TheNewsGuru

Tag: 2017 Budget

  • 2017 Budget: Reps summon Fashola over alleged projects insertion

    The House of Representatives on Tuesday summoned the Minister of Works, Power and Housing, Babatunde Fashola (SAN), over his allegation that the National Assembly inserted projects in the 2017 budget.

    TheNewsGuru.com reports that the Minister had last month raised the alarm over the insertion of projects outside the purview of his ministry in the 2017 Appropriation Act by the National Assembly.

    Both chambers of the National Assembly had however refuted the allegation while insisting the minister was bent on pitching them (the lawmakers) against Nigerians.

    The minister is expected to appear before members of an Ad hoc Committee of the House on a date to be determined by the committee.

    The summon followed the unanimous adoption of a motion under matter of privilege moved by Rep. Sadiq Ibrahim (Adamawa-APC) and seconded by Rep. Aliyu Madaki (Kano-APC).

    Relying on Order 6 Rule 1 and Rule 4 of the House Standing Order, Ibrahim said that Fashola’s claims breached the privileges of the lawmakers.

    The allegation had caused ripples in the public domain as the minister accused the legislators of altering the allocations for critical projects under his ministry in the budget.

    He had said that the insertion in the ministry’s budget was made in favour of scores of boreholes and primary health care centres in the legislators’ constituencies.

    While condemning the allegation, Ibrahim said that the minister’s comments were capable of inciting Nigerians against the lawmakers.

    “By this singular act, the minister has breached the privilege of the House.

    “Freedom of speech is a constitutional right and everybody has a right to enjoy it; however, Fashola has spoken on an issue agreed upon between the executive and the legislature and laid to rest.

    “Fashola abandoned the official channel of communication to the National Assembly and decided to go to the media to make his assertions.

    “The budget is an Act and the minister is making a pronouncement on an Act.

    “There is need for Fashola to appear before an ad hoc committee to be set up by this House to give answers to his comments.

    “It is an attack on all of us and capable of causing friction between the executive and the legislative arm of government,’’ Ibrahim added.

    Contributing to the motion, Rep. Kingsley Chinda (Rivers-PDP) said that though the image of the House was at stake, “I will appeal to the House to hold its gunpowder since the matter is investigative in nature’’.

    “It is right to invite Fashola to come and throw more light not only to this House but to Nigerians on the veracity of his claims,’’ Chinda said.

    Also, the Chief Whip of the House, Rep. Alhassan Ado-Doguwa (Kano-APC), said that Fashola’s assertion was capable of truncating democracy in the country.

    According to Ado-Doguwa, each component of the three arms of government has specific functions to perform and we must defend our mandate.

    “Not only that the minister’s action breached our privileges individually and collectively as an institution, it has also undermined a budget worked upon by the National Assembly and assented to by the Acting President,’’ he said.

    The Speaker of the House, Mr Yakubu Dogara, referred the motion to a 14-member ad hoc committee to be chaired by Madaki.

  • Lagos Assembly embarks on mid-term review of 2017 budget

    Lagos Assembly embarks on mid-term review of 2017 budget

    The Lagos State House of Assembly on Monday moved to assess the mid-term performance of the state’s 2017 budget to ascertain how Ministries, Departments and Agencies (MDAs) in the state were faring.

    The House decided to take the step after the Chairman, House Committee on Budget and Economic Planning, Mr Rotimi Olowo, harped on the need for such review.

    According to Olowo, reviewing the budget performance in the last six months will help give direction for the 2018 budget estimates, which he noted, could hit the N1trillion mark.

    “The exercise will help scrutinise how the MDAs are doing in terms of the revenue generated as well as their level of compliance with their capital and recurrent expenditure,” he said.

    Other lawmakers took turns to support the call for the mid-term review of the state’s budget.

    The Majority Leader, Mr Sanai Agunbiade, said that the exercise, when carried out, would help reveal whether the current budget estimates were working according to the House’s expectation.

    Agunbiade added that the move would also help the lawmakers to serve members of the public better.

    According to him, the outcome of the exercise will be made public to make taxpayers know how their taxes have been put into use in the past six months.

    Also speaking, Mr Jude Idimogu, representing Oshodi Isolo Constituency II, described the step as apt and important.

    Idimogu said that the review would help in scrutinising the activities of all the ministries, including those he deemed not to have really measured up to what was expected of them.

