The Nation Newspaper

Tag: budget

  • Jonathan signs Budget 2013 bill into law

    Jonathan signs Budget 2013 bill into law

    Sixty eight days after the National Assembly passed the 2013 Appropriation Bill, President Goodluck Jonathan yesterday signed the bill into law, in a major twist to the controversy over the financial plan.

    Before the Presidential action, there was tension as the House of Representatives. The lawmakers went into a two-hour closed-session where they decided to go tough by today should the President fail to sign the bill.

    President Jonathan on October 10, last year presented the bill which the National Assembly passed on December 20.

    Presidential spokesman Reuben Abati in confirmed that Dr. Jonathan had signed the bill.

    The statement titled: “President Jonathan assents to the 2013 Appropriation Bill”, hesaid:

    “Following consultations and an agreement between the Executive and the Legislature on the 2013 Appropriation Bill, President Goodluck Ebele Jonathan today signed the bill into law.

    “President Jonathan wishes to reassure all Nigerians that the consultations have been in the best interest of the country, and in pursuit of understanding and mutual cooperation between both arms of government.

    “A part of the understanding reached with its leadership, the observations of the executive arm of government about the Appropriation Bill as passed by the National Assembly will be further considered by the National Assembly through legislative action, to ensure effective and smooth implementation of the 2013 Appropriation Act in all aspects.

    “Te administration remains fully committed to the positive transformation of the country, and effective and efficient service delivery for the benefit of all citizens.

    “Al Ministries, Departments and Agencies of the Federal Government have therefore been directed to work very hard to ensure that all the services, projects and programmes contained in the budget are successfully delivered on schedule in spite of the slight delay in its enactment.”

    The President had withheld his assent due to what was described as ‘grey areas’ in the budget. The budget as passed by the National Assembly was said to be unrealistic, unimplementable and out of tune with the present economic realities.

    Present at the signing ceremony were Vice President Namadi Sambo, Senate President, David Mark, House Speaker Aminu Tambuwal, Petroleum Minister, Diezani Allison-Madueke, National Assembly Presidential Liason Officer, Mrs Joy Emodi, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, Director-General of the budget office, Dr. Bright Okogu and Minister of National Planning Commission, Dr. Shamsudeen Usman.

    Journalists were not allowed into the venue of the signing ceremony. Those who attended declined to speak to reporters.

    The budget was based on an assumption of a $79-per-barrel oil benchmark, higher than the $75-per-barrel proposed by Jonathan and up from $72 for last year’s budget.

    The global oil price is at almost the same level as a year ago.

    The budget assumes oil production of 2.53 million barrels per day, up slightly from 2.48 million bpd in the 2012 budget and at the top end of actual output this year.

    It also assumes that economic growth this year will be 6.5 per cent, inflation 9.5 per cent, and an exchange rate of N160 to the dollar.

    House Spokesman Zakari Mohammed told reporters after the closed-session that having passed the budget since December, the country could no longer wait for the President to assent to the bill.

    President Jonathan sent a budget of N4.9.24 trillion to the National Assembly but the lawmakers passed N4.987 trillion leaving a difference of N63b.

    Some of the areas of disagreement on the bill are the carry over of the Capital component of the 2012 budget to April this year, quarterly briefing for the National Assembly by the Minister of Finance, and zero allocation forthe Securities and Exchange Commission (SEC) among others.

    The senate also explained the controversy over constituency projects. Senate spokesman Enyinnaya Abaribe said: “All issues have been resolved.

    “There is nothing like the National Assembly padding projects, that doesn’t happen and can never happen.

    “For those who are aware, there is always a specific amount of money and that does not equate to padding.

    “What we do in constituency project is that there is a specific fund kept aside so that members of National Assembly can also bring things to their various constituencies.

    “When there is announcement that people should bring their projects, it is also within a particular volume of fund and it is expended by various ministries.

    “So, I don’t think that whatever problem they had with the budget had anything to do with constituency projects,” he said.

