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Tag: budget

  • FCTA prioritises infrastructure in budget

    Federal Capital Territory (FCT) Administration has proposed to spend N241, 467,231,031 this fiscal year for its capital and recurrent expenditures.

    FCT Minister Malam Muhammad Bello made this known during the defence of the 2016 FCT Statutory budget before the Senate Committee on FCT at the National Assembly Complex, Abuja.

    The minister said of the N241,467,231,031 proposed, N149,056,610,051 which represents 61.73 percent goes to capital expenditure.

    Bello said personnel cost is N52, 371,352,360 which also represents 21.69 percent of the total expenditure.

    According to him, the overhead is the least with N40, 039,268,620 out of the N241, 467,231,031 which is 16.58 percent.

    While saying that this year’s budget is a departure from the previous ones because of the importance his administration attaches to infrastructural development of the entire Federal Capital Territory, the minister disclosed that N2,400,000,000 has been set aside for debt servicing.

    In a statement issued by the Deputy Director/Chief Press Secretary, Muhammad Sule, the minister assured that attention would mostly be given to on-going projects this fiscal year to fast track solid development of the Federal Capital Territory.

    Bello further assured that the cleanliness of Abuja remains a top priority of his administration and that was why there was a complete change of leadership at the Abuja Environmental Protection Board (AEPB) which is now being assisted with an enforcement team of 200 security personnel drawn from the Nigeria Police Force and Nigeria Security and Civil Defence Corps led by a retired Squadron Leader.

    The minister emphasised that significant activities would be noticed in that area because cleanliness has no alternative.

    In his opening remarks, the Chairman of the Senate Committee on FCT, Senator Dino Malaye promised that his Committee will work assiduously to pass the Appropriation Bill into law.

    The FCT Permanent Secretary, Dr. Babatope Ajakaiye, Acting Secretaries of Mandate Secretariats, Directors as well as other top officials of the FCT Administration accompanied the FCT Minister to the Budget Defence.

     

  • FG begins strategic implementation of 2016 budget

    The Federal Government said yesterday it had commenced  the strategic implementation plan on 2016 budget aimed at diversifying the economy and developing the infrastructure.

    It has also  developed the Medium Term Expenditure Frame Work (MTEF), Minister of State for Budget and National Planning, Mrs. Zainab Ahmed told Governor Nasir El-Rufai of kaduna State who was on a visit to her office in Abuja.

    Mrs.Ahmed said government was similarly strengthening its monitoring and evaluation framework towards ensuring effective monitoring of ministries, departments and agencies’ compliance with the objective of the 2016 budget.

    She said:”We are now strengthening our Monitoring and Evaluation Department, especially through staff training and retraining, including the application of accountability and transparency principles in our operation; DFID, UN and the World Bank are giving us support in this exercise.

    “We have started the strategic implementation plan on 2016 budget, developed the Medium Term Expenditure Frame Work (MTEF), working very hard towards economic diversification and infrastructural  development.”

    Earlier, Governor had revealed plans to restructure his state’s Ministry of Budget and Planning into a Budget and Planning Commission.

    The staff are expected to enjoy better remunerations and excluded from posting to other ministries while their professional budget and planning skills will be enhanced.

  • Budget financing in period of revenue shortfall

    Budget financing in period of revenue shortfall

    The gross monthly collections of non-oil revenue expected to drive capital expenditure in the 2016 budget is on the decline. This underperformance presents some risks to the Federal Government’s expansionary fiscal stance which pegs its N1.84 trillion capital expenditure on aggressive target of non-oil revenue collection. COLLINS NWEZE writes that while the option of borrowing to meet budget shortfalls in the short-term is plausible, diversification of the economy is needed in the long-run to achieve sustainable growth.

    Two things have kept the Federal Government worrying about funding the ambitious N6.06 trillion 2016 budget. The first is fall in crude oil prices, followed by decline in non-oil revenues which is expected to fund government’s N1.84 trillion deficits in the budget, targeting critical infrastructure.