    The lawmaker expressed reservation at the performance of the agencies in charge of road maintenance in the state.

    He said said that many roads in the state had become unusable since the commencement of the rainy season.

    The Speaker of the House, Mr Mudashiru Obasa, who also gave the call his nod, said that review of budgets should not be made an annual thing only.

    Obasa said that emphasis should also be placed on periodic review of budgets so that any perceived loophole could be promptly plugged.

    “This periodic review will help the parliament in ascertaining how the executive is performing as far as the 2017 budget estimates are concerned.

    “This review will also help in giving direction to the 2018 budget estimates.

    “Not only will it help us in knowing the performance of MDAs, it will also help us to have an insight into their needs and what they might be lacking.

    “For example it will help us to know how much furniture public schools in the state need, or what the hospitals need,” said Obasa.

    He, therefore, gave the committee four weeks to work on the review and report to the House.

    TheNewsGuru.com reports that the Assembly, on Jan. 3, passed the state’s 2017 Appropriation bill of N812.998 billion, which Gov. Akinwunmi Ambode signed into law.

    The House adjourned its plenary session until Tuesday.

     

     

    NAN

     

  • Fashola’s claims on 2017 budget misleading – NASS

    The Senate on Saturday warned Minister of Works, Housing and Power, Mr Babatunde Fashola, to desist from spreading falsehood on the 2017 Budget with regards to projects under his ministry.

    It said that in passing the Appropriation Bill, the legislators worked and applied equity in provision for new and outstanding projects across the country.

    In a statement by its spokesperson, Sen. Sabi Abdullahi, in Abuja, the upper chamber said that Fashola did not give the public details about the Lagos-Ibadan Expressway, which was on private finance initiative from beginning.

    It said that Bureau of Public Procurement (BPP) and the Federal Executive Council, in 2013, approved the reconstruction, rehabilitation and expansion of the expressway on Public-Private-Partnership (PPP) basis, “using private finance initiative”.

    “The Federal Government provided about 30 per cent of the funding while the balance shall be provided by the private sector.

    “The project was on course for completion by end of 2017 when the private finance initiative was being implemented, with over 30 per cent completion rate attained as at early 2015.

    “But, in a blatant disregard for existing agreements, constituted authorities and extant laws, Fashola on assumption of office, got the government through the ministry to start voting money for the implementation of the project.

    “Even, as at last year, the 2016 Appropriation Act voted N40 billion for the project on the insistence of the ministry and only N26 billion was released.

    “If we had known, the rest N14 billion could have been allocated to other critical roads across the country,” it said.

    It added that due to concerns and in the spirit of consensus-building and effective stakeholder engagement, the leadership of the Senate met with relevant stakeholders, including the Ministries of Works, and Finance.

    According to it, it was agreed that we should give the Private Finance Initiative a chance to complement government’s resources in the delivery of critical infrastructure across the country.

    “Hence, in this year’s budget, we have engaged with the government and private sector groups, who have assured that they will resume funding of the project.

    “So, we only provided the fund in the budget that would ensure that work does not stop before the funds from the private sector start coming in.

    “It is our view that the Federal Government cannot fund the reconstruction and maintenance of all the 34, 000 kilometres of roads under its care,” the senate said.

    It explained that what was necessary was the need for private funds for some of the roads, particularly those with high potential of attracting private investors.

    It said, “With private sector finance initiative, the rehabilitation of the road can be completed on time because full funding will be provided and there will be more certainty.

    “The minister’s statement is in bad taste.”

    The statement said that the National Assembly acted in the national interest to ensure that equity and fairness were achieved in the distribution of projects.

    The senate said that it also ensured that all sections of the country had representation in the national budget as guaranteed by the Constitution.

    Similarly, the House of Representatives said that Fashola peddled “inaccuracies, misleading and calculated mischief” about the 2017 budget.

    In a news conference on Saturday in Abuja, Chairman of Committee on Media and Publicity, Rep. Abdulrazak Namdas, said that the minister’s statement tended to blackmail the National Assembly and set it on a collision with the executive.

    He said that the minister was fixated on matters of power rather than issues that would benefit Nigerians.

    According to Namdas, there was an obvious attempt to blackmail the National Assembly, paint it as an irresponsible institution, one not concerned with the welfare of the people.

    He said that because part of funds allocated to Second Niger Bridge in 2016 was returned at the end of the year, the national assembly reduced allocation to the project in the 2017 Budget by N5 billion.

