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Tag: 2020 Budget

  • Senate will ensure passage of 2020 Budget before year end – Lawan

    Senate will ensure passage of 2020 Budget before year end – Lawan

    …directs MDAs to appear for Budget defence immediately

    Ministries, Departments and Agencies (MDAs) are to appear before Committees of the Senate this month to defend their voted in the 2020 Budget, Senate President Ahmad Lawan said on Tuesday.

    Lawan stated this at the presentation of the budget by President Muhammadu Buhari during a joint session of the National Assembly on Tuesday.

    He said for timely passage of the budget, all MDAs should appear before the committees for the defence within this month.

    Lawan said the national assembly committees were ready to receive ministers and other heads of agencies for the budget defence

    “We have earmarked the month of October to be the sole window for all budget defence activities in this year by all MDAs.

    “Our committees will be expected to conclude their work on budget defence within October 2019.

    “The subsequent necessary legislative work will be carried out in November and December leading to eventual passage before December 31.”

    Lawan said that the presentation of the budget marked another day of exercising the constitutional obligations and mandates by both the legislature and the executive as provided for in Section 81 of the 1999 Constitution.

    “This function being the first in the Nineth National Assembly, makes it even more significant as both the legislature and the executive have demonstrated readiness and commitment to work together in order to pass the 2020 budget in a good and desirable time.

    “Clearly, this effort is to enable the Federal Government provide those laudable objectives of physical infrastructure and socio-economic services to our citizens,” he said.

    He further said that the public and the private sectors needed a reliable and predictable budget cycle for the planning and execution of fiscal and financial policies and programmes.

    “It is therefore, necessary that the present cycle is changed to January-December.

    “In this regard, the national assembly and the executive must work together to ensure the realisation of the important objective.”

    Lawan said that the National Assembly, after the receipt of the budget, would swing into action to start work immediately.

    He said: “Both chambers of the national assembly have constituted their committees, we are therefore, ready to start processing the budget.

    “The National Assembly will treat the 2020 budget with the same commitment or even more.

    “In our effort to pass the budget, we will also be guided by the legislative requirement of a thorough scrutiny,” Lawan said.

    The President of the Senate also promised that the National Assembly would fast track the amendment of the Public Procurement Act 2007 to ensure effective and efficient budget implementation.

    He said that over the years, the public procurement process appeared to be encumbered by a lengthy bidding process and inadequate mobilsation of funds among other limitations of the Act as amended.

    “These tend to delay execution of government programmes and projects, or even stalled achieving the execution.

    “The national assembly will fast track the amendment of the Act to ensure effective and efficient implementation of our budgets.”

    He said that the assembly would ensure that the Federal Government was better enabled to provide enhanced security for protection of lives and property of Nigerians.

    “We will also ensure an improved and revitalised economy that is all inclusive; able to create and sustain employment opportunities for our teeming youths; taking Nigerians out of poverty to prosperity and sustainable development.

    “The budget estimates would remain what they are, estimates, until we are able to generate and receive the necessary revenues to fund and foot the bills.”

    He assured Buhari of the readiness of the Assembly to partner with the administration to achieve all the goals and targets of taking Nigeria to the `Next Level` of development and prosperity.

     

  • 2020 budget will impoverish Nigerians, says PDP

    2020 budget will impoverish Nigerians, says PDP

    The Peoples Democratic Party (PDP) has urged the national assembly to redirect the 2020 budget to areas that would better serve the interest of the majority of Nigerians.

    Kola Ologbondiyan, national publicity secretary of the party, gave the advice in a statement on Tuesday.

    President Muhammadu Buhari had presented a N10.33 trillion budget to the joint session of the national assembly.

    But Ologbondiyan said the budget mortgage the future of the nation.

    “The core of the budget remains hazy, showing streaks of padding, duplication, replete with false performance indices, deceptive projections and inexplicable expenditure assertions,” he said.

    “The budget is skewed to serve the interest of the opulent, as projects that have direct bearing on the well-being of the masses were not substantially accommodated in the overall expenditure profile.”

    Ologbondiyan also criticised what he referred to as allocations for “vague projects”, particularly the ministries of works and housing as well as transportation, where according to him there were of diversion of public funds in the last budget.

    While works and housing got N262 billion, 123 billion was allocated to the ministry of transportation.

    He added: “standing with millions of Nigerian youths and women to reject the paltry budgets of N48 billion for education and N46 billion for health and urges the national assembly to review the allocations in the interest of Nigerians.”

  • SIPs get N30bn in 2020 budget

    SIPs get N30bn in 2020 budget

    The Federal Government has allocated N30 billion to its Social Investment Programmes (SIPs) in the 2020 fiscal year.