    The failure of these two options, presents the third, which is borrowing from local and international markets to be supervised by the Debt Management Office (DMO). The plunge in the revenues means that the debt option to funding the budget remains the viable lifeline for the country.

    Besides, slide in crude oil prices, and Nigeria’s production is also of concern. Oil disruption especially vandalisation of pipelines has pushed production to the lowest in 20 years, as attacks against facilities in the Niger Delta increase in number and audacity.

    Last week, Chevron Corp. shut down about 90,000 barrels a day of output following an attack on a joint-venture offshore platform that serves as a gathering point for production from several fields. Even before that strike last Wednesday night, Nigerian oil production had fallen below 1.7 million barrels a day for the first time since 1994, according to data compiled by Bloomberg.

    On Friday, suspected members of the Niger Delta Avengers have attacked another oil facility in the Niger Delta, blowing up the Escravos pipeline linking Warri to Lagos.

    While earnings from oil declined, that from non-oil segment of the economy also keeps dropping. Data from Central Bank of Nigeria (CBN’s) Economic Report showed that from January to December last year, gross monthly collections of non-oil revenue, stood at N3.12 trillion ($15.8 billion) over the 12 months. But decline has set as from January this year, non-oil revenue felled significantly to N196 billion compared with monthly average of N477 billion projected in the 2016 budget.

    Besides, Nigeria earned a total of N143 billion from its non-oil exports in the fourth quarter of 2015, which shows a drop of 39.1 per cent or N90.6 billion from N234.43 billion recorded in the third quarter of the year, CBN figures showed.

    FBNQuest, the investment and research arm of FBN Holdings, disclosed that Customs and excise is the weakest of the four components of gross non-oil revenue. Customs contribution of N50 billion in January compares with a pro rata average of N72 billion in the budget is worrisome.

    The Customs Service has pointed to CBN policies as the reasons for the shortfall. It presumably had the famous circular on the 41 import items which the CBN restricted from accessing forex in mind which has reduced import revenues.

    “We should wait for several months’ data to judge the success of the FGN’s several initiatives, including: the Treasury Single Account, scrutiny of waivers and exemptions, collection of stamp duty (subject to a legal challenge), efficiency gains, possible revision of the standard Value Added Tax rate and regulatory fines,” the firm said.

    Regarding foreign debt, the strategy is to borrow on non-concessionary terms for projects with self-paying capacity and/or job creation potential, and on concessionary terms and grants for social sector projects.

    Experts believe that with the continued slide in government revenues from crude oil, its plan to provide tangible assets like housing, power (electricity), transport, education, communication, and technology, may be hampered by paucity of funds, making it to rely on borrowed funds.

    Loan monitoring

    The House of Representatives’ Committee on Aids, Loans and Debt Management is seeking for more powers that would enable the DMO monitor projects to be financed with borrowed funds.

    The House Committee said that the mandate of the DMO should be strengthened to include monitoring the implementation of all projects of government that is financed with borrowed funds.

    The Chairman of the House Committee on Aid, Loans and Debt Management, Hon Adeyinka Ajayi, advocated for this position alongside other members of the committee at a three-day retreat for members of the committee in Owerri, Imo State, over the weekend.

    Hon Ajayi, in his keynote address at the retreat organised by the DMO, noted that it has become imperative for the agency to be empowered to monitor the implementation of all projects financed with borrowed funds.

    He argued that since it was the duty of the DMO to raise funds to finance budget deficit, “the body should as well be saddled with the responsibility of monitoring implementation”, noting that this would ensure compliance, transparency and accountability.

    The committee praised the DMO management for coming up with the retreat, whose theme was: Debt Sustainability and the Challenge of Financing Economic Recovery, saying that the retreat was timely, coming at a time the nation was facing some economic challenges.

    Hon Ajayi said the workshop is coming on the heels of concerns expressed by some Nigerians over the rising debt profile of the nation. While acknowledging the prevailing economic challenges, the House Committee Chairman said the committee will work with the Debt Management Office to ensure effective implementation of the 2016 budget.

    The Director-General of the DMO, Dr. Abraham Nwankwo, restated government’s commitment to financing capital projects aimed at addressing Nigeria’s huge infrastructural deficit and repositioning the economy.