    Namdas said that the deducted was applied to fund other projects in the South-East, and left N7 billion for the Second Niger Bridge.

    “The truth is that in the 2016 Budget, N12 billion was appropriated for the Second Niger Bridge but not a kobo was spent by the ministry. Not a kobo was spent and the money was returned.

    “The ministry could not provide the Committees of the National Assembly with evidence of an agreement on the Public-Private-Partnership (PPP) or a contract for the Second Niger Bridge,’’ he said.

    Namdas said that the legislature also queried an omnibus allocation of N20 billion in the ministry’s budget whose details were not provided by the minister.

    He explained that it would have been irresponsible of the lawmakers to appropriate funds that were not tied to specific projects, adding that for doing so, “we incurred the wrath of the ‘almighty minister’”.

    He reiterated that the national assembly had powers in Sections, 4, 59, 80 and 81 of the 1999 Constitution (Amended) to amend the budget estimates submitted by the executive.

    Namdas said that the decision to redistribute the projects proposed by the ministry was in order to ensure even spread of projects across geo-political zones, which the proposal of the executive failed to do.

  • Comments on 2017 Budget: Reps attack Fashola, says ‘your attempt to paint us irresponsible will not work’

    Comments on 2017 Budget: Reps attack Fashola, says ‘your attempt to paint us irresponsible will not work’

    The House of Representatives on Saturday attacked the with Minister of Works, Power and Housing, Mr Babatunde Fashola over his utterances on the recently signed 2017 Appropriation Act.

    The House noted that the minister’s statement was capable of setting the Legislature against the Executive and also cause chaos in the already tensed atmosphere.

    The lawmaker, however, warned the minister to guard his utterances and stop painting the Parliament in a bad light over the 2017 budget.

    TheNewsGuru.com reports that the lower chamber is reacting after the Minister raised the alarm over the insertion of projects outside the purview of his ministry in the 2017 Appropriation Act by the National Assembly.

     

    The House in a statement issued by the Chairman, House Committee on Media and Public Affairs, Hon Abdulrazak Namdas disclosed that “we need to restate that the National Assembly leadership entered into certain understandings with the Executive arm on the 2017 Budget in good faith. It is a clear breach of these understandings for the Executive to make public statements calculated to undermine and distort them”.

    According to him, “Nigerians deserve a total concentration of all government officials, arms of government and MDA’s to grow the economy as we exit the recession. We in the House of Representatives are so passionately committed”.

    The House spokesman while clarifying some of the allegation raised by the minister, “Mr Fashola claimed that the National Assembly included many projects that were not agreed on during the Budget defence before the Committees; that the Budget Lagos-Ibadan Expressway was reduced from N31 billion to N10 billion; that 2nd Niger Bridge budget was reduced from N15b to N10bn(actually N12bn to N7bn); that about N3 billion or so was removed from Okene-Lokoja-Abuja Road; that the Budget for Mambila Power Project was also cut”.

    He, however, maintained that “it is very misleading and calculated mischief to simply say that N5 billion was taken

    from the Budget for 2nd Niger Bridge. The truth is that in the 2016 Budget, N12 billion was appropriated for the 2nd Niger Bridge and not a Kobo was spent by the Ministry. Not a Kobo. The money was returned. The Ministry could not provide the Committees of the National Assembly with evidence of an agreement on the Public Private Partnership (PPP) or a contract for the 2nd Niger Bridge.

    “The National Assembly, in its wisdom decided to fund other projects from the South East leaving N7 billion for the 2nd Niger Bridge that may yet be unspent. The projects include – N2.5 billion extra for Enugu/Onitsha Road, N1 billion more for 9th Mile/Nsukka/Makurdi Road; additional N500m for Oturkpa- Makurdi to take care of evacuation of agricultural produce up to Maiduguri; N1 billion more for Ikot Ekpene-Aba-Owerri Road etc. These are strategic Roads in the South-East and North Central parts of Nigeria that had inadequate allocations.

    “The National Assembly had to intervene to fund some other critical roads that were totally neglected in the Executive Budget proposal. Example is the Abuja- Kaduna – Zaria – Kano Road that had Zero allocation from the President’s proposal and no contract even in spite of due process certification. N5 billion was provided in the 2016 Budget. It was not utilised. In 2017 Budget, the National Assembly again provided N3 billion for this very critical road that connects many states and where incidents of kidnapping are rife because of bad roads, as we believe that all parts of Nigeria deserve attention or would the Minister also claim that this road has no design?”, the statement posited.

