Fri. Mar 29th, 2024


Contrary to expectations and promises offered for a speedy consideration and passage of the the proposed aggregate expenditure of about N20.51 trillion, not much has been done or seen to be done by committees of the House of Representatives until recently. JOSHUA EGBODO writes 

The budget 

On the mentioned date, President Muhammadu Buhari presented to the National Assembly the 2023 budget estimates he tagged “Budget of Fiscal Sustainability and Transition”, which also was his administration’s last money Bill, save for any possible request for adjustments in terms of supplementary financing or funds virement. 

The immediate concerns of many pundits was on the curious jerk-up of the estimated aggregate expenditure to N20.51 trillion, as against the N19.76 trillion initially worked on and approved in the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) by the National Assembly. It is a prerequisite document to the annual budgeting rituals.

According to the President and his economic handlers, the budget was designed against the background of a depreciating currency (the naira), youth unemployment and insecurity amongst other challenges.

On the fiscal assumptions and parameters, the president told the lawmakers that total federally-collectible revenue was estimated at N16.87 trillion in 2023. Oil price benchmark was pegged at 70 US Dollars per barrel; with a daily oil production estimate of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day),  exchange rate was pegged at 435.57 Naira per US Dollar; with projected GDP growth rate of 3.75 percent and 17.16 percent inflation rate.

His further breakdown showed that expenditure as estimated comprised of statutory transfers of N744.11 billion, non-debt recurrent costs of N8.27 trillion, personnel costs of N4.99 trillion, pensions, gratuities and retirees benefits of N854.8 billion; overheads of N1.11 trillion; capital expenditure of N5.35 trillion, including the capital component of statutory transfers; debt service of N6.31 trillion; and sinking fund of N247.73 billion to retire certain maturing bonds.

The proposal also showed that the sum of N133,730,697,750 was allocated to the Presidency, while the parliament, information ministry, INEC got N169,000,000,000, N64,239,951,994 and N50,000,000,000 in that respective order. He told the legislature at the session that the sum of N470 billion intervention fund has been provided for in the 2023 budget, to fund tertiary education, urging the Academic Staff Union of Universities (ASUU), which was on strike at the time, to show understanding in government’s efforts at addressing its members’ concerns.

The fiscal assumptions and parameters of the budget made it clear that total federally-collectible revenue is estimated at N16.87 trillion in 2023. Oil price benchmark was pegged at 70 US Dollars per barrel; with a daily oil production estimate of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day),  exchange rate was pegged at 435.57 Naira per US Dollar; with projected GDP growth rate of 3.75 percent and 17.16 percent inflation rate.

The expenditure comprises of a statutory transfers of N744.11 billion, non-debt recurrent costs of N8.27 trillion, personnel costs of N4.99 trillion, pensions, gratuities and retirees benefits of N854.8 billion; overheads of N1.11 trillion; capital expenditure of N5.35 trillion, including the capital component of statutory transfers; debt service of N6.31 trillion; and sinking fund of N247.73 billion to retire certain maturing bonds.

The sum of N133,730,697,750 was allocated to the Presidency, while the parliament, information ministry, INEC got N169,000,000,000, N64,239,951,994 and N50,000,000,000 respectively. Addressing the lawmakers, President Buhari disclosed that the sum of N470 billion intervention had been provided  the budget estimates to fund tertiary institutions.

For budget deficit, President Buhari said his government is going to finance the N10.78 trillion deficit by borrowing N8.80 trillion and N206,18 billion from privatisation proceeds.

The President also announced the discontinuation of the oil subsidy regime from next year. He described the oil subsidy regime as grossly unsustainable in the current reality of low revenues occasioned by oil theft and insecurity.

“Total federally distributable revenue is estimated at 11.09 trillion Naira in 2023, while total revenue available to fund the 2023 Federal Budget is estimated at 9.73 trillion Naira. This includes the revenues of 63 Government-Owned Enterprises. Oil revenue is projected at 1.92 trillion Naira, Non-oil taxes are estimated at 2.43 trillion Naira, FGN Independent revenues are projected to be 2.21 trillion Naira. Other revenues total 762 billion Naira, while the retained revenues of the GOEs amount to N2.42 trillion Naira.