    The DMO boss who spoke against the backdrop of the agency’s role in the implementation of the 2016 budget, said the nation’s long term debt financing of sustainable economic recovery and growth is feasible given its abundant ideal economic capacity.

    Nwankwo told members of the committee that the administration of President Muhammadu Buhari has taken a bold step to stimulate the economy by making sure that the nation’s huge infrastructure gap was quickly closed through efficient and effective application of all borrowed funds into capital projects.

    Other members of the House Committee on Aid, Loans and Debt Management emphasised the need for the diversification of the economy especially in the areas of agriculture, solid minerals and manufacturing.

    Dr. Nwankwo said the debt body has been helping to country manage its debt effectively. For instance, it began the implementation of the strategic objective of assisting the states of the   federation to develop debt management institutions and capabilities since the last quarter of 2007, as part of its five-year strategic plan.

    The goal, he explained, was to forestall a relapse into debt un-sustainability, as was experienced by the country before its successful exit from the Paris and London Club debts over-hang. The strategy was to redress the very weak debt management institutions, structures and practices at the state levels towards a more effective coordination of public debt management.

    The DMO has also established Domestic Debt Data of States of the 36 states, with framework in place for regular updates. The debt office has also helped in the passage by some states within the federation, the Fiscal Responsibility/Public Debt Management Laws to govern debt management and engender fiscal discipline.

    Priority projects in the budget

    The Minister of Budget and National Planning, Senator Udoma Udo Udoma, who presented the 2016 Budget highlights in Abuja, said the Social intervention projects are in five areas, including job creation, school feeding, conditional cash transfer, enterprise programme.

    The power, rails and road are also very important priority areas.There are a number of specific activities but the need to raise up to 7,000 megawatts installed capacity of electricity remains a priority.

    There is also need to conclude the privatisation of National Independent Power Project plants and improve management and performance of Treasury Single Account.

    On agriculture, N940 million would be channeled into the development of Strategic Grazing Reserves while another N90 million is for Price Stabilisation/Buy-back/Price Gurantee Scheme, just as NN939.7 billion is for extension services.

    National Assembly and borrowing

    The National Assembly is expected to approve the borrowing programme for every succeeding year and approval of overall limits, for the amounts of consolidated debts of the Federal, state and local governments, to be set by the President on the advice of the minister.

    The DMO captures the benefits of using debts to fund projects more succinctly. “If you want to build a railway from Lagos to Aba, there are two options. Firstly, you can save up the money for 10 years, before starting the project. The second option is to borrow and build the railway, and within 10 years, generate enough revenues to offset the debt,” DMO’s head, Policy Strategy and Risk Management, Joe Ugolala said.

    He sees the second option as more plausible as it captures the inherent benefits of borrowing to build infrastructure that is in the interest of the economy. He explained that for one to borrow, there must be that inherent capacity to repay, whether the debt came from internal or external sources.

    He explained that the Federal Government has the capacity to borrow from outside to fund budget, and support specific projects including infrastructure.

    He said that despite challenges with external and internal economic volatility, the DMO is committed to supporting opportunities for employment generation. “We are more than ever committed to doing what we know how to do best, democritisation of public debt. We need to use debt to tackle poverty. We are committed to employment generation. Now that things are tight, we need to show that we are resilient people,” he said. “We need to reassure ourselves that we have what it takes to achieve a sustainable growth”.

    He called for the democratisation of public debt management system, adding that Nigeria’s debt to Gross Domestic Product (GDP) ratio is still low.  “The rebasing of the economy shows it has grown rapidly, and that the larger the economy, the larger the debt. There must be optimum relationship between the equity and debt,” he said.

    Ugolala, said there is so much demand for infrastructure because of its immense benefits to the economy. Speaking on external and domestic borrowing guidelines for the Federal and State Governments and their agencies, he explained that the National Assembly has a role to play in government’s borrowing plan.