    On the Lagos-Ibadan Expressway, Hon Namdas claimed that “leadership meetings of both the Executive and Legislature were held where it was clarified that alternative funding exists for the Road through PPP arrangement and the concessionaires had enough money to fund the project. That informed the decision to move some funds to other areas of need and the Minister of Power, Works and Housing is fully aware of this but chose to ignore it. Why spend government money if there is a clear existing funding framework in place and so many ongoing road projects are unfunded?

    “On the Mambila Power Project, the Minister proposed a whopping N17 Billion for only Environmental Impact Assessment (EIA). N17 Billion Naira! The National Assembly felt that N17 Billion for EIA was misplaced and patently unjustifiable! The Minister himself even wrote to the National Assembly to move some funds from this sub-heads to others!

    “On a general note, we need to remind the Honourable Minister that the Budget of the Ministry of Power, Works and Housing is NOT his PERSONAL BUDGET; it is part of the Budget of the Federation. The National Assembly and others are also stakeholders in this country, imbued with patriotism to fix Nigeria’s problems. There are certain matters which the National Assembly Committees discover during oversight activities that are corrected during the budget process. There are so many omissions which the National Assembly makes effort to correct on behalf of Nigerians. Even the Ministries also disown allocations contained in their budgets! Should the National Assembly keep quiet and moot and allow infractions patently exposed in the Executive proposals?

    “We think that the Constitution did not design the National Assembly as a “rubber stamp” as eloquently stated by His Excellency Rt Hon Yakubu Dogara, the Speaker, House of Representatives.

    “Also contained in the budget of the FMWP&H is an omnibus allocation of N20 Billion. The details were not provided by the Minister. The National Assembly would be irresponsible to appropriate funds that are not tied to specific projects. Mr Fashola pushed hard to have the lump sum of N20 billion approved for him without specifying which project it will be spent on. He wanted the details to be left only to him to decide at his discretion. The National Assembly refused to do this and incurred the wrath of the almighty Minister.

    “He claimed that the National Assembly cannot increase the 2017 Budget. He conveniently forgot that the MTEF had a $2 increase per Barrel that was not applied or part of the 2017 Appropriation Bill proposed by Mr President. How was this to be applied? If applied would that not amount to an increase? Did the Executive not propose new projects and increases in the budget figures of about N41.7 Billion after Mr President presented the Budget?

    “It is true that Fashola is a SAN, an eminent lawyer and former Governor, but does that warrant his repeated insults hauled at the National Assembly? He claims that certain matters are State or even Local Government matters. He mentions Primary Health Care as an example. If one may ask why has he not led the effort to abolish the National Primary Health Care Development Agency, a federal government agency? As a Senior Lawyer, he should be aware of what is called CONCURENT LIST, and the provisions of S.4(4)(a) and S.4(5) of the Constitution.

    “Mr Fashola should be told that his Ministry includes Housing and Urban Development that traditionally takes care of other small projects like water in Housing Estates and so on and should not be surprised if he sees such projects in his Ministry. Some of the projects are designed in furtherance of meeting the SDG goals. It is certainly disingenuous for him to pretend that some urban development projects found in his Ministry’s Budget were meant for Roads and Power!

    “We need to remind Mr Fashola that the National Assembly is a national institution made up of members from all geo-political zones, they represent all tendencies, interests and ethnic nationalities. It has a responsibility also to ensure balance in the distribution of Road Projects and other developmental facilities. It cannot watch our national patrimony unfairly skewed to one region or a few regions to the detriment of other states and geo-political zones. The proposal from Mr. President on the 2017 Budget of the Ministry of Works, Power and Housing did not pass this test! This partly informed the intervention of National Assembly so that every region can be carried along in project allocation”, the statement stated.

  • NASS ‘smuggled’ boreholes, other strange items into 2017 budget – Fashola

    NASS ‘smuggled’ boreholes, other strange items into 2017 budget – Fashola

    The Minister of Power, Works and Housing, Mr Babatunde Fashola has raised alarm over the insertion of projects outside the purview of his ministry in the 2017 Appropriation Act by the National Assembly.