    Abaribe said there is the tendency for Nigerians to think that when constituency projects are mentioned, that Senators or members of House of Representatives are given funds to spend.

    “What happens is that Senators are given a list of projects by the Executive and these projects are in specific areas.

    “It is either in education or in terms of health or water and when they put the particular area they want, the different ministries, departments or agencies go ahead to award their contracts,” he said.

     

  • Edo’s 2013 budget

    Edo’s 2013 budget

    Can you really satisfy the people of Edo State? Of course, yes. Aren’t they more demanding than state resources can carry? The answer is in the affirmative. Could it be because to whom much is given, much is expected? Again, yes. The truth is – the people of Edo want more from Governor Adams Oshiomhole despite his overwhelming scorecard in the past four years in office.

    Oshiomhole, on his part has vowed to post more mouth-watering dividends. His 2013 budget christened “Taking Edo to the next level” is one among three others before Oshiomhole will call it quits.

    Successive governments in the past have had budgets tagged with flamboyant adjectives but unfortunately they hardly yielded the much trumpeted result. Today, the difference is clear. Whereas the budget used to be an opaque instrument; now it’s a self-reliant and fiscally prudent tool.

    Edo State is one of the few states where Fiscal Responsibility legislation was passed into law and we all know the import of that. While the state benefits from the 13% derivation fund as a marginal oil producing state, this fiscal advantage does not translate to any significant edge in financial transfers and key indices when compared to other states in the Niger Delta region.

    The proposed Budget size for the year is N150,045,377,060 billion. Of this, the sum of N87,407,475,855 billion, representing approximately 60%, is being proposed as Capital Expenditure; while the proposed Recurrent Expenditure is N62,637,901,205 billion, which represents approximately 40% of budget size.

    By the above figures, government is sustaining the tradition of putting more funds into capital expenditure, while reducing recurrent expenditure.

    The sum of N116, 479,778,045 billion is proposed as recurrent revenue, made up of the following components: Statutory Receipt – N86.51 billion, Internally Generated Revenue – N26.97 billion

    The projected capital receipts amount to N64,341,876,840 billion, while there is a projected deficit of N23,065,599,015 billion to be funded through the World Bank Budget Support Facility and additional credit lines.

    The Recurrent Component of the 2013 Budget, which is N62,637,901,205 billion, is made up of Personnel Costs – N25.46 billion, Overhead Costs – N16.40 billion and Consolidated Revenue Fund Charges – N20.76 billion

    Government is concentrating the bulk of it’s Capital Expenditure on key priority areas. Roads Project is allocated the sum of N33,351,000,000 billion. This will be used to complete ongoing intra and inter-city road projects, in addition to funding new road projects. The designs of these road projects, according to government sources, are ready.

    The sum of N 13,293,000,000 billion is proposed for Flood and Erosion Control and Environmental Protection. Of this amount, N8.00 billion is allocated for the execution of projects under the Benin City Storm Water Masterplan. Also, a substantial sum has been earmarked for the continue desiltation and dredging of the Benin Moat.

    Similarly, the sum of N2.55 billion is set aside for erosion and flood control infrastructure in Edo Central and Edo North senatorial districts, while the sum of N1.20 billion is proposed for Beautification and Urban renewal projects across the State.

    The total budget provision for education is N26.7 billion comprising of N14.6 billion capital and N12.1 billion recurrent expenditure excluding salaries to primary schools teachers.

    The state owned university, Ambrose Alli University has a provision of N4.82 billion of which N1.02 billion is for capital projects. N4 billion has been provided for construction and renovation tertiary institutions in Edo State. The technical schools reconstruction/renovation has a provision of N500million.

    The sum of N6.78 billion has been allocated to the Health Sub-Sector, comprising of N2.8 billion capital projects and N3.98 billion for recurrent expenditure.

    Edo people should expect the procurement of rescue ambulances to cover Benin-Auchi, Benin-Ore, Benin-Agbor and Benin-Warri roads at an estimated cost of N30,000,000 million. It is expected that this will complement the on-going Accident and Emergency facility in the new complex at the Central Hospital, Benin City.