  • Ortom signs 2016 budget

    Ortom signs 2016 budget

    •Offers N5m for information on kidnapped priest

    Benue State Governor Samuel Ortom has vowed to provide a conducive atmosphere for the House of Assembly to operate.

    Giving the assurance yesterday while signing the 2016 budget of N150.7 billion into law, he said he would not interfere with the assembly’s activities.

    Ortom said for the purpose of checks and balances, the executive will prefer a situation where the judiciary and the legislature operate independently, stressing that synergy will bring about faster development.

    He said his administration would ensure that the provisions of the budget, which had recurrent and capital expenditure of N66.592 billion and N84.148 billion, would be complied with, adding that lawmakers should ensure its implementation through oversight functions.

    The governor said in line with his administration’s fight against corruption, the budget provisions would not be contravened, noting that last year’s budget was not properly monitored.

    He urged the director of budget to ensure extra budgetary expenditure does not arise, warning that if there must be such a thing, he must be informed so that approval would be given for supplementary budget or adjustments.

    While presenting copies of the budget to the governor for his assent, Speaker Terkimbi Ikyange said it was increased from N133. 3 billion to N150.7 billion because of projects in the ministries, departments and agencies (MDAs).

    Ortom has offered to pay N5 million for information on the whereabouts of Rev. Fr. John Adeyi, the kidnapped Vicar-General of Otukpo Catholic Diocese.

    He said in a statement by his Special Adviser on Media and ICT, Mr. Tahav Agerzua that it was regrettable that one month after the incident, security agents were yet to apprehend the culprits and rescue the cleric.

    He urged the public to assist with information about his whereabouts, saying any person or group who offers such information will be given N5 million.

    The governor sympathised with the family of the late Gen. Gabriel Kpamber (rtd), who died in an accident last weekend.

    He prayed that God should give them and the indigenes the fortitude to bear the loss.

     

  • ‘Eight million to benefit from budget’s social investments’

    ‘Eight million to benefit from budget’s social investments’

    About eight million ordinary Nigerians will benefit from various social investments in the 2016 budget, Vice President Yemi Osinbajo said yesterday.

    According to him, the Federal Government will implement the N500 billion budgetary vote for social welfare to provide a ready-made palliative to ordinary Nigerians.

    A statement by his Senior Special Assistant on Media and Publicity, Mr. Laolu Akande, said: “Altogether, the Federal Government would be directly impacting the lives of more than eight million Nigerians in different social investment 2016 budget spending that would provide succor and be a ready-made palliative to ordinary Nigerians.”

    “The direct payment of N5000 monthly to one million extremely poor Nigerians for 12 months as provided for in the 2016 budget for which N$68.7B has been appropriated.

    “There is also a direct provision of very soft loan -cash for market women, men and traders, including artisans and agric workers. This would be for a total of 1.76m Nigerians, without the requirement for conventional collateral.

    “Some of the traders will likely get about N60,000. A total sum of N140.3b has already been appropriated for this in the budget.”

    According to him, there will also be payment of between N23,000 to N30,000 per month to 500,000 unemployed graduates who would be trained, paid and deployed to work as volunteer teachers, public health officers and extension service workers, among other responsibilities.

    “They would also be given electronic devices to empower them technologically both for their assignments and beyond,” he added

    Osinbajo said N191.5b in the budget had been set aside to train and pay 100,000 artisans.

    He went on: “At least 5.5 million Nigerian primary school children –i.e. starting first in 18 states-three per geopolitical zones-would be fed for 200 school days under the free Homegrown School Feeding Programme. N93.1B has been appropriated for this in the 2016 budget.”

    “100,000 tertiary students in Science Technology Engineering & Maths-STEM, plus Education will partake in the N5.8b already provided for this education grant in the budget. This payment would also be paid directly to the students.”

    These measures, Osinbajo said, would lift the ordinary man from the pangs of economic hardship and poverty.

    He said: “Long before now, the Presidency has made adequate arrangements in the 2016 budget to ensure that Nigerians are lifted from poverty and hardship.