    Fashola, a senior advocate, said it was unfair to the Executive arm for the inclusion of such projects after public hearings on the budget and defence of the fiscal estimates by the ministries.

    “What I have in my budget now is primary healthcare centres, boreholes,’’ he said at an interactive session with editors on Thursday.

    “That was the meeting we had with the Acting President and that was the reason why the budget was not signed on time.

    “We were ask to complete those abandoned projects; the budget of Lagos-Ibadan Expressway was reduced by the National Assembly from N31 billion to N10 billion.

    “We are owing the contractors about N15 billion and they have written to us that they are going to shut down.

    “Also, the budget of the 2nd Niger bridge was reduced from N15 billion to N10 billion and about N3 billion or so was removed from the Okene-Lokoja-Abuja road budget.’’

    Fashola added: “Everybody is complaining about power supply but they also cut the budget for Manbila power project and the Bodo bridge that connects the Nigeria Liquefied Natural Gas Station was also cut and all these were also discussed.

    “If after we have defended the budget and we had gone and the legislature unilaterally changed the budget, what is the purpose of deliberation?’’

    According to Fashola, it is unfair to Nigerians after public hearings were conducted with tax payers’ money and consultations with the lawmakers only for the budget to be altered, cut or padded.

    The minister said that apart from the 200 uncompleted roads he inherited from the previous administration, the lawmakers added100 roads.

    “These roads are not federal roads and some of them do not have designs, how do we award roads that were not designed irrespective of the power you have?

    “It is unconstitutional for the National Assembly (NASS) to legislate on state roads.

    “A budget is an estimation plan that set in motion what is to be spent, how much will be borrowed and how much will be collected.

    “The executive controls all the machinery for collecting taxes and other revenue with relevant data from the Ministries of Finance, Physical Planning and the Budget Office and others.

    “I am not saying that the legislature cannot contribute to the budget, but I hold the view that it cannot increase the budget because they do not collect the revenue with which to run or implement the budget,’’ Fashola was quoted as saying.

    Fashola, who held sway as Lagos State Governor between 2007 and 2015, however, said the National Assembly “might mean well and not do the right.’’

    He canvassed interdependence and collaboration among the three arms of government rather than independence to ensure a harmonious relationship.

    The minister said that without it, the country would not make progress and would be bogged down by the politics of total separation of power and what he called “power of example rather than example of power.’’

    “The society benefits more from the power of example and interdependence rather than the example (show) of power; it requires that we show good examples.’’

    On the concept of interdependence, Fashola said the President and the Vice-President could not swear themselves into office but by the judicial arm, while the president also proclaims the National Assembly without which it could not start business.

    In the same vein, he said the National Assembly confirms ministerial nominees and justices of the courts who are in turn sworn-in by the executive.

    He urged the intervention of the judicial arm of government to set the necessary parameters and set things right.

    Fashola, however, blamed the electorate for putting pressure on the lawmakers and expecting them to do what was outside their constitutional duties of law-making, representation and oversight.

    “There is need for mass orientation and enlightenment for Nigerians not to expect their elected representatives to provide roads, water, light and execute capital projects which is the function of the executive arm.’’

     

     

    NAN

  • 2017 Budget: FG tasks FIRS, Customs on improved revenue generation

    The Federal Government has challenged its revenue generation agencies, particular the Federal Inland Revenue Service, FIRS and Nigeria Customs Service, NCS, on meeting up with their targets in other to generate adequate funds to implement the 2017 budget.

    This was revealed by the Minister of Budget and National Planning, Senator Udoma Udo Udoma.

    TheNewsGuru.com reports that President Muhammadu Buhari last year presented a proposal of N7.298 trillion for the 2017 budget, which is a 20.4% increase over the 2016 estimate.

    The Minister explained that in spite of criticisms about government borrowings, the country’s fiscal deficit is still well within the three per cent (3%) limit and government is keeping very tight control on the size of the budget to make sure the fiscal deficit remains within the 3% threshold.

    The Minister who was speaking at the 2017 breakdown session said although certain developments affected the realization of projected government revenue last year, the administration is working hard to ensure increase in revenues to fund the 2017 budget.

    “In terms of implementation of the Budget, we are making strenuous efforts to find the resources required. We are challenging our revenue generating agencies, particularly the (Federal Inland Revenue Service) FIRS and Customs, to improve their efficiencies and broaden their reach so as to achieve the targets set for them in the 2017 Budget”, he explained.

