Tag: appropriation

  •  Appropriation committee presents 2019 budget report to Lagos Assembly

    The Lagos State House of Assembly failed to pass the 2019 budget of the state at plenary yesterday.

    The House only took the presentation of report of the Appropriation Committee as contained in its order paper for yesterday’s sitting.

    The Chairman of the Appropriation Committee, Hon. Gbolahan Yishawu presented the report at plenary.

    After his presentation, Majority Leader of the House, Hon. Sanai Agunbiade said due of the volume of the report and its technicalities, the House would have to allot another day for the comprehensive debate on it.  And that after the debate and necessary amendments,  the third reading of the bill will be taken before its passage.

    Meanwhile, if the recommendations of the Appropriation Committee is adopted by the House,  the budget size will increase from the original the N852.317b to N874.96b, a difference of N22.541b from the figure presented to the House by the state governor in February.

    As at the time of going to  press, the House was yet to announce the next allotted day for the debate of the report but adjoined till Monday.

  • 2018 budget: Reps bicker; conclude debate on MTEF/FSP

    2018 budget: Reps bicker; conclude debate on MTEF/FSP

    The House of Representatives Wednesday passed the 2018-2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) through second reading after a contentious debate.

    The document was referred to the Committees on Finance, Appropriation, National Planning and Economic Development, Legislative Budget and Research and Aids, Loans and Debt Management to scrutinize and make recommendations to the House.

    The passage of the document paved the way to begin consideration of the 2018 budget on Tuesday, Wednesday and Thursday next week.

    Recall that President Muhamadu Buhari on Tuesday, 17th October, 2017 had forwarded a request to the Green Chamber for the approval of the 2018-2020 Medium Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP).

    Some of the key assumptions in the document is the production of crude oil at 2.3million barrels per day, oil price benchmark at $45 per barrel, while exchange rate is pegged at N305/$1 and GDP growth rate at 3.5 percent (revised)

    However the debate experienced hiccups as members of the People’s Democratic Party, PDP in the House insisted that it is procedurally wrong to debate the MTEF against the backdrop of the provisions of the Fiscal Responsibility Act (FRA).

    Members like Betty Apiafi (PDP Rivers) Nnena Elendu- Ukeje ( PDP Abia), Daniel Renejue ( PDP Delta),  Yakubu  Barde ( PDP Kaduna) , Dan Asuquo ( PDP Cross River) were of the opinion that a bad precedence would be set if the House goes ahead to debate the MTEF/ FSP as it did not come three months before the budget as required by the Fiscal Responsibility Act.

    Hardly had the House Leader, Femi Gbajabiamila commenced the presentation of his argument on the document than Hon. Betty Apiafi ( PDP Rivers) took the floor through a point of order.

    According to her, it was essential to do the right thing lest Nigerians misconstrue the motives of the legislature. She said the MTEF should precede the consideration of the budget and is supposed to be accompanied with macro- economic framework for the next three years.

    She wondered how the House would make necessary adjustments since that have allowed the executive to err procedurally.

    The other PDP members backed Apiafi’s position and held their ground until the House Leader made an appeal to them to allow the passage.

    Deputy Speaker Yussuff Lasun also made several interventions by appealing to members to allow the document pass. According to him, the House still has the power to change the assumptions to reflect the realities of the time and the wishes of the people.

    He said: “The MTEF is a paper that contains key assumptions open to debate, including benchmark, deficit, revenue projections…it is not cast in stone. Wether it is four months or now, no process has been circumvented.”

    Gbajabiamila while moving for the consideration of the document said:” Section 11(2) of the Fiscal Responsibility Act, 2007 provides that the Medium Term Expenditure Expenditure Framework ( MTEF) shall be considered for approval with such modifications, if any, as the National Assembly finds appropriate by a resolution  of each House of the National Assembly.”

    He said Section 11(3) of the same Act, “provides that the MTEF shall contain, among other things, a macro- economic framework setting out the macro-economic projections for the next three financial years, the underlying assumptions for these projections and an evaluation and analysis of the macro- economic projections for the preceding three financial years.”