  • Budget: Reps member urges Nigerians to keep faith with Buhari

    Budget: Reps member urges Nigerians to keep faith with Buhari

    Member of the House of Representatives, Hon. Babajimi Benson, has once again urged Nigerians not to lose faith in the President Muhammadu Buhari-led federal government. The lawmaker representing Ikorodu Federal Constituency, said with the passage of the signing of the budget by the President, Nigerians would soon begin to feel the impact of good governance.

    Benso who cautioned those complaining about the seeming slow pace of governance, saying they should always remember that the country was in deep crises before the emergence of the current administration and time was needed to come up with effective ways of salvaging the situation.

    He stated this during the week at a meeting with members of the iCARE Movement in Ikorodu. Benson, who said the APC administration in Lagos State is determined to fulfill all its electoral promises, said, “President Buhari has learnt from the past mistakes of previous administrations and he is taking his time to avert mistakes.

    The federal lawmakers said with the signing of the budget by President Buhari during the week, Nigerians should expect to see the gradual implementation of programme already outlines by the ruling party. He said the current administrations at both federal and state levels are people friendly and as such, the welfare of Nigerians will take the front burner always.

    “I am happy, like most Nigerians, that the budget has finally being signed by the President. It is a good development and we must all know that following the long delay, what we finally got signed into law is a budget that is tailored to put the people first in all things. Henceforth, we should begin to see the fulfillment of electoral promises.

    Like the federal government, the APC government in Lagos State, led by Governor Akinwunmi Ambode, is also determined to fulfill electoral promises made to the good people of the state. APC as a party will not fail the people and I can only urge us all to believe in the change we voted for,” he said.

    Benson thanked the people of Ikorodu for believing in him and promise not to let them down in any way. “You all sent me to Abuja. I am in Abuja for you and I will always put your interest first in all I do or say at the national assembly,” he added.

     

  • Budget passed into law with N200bn slash

    Budget passed into law with N200bn slash

    The 2016 “Budget of Change” which was signed into law yesterday by President Muhammadu Buhari has a capital outlay of N6.06 trillion, N200 billion short of the N6.08 billion originally proposed by the executive.

    The cut in the budget was essentially from the recurrent component, an indication that the government is serious about cutting cost on items like travels, welfare and honorarium across many ministries departments and agencies.

    Details of the signed budget are yet to be made public by the Budget Office but it was learnt that the Lagos-Calabar rail project which generated a lot of controversy is contained in the new budget.

    It was gathered that the Budget and National Planning, Senator Udo Udoma has admitted that the lateness of the 2016 Appropriation Act may hinder Federal Government’s aim of achieving a full implementation this year.

    “Our aim is 100 per cent implementation because the budget is a law that must be implemented. But the reality is that we may not achieve this because we are starting late,” the minister told State House correspondents shortly after President Buhari signed the budget at the President Villa, Abuja.

    Charles Mafe, Director of Information at the Ministry of Budget and National Planning, told The Nation that comprehensive details of the 2016 national budget would be presented by Senator Udoma at a press conference scheduled to take place in Abuja next Thursday.

    On December 22, last year, President Buhari presented a budget proposal totalling N6. 08 billion to a joint session of the National Assembly.

    It comprised a total of N351bn for statutory transfers, N2.8trn for recurrent expenditure and N1. 8trn for capital expenditure.

    The National Assembly subsequently reduced the total budget sum from N6.08 trillion to N6.06 trillion with N351bn for statutory transfers, N1.4 trillion for debt service, N2.6 trillion for recurrent expenditure, and N1.5 trillion for capital expenditure.

    Challenges

     With the latest  attack on Chevron Corp’s Okan oil facility, the company’s production level has declined by 90, 000 barrels per day while Nigeria’s oil output now lingers at a 22-year low.

    Such unexpected production cuts caused by militants in the Niger Delta indicates decreasing likelihood of attaining the 2016 budget’s oil production target of 2.2 million barrels per day.

  • Update: Buhari signs 2016 Budget

    Update: Buhari signs 2016 Budget

    * N200 billion allocated to road construction

    * Says Nigeria experiencing toughest economic times since 1960

    President Muhammadu Buhari on Friday signed N6.06 trillion 2016 Appropriation bill into law.
    His assent was withheld for weeks due to grey areas in the 2016 Budget passed by the National Assembly and the N6.08 trillion proposal he submitted to the joint sitting of the National Assembly on 22nd December, 2015.