    He added that government will strive to maximize the revenues it can generate from the oil and gas sector as it is clear that the foreign exchange generated from the sector is critical for government’s plans to diversify to the non-oil sectors.

    As government is introducing measures to improve on the efficiencies in that sector to increase Government’s take, the Minister said “we are also engaging more extensively with the communities and people of the Niger Delta to minimize disruptions to oil production”.

    Reviewing the 2016 Budget performance, Senator Udoma said there was reasonable progress on implementation and achievement of set targets even though aggregate revenues was less than projections, mainly due to disruptions in oil production in the Niger Delta region.

    The developments in the oil sector, according to him, adversely impacted oil revenues and foreign exchange receipts, and also negatively affected non-oil revenues as non-oil activities are critically dependent on the foreign exchange generated by the oil sector.

    “As at year-end, FGN’s 2016 actual revenue was N2.95 trillion (76.4% of the N3.85 trillion budgeted). Oil revenue was N697.8 billion (97.2% of budget); Company Income Tax (CIT) and Value Added Tax (VAT) collections were N457.91 billion and 108.72 billion respectively, representing 52.8% and 54.8% of amounts budgeted; while Customs collections of N247.42 billion implied a 63.6% performance, he explained.

    Despite the shortfall in revenue, he said government met its debt service obligations and personnel costs while overhead costs were largely covered.

    He pointed out that although capital expenditure suffered because key recurrent spending like debt service and payment of salaries had to be met first, the amount of N1.22 trillion released for capital under the 2016 budget remains the highest aggregate capital releases for a single fiscal year for Nigeria. “This was achieved despite the lower oil prices and revenue shortfalls, which underscores the government’s commitment to investing in critical infrastructure”, he noted.

    The Minister explained that in designing the 2017 Budget, certain critical international factors that affect Nigeria as a country were considered, including the protracted period of lower oil prices, major macroeconomic realignments in China, increasing divergence in monetary policy in major economies, uncertain economic, political and institutional implications of BREXIT, weak demand in advanced economies and its spill-over effects; and geopolitical tensions in several countries.

    On the domestic front also, the budget had to be designed at a critical time when the economy was experiencing contraction in growth (-2.06% in Q1 2016, now -0.52% in Q1 2017), insurgency and Insecurity parts of the North East, crude oil theft and pipeline vandalisation, foreign Exchange (FX) scarcity and Exchange rate tension.

    External reserves were down to US$26.59 billion in May 2016 but now about US$30.28 billion, high Unemployment rate (from 13.9% as at Q3 2016 to 14.2% in Q4 2016), and inflation (18.55% as at December 2016, 16.25% as at May 2017), he added.

    The Economic Recovery and Growth Plan (ERGP), which was launched early this year, is meant to address these economic challenges. The Minister pointed out that although the 2017 Budget was prepared before the finalisation of the ERGP, it drew extensively from the policies set out in the ERGP.

    He explained that the 2017 Budget reflects “our fiscal plan to restore the economy to the path of sustainable and inclusive growth, the specific goals and targets of which are set out in the 2017 – 2020 Economic Recovery and Growth Plan (ERGP)”.

    The Minister said the 2017 Budget is an infrastructure Budget and government takes transportation very seriously, which is why so much has been voted for roads and railways.

    He also said ease of doing business is very critical to government because it wants to turn the country from a nation of importers to a nation of producers.

    Reflecting on the late passage of the last two national budgets, the Minister said in the months ahead, the Executive will work with the National Assembly to ensure that Nigeria returns to a predictable January – December fiscal year, with the budget signed into law ahead of the commencement of the fiscal year in the near future.

    Also speaking at the event, the Director General of the Budget Office, Mr Ben Akabueze, said government is determined to bridge the gap between citizens and government by the measures being taken to promote greater transparency and accountability in the entire budget framework. “Our membership of the Open Government Partnership (OGP) has strengthened our resolve to enhance stronger citizen engagement and improved public service delivery”.

    Akabueze disclosed that the Budget Office is implementing a Citizen’s Portal on its website to enhance citizens’ participation across the entire budget cycle. In addition, a dedicated hotline for citizens with queries or questions on the budget is also being activated.

  • 2017 Budget: Osinbajo played into the hands of NASS – Jibrin

    Suspended member of the House of Representatives, Abdulmumin Jibrin, has said Acting President Yemi Osinbajo, took a risk by signing the 2017 Budget.