    President Muhammadu Buhari communicated this while presenting the 2020 Appropriation Bill to a joint session of the National Assembly (NASS) on Tuesday in Abuja.

    SIPs has four broad programmes– N-Power, Conditional Cash Transfers, National Home-Grown School Feeding and Government Enterprise and Empowerment Programmes(GEEP).

    GEEP comprises TraderMoni, MarketMoni and FarmerMoni.

    Buhari presented a budget of N10.33 trillion with an oil benchmark of 57 dollar per barrel and a target crude oil production of 2.18 million barrels per day to NASS.

    “Our government remains committed to ensuring the equitable sharing of economic prosperity; our focus on inclusive growth and shared prosperity underscores our keen interest in catering for the poor and most vulnerable.

    “Accordingly, we are revamping and improving the implementation of the National Social Investment Programme through the newly created Ministry of Humanitarian Affairs, Disaster Management and Social Development.

    “The National Social Investment Programme is already creating jobs and economic opportunity for local farmers and cooks, providing funding to artisans, traders, youths, and supporting small businesses with business education and mentoring.’’

    According to the president, the draft Finance Bill proposes an increase in the Value Added Tax (VAT) rate from 5 to 7.5 per cent.

    He said that the 2020 Appropriation Bill was based on the new VAT rate.

    Buhari said that the additional revenues would be used to fund health, education and infrastructure programmes.

    “As the States and Local Governments are allocated 85 per cent of all VAT revenues, we expect to see greater quality and efficiency in their spending in these areas as well.

    “The VAT Act already exempts pharmaceuticals, educational items, and basic commodities, which exemptions we are expanding under the Finance Bill, 2019.

    “Specifically, Section 46 of the Finance Bill, 2019 expands the exempt items to include the following: brown and white bread; cereals including maize, rice, wheat, millet, barley and sorghum; fish of all kinds; flour and starch meals; fruits, nuts, pulses and vegetables of various kinds; roots such as yam, cocoyam, sweet and Irish potatoes.”

    He listed other exempted items as meat and poultry products, eggs, milk, salt and herbs of various kinds, natural water and table water.

    “Additionally, our proposals also raised the threshold for VAT registration to N25 million in turnover per annum, such that the revenue authorities can focus their compliance efforts on larger businesses thereby bringing relief for our Micro, Small and Medium-size businesses,’’ he said.

  • Buhari presents 2020 Budget proposal to NASS today

    The Presidency says President Muhammadu Buhari is set to present the 2020 Appropriation Bill to a joint session of the National Assembly (NASS) on Tuesday.

    Mr Femi Adesina, the Special Adviser to the President on Media and Publicity, confirmed this development at the end of an extraordinary meeting of the Federal Executive Council (FEC).

    The meeting which considered the 2020 budget proposals before its presentation to the National Assembly on Tuesday by 1.30pm, was presided over by President Buhari at the Council Chamber of the Presidential Villa, Abuja, on Monday. Adesina, who briefly spoke to State House correspondents, said: “No briefing, we only looked at what we will present at the National Assembly tomorrow”, referring to Tuesday’s presentation of the 2020 budget proposal to the NASS by President Buhari.

    President Nuhari is expected to lay the 2020 budget before a joint session of the Senate and House of Representatives on Oct. 8 for approval, “as the country intends to revert to the January to December budget cycle.’’

    The News Agency of Nigeria (NAN) reports that the early presentation of the 2020 budget is meant to return the Federal Government budget cycle from May-June to January-December.

    The Senate had on Thursday increased the proposed 2020 budget from N10.007 billion to N10.729trillion.

    However, President Buhari and the leadership of the National Assembly had on Sunday night (Oct. 6) met behind closed doors at the President’s official residence in Abuja in what appeared to be `2020 budget reconciliation meeting’.

  • Buhari presents 2020 budget to NASS today

    Buhari presents 2020 budget to NASS today

    President Muhammadu Buhari will present the 2020 budget proposals to the National Assembly today.

    He will lay the document before a joint session of the National Assembly, at the House of Representatives Chambers.

    According to reports reaching TheNewsGuru [TNG], The budget presentation ceremony is scheduled to start at 2 pm.

    The lawmakers had last week increased the total estimated expenditure from N10.002 trillion to N10, 729.4 trillion.

    Both chambers had earlier passed the Medium Term Expenditure Framework and Fiscal Strategy Paper MTEF/FSP presented by the president.

    TNG learnt that special accreditation arrangements were made for journalists, security agents and members of staff who would be on duty for the ceremony.