    The administration has also promised to continue to transform the agriculture sub-sector to ensure increased food and raw material production. In this connection, government plans to provide necessary inputs to farmers and encourage our teeming youth to engage in agricultural activities. The sum of N400 million is proposed for this sub-sector in Year 2013.

    Sure, the budget is intended to strengthen the administration’s resolve to galvanize the people of Edo state towards developmental action and make the state competitive economically as well as make it self-reliant.

    This is more so as Oshiomhole is sworn to carry out institutional reforms necessary to guarantee and sustain irreversible development. “The thrust of our policies is to achieve concrete development. In this regard, the fiscal governance measures we adopted at the beginning of this administration will be sustained.”

    Edo State has been acknowledged as a rapidly developing state in Nigeria by local commentators, investors and development partners. Oshiomhole and his team have creatively managed the state’s resources efficiently to deliver the greatest good to the greatest number of the people. He has worked consciously with the people to deepen their partnership for our overall progress.

    The administration must be commended for its efforts at improving the state compared to the work done by its predecessors. But as with everything in life, there is room for improvement if continuity is sustained. The state is blessed with abundant resources which have barely been tapped and transformed to cash-cows. Apart from tax earnings which cannot even sustain its recurrent expenditure, the states’ major financing source is the Federation Account.

    Without handouts from the Federal Government, will the state exist in the form it does now? The answer is no. It definitely needs an improvement in federal allocation. Has the state provided a thriving environment for SMEs to play an active role in its economy? It is trying but needs to do more. Is the government investing in physical infrastructure and human capital or is it just maintaining what it has inherited? The state’s performance in education and spending on roads answer this question affirmatively.

    To a great extent, leadership is like beauty, it’s hard to define but you know it when you see it. Oshiomhole has proved himself a model in self-confidence, vision, virtue, plain guts, and reliance on blessed impulse. He has learned from everything, more importantly from experience, adversity, and mistakes. He has learned to lead by leading.

    There are a lot of goodies for the people of Edo in Oshiomhole’s 2013 budget. All we need to get the best from this government is to simply support the government, criticize constructively, pay our taxes and maintain whatever public infrastructure the government must have succeeded in building in our environment. By so doing, Edo can be said to be on the path of sustainable development.

    • Mayaki is a founding member, Coalition for Good Governance and Economic Justice in Africa

  • Civil society to engage Lagos on budget debate

    The Lagos Civil Society Partnership (LACSOP) has created a platform for stakeholders to engage the government on the state’s 2013 budget to further promote accountability.

    Using the social media tool, Twitter, it will run a live dialogue programme with relevant government agencies.

    It is supported by the Department for International Department (DFID) project known as State Accountability and Voice Initiative (SAVI). LACSOP is made up of a network of civil society and community-based organisations.

    The organisers said the programme, the first of its kind in the state, will feature key government officials to answer specific questions on the budget proposals and will enable citizens to understand what is expected of them as regards state budget.

    LACSOP Co-ordinator, Mr Ayo Adebusoye, a lawyer, said the citizens have the right to ask questions as to how government runs their affairs using tax payers’ money.

    “We understand the Lagos State’s vision is to be Africa’s model megacity and a financial hub that is safe, secure, functional and productive. We also appreciate the fact that for this vision to be achieved by 2025, the smaller steps towards its realisation include its annual policy targets.

    “For example, in 2013, the state government’s policy thrust is being made towards strengthening infrastructural renewal in the power, agriculture and agro-allied, transportation and housing sectors.

    “All these can happen only when the citizens are fully engaged in its implementation. It is the reason for the debate to get the people to understand what they should do at different stages of development.

    “What we intend to do during the conferencing is to open a dialogue channel. It is going to be a two-way communication debate where citizens will ask questions directed to government officials who will be expected to respond.

    “They may want to find out what specific initiatives are expected in the agriculture sector, how much is to be committed, time-frame, expected results and role the citizens should play’ he explained.”

