TheNewsGuru

Tag: 2023 budget

  • How States spent N1.7trn on trips, meals, others in 2023 – By Godwin Etakibuebu

    How States spent N1.7trn on trips, meals, others in 2023 – By Godwin Etakibuebu

    Borrowed N988bn for frivolous expenditures.

    The 36 states of the Federation have spent N1.71tn on recurrent expenditures including allowances, foreign trips, office stationery, aircraft maintenance, and more in the first nine months of 2023.

    This is according to an analysis of their budget performance reports sourced from Open Nigerian States, a budgIT-backed website that serves as a repository of government budget data. 24 states analysed had budget implementation data covering the first three quarters of the year while 12 states had data for the first two quarters of the year.

    The states cumulatively spent N802.43bn on salaries across the data period available, but investation isolated this data set to focus on other recurrent spending items. If salaries were added, total recurrent spending would have been N2.52tn.

    Other recurrent spending items covered in this investigation include the amount spent on foreign and domestic travel, Internet access fees, entertainment, foodstuff, honorarium/ sitting allowance, wardrobe allowances, telephone bills, electricity charges, stationery, anniversaries/special days, welfare, aircraft maintenance, and more.

    Of the 36 states, only 30 states have disbursed security votes (N87.45bn) so far. Also, the total borrowings of the states grew to N988bn as of the third quarter of 2023.

    In the first nine months of 2023, ABIA spent N17.61bn on housing/rent allowance, meal subsidy, entertainment allowance, wardrobe allowance, social benefits, pension, gratuity, internet access charge, telephone charges, local and international travels, office stationeries, maintenance services, consulting and professional services, fuel, financial charges, miscellaneous expenses, and others.

    In the first two quarters, AKWA IBOM spent N92.54bn on allowances and social contributions, social benefits, travel and transport, utilities such as electricity chargers, Internet access charges, and more, materials and supplies such as office stationery, drugs, laboratory and medical supplies, maintenance, training, and more. So far, the state has spent N10 million on hosting/mobilisation of political associations and interest groups, while the sum of N841.83m  was spent on entertainment at meetings, and more.

    ADAMAWA has so far spent N40.90bn on non-salary expenditure as of the end of Q3, 2023. Part of its recurrent expenditure which includes allowances and social contribution includes N1.29bn on furniture allowance, N1.19bn on travel and training including domestic and foreign, N214.37m on office stationery and consumables, and N413.32m on refreshments and meals.

    ANAMBRA’s non-salary spend was N15.17bn as of the end of Q2, 2023; Bauchi was N70.25bn. By the end of Q2, 2023, BAYELSA had spent N58.26 on non-salary recurrent expenditure. These expenses include N2.18bn on training and travel, N1.81bn on welfare packages, N78.60m on burial logistics, N1.48bn on town hall meetings expenses, N48.20m on praise night/thanksgiving expenses, N17.70m on marriage ceremony support, and more.

    BENUE’s non-salary spend was N34.44bn. It spent N387.55m on special day celebrations, N434.17m on welfare packages, N7.06bn on security votes, N1.23bn on materials and supplies such as office stationery, books, and more.

    BORNO’s non-salary spend as of the end of Q3 of 2023, was N32.63bn, Cross Rivers was N43.71bn, Delta was N152.15bn, EBONYI was N30.91bn, and Edo was N41.11bn. As of the end of Q2, 2023, EKITI’s non-salary spend was N31.33bn. Part of this expense includes N2.74bn on local and international travel and transport, and N1.97bn on miscellaneous such welfare packages, refreshments, honorarium and sitting allowances, and more.

    ENUGU’s non-salary spend as of the end of Q3, 2023 amounted to N33.36bn, GOMBE was N24.73bn (for Q1 and Q2). IMO was N58.21bn, where N1.21bn was spent on refreshments and meals, N866.81m on welfare packages, N3.26bn on allowances and more. JIGAWA’s non-salary spend was N49.64bn which included allowances of N22.07bn, N1.18bn on transport and travelling, N1.83bn on materials and supplies including drugs, vaccines, medical supplies, stationaries, and more.

    Total non-salary spend in KADUNA was N27.87bn as of the end of Q3, KANO was N17.79bn (Q1 and Q2), KATSINA was N40.49bn, KEBBI was N24.51bn, KWARA was N41.19bn, Kogi was N58.02bn. LAGOS’s non-salary spend was N289.49bn. These expenses include N741.34m as severance pay for political office appointees, N340.95m on aircraft maintenance, N8.07bn on plant and generator costs, N1.13bn on special days/celebrations, N107.79bn on special duties, servicing of meetings N11.45bn, N2.53 on welfare packages for the public, N3.69 on enforcement expenses, and more.