  • Reps approve MTEF, FSP for 2020 Budget

    From Jonas Ike, Abuja

    The House of Representatives on Thursday approved the Medium- Term Expenditure Framework MTEF and Fiscal Strategy Paper FSP for 2020- 2022 in preparation for the receipt of the 2020 budget by the Presidency.
    This was consequent upon the submission, consideration and approval of the recommendations of the Joint Committees on Finance and Appropriations at the Committee of Supply chaired by the Speaker.
    Chairman of the House Committee on Finance Hon. James Faleke had presented a report entitled: ” that the House do Consider the Report of the Committees on Finance and Appropriations on the 2020/2022 MTEF and FSP and Approve the Recommendations Therein” which he also laid today Oct 3, 2019.
    The Committee recommended among other things: (a) the adoption of 2.18 mbpd as daily oil production output in 2020 in view of concerted efforts by NNPC and security agencies to combat oil theft and vandalization. That 2.18 mppd as daily production is realizable
    (b) that average Target of Nigeria Customs Service NCS of N944.6 bn for 2020 should be increased to N15 trillion as a result of NCS performance in the last 9 months. The Committee notes that NCS revenue in September 2019 is N1trillion as against N9.42.6 billion for 2020. It commends NCS for exceeding the target despite global challenges and closure of boarders.
    (c) That the sum of 91557.4 billion from revenue increment of NCS be used to reduce borrowing by N200 billion and increase capital expenditure thereby decreasing the budget size from 1511.7 trillion to N1.5 trillion and also increase the total capital available to MDAs to N1.367 trillion.
    (v) that the exchange rate of N305/$ should be maintained for economic stability. That the Finance Minister and economic advisers should improve growth and Gross Domestic Product GDP and reduce inflation.
    Some other important joint committees recommendations adopted by the lawmakers are as follows: (vi) that the total expenditure of the federal government be increased from N10.002 trillion to N10.729.4 trillion.
    (vii) that the Debt Management Office DMO put more efforts and strategies in managing local and foreign debts and;
    (viii) that the Fiscal Responsibilities Act FRA 2007 and other laws be amended to improve and align revenue generation with current realities.
  • 2020 Budget: Senate yet to receive MTEF from Executives – Lawan

    2020 Budget: Senate yet to receive MTEF from Executives – Lawan

    By Emman Ovuakporie
    … indications of a delayed budget passage
    There are indications that the 2020 Budget may suffer late passage as the Senate on Tuesday said it’s yet to receive MTEF/FSP draft from President Muhamnadu Buhari.
    This is however contrary to the provisions of the Fiscal Responsibility Act which mandated the President to submit a draft copy of the Medium-Term Expenditure Framework (MTEF) to the National Assembly four months to the end of the year.
    The Senate President, Ahmad Lawan announcement upon the resumption of Senators from their end of long recess was a declaration that the 2020 budget might suffer serious delay as experienced in previous assemblies.
    Section 11of the Act clearly stated that “not later than four months before the commencement of the next
    financial year, cause to be prepared a Medium-Term Expenditure Framework”.
    The same Act in its section 18 stipulated that “the MTEF shall be the basis for the preparation of the estimates of revenue and expenditure required to be prepared and laid before the National Assembly under section 81 (1) of the Constitution.”
    The lawmakers had gone gone on an executive session that lasted about one hour, thirty minutes, when Lawan announced that the Senate had resolved to await the submission of the MTEF by the President.
    The Fiscal Responsibility Act placed so much importance on the MTEF document to the extent that it has spelt out the specific details of its contents and scope.
    It’s states that “The Medium-Term Expenditure Framework shall contain a Macro-economic Framework setting out the macro-economic projections, for the next three financial years, the underlying assumptions for those projections and an evaluation and analysis of the macroeconomic projections for the preceding three financial years.
    The Act equally stipulated that the MTEF be accompanied by a Fiscal Strategy Paper setting out the Federal Government’s medium-term, financial objectives; the policies of the Federal Government for the medium-term relating to taxation, recurrent (non-debt) expenditure, debt expenditure, capital expenditure, expenditure, borrowings and other liabilities, lending and investment;, as well as the strategic, economic, social and developmental priorities of the Federal Government for the next three financial years.
    Lawan had in anticipation of a prompt submission of the document promised last Friday that the first major work of the Senate upon resumption would be the consideration and approval of the MTEF.
    Recall that in previous assemblies the budget was delayed for more than six months in both chambers.
    A reference point was the 2016 budget which even led to the sacking of Abdulmunin Jibrin over alleged padding.
    The executive sent it in December 2015.
  • FG announces deadline for submission of 2020 budget details

    FG announces deadline for submission of 2020 budget details

    The Federal Government has set the deadline for the submission of the 2020 budget proposals by Ministries, Departments, and Agencies (MDAs) for Friday, September 20, 2019.