    SAVI’s state team leader, Mr Felix Obanubi explained why his organisation is sponsoring the dialogue.

    “SAVI is concerned with giving voice to the people. Through our Advocacy Partners like LACSOP we build the capacity of the people to enable them understand their role as citizens and educate them on how they can participate in the process of governance and demand accountability from government.

    “Where citizens lack adequate knowledge, it has often led to under-development because no one has engaged them nor have they demanded accountability from the government.

    “Therefore, the entire process is aimed at empowering the citizens by giving them a voice to speak on issues that concern them.”

     

  • NASS, Presidency and 2013 budget delay

    NASS, Presidency and 2013 budget delay

    SIR: When on October 10, 2012, President Goodluck Jonathan presented the 2013 budget proposal to the joint session of both chambers of the National Assembly (NASS), Nigerians had thought that we have moved from the era, where the passage and signing of annual budgets were being delayed due to late presentation by the Presidency.

    In fact, the President received accolades from the entire people of Nigeria, as it was believed to be a good development that will greatly aid the budget implementation process. They (Nigerians) had expected the federal lawmakers to follow suit in ensuring quick passage, without prejudice to their constitutional powers to carry out proper scrutiny of the content of the budget proposal and make amends where necessary.

    Interestingly, the legislators did not disappoint Nigerians as they worked round the clock to ensure that the 2013 appropriation bill was passed on December 20, 2012, with an addition of about N63 billion to the N4.924 trillion originally proposed by the Presidency.

    However, almost two months after the passage of the 2013 budget by the parliamentarians, it is still awaiting the assent of the President. This delay in the signing of the 2013 appropriation bill into law, according to reports, may be due to disagreements between the Presidency and NASS on the oil benchmark, constituency projects and zero allocation for the Securities and Exchange Commission (SEC). Another reason that may have been holding back the President from signing the budget is said to be the additional N63 billion added to it by NASS. The President appears not to be comfortable with the increase made by the lawmakers.

    What is truly important at this point is for the two parties to come to terms as fast as possible. Continuous delay in the signing of the 2013 budget will not augur well for us. The Presidency must not allow this to get to a level where lawmakers will have to take the option of overriding the President’s veto as some members are already threatening and looking towards that direction.

    Come to think of it, of what use would it be that despite commendable efforts made by the executive to present the 2013 budget early October, 2012 as against previous years where it was presented in December, the signing of the appropriation bill is delayed till March or April? This would mean that the essence of the early presentation would have been defeated.

    • Michael Jegede

    Abuja

  • Council presents budget

    Council presents budget

    The Chairman of Ajeromi-Ifelodun Local Government Area of Lagos State, Mr. Ayinde Bayewu, has presented N3,089,500 budget for this year to the legislative arm of the council. He said the budget will cater for the social, economic, health, environmental development, urging the Leader of the council, Mr. Abduhlakeem Sulaiman and other councillors to approve it in record time.

    The chairman said the budget was prepared in consonance with the 10-point agenda of Fashola Administration, Local Government Economic and Empowerment Development Strategy (LEEDS), Millennium Development Goals (MDGs) and Vision 20:20.

    Reviewing the performance of the 2012 budget, Bayewu said its implementation was successful, adding that the people reaped the dividends of democracy. The chairman said eight roads were constructed during the year, 12 roads were rehabilitated, seven boreholes were provided, three drainages completed, two culvert projects were completed and toilets provided for schools and markets.

    Bayewu also tendered his achievements in education, health, and environment. He said school buildings were rehabilitated, street lightings were provided and the council completed distilling projects in 27 streets across the communities.

    The chairman said out of the N3.08 b budgeted for this year, N1,340,000, representing 44 percent, would come from the federal purse, the expected state allocation is N50m and internally generated revenue is N160m. Bayewu said recurrent expenditure would cart away N1,749,500, out of which personnel cost will consume N640m. However, overhead cost will be N1,109,500, representing 63 percent of the total recurrent cost.