    The President, according to a copy of his speech at the closed-door ceremony later circulated to journalists, said that the 2016 Budget was designed to pursue an expansionary fiscal policy despite the huge decline in government revenues from crude oil exports.

    The signing of the budget, he said, will trigger concerted efforts to relate the Nigerian economy.

    He said: “The budget is intended to signpost a renewal of our commitment to restoring the budget as a serious article of faith with the Nigerian people. This Administration is committed to ensuring that henceforth the annual appropriation bill is presented to the National Assembly in time for the passage of the Act before the beginning of the fiscal year.

    “Through the 2016 budget, aptly titled“ Budget of Change’’, the government seeks to fulfill its own side of the social contract. The Budget I have signed into law provides for aggregate expenditures of N6.06trn.

    “In designing the 2016 budget, we made a deliberate choice to pursue an expansionary fiscal policy despite the huge decline in government revenues from crude oil exports. This is why we decided to enlarge the budget deficit at this time, to be financed principally through foreign and domestic borrowings. All borrowings will however be applied towards growth-enhancing capital expenditures.

    “The signing of the budget today will trigger concerted efforts to relate the Nigerian economy, a key element of which is an immediate injection of N350bn into the economy by way of capital projects.

    “To illustrate our renewed commitment to infrastructural development, the 2016 budget allocates over N200 bn to road construction as against a paltry N18bn allocated for same purpose in the 2015 budget,” he said.

    Despite the current challenges, he said that his administration will work extra-hard to achieve the revenue projections.

    “Our revenue generating agencies are coming under better management and are re-oriented. The implementation of the Treasury Single Account (TSA) is expected to contribute significantly to improving transparency over government revenues,” he added.
    The President said that further details of the approved budget and Strategic Implementation Plan for the 2016 budget will be provided to the public by the Minister of Budget and National Planning, Udoma Udo Udoma.

    He said that he will also speak more on the Budget, its implementation and the over-all national economic and social policies of his Government in his coming May 29th address.

    Stressing that the 2016 Budget is the first full-year budget of his administration, he thanked the leadership of the National Assembly in making the budget a reality.

    He also said that his administration’s determined fight against corruption is resulting in improvements in the quality of public expenditure.

    He added: “The works of Efficiency Unit, as well as other public financial management initiatives, are also contributing in this regard. The continuing efforts to reduce recurrent expenditures should hopefully free up more funds for capital expenditure in 2017 and beyond.”

    Living in the State House, he said, does not in any way alienate him from daily struggles of Nigerians.

    “I read the newspapers and listen to the TV and radio news. I hear your cries. I share your pains,” he said.

    Noting that Nigeria is experiencing probably the toughest economic times in its history, he commended the sacrifice, resilience and toughness of all Nigerians who continued to have hope and confidence of a great future despite the hardships.

    He said: “But permit me to say that this government is also like none other. We are absolutely committed to changing the structure of the Nigerian economy once and for all.

    “We are working night and day to diversify the economy such that we never again have to rely on one commodity to survive as a country. So that we can produce the food we eat, make our own textiles, produce most of things we use.

    “We intend to create the environment for our young peoples to be able to innovate and create jobs through technology.

    “I cannot promise you that this will be an easy journey but in the interest of so much and so many we must tread this difficult path. But I can assure you this government you have freely elected will work with honesty and dedication day and night to ensure that our country prospers and that the prosperity benefits all Nigerians,” he said.

    At the ceremony, the Senate President, Bukola Saraki said that the 2016 Budget will ensure that minimum of 30 percent goes into capital and boost the diversification policy of the government.

    He said: “Our journey here has been rather bumpy but I believe that that is not only in Nigeria. All over the world, the legislation on appropriation and budgeting is the most important legislation.

    “In all the democracies that we practice, there are always issues about passing the budget, policies, etc.