    NASARAWA’s non salary spend as of Q3, 2023, was N28.13bn, NIGER was N23.43bn (as of Q2), OGUN was N49.27bn (as of Q2), ONDO was N59.70bn, OSUN was N42.59bn, OYO was N24.52bn, PLATEAU was N7.99bn as of Q2, RIVERS was N51.96bn (as of Q2), SOKOTO was N20.89bn, TARABA was N24.73bn, YOBE was N25.07bn (as of Q2, 2023), and ZAMFARA was N29.14bn.

    Total spending by states, including capital expenditure, amounted to N4.59tn in the period under review. States may not match their 2022 spending (N8.2tn) due to reduced revenues and macroeconomic challenges. However, there is growing concern that states are spending a lot on irrelevant items.

    Government spending has come under increased scrutiny, especially considering the worsening economic challenges in the country. Recently, the governorship candidate of the Action Democratic Congress in Lagos, Funso Doherty, called out Lagos State for how it was spending public funds. This has since been met with public outcry.

    In a letter to the government, he wrote, “I have had the opportunity to go through the register of public procurement awards by LASG, its ministries, and Department Agencies for the second and third quarters of 2023, as reported by the Public Procurement Agency.

    “This attached schedule highlights selected awards which, in my opinion, require greater scrutiny.”

    In the period under review, state governments increased their borrowing to N988.48bn to augment their FAAC allocations and internally generated revenue. 29 states now owe financial institutions and other government enterprises N536.01bn while borrowings from short and long-term borrowing from multilateral lenders such as the World Bank, the International Monetary Fund, Afrexim, and African Development Bank by 33 sub-nationals increased to N452.47bn.

    Investigation revealed that Lagos state had the highest domestic debt (N200bn), then Delta (N70bn) and Oyo(N58.87bn).

    Similarly, Delta state is the highest borrower from multi-lateral lenders with N71.45bn in debts, followed by Lagos with N51.36bn, Akwa-Ibom (N27.04bn) and Ogun (N22.82bn).

    Recently, The Punch Newspaper reported that state governments borrowed about N46.17bn from three banks to pay salaries between January and June 2023.

    Borrowing for recurrent expenditures is a growing concern to economists. An economist and former Vice-Chancellor of the University of Uyo, Prof Akpan Ekpo, recently said that “the situation is bad, but most states do not have enough in terms of internally generated revenue. A lot of the states, even their federal government allocation, cannot pay salaries, which is very dangerous. You should not borrow to pay salaries. “You should borrow to finance capital projects. States must think of new ways of increasing their IGRs. If they continue borrowing to pay salaries, it is not good for the economy.”

    A development economist, Dr Aliyu Ilias, further noted, “With the current hardship we have in the country, they may not have an alternative than to resort to borrowing. But borrowing to pay salaries is becoming a problem. We must stop borrowing for recurrent expenditure. We can borrow for capital expenditure; that is okay. The consequence is that we are digging ourselves into more trouble.”

    Source: The author personal research and the Punch Newspaper of November 22, 2023. 

    Godwin Etakibuebu; a Veteran Journalist, wrote from Lagos.

    Contact:

    Website: www.godwintheguru.com

    You Tube Channel: Godwin The  Guru

    Twitter: @godwin_buebu

    LinkedIn: linkedin.com/in/godwintheguru

    Facebook: Godwin Etakibuebu

    Facebook Page: Veteran Column

    Telegram: @friendsoftheguru

    WhatsApp: @friendsoftheguru

    Phone: +234-906-887-0014 – short messages only. 

    You can also listen to this author [Godwin Etakibuebu] every Monday; 9:30 – 11am on Lagos Talk 91.3 FM live, in a weekly review of topical issues, presented by The News Guru [TNG].

  • Senate passes bill extending implementation of 2023 budget to March

    Senate passes bill extending implementation of 2023 budget to March

    The Senate on Thursday passed an amendment bill, seeking to extend implementation of the  2023 Appropriation and Supplementary Budget from Dec. 3, to March 31, 2024.

    The passing of the bill followed the suspension of senate rule 78 sub (1) to allow for the first and second reading of the bill at plenary.

    The bill which was consolidated into one and titled “A Bill for an Act to Amend the 2023 Supplementary Appropriation Act in order to extend the implementation year from  Dec. 31,  to March, 31 2024” was sponsored by the senate Leader, Bamidele, Opeyemi.(APC -Ekit).