    Lasun however said the leadership of the National Assembly has been in a series of meetings with the Executive in a bid to ensure the expeditious passage of the .2018 budget.

    He revealed that the two arms of government had met on Monday, Tuesday and would possibly meet today Wednesday  to smoothen grounds for a seamless passage of the appropriation bill.

     

     

  • ‘Legislature’s budget secrecy affecting assessment of 2016 appropriation’

    The Accountant General of the Federation, Ahmed Idris, has blamed the inability of his office to determine the exact annual capital budget performance on the secrecy in the National Assembly’s budget.

    The AGF, who spoke at the 2017 budget defence of his office conducted by the Senate Committee on Finance, said it would be improper to say the actual budget performance of the Federal Government without the knowledge and disclosure of the National Assembly budget.

    Idris, however, gave the general performance of his office budget for 2016, taking into cognisance the three components of the appropriation, as 89.5 percent.

    He spoke while responding to the request of the committee that he provide it with the capital performance of national budget for 2016.

    The committee chairman, Senator John Owan Enoh, had said: “Let us take the liberty of over-sighting you and request that if you can, let us have the record of the total capital performance or delivery of the 2016 budget, not just of your office but all others.”

    The AGF said: “Distinguished senators, let me also say all these performances we are talking about, in terms of capital performance or delivery, it does not include capital component of statutory organisations.

    “Some of them, we don’t have their performances. For instance, I don’t have the capital performance of the National Assembly budget. But I know how much I release every month. So, it is the management that decides their capital. With this, it’s difficult to know the overall capital performance of national budget. “

    The committee demanded explanation for what it called “disproportionate release of funds to ministries, departments and agencies of government in the 2016 appropriation”.

    The committee also wanted to know why the 2016 budget performance of the Office of the Accountant-General stood at 72.2 per cent, while other agencies stood at between 60 and 70 per cent.

  • TSA ‘ll ensure  better control of appropriation, others

    TSA ‘ll ensure  better control of appropriation, others

    The Treasury Single Account (TSA) introduced by the Federal Government may have elicited fears in certain sectors of the economy, but a  financial analyst and President, Nigerian Statistical Association (NSA), Dr Mohammed Tumala dismisses the fears as baseless. He says the initiative will create room for accountability, proper budgeting and implementation. He  tells OLATUNDE ODEBIYI that TSA implementation will pull the economy out of the woods.

     

    The TSA policy has generated so much controversy. As an expert, how do you think the policy could be implemented for national benefits?

    When Pattanayak and Fainboim wrote on the TSA, they recommended the resolution of what they observed as inefficiencies in governments’ lacking effective control over cash resources due to the operation of multiple bank accounts. Such governments fail to earn interest on idle cash balances, borrow to cover for cash shortages since treasuries are unaware of these balances. Commercial banks that hold government balances extend the extra cash as credit resulting in liquidity management costs to the central banks. The implementation of such a policy leaves Nigeria with no option in view of the fiscal problems that it is going through. Under the TSA, Nigeria stands to benefit from better control of its appropriation, budget execution, and efficiency in its payment system and timely availability of fiscal data for planning. There will also be no banking fees and transaction costs to government, and for the central bank its liquidity management cost could be reduced.  The implementation is very straight forward. All public sector agencies are to be captured and there are various sub-accounts under the TSA to ensure smooth running of government. States and local governments are expected to key in for national efficiency. So far, those who express reservation or disagree with the TSA are looking from the view point of commercial banks. I do not know of any economic theory or reality that anticipates government to save. Governance is about continuous investment and spending to improve the lives of its people. It borrows when cash is in shortage or increases tax rates. Commercial banks anticipate savings from households for on lending to government and corporate entities and not the other way round.

    How can policy makers explore the tool of statistics to mitigate the impact of revenue gaps and ensure sustained economic growth?