    This was disclosed in the 2020 Budget Call Circular released by the Budget Office of the Federation on Monday, which set out the requirements and instructions that must be satisfied and followed ahead of preparations of the 2020 Federal Government of Nigeria Budget Proposal.

    The document directed the MDAs to take into consideration the policies and strategies contained in the 2020 – 2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) which outlines Nigeria’s development priorities.

    “Ministries are required to make their submissions online using the GIFMIS Budget Preparation Module not later than Friday, 20th September, 2019.

    “The Chief Executive/Accounting Officers must endorse hard copies of their budget submissions, attesting to their correctness and compliance with this Circular using the attached Annexure 1,” the circular said.

    MDAs were further told to consider the key parameters which align with the global and domestic economic outlook, such as oil price of $55 per barrel; 2.18 million barrel per day production; inflation rate at 10.81 percent; GDP growth rate of 2.93 percent; and exchange rate of N305/$.

    In accordance with the 2020 – 2022 Medium-Term Expenditure Framework and Fiscal Strategy Paper, the aggregate FGN revenue available for budget for the 2020 fiscal year was projected at N7.7 billion.

    According to the document, the aggregate expenditure level was projected at N10 billion, made up of Statutory Transfers of N531.49 billion, Debt Service of N2,452.60 billion, Sinking Fund of N296 billion Recurrent (non-debt) expenditure of N4,844.97 billion and Capital expenditure (exclusive of capital in Statutory Transfers) of N1,877.22 billion of which MDAs Capital expenditure is N1.01 billion.

    In line with the Federal Government’s Open Government Partnership all MDAs have been advised to upload their respective 2020 budget proposals on the website of their ministries, departments or agencies within one week after the 2020 Budget proposal is submitted to the National Assembly ostensibly by the end of this month.

    Both the executive and the legislative arms of government hope to return the country to a budget cycle of January to December.

  • 2020 Budget: FG reduces oil benchmark to $55/Barrel

    The federal government, through the Minister of Finance, Budget and Planning, Mrs Zainab Ahmed, has lowered benchmark for oil price for the 2020 budget to $55 per barrel from $60 per barrel in the 2019 Appropriation Act.

    The Finance Minister made this known on Tuesday at the presentation of the Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP). She said the price was brought down due to “strong indications” of an oversupplied oil market next year. According to her, the $55 per barrel benchmark amid expected oil glut in 2020 would help cushion against an unexpected price shock.

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    Mrs Ahmed further said that Nigeria, Africa’s largest oil exporter, was producing roughly 2.3 million barrels per day of crude oil and is projected to produce an average 2.18 million barrels per day for 2020.

    “Although this is lower than the projected oil production volume of 2.3 million barrel per day for 2019, we believe that this is a more realistic projection,” the Finance Minister stated.

    Looking ahead, she said, “For 2021 and 2022, the projections are 2.22 million barrels per day and 2.36 million barrel per day respectively,” revealing that Nigeria has agreed to a cap of 1.685 million barrels per day of crude oil with the Organization of the Petroleum Exporting Countries (OPEC).

    Africa’s largest economy is also the continent’s biggest oil exporter and relies on crude sales for around 90 percent of its foreign exchange.

    Nigeria has struggle to improved its foreign reserves this year as a result of instability in the crude oil market. The Brent, this year, has traded lower than the $60 per barrel mark the country estimated it should not go below this year. This has put pressure on the reserves, which fell below $43 billion on Tuesday for the first time in six months.

  • 2020 Budget: FG Vows to Meet September Submission Deadline

    2020 Budget: FG Vows to Meet September Submission Deadline

    Nigeria’s Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed, has said that the federal government will meet the 2020 budget proposal deadline set by the ninth National Assembly at the end of September.

    The Minister disclosed this at a meeting on national donor coordination held in Abuja recently.

    “The 2020 budget preparation process is well underway, and we intend to finalise and submit the 2020 appropriation bill to the national assembly by the end of this month,” she said.

    In August, Senate President, Mr Ahmad Lawan, made it known the legislative arm of government was expecting the 2020 budget proposal to be submitted by September.

    He said its timely submission will ensure that the budget is passed before the end of December.

    “The process would return Nigeria to the annual budget of between January and December and guarantee fiscal discipline,” he said.

    Contributing, the Minister of Labour and Employment, Mr Chris Ngige, also urged ministers to work to ensure that the budget is ready for submission to the Senate in September.

    “We have been warned that we must bring back the January/December budget circle. Therefore, the president of the senate and officers of the national assembly have, in one voice, requested from us that the budget should come in September and once they get it in September, they will give it to us in December,” he said.