“The 2023 Appropriation Bill aims to maintain the focus of MDAs on the revenue side of the budget and greater attention to internal revenue generation. Sustenance of revenue diversification strategy would further increase the non-oil revenue share of total revenues. The Government notes with dismay the crisis that has paralysed activities in the public universities in the country. We expect the staff of these institutions to show a better appreciation of the current state of affairs in the country. In the determined effort to resolve the issue, we have provided a total of 470.0 billion in the 2023 budget from our constrained resources, for revitalization and salary enhancements in the tertiary institutions.

“In most countries, the cost of education is jointly shared between the government and the people, especially at the tertiary level. It is imperative therefore that we introduce a more sustainable model of funding tertiary education. The Government remains committed to the implementation of agreements reached with staff unions within available resources. This is why we have remained resolute that we will not sign any agreement that we would be unable to implement. Individual institutions would be encouraged to keep faith with any agreement reached in due course to ensure stability in the educational sector.” tertiary education”, he stated.

The parliament’s  promises 

Prior to Buhari’s message, President of the Senate, Ahmad Lawan offered his insights on how to reverse the increasing trend of deficits in the nation’s budget, saying that the Nigeria’s economy was still challenged by dearth of revenues. He noted further that oil thieves have declared war on the country and its people and if necessary measures are not taken to stop the thieves immediately, the economy will be devastated.

“The large scale and massive stealing of our Oil, is concerning, as this reduces drastically the revenues available to the Government. With conflicting figures, projections have put our losses from this malaise at between 700,000 to 900,000 barrels of crude Oil per day, leading to about 29 to 35 per cent loss in Oil revenue in the first quarter of 2022. This represents an estimated total fall from N1.1 trillion recorded in the last quarter of 2021 to N790 billion in the first quarter of this year.

“The situation has worsened. Recently, the loss of our Oil has reached 1 million barrels per day. Translated into monetary terms, our loss is monumental. The figures show we are not able to meet the OPEC daily quota of 1.8million barrels per day. Mr. President, I consider the Oil thieves the worst enemies of our country. The thieves have declared war on our country and our people.

Lawan also called for the completion of the ongoing legacy projects of the Buhari government, adding that the menace of flooding in many parts of the country has been particularly worrisome and has devastated homes, and disrupted families, lives and livelihoods”, he said.

Also delivering the vote of thanks, Speaker of the House of Representatives, Femi Gbajabiamila called for stricter handling of the oil thieves considering the socio-economic damage they are foisting on Nigerians, describing oil theft as a treasonable offence, calling for a swift and systemic overhaul of the systems in place to protect the country’s oil and gas resources.

“Today’s presentation is historic because it is the last such presentation by President Muhammadu Buhari, GCFR. It is also the last time the 9th Assembly will convene to receive the President for this purpose.  We are once more reminded of the finite nature of public service and the obligation to make the most of our time to deliver on our promises to the Nigerian people.

“It is often said that it is not how well you start but how strong you finish. We, intend here in the 9th assembly, to finish strong. I assure you the National Assembly will prioritise this bill and ensure it is passed before the end of the year, as is the practice in the 9th Assembly. However, we will not, in the quest for timely passage, fail to do the due diligence expected of us by the Nigerian people”, Gbajabiamila said.

But less action

The House of Representatives had since about the middle of October 2022 suspended its regular plenary  to allow its standing committees concentrate on their respective engagements with the MDAs. A resumption date of November 15 was announced when it is expected that report on the Bill, as may have been coordinated and harmonised by the Committee on Appropriations will be ready for the general consideration of the House at the Committee of Supply.

Save for the Committee on Finance of the House, headed by James Faleke, which was visibly in action for about two weeks running, all other standing committees seemingly in the opinion of many, went to sleep, only until earlier on this week that some have come up with notices that MDAs under their supervision would be engaged.

Analysts have therefore questioned the long wait? The ready answer has been that it is a simple and unfortunate recipe for poor and ineffective treatment of the budget, which was widely seen as a legacy-bequeathing fiscal document of the President Buhari’s exiting government.

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