    So far, the present government has taken positive steps like the TSA, reduction in ministries and others to improve fiscal operations. It is also talking about economic diversification, and this has a potential to improve tax revenues to government. In addition to these steps, policy makers need to improve their understanding of Nigeria’s demography and needs of its people. Comprehensive population statistics such as: how many, where, what age, what they do and proper identification of each and every one becomes necessary. Assuming a secured and peaceful country, it is clear what we need to do to sustain economic growth. If you have one naira put it into education. Policy makers also need to appreciate that Nigeria’s greatest asset is the high population and but also our greatest burden is the uneducated high population. We also have the burden of high cost of operating the governance structure we have.

    The latest Global Competitive index report was published and Nigeria ranked 124th among the 144 countries covered by the report. What is your reaction to this?

    There is no need reinventing the wheel. The report is very clear on what the report portends for the country. In addition to the ranking, this is how the report made a summary about Nigeria: ”Africa’s most populated country, Nigeria, is encountering sustainability challenges especially in the social domain. Access to basic services remains very low for millions of Nigerians: only 28 per cent of the population has access to basic hygiene, and less than 65 per cent enjoys improved water. Similarly, safety nets and healthcare services are available only to a minority of people. These issues, typical of a developing economy, may jeopardize the future competitiveness of the country as they limit the country’s human capital.” FDI is attracted by educated and innovative human capital, for Nigeria, we are likely to be seeing more of foreign portfolio investments than direct investments pending general improvements in our human capital.

    The NSA has been pushing for statistics-based planning for development, especially at the state level. What informed this?

    The Nigerian Statistical System, or NSS established by the Statistics Act 2007 is incomplete without the prescribed and complimentary components at the state level. Secondly, Nigeria’s national development plans and strategies integrate all the states. To make official statistics comprehensive and qualitative, states must have statistics capabilities and skills for production. These are the reasons why the Association is working vigorously with other stakeholders in advocating for states to establish and strengthen their statistical systems. There is indeed an established high and positive correlation between the level of use of statistics for planning and outcomes of poverty alleviation programs. The zero budgeting being adopted by the current government with the National Planning Commission in the driver’s seat is a laudable step at the national level. States need to key in.

    Most states are yet to establish Bureaux of Statistics as a strategic step towards standardising the NSS. What is your association doing to tackle this lapse?

    So far, what we have been doing is advocacy and training of desk officers to improve on their skills in producing official statistics. I must say that the response has been low, but development partners are also rolling programs for states and MDAs at the national level. The need for strong statistics capabilities at the level of states with the SGDs commencing in 2016 cannot be overemphasised.

    Funding may delay Bureaux of Statistics at the state level because the Executive and Legislative arms of government may not understand the relevance of these agencies. How do you intend to address this?

    Yes, some state governors that we have interacted with pointed to fiscal realities as a problem. We were however quick to point out that establishing a state statistical system does not necessarily translate to additional cost of governance. The states have departments of statistics either in ministries of budget and economic planning, finance or state planning commissions. Ministries also have departments of planning, research and statistics. What states need to do to establish their statistical systems is to legally empower the departments of statistics to connect and coordinate the activities of the statistics officers in planning, research and statistics of all MDAs. It is simply about creating a team out of existing employees.

    Finally, sir what is the state of the Chartered Institute of Statisticians of Nigeria Bill now and how do you think its enacting into law would be beneficial to the country   The Bill is currently before Mr. President for his assent. The Institute is being established to among other things to; advance the use of statistics in research and socio-economic analysis, enhance statistical practice and quality of statistics, promote and development of statistics education for both the public and the profession, and also to provide leadership and direction to the public in matters relating to statistical theory and its application. One major benefit to the nation is the uplifting of the standards used in the production of statistics within the National Statistical System and its consequence on the use of such data.

     

  • The appropriation of Nigeria by Northern irredentists

    The appropriation of Nigeria by Northern irredentists

    I was amused at the almost physical pain exhibited by Is’haq Modibo Kawu in his column in the Vanguard Newspaper on Thursday 2nd of May 2013, whilst reacting to a recent speech in the U.S.A. by Mr. Kingsley Kuku, the President’s Adviser on the Niger Delta. Mr. Kuku had apparently stated that there would be dire consequences if President Jonathan is not re-elected in 2015.