    “We thank God that we have been able to come to this today in our country. I think that is a great achievement on the part of everybody.

    “In other countries, even in the US that we copy, sometimes they close down government because they have not been able to achieve it.
    “It is with a great satisfaction that we are here and it is by the efforts of people from both sides: Executive and Legislature.

    “I want to thank all those who worked behind the scene to make this happen.

    “I think we have shown again that despite the challenges, we can work together as a government that has the interest of the people that have put us here at heart. We should look at the good side and more and forge ahead.

    “Most important part after the signing of course is the implementation, to ensure that the benefits of Nigerians who waited are met.

    “Just yesterday, a man in quarry business told me that just because of the information that the President might sign, there has been activity. They don’t know what is in the budget but activity has picked up, so you can see the interest of our people.

    “So it is the responsibility of all of us to ensure implementation. It is our role to ensure that we follow the money and ensure that the document signed is fully implemented and Nigerians can benefit.

    “On behalf of my colleagues, I assure the President and the Vice President of the continued support of the National Assembly in ensuring that the policies of government are fully supported.” He said

    Speaking with State House correspondents at the end of the ceremony, Saraki called for early work on the 2017 budget in order to prevent the delays of the 2016 Budget.

    He said: “One is the fact that the process will start early. Don’t forget the fact that the government only came in May of last year. We have long time now to prepare, the government is in place, the new appointments and those in National Assembly is in place, I’m sure it will not be like this‎.

    Also briefing State House correspondents, the Minister of Budget and National Planning, Udoma Udo Udoma said that the 2016 Budget adopted the same revenue assumptions of 38 dollars crude oil price while the size of the budget and the size of the deficit are also roughly the same with the proposal submitted.

    To ensure no delays in 2017 Budget, he said that the Federal Executive Council (FEC) approved timetable for the 2017 budget two weeks ago.

    He said: “Our intention is that the budget should reach the National Assembly early in October to give them enough time to pass the budget before the end of the year.

    “Because as you know the most important time particularly for road construction and road works is of course the dry season, so if you can get the budget out in December, you can now start early to implement, so our intention is going forward to get us back to a situation where we can have a full January to December implementation for the budget.

    “So we are working hard on the timetable to achieve this, it’s also going to be much more extensive consultation with the National Assembly prior to the budget being presented, extensive consultations with NGOs and that will help us to speed up the process of getting the budget approved,” he said.

    On implementation of the 2016 Budget, he said: “Our own will always be one hundred percent implementation, we know that because we started late we may not achieve it but that is our aim, we will start off with that aim because the budget is a law so we will try and implement it as faithfully as we can. However the reality is that we may not because we started late.

    “So to cure that is that subsequent years, we start earlier to give us a better chance of implementing the budget in full but we will do our best.

    Minister of State for Budget and National Planning, Zainab Ahmed said that the government has developed a specific implementation guideline for the 2016 budget which will be submitted to all the MDAs.

    “This will be vigorously monitored and reported upon on quarterly basis to the FEC. There are some checks in that implementation plan and we intend to follow through with the plan as fast as possible.” She added

    Among those at the short signing ceremony include Vice President, Yemi Osinbajo,  Speaker of the House of Representatives, Yakubu Dogara, Minister of Finance, Kemi Adeosun.

    Others are Senior Special Assistant to the President on National Assembly Matters (Senate), Ita Enang, Senior Special Assistant to the President on National Assembly Matters (House of Representatives), Samaila Kawo.

    Also at the ceremony are the National Chairman of the All Progressives Congress (APC), John Odigie-Oyegun, Chairman Senate Committee on Appropriation, Danjuma Goje, Chairman House of Reps Committee on Appropriation, Abdulmumuni Jubril.

  • Budget panel to conclude work today

    Budget panel to conclude work today

    The Presidency may have to wait till today or tomorrow for the finetuned 2016 budget.

    The 20-man committee working on the document may resolve the grey areas and clean it up today.

    President Muhammadu Buhari was said to be “anxiously awaiting” the budget last night.