    The chairman said the capital expenditure will gulp N1,340,000, stressing that the implementation will drive the local economy, promote micro-economic activities, and contribute to the National Gross Domestic product. The breakdown shows that agriculture will get N14.5m; works, housing and infrastructure N705m, representing 53 percent of the budget; commerce N10m, environment N19m, education N239.2, representing 17 percent, health N36.2m and computerisation of the secretariat N35m.

     

     

     

    Bayewu added: “We will embark on agricultural community projects. We are focusing on works, housing and infrastructural development because this sector will contribute to the national economic growth and generate employment. We are committed to the construction of new roads, maintenance of the old ones, provision of portable water, construction of drainages, upgrading of the council cemetery, street lighting, construction of public toilets and offices at the secretariat”.

    The chairman promised a better life for primary schools in the area. More classrooms, library equipment, vocational centres, furniture will be provided, he said. Also, he assured that the health facilities would be given a facelift through the rehabilitation of health centres, provision of medical equipment, and health clinics.

    Urging the councillors to pass the budget in time, he said: “the facilitation of this approval in record time will not only sustain the cordial relations between the two arms of government, but also enhance and promote the economic growth of the Ajeromi/Ifelodun local government area”.

     

  • Firm holds forum on budget today

    The Bureau for Business Information (BBI) is organising a two-day business roundtable on policies and variables that would shape the economic and investment landscape.

    The event, billed to hold between today and tomorrow, will aid the strategic positioning of investors and others in the economy.

    The organisation said issues, such as the Euro Zone crisis, the looming fiscal cliff in the United States, Global Economic Outlook in the year, implications for private sector performance, structure and contents of 2013 budget vis-à-vis inherent challenges and opportunities for investors would be discussed during the two-day events.

    Others are outlook for foreign exchange, inflation and national outlook, interest rates, SWOT analysis of sectors, such as manufacturing , real estate, maritime, agriculture, oil and gas, retail trade, information and communication technology(ICT), capital market, consumer spending structures on sectoral and regional basis, among other financial services institutions.

     

  • Aregbesola explains lion share of budget to road construction

    Aregbesola explains lion share of budget to road construction

    The governor of Osun State, Ogbeni Rauf Aregbesola, has disclosed that his government allocated lion share of 2013 budget capital spending to transportation sub-sector because of the administration’s belief that it is a vital catalyst for economic and industrial development.

    A total sum of N30.21 Billion or 25.38 per cent of the capital budget has been allocated to transport for the execution of the various projects in the sub-sector in 2013.

    A statement by the Director, Bureau of Communications and Strategy, Mr. Semiu Okanlawon, quoted Governor Aregbesola as saying that in view of his government’s commitment to ensure that roads are in good condition throughout the State, a sum of N24.61billion out of N30.21 allocated to the sub-sector has been voted for road rehabilitation and construction alone in the 2013 budget.

    The governor said that since the inception of his administration, construction and rehabilitation of inter and intra-city roads have remained one of its top priorities, saying government identifies road construction and maintenance as essential to achieving economic and socio-political end.

    Aregbesola noted that in the current fiscal year, government will award new contracts which include the construction of roads, such as the East Bypass Road Osogbo (18 km), Iwo – Osogbo Road (58k), Gbongan – Osogbo Road (25k).

    Others are ongoing rehabilitations of township roads across the state including, rehabilitation of township roads in the six (06) zones (83.66km); 21 roads in Osogbo (25. 35Km), 15 Ilesa Township Roads Rehabilitation (29.09km); Gbongan-Odeyinka-Orile-Owu-Araromi Road (44. 43km); Dualisation of Osogbo-Dagbolu International Market – Ikirun Junction/ Alamisi Market (9.52km).

  • 1.4b BUDGET: Nigeria face cash crunch

    1.4b BUDGET: Nigeria face cash crunch

    Nigeria face a cash squeeze at the AFCON after only about half of a proposed 1.4 billion Naira (less than $9 million) budget was approved.