    My amusement stemmed from the fact Kingsley Kuku had simply taken a leaf from the northern irredentists’ political play book. Memories are not so short that we have forgotten the threats emanating from this group about what would happen in 2011, if the PDP zoning arrangements were not adhered to and the candidate did not come from the north. And it was not just the issue of a candidate of northern (Arewa) extraction but a candidate selected by Arewa and presented to Nigeria as such. The question of a record of his achievements, character, programme, merit, capacity, etc, did not arise. The sole qualification was to be Arewa North by birth – a term which embodies a clearly understood language and religion. All the big guns of Arewa North were resolutely committed to this project, Malam Adamu Ciroma, Professor Ango Abdullahi, Alhaji Lawal Kaita, Dr. Junnaid Mohammed, Mallam Tanko Yakassai, etc, etc.

    In addition to these gentlemen, the Northern Governors and virtually all the political elite of the Arewa North, believe that only one of themselves is entitled to be the President of Nigeria, based on where they come from; and as a group representative, regardless of merit, quality, qualification or track record.

    Let me state clearly at this stage that I do not support the call of those who insist that Jonathan must be given a second term just because he is from the South South. On the contrary, it is my view that Jonathan should contest the 2015 elections based on his record in office between 2010 and 2015. It is futile, puerile, infantile and is evidence of political and social immaturity, to base the choice of political leadership on zonal or ethnic origins. A leader must be chosen on the basis of character, track record, integrity, discipline, principles, intellect, level of enlightenment, commitment to service, political and social programme, etc. not place of origin, language or religion. But the Arewa leaders and elite have never believed in these principles.

    Infact they are registered owners of the patent called “Rule by tribal, ethnic, religious and zonal origin” to ensure dominance indeed monopoly, without recourse to quality merit or qualification. Their current cry is “power must return to the North” as an entity and Nigerians have no right of choice, once this representative of the ruler zone is presented. This is democracy, Is’haq and Arewa style.

    The mind set of Arewa North has always been to dominate Nigeria politically to the point of appropriation. This proprietary air is evident in Is’haq’s writing. According to him Kingsley Kuku is not grateful for what the Nigerian State (substitute Arewa North) has done for the Niger Delta. Let me quote him. “Never mind what the Nigerian State has done for the Niger Delta in recent years, with the 13 percent Derivation, NDDC, Ministry of the Niger Delta and the Billions of Naira that Kingsley Kuku expends as chair of the presidential amnesty programme.”

    There you are! The great Nigerian State has done wonderful things for the Niger Delta, by returning to it, 13% of Niger Delta’s 100% owned oil and gas proceeds. Niger Delta should be grateful for being forced to surrender ONLY 87% of its assets to Big Brother. It is clear from Is’haq’s writing that someone else other than the Niger Delta, owns the Niger Delta oil and gas. Could that be Arewa North? Should Niger Deltans now be grateful for the 13% they are allowed to keep?

    Nigeria today is being funded by Niger Delta oil and gas proceeds (about 80%), Lagos State VAT and Customs duties from the coastal states. Nigeria can continue to be in a state of denial about it, but this cannot change a mathematical fact. That the Federal Government appropriates all these states’ resources to itself does not change the fact of true ownership.

    My question to Is’haq then is, who is the benefactor and who is the beneficiary? Niger Delta or Nigeria?

    As recently as April, 2013, Governor Kwakwanso of Kano State attributed the undeveloped condition of his state to lack of equal access to Niger Delta oil proceeds with the Niger Delta States. In other words, he cannot bring any improvement to the lives of the people of Kano State without having an equal right to Niger Delta oil and gas proceeds, as Niger Delta states. Apart from this being a remarkable case of total amnesia about the identity and geographical location of Kano State, Governor Kwakwanso was admitting that he lacks the capacity to organise Kano State to generate its own funds for the running of the state, and that he is completely dependent on Niger Delta oil and gas proceeds.