    In a statement released on Monday, Jibrin described Osinbajo’s action as the “most generous concession in budget negotiation by a president since 1999”.

    The lawmaker recalled that last year, President Muhammadu Buhari refused to sign the document, until all “grey areas” were resolved and corrections effected by the House.

    “He (Osinbajo) further stated that he agreed to sign the budget after the assurance of commitment from NASS to restore the lifted funds. That demonstration of faith in NASS was unprecedented, and the most generous concession in budget negotiation by a President since 1999,” the statement read.

    “No President has ever agreed to sign the budget into law on the basis of extracting a commitment from NASS. In this case of Ag President Osinbajo, perhaps beyond the respect he enjoins, he must strive to also be feared, through resistance to compromising settlements in his relationship with NASS.

    “The reason isn’t far-fetched; all attempts to flatter and hoodwink President Buhari into signing the 2016 budget, by assuring to make corrections later, met an impenetrable brick wall. He saw through the smokescreen, and thus even refused to be blackmailed by threats of possible backlash from NASS if the budget is not signed before corrections are made and also the need to save time.

    “No President was ready to take the risk with NASS but Osinbajo did, as it appeared like striking a deal with an untrustworthy partner. Whether this seeming pact is calculated or not, is left for time and the scrutiny of vigilant and critical Nigerians to determine. What is obvious, however, is the Ag President has played into the hands of NASS.

    “What the Ag President has given to NASS is a victory it has never had in the budget process since 1999, understandably to strengthen the relationship between the two frequently hostile arms of government. And so, he deserves a reciprocal gesture and unmistakable friendship from the lawmakers, not attacks and threats.”

     

  • Ondo assembly passes N170.8bn 2017 budget

    The Ondo State House of Assembly on Monday passed the N170.8 billion 2017 appropriation bill.

    The Chairman of the House Committee on Finance and Appropriation, Sunday Olajide presented the report of the committee to the House at plenary.

    Olajide said that the bill had undergone proper scrutiny by members while public sittings were held for all Ministries, Departments and Agencies.

    He also said the assembly refrained from granting indiscriminate requests by MDAs because of paucity of funds.

    He noted that the committee only redistributed funds to some critical areas, with a marginal increase of N1.12 billion recorded.

    “Hence, the overall budgetary provision will now be N170, 846, 580, 000,” he said.

    Olajide highlighted the observation of the committee that the 2017 expenditure was carefully projected and set at sustainable level with due consideration for the present economic realities.

    He said the committee, however, recommended that all MDAs should, ensure that the provisions in the budget were applied to the needs stated therein while the Board of Internal Revenue should make efforts to block all identified leakages.

    The state government, he added, should take all the steps necessary to propel all income generating MDAs to embark on internally generated revenue drive in line with extant laws with a view to attaining their revenue target.

    The Speaker of the House, David Oleyelogun, thanked all members of the committee for their efforts.

    He also commended other members of the House for their cooperation and diligence while working on the appropriation bill.

    NAN reports that the budget increased by N1.12 billion when compared with the N169,720,580 billion earlier presented by Gov. Rotimi Akeredolu on June 5.

    The budget put the recurrent expenditure at N95.15 billion, capital expenditure at N59.18 billion, debt service at N8.12 billion and statutory transfer at N8.37 billion.

    NAN also reports that the House had unanimously approved the budget after members deliberated on the report of the committee. (NAN)

  • 2017 budget: FG set to release N350bn for capital projects – Adeosun

    2017 budget: FG set to release N350bn for capital projects – Adeosun

    The Minister of Finance, Mrs Kemi Adeosun said that the Federal Government was ready to release N350 billion, being the first tranche for implementation of the 2017 budget.

    Adeosun said this on Monday in Abuja at the public presentation of 2017 Appropriation Act.

    She said that the Federal Government had enough cash available to immediately commence the execution of key projects and initiatives scheduled for the 2017 fiscal year.

    “We are ready, we are having a cash-plan meeting very soon and after that, N350 billion will be released as first tranche of capital releases for the 2017 budget,’’ she said.

    Also speaking, the Minister of Budget and National Planning, Sen. Udoma Udo Udoma said funding of projects would now be on Project-Based Release System to curb waste of public funds by Ministries, Departments and Agencies (MDAs).