    According to sources, the 20-man team from the National Assembly and  the Federal Executive Council will hold final round of consultations on the grey areas today in Abuja.

    The committee will shun the public holiday to consider the National Assembly’s review of the budget.

    Members of the committee from the National Assembly are House of Representatives Deputy Speaker Lasun Yusuf, Senate Leader Ali Ndume, Sen. Danjuma Goje( Chairman, Senate Committee on Apprporiation), Hon. Abdulmumin Jibrin( Chairman, House Committee on Appropriation) Sen. Biodun Olujimi,

    From the Executive are the Minister of Budget and National Planning Udo Udoma, Minister of Power, Works and Housing Babatunde Raji Fashola, the Minister of Transportation  Mr. Rotimi Amaechi, Minister of Solid Minerals, Kayode Fayemi, Minister of Labour and Productivity Chris Ngige, Minister of Agriculture  Audu Ogbeh, Minister of Water Resources, Suleiman Adamu, Minister of Education, Mallam Adamu Adamu, and Minister of Health Isaac Adewole,

    A source, who spoke in confidence with our correspondent, said the National Assembly was working round the clock with the Executive to finish the job today.

    The issues, which the committee will finalize discussions on are as follows:

    • need for National Assembly to concede to the retention of the bulk of the proposals from the presidency;
    • restoration of priority projects, such as the rehabilitation of the  Lagos-Ibadan Expressway (N60billion voted); completion of Kano-Maiduguri Expressway(N16b voted but its liability is N20b); Lagos-Calabar rail project;
    • even spread of turnkey projects across the six geopolitical zones to avoid hurting any zone;

    *•Significant reduction or cancellation or spread  of projects hitherto arbitrarily awarded by the Chairman of the House Committee on Appropriation, Abdulmumin Jibrin; and

    • establishing a principle that it is not the business of the National Assembly to tamper with the budget.

    The source said: “The National Assembly has conceded to the Executive to retain the bulk of the priority projects in their review of the budget.

    “In the first two meetings we had, there was tension but the Deputy Speaker of the House of Representatives tried to calm everybody down. He was very reasonable about it in conducting the session on the review of the budget.

    “When we meet on Monday, we will know whether the review is acceptable to us or not.

    “We are working assiduously to finalise consultations on the budget on Monday, irrespective of the holiday.”

    A member of the National Assembly in the committee said: “We are working , we are struggling. By tomorrow or Tuesday latest, the budget should be ready.

    “What we are trying to guide against is to avoid a misrepresentation or the hurting of any zone. We want all projects allocated with fairness to the six geopolitical zones. We hope the Executive will appreciate our position.”

    All efforts to get Udoma’s reaction were unsuccessful last night but a top government official  said: “We are optimistic that they will send in the report very soon. We know everybody is working hard to get the budget ready.”

    A source in the Presidency said: “The National Assembly is yet to submit the reviewed budget to President Muhammadu Buhari. He is eager or anxious to get  the document.”

  • Ita-Giwa hails Presidency, National Assembly on budget

    •Ex-presidential aide urges speedy assent

    A former Presidential Adviser on National Assembly Matters, Senator Florence Ita-Giwa, has hailed the meeting between President Muhammadu Buhari and the leadership of the National Assembly to resolve the impasse on this year’s appropriation bill.

    In a statement at the weekend in Lagos, Ita-Giwa urged the Presidency to assent to it speedily so that meaningful development could take place.

    She said in a democracy, there were bound to be misunderstanding and disputes, adding that when properly managed, such differences would contribute to a healthy rivalry between the two arms.

    According to her, sitting together to resolve the grey areas is a welcome development.

    Ita-Giwa said when the President assents to it, the ministries and corporations should implement the budget on a large scale.

    She said there should be cordiality and collaboration among the three arms of government, despite the fact that the rule of law provides for separation of powers to prevent abuse and arbitrariness.

    The former adviser recalled that during her stints at the National Assembly under two former successful presidents, she mediated well between the Executive and the Legislature on budgets and other matters.

    She said the successes she recorded were the products of the cordial relationship she established and sustained with the principal officers of the National Assembly.