    In calculating the proportion of Niger Delta oil and gas proceeds being enjoyed by states, there has been total fixation with the 13% derivation provision for Niger Delta States based on what each state produces, but nothing has been said so far about local government allocations from the Niger Delta oil and gas proceeds. Every year at least 20% of the amount in the federation account is shared amongst local governments all over the country. There are 776 local government councils in Nigeria, with 419 in the North and 357 in the South. So it is clear where the bulk of the 20% goes. Kano State, a non-oil producing State, has 44 local governments gulping their shares of the 20%. Bayelsa, a major oil producing state, has only 8 local governments. And so the proportion of the share of the 20% collected by Kano, compared to what is collected by Bayelsa is 44-8 or 11-2. In other words, for every N200 worth of oil and gas proceeds collected by Bayelsa local governments, Kano State local governments collect N1,100. Kano produces no oil and gas. Bayelsa is a major producer.

    Again only recently, a curious thing happened. It was reported that the Arewa Consultative Forum was interested in collaborating with the yet to be registered All Progressive Congress (APC). What is the basis of the ACF interest in APC? It is not for the purpose of seeking to know its programmes, manifesto or ideology, or contributing to its growth and popularity. No! It is to negotiate using the APC to sponsor an Arewa Presidential candidate. Such is the lust of the Arewa elite for power that ideology and programme, are irrelevant to them, as long as an Arewa of their own choosing, gets the top political slot. You will never hear of ACF negotiating for the Vice-Presidential Position. Never! It has to be the presidency. It is the duty of non-Arewas to be subordinate and to accept the spare tyre position. The audacity of the ACF is unbelievable. It is as if those who formed the APC and groomed and natured it to its present state have no idea as to who to give leadership positions. They are taken by the ACF to be so naïve and clueless that they must have been waiting for the ACF to crown their efforts with a presidential candidate.

    There is thus a mind-set, which has continued unabated since 1914 when Lord Harcourt, the British Colonial Secretary announced that “the promising and well conducted youth” without means would be joined in “an alliance with a Southern Lady of means”. Thus in this Nigerian marriage, the Arewa North, right from the beginning was the “man” and “husband” and the South the “woman” and “wife”.

    The use of the term “youth” (man) for the North and “Lady”, (woman) for the South was not an accident, nor an exercise in humour. It was a deadly serious matter, with the game plan being to bring the two together in order to give Arewa North, political power over the South together with permanent control over Southern resources.

    In the England of the time of Lord Harcourt, the British Colonial Secretary and matchmaker, under the common law, married women had no independent legal right over their own properties. Once a marriage was contracted, all the women’s properties automatically became her husband’s property. The woman could not enter into a contract in her own right. Her husband had to conclude all her contracts on her behalf. This peculiar Nigerian arrangement imposed by the colonial masters has with minor exceptions, continued up till today.

    The logic and mode of operation is simple. Handover all states natural resources to the Federal Government. Then those who, habitually and by imperial authority, control the Federal Government, also control and dispose of such resources as of right. Therefore the revelation that Arewa North elements own 83% of Niger Delta oil blocks came to me as no surprise.

    Clearly, instability, tension and crises will continue to bedevil Nigerian politics, as long as the Federal Government continues to control and disburse states’ resources. Introduce fiscal federalism, and allow states to retain their resources in return for payment of taxes for the operation of the Federal Government and immediate peace will descend on the country and everyone will head for his state for the generation of revenue and for the promotion of development. All will be quiet on the federal front and the desperate do-or-die battle to have the Presidency will abate.