    He said also that part of the requirement for capital releases was evidence of compliance with the Bureau of Public Procurement Act.

    Udoma said that henceforth, no MDA was authorised to enter into a foreign denominated contract without the approval of the Ministers of Budget and National Planning, and Finance.

    Udoma also said the Federal Government would strengthen its monitoring and evaluation framework to improve physical inspection and impact assessment of projects and programmes implemented by MDAs.

    “We are worried and concerned about the number of abandoned capital projects scattered in their thousands throughout the country, which we inherited from previous administrations.

    “We know that you can’t continue doing things the same way and expect different result, so we have to do things differently. We need to have more targeted releases. We have to look at the projects which are important and can easily be completed.

    “The ministers are working together to ensure that over time, we concentrate our resources on completing important projects, so that we have maximum impact,’’ he said.

    Udoma also said that the Ministry was working with the National Assembly to get the country’s fiscal year adjusted to between January and December.

    He said this could only be achieved when the executive and legislature work together to ensure that the budget was submitted, passed and signed before December 31, 2017.

    In his remarks, the Director-General, Budget Office of the Federation, Mr Ben Akabueze said the Office had introduced a new system known as Citizen Portal.

    According to him, the portal which can be found on the budget office website, provides the masses insights into the 2017 budget in a non-technical way.

    “It is important for citizens to understand the budget, especially its key deliverables and their role in its implementation.

    “When citizens do not fully understand the budget, it significantly limits their ability to engage with the budget process and hold government accountable for the prudent management of financial resources entrusted to it,’’ he said.

     

     

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  • We’ll use N558.8m recovered loot to partly finance 2017 budget – FG

    The Federal Government said on Monday it would use a fraction of the looted funds recovered so far to finance part of the 2017 budget.

    The Minister of Budget and National Planning, Sen. Udoma Udo Udoma, said this at the 2017 budget breakdown in Abuja.

    He said the total revenue projected was N5.08 trillion, with 11 per cent coming from the recoveries made.

    “On recoveries, we are being extremely conservative; what is in the budget is what we know about already.

    “So if more comes, we will use it.

    “Know that recoveries of looted funds are not the most dependable way to finance the budget because of the legal processes that have to be concluded before it can be spent.

    “So, the money quoted in the budget is the one we have already recovered and in our pocket to spend as we wish.’’

    He said the total revenue projected exceeded the 2016 projection by 30.26 per cent, adding that oil revenue projection was put at 41.7 per cent compared to 19 per cent in 2016.

    Udoma added that the high revenue expectation from oil was driven by Joint Venture Calls (JVC) cost reduction, higher production and price, exchange rate as well as additional oil-related revenues.

    According to him, Company Income Tax (CIT) will contribute 15.9 per cent, Value Added Tax (VAT) 4.8 per cent, Independent Revenue 15.9 per cent and others 5.2 per cent.

    He also said the projected budget deficit which stood at N2.36 trillion remained relatively low at 2.18 per cent of the Gross Domestic Product (GDP).

    “This is within the 3 per cent threshold stipulated in the Fiscal Responsibility Act (FRA).

    “The budget is to be financed mainly by borrowings which have been projected at N2.32 trillion.

    “Of this amount, N1.07 trillion is intended to be sourced externally, while N1.25 trillion will be sourced domestically.’’

    Udoma stated that N35 billion is expected as revenue from the outright sale of government property and privatisation of state-owned enterprises.

    He said to generate the projected revenue, the Federal Inland Revenue Service (FIRS) and Customs had been challenged to improve their efficiency and broaden their reach to achieve the set targets in the 2017 budget.

    He said the Federal Government would strive to maximise the revenues it could generate from the oil and gas sector because the foreign exchange generated from the sector was critical for plans to diversify to the non-oil sectors.

    “It is important that we use what we have to get what we need and want and what we have is oil.

    “It is important that we make sure there is peace in the Niger Delta so that we can achieve the maximum from that resource, ” he said.

    The N7.44 trillion budget was signed into law by the Acting President, Prof. Yemi Osinbajo, on June 12, a month after it was passed by the National Assembly.

    Referred to as the ‘budget of recovery’, the budget was first presented on Dec. 14, 2016, to the two chambers of the National Assembly by President Muhammadu Buhari at an estimate of N7.30 trillion.

    The lawmakers, however, increased it by N143 billion.

     

     

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