• Reps approve 2018-2020 MTEF document
• Raise oil benchmark to $47
The Senate yesterday raised hopes of passing the 2019 budget before the end of the year. It has however raised the $45 oil benchmark price to $47 just as the document passed the second reading.
It has given its committee on Appropriation December 19 to submit its report on the N8.612 trillion estimate submitted by the executive arm on November 7.
Consequently, the lawmakers adjourned plenary session till December 9 to consider the report from the Appropriation Committee and other standing committees.
The various committees are to engage the Ministries, Departments and Agencies (MDAs) of government on their budget estimates during the short break.
Speaking on the passage of the second reading of the budget, Senate President, Dr. Bukola Saraki urged the various committees to work within the December 19 deadline.
He enjoined the MDAs to comply with the Senate’s timetable and to respect invitations that would be extended to them to come forward to defend their budgets
“This is not time for excuses for Ministers or Heads of parastatals to be traveling and not be able to attend their budget defence.
“We do not have the time. This is a very short timeframe, therefore, I expect all MDAs to be able to respect our invitation and be there on time so that the committees can wrap up and be able to present their reports by the time we come back on Tuesday, December 19,” Saraki said.
Saraki also hinted of the probability of the Senate holding a public hearing on the budget estimates simultaneously with the budget defence exercise.
He said: “There will be a public hearing on the budget. We are looking at Monday, December 11. However, in the next few days, an announcement will be made to that effect.”
The Senate had earlier in the day passed the 2018- 2020 Medium Term Expenditure Framework (MTEF) with a raise in oil price benchmark from $45 to $47 per barrel
The Senate’s joint cimmittee on Finance, Appropriation, National Planning and Economic Development that worked on the MTEF had fixed the benchmark at $46 per barrel but was reviewed upward by the Senate in session.
In collaboration with the House of Representatives, the Senate approved all other projected parameters for the implementation of the budget.
The parameters are premised on 2.3million barrel oil production per day, N305 to a US dollar exchange rate and 3.5 per cent GDP growth rate.
Others are N5.79 trillion projected non oil revenue and N1.699 trillion for new borrowings etc.
The Senate, through a resolution, will insert a clause in the final Appropriation Act that would compel the executive arm to revert to the National Assembly for any expenditure that may be at variance with the approved benchmark.
The resolution followed a motion moved by the Deputy Senate Leader, Bala Ibn Na’ Allah and which was overwhelmingly approved by the Senate.
Like the Senate, the House of Representatives also approved the MTEF and Fiscal Strategy Paper (FSP).
This was despite an attempt by Betty Apiafi (PDP, Rivers), to divert attention towards the status of recovered looted fund in funding the 2018 budget.
Though the House Leader, Femi Gbajabiamila reminded the House that the consideration was about MTEF report.
Speaker Yakubu Dogara nonetheless said it has become necessary for the House to investigate the state of independent revenue of government.
“It is safe to say the 2018 budget will not be funded by recovered looted funds but it is necessary to investigate the independent revenue of government by way of a motion,” he said.
The consideration went on and the report was adopted without a dissenting voice.
Before the consideration and rhe adoption of the report of the Committees on Finance, Appropriations, Aids, Loans and Debt Management, Legislative Budget and Research and National Planning and Economic Development on the MTEF and FSP, the 2018 Appropriation Bill had scaled second reading on the floor of the House without a dissenting voice.
Following the referral of the document to the joint Committee last week, in his opening remarks Ibrahim Babangida (APC, Katsina) said the Committees took cognizance of the economic realities on ground in relation to global events.
In consideration of the recommendations, the House resolved that benchmark for crude oil production of 2.3 million barrels per day be retained as proposed by the Executive for the 2018 Budget.
The House however reviewed upward from $45 per barrel to $47 per barrel as the benchmark for the fiscal year 2018. “This is in consideration of the current positive outlook in the global oil market and expectation that OPEC (Organisation of Petroleum Exporting Countries) and other allied oil partnership countries will sustain oil production “cuts deep” into 2018,” Babangida said.
The N305/US Dollar as proposed by the executive for the 2018 Budget was adopted. Babagida explained that, “it is also advised that CBN should adopt measures to close the gap between the parallel market and the official exchange rate”.
The House also adopted projected N5.279 trillion for non-oil revenue in 2018, “In addition, revenue generating agencies should intensify efforts on collections and measures that would reduce revenue loss. Specifically, pioneer status and tax incentives must be beneficial to the economy,” Babagida said.
The N1.699 trillion new borrowing for 2018 as proposed by the Executive was also adopted. “However, borrowing must be project-tied. In borrowing more, government must remain focused and ensure it is used to fund critical projects that will increase productivity and contribute to financing such debt,” Babangida said.
The House also adopted the recommendation that a 3.5 percent growth rate be adopted, especially with the latest figures indicating a doubling of growth rate to 1.4 percent in third quarter, 2017.
Furthermore, the National Assembly was also directed to amend the relevant Sections of the Fiscal Responsibility Act and other extant laws.
The House also approved the$350m borrowing plan for the Kaduna bye pass after being presented by Chairman, Committee on Aids, Loans and Debt Management, Ajayi Adeyinka.
The borrowing plan was presented to the House by President Muhammadu Buhari.