    Finally, there is no “Niger Delta political elite currently running Nigeria”, as Is’haq wrongly presumes. The President, is from the Ijaw Nation and he has appointed advisers and agents who assist him to run the executive arm of the government. There is no Niger Delta incorporated in this government. The vast majority of Niger Deltans are as distant from it as the disenchanted Arewa group. It is a Jonathan Presidency, not a Niger Delta or South South Presidency. For most of us outside the Ijaw geo-ethnic zone in the Niger Delta, this presidency is no different from the Obasanjo and Yar’Adua presidencies. Our demands are yet to be met by any Presidency. These are fiscal federalism including resource control, strong regions, a loose federation in which the states will control most matters of human interest and relevance whilst the federal government concentrates on matters of common interest amongst the States that can only be handled effectively at a pan Nigerian level, e.g., defence, foreign affairs, immigration, currency, customs, banking, aviation, citizenship.

    Local governments and Federation Account must never be featured in federal constitution. Local Governments belong to states 100% and states can create as many local governments as they wish, but they must fund them exclusively. Federation Accounts are an excuse for dispossessing states of their resources, in favour of an unproductive federal government which on becoming bloated with these resources, dominates and controls the atrophied states into submission. The bloated, corrupt and inefficient federal government becomes the centre of a titanic and destructive struggle for control. States’ indolence and parasitic tendencies follow, resulting in an unproductive and underdeveloped country. This destructive template must be reversed.

    That is the essence of the Niger Delta case. Any candidate from any part of Nigeria, whose programme contains these elements, will enjoy a massive following from the Niger Delta. For us, there must be an end to one tier of the Federation appropriating our patrimony, and then handing over a pittance to us with the demand that we must be grateful. Our case is that we must revert to the pre-independence constitutional conference pact by which regions (States) retained 50% of their natural resources and contributed 20% to the federal government and 30% to a distributable fund of which the economically weak Regions, were the main beneficiaries. That way every state developed itself first, with productive activities, before receiving a little help from richer states as complementary gestures. There was no parasitic federalism, in which idleness and monthly trips to Abuja to collect dole or state welfare package became the sole source of state existence. States that cannot survive without the monthly trip to Abuja have no right to exist as separate states. They should merge with more viable states. Even better still we need to re-structure ourselves into regions or zones, using the present 6 zones as the basis, with minor changes, like Yoruba parts of Kwara and Kogi, joining, the Western (Yoruba) Region. We must now revert to our pre-independence pact which was embodied in the 1960 and 1963 Constitutions. That is the basis of independent Nigeria.

     

    •Professor Sagay writes from Lagos

     

  • ‘DG Budget did not direct MDAs to ignore 2013 appropriation’

    THE Budget Office of the Federation has denied ever instructing Ministries Departments and Agencies (MDAs) to ignore the recently signed 2013 budget.

    A statement from the Budget Office signed by Francis O. Ojiah, Director, Administration, Budget Office of the Federation, said “at no time since the passage of the 2013 budget and subsequent assent by Mr. President did the Budget Office issue such a directive.”

    Ojiah outlined what he called the “true situation” to be that: “following the passage of the 2013 Budget, a series of consultations were held between the National Assembly (NASS) and the Executive, during which observations were made on aspects of the passed bill that required adjustment, including personnel cost, overhead votes and critical capital projects. It was agreed that an amendment should be sent to NASS for consideration after assent by Mr. President.”

    He added that “the Budget Office subsequently issued a brief Circular Ref No. BD/2000/Exp/S.132/T/16, dated 6th March 2013, to guide MDAs on steps to observe in proposing any amendment to their budgets, along with a template.  They were to focus on the personnel cost, overhead and critical capital projects.”

    The office emphasised “there was nothing in the circular remotely suggesting that the 2013 Appropriation Act should not be implemented, as alleged. That was never the subject of the circular.”

    Ojiah noted that “far from being disrespectful to the Appropriation Act, the Guideline took pains to stress the need for MDAs, in preparing their amendment proposal, to respect the Act as passed.”

    The House of Representatives had summoned the Director General of the Budget Office, Dr Bright Okogwu, to appear before it for what was termed a breach of the Appropriation Act “capable of destroying the growing rapport and spirit of cooperation between the legislature and the executive.”