    MTNFootball.com specifically gathered from officials here at the Nations Cup in South Africa that the government only approved 790 million Naira (about $5 million) from their proposed expenditure.

    And of this approved budget, the Nigeria sports ministry has released only 490 million Naira to the NFF with a promise to release the balance this week. The ministry also received another 220 million Naira ($1.3 million) for the Nations Cup.

    “The NFF are groaning under serious financial problems in South Africa as they only received about half of the budget approved for the tournament. There is a promise for them to get the balance of this budget but even then that may not be adequate as what was finally approved was just about half of their request,” a top source informed MTNFootball.com.

    The situation is so serious that Nigeria have had to step down on a bonus scheme that would have fetched each player about $100,000 were they to win the on-going AFCON in South Africa.

    Officials said the money problems will continue for the remaining part of a year in which the NFF have to prosecute six 2014 World Cup qualifiers beginning with a home game against Kenya in March.

    Nigeria will also feature at the African Youth Championship, the African Junior Championship as well as the African Beach Soccer Championship all in 2013.

     

  • ‘Why 2013 budget is yet to be signed’

    ‘Why 2013 budget is yet to be signed’

    • Emodi seeks expedited action on PIB

    Special Adviser to the President on National Assembly Matters, Senator Joy Emodi, yesterday blamed the delay in signing the 2013 budget into law on some transmission processes that needed to be concluded.

    Senator Emodi also said it is the expectation of most Nigerians that the National Assembly would expedite actition to the Petroleum Industry Bill (PIB) to ensure its passage in the early days of 2013

    The Presidential Aide, stated this in a statement welcoming Senators and members of the House of Representatives “from a deserved Christmas and New Year break.”

    She said the concerted effort of the Executive and the National Assembly that culminated in the unprecedented early passage of the national budget remained a milestone.

    “The short delay in time between the actual passage and the processes that will lead up to the eventual signing of budget into law, is due to some other transmission processes and does not in any way detract from the significance of this landmark Executive and Legislative achievement since the return of democracy in 1999,” she stated.

    “As we expect the 2013 budget to kick-start in earnest, it is imperative for the Executive and the Legislature to rise up to the collective challenge of ensuring full implementation for the benefit of all Nigerians,” she added.

    Senator Emodi said the Performance Contract, which President Goodluck Jonathan entered with the Ministers, “remains valid and will surely help ensure an excellent budget performance and service delivery in the 2013 fiscal year.”

    She commended members of the National Assembly for their interest in the PIB and the work done on the Bill so far.

    “It is therefore the expectation of the generality of Nigerians that the PIB would receive expedited due legislative attention and passage in the early days of 2013, and in the form that will not deviate from the intention of reforming the oil and gas sector,” she said.

    She noted that the passage of the PIB will certainly accelerate Jonathan’s Transformation Agenda for the oil and gas industry.

    “Above all, while expectations are high and challenges enormous, I urge continued Executive and Legislative collaboration, for together, we can always move the nation forward,” she said.

  • Akpabio signs 2013 budget

    AKWA Ibom State Governor Godswill Akpabio yesterday signed the 2013 budget of N470.08billion.

    A breakdown showed that N118.79billion was earmarked for recurrent expenditure while N351.29billion would go for capital projects.

    Akpabio said emphasis is placed on capital expenditure at the expense of recurrent expenditure so the administration can deliver more to the people.

    He hailed the Assembly for speedy consideration of the budget and appealed for cooperation.

    “We have started this year well. Today, we stand on a bridge of hope. We will increase the momentum and work harder to take advantage of the dry season.”

    The governor said he hoped to deliver more on his electoral promises, adding that with the pace of the uncommon transformation going on in the state, Akwa Ibom has become a reference point for good governance in Nigeria.

    Akpabio had on November 20 presented a budget of N459.305 billion made up of N188.79billion for recurrent expenditure and N340.52billion for capital projects.

    The House, however, increased the budget size by N10.77billion for capital expenditure and N5million for recurrent expenditure.