     

  • Obi presents N110.89b 2013 Appropriation to Assembly

    Anambra State Governor Peter Obi yesterday presented N110.89 billion budget proposal for the 2013 fiscal year to the House of Assembly.

    The amount represents 33.28per cent increase over this year’s N83.200billion budget.

    Of the amount, N70.895 billion is for capital expenditure while N39.995billion is for recurrent expenditure.

    An estimated N70.895billion is expected from capital receipts, which represents an increase of 51.07 per cent over the outgoing year’s N46.929billion.

    The Economic sector took the largest chunk of 32.39 per cent.

    The Social sector gets 19.13 per cent; Environmental, 10.62per cent and General Administration, 37.85per cent.

    Obi explained that the main thrust of the 2013 budget, tagged: People’s Budget of Integrated Development VI, are poverty eradication and hunger reduction.

    To promote the implementation of the progammes and projects that address the critical targets of the Millennium Development Goals (MDGs), Obi said his administration would ensure tighter security of life and property, among others.

    He said: “We require a conducive social and political environment that will greatly facilitate our development efforts in our determination to continue to take our premier position in the comity of states.

    “It is our strong hope, therefore, that law and order will continue to prevail as indispensable requirements for socio-economic development.”

    The governor urged the residents to support his administration to implement its programmes for the development of the state through God’s guidance.

    Majority Leader Harford Oseke (Awka South II) moved the motion for the first reading of the budget.

    Minority Leader Tony One-Week Muonagor (Idemili North) seconded it following an order of Speaker Chinwe Nwebili.

    The lawmakers reminded Obi of their lack of office accommodation at the Assembly complex.

    Chugbo Enwezor (Onitsha North I) presented the lawmakers’ demand to the governor.

    He, however, said this would not deter the members from ensuring that the budget gets accelerated passage.

    The lawmaker said the members need an accommodation to performing their duties more effectively.

    Nwebili said members have lost several documents because of lack of accommodation.

    She referred the budget to the Finance and Appropriation Committee with an assurance that it would be passed in January.

     

  • LCCI queries overhead allocation in 2013 appropriation

    LCCI queries overhead allocation in 2013 appropriation

    The Lagos Chamber of Commerce and Industry (LCCI) has called for more transparency on the 2013 Budget.

    The chamber wants the Budget Office to explain the N1.08trillion provided under the Consolidated Transfer Funds in the budget.

    The Director-General, LCCI, Muda Yusuf, raised the alarm over the billions of naira proposed for entertainment and meals, honorarium and sitting allowances, welfare packages, stationery and consumables, as well as maintenance of vehicles in the Appropriation Bill. He said the allocations were grossly overstated.

    “Following the release of the budget appropriation details by the budget office, there is need for further clarifications on aspects of the budget, especially with regard to classification of budget heads and the integrity of some of the numbers,” he said.

    Muda said beyond the allocations to the Ministries, Departments and Agencies (MDAs), there were other expenditure headings with substantial allocations, which require clarification in line with democratic ideals.

    His words: “This budget head accounts for 22 per cent of total expenditure and 70 per cent of capital budget. It is critical to get explanation on these spending proposals to situate it within the context of national priorities and the delivery of value to the citizens. It is also important to clarify the institutions of government responsible for the management of these expenditure heads. The integrity of the budget process is fundamental to fixing the economy as the budget is a principal tool of value delivery to the citizens. The importance of transparency in the management of public funds cannot be overstated.

    “Given the experience with the management of pension funds, it’s time to fully devolve the responsibility to the National Pension Commission. We should be guided by lessons of experience if we are truly committed to transformation of the economy and our society. Relevant pension legislation should be amended to make this happen. The corruption risk of direct management of pension funds by bureaucrats is very high.”

    He said the release of the appropriation details revealed many curious numbers, which are replicated across the MDAs. Examples abound on the allocations to food stuff and catering materials, refreshment and meals , vehicle Maintenance/transport equipment, motor vehicle fuelling , honorarium and sitting allowance, among others.