    Earlier, before an accelerated passage of the bill, Opeyemi in his lead debate said the bill sought  to extend the implementation of the 2023 Appropriation and Supplementary Acts from Dec 31, to March 31, 2024.

    He said the extension was to give all Ministries, Departments and Agencies (MDAs) that received allocation in the 2023 supplementary budget more time to execute the proposed projects.

    He said the execution of the projects was needed to reflate the economy.

    He said the 2023 appropriation and supplementary budget recently passed by the National Assembly and recent 2023 capital releases to MDAs were unlikely to be utilised before Dec. 31, due to late releases of the fund.

    According to him, the funds if not utilised will lapse, if the capital implementation was not extended beyond  Dec .31.

    “In view of the critical importance of some key projects nearing completion, it is expedient to grant extension of the expiration clause to avoid compounding the problem of abandoned projects given that some of the projects were not provided for in the 2024 Budget .

    “Hence the need to extend the implementation year from Dec.31, to March, 31 2024,” he said.

    “I , therefore urge my colleagues to give their full support to the bill to allow full utilisation of the capital releases in order to help reflate the economy.

  • 2023 supplementary budget not insensitive – Info Minister fires back at Peter Obi

    2023 supplementary budget not insensitive – Info Minister fires back at Peter Obi

    The Minister of Information and National Orientation, Mohammed Idris, has said the 2023 supplementary budget signed into law by President Bola Ahmed Tinubu is not insensitive, but a bold and pragmatic response to the pressing and economic challenges Nigeria currently faces.

    The Minister in a statement by his Special Assistant on Media, Rabiu Ibrahim urged the 2023 presidential candidate of the Labour Party, Peter Obi to take the time and effort to acquaint himself with the details of the N2.17 trillion 2023 Supplementary Budget.

    The Minister argued in the statement that the supplementary budget includes allocations for essential sectors of security, agriculture, food security, works and housing, wage increase for workers, student loan scheme and social safety nets, among others, which he said are all aimed at strengthening the country’s economic foundations and improve the living conditions of Nigerians.

    The statement advised the political opposition to be informed and balanced in the exercise of their right and refrain from misrepresentation of facts for political gains, explaining that the supplementary budget was derived from the active engagement and consultation with relevant stakeholders who ensured that the budgetary provisions aligned with the needs and expectations of Nigerians.

    The Minister emphasized that, in line with President Tinubu’s inclination to accountability and transparency in government expenditure, all items in the supplementary budget have been meticulously scrutinised to ensure efficient utilisation of public funds.

  • Kano Assembly passes N58bn supplementary budget

    Kano Assembly passes N58bn supplementary budget

    The Kano State House of Assembly on Monday at the Committee of the Whole passed the N58 billion supplementary budget submitted by Gov. Abba Kabir-Yusuf.

    Speaking after passing the budget, the Majority Leader, Alhaji Lawan Hussaini (NNPP- Dala) said that the budget would enable the state government to execute developmental projects.

    Hussaini said that the budget would help administration to achieve its development target and appreciated his colleagues for their contributions toward its speedy passage.

    He said that the passage of the supplementary budget had raised the 2023 budget of the state to N326 billion.

    He said that the House would monitor the implementation of the budget through effective oversight to ensure that funds allocated to project were judiciously used.

    Similarly, the House also presented a commendation letter and cash reward of N1.5 million to a tricycle rider Malam Auwalu Danbaba who returned about N10 million forgotten by a passenger in his tricycle.
    Receiving the money, Danbaba thanked the lawmakers for the gesture.

  • Fuel subsidy not budgeted for in 2023 budget – NNPC

    Fuel subsidy not budgeted for in 2023 budget – NNPC

    Alhaji Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company (NNPC), has said that contrary to speculations, the immediate past government did not make provisions for petroleum subsidy in 2023 budget.

    He said this on Thursday in Abuja when he met with the Sen. Abdullahi Adamu-led APC National Working Committee (NWC) at the party’s National Secretariat.

    “There was subsidy in 2022 but in 2023, not a single naira was provided for the purpose of financing the subsidy.

    “And ultimately while we held back our fiscal obligations, we still have a net balance of over N2.8 trillion that the federation should have given back to the NNPC.

    “For any company, when you have negative N2.8 trillion, there is no company in the whole of Africa that will lend to you, you cannot have receivables.

    “The provision of subsidy is there, but absolutely there is no funding for it,” Kyari said, adding that it was only on paper and does not exist.

    This, he said, was the true situation of things, adding the the Federal Government could no longer bear the burden of fuel subsidy.

    “If we continue, we will run into defaults and the defaults of NNPC is the default of Nigeria.

    “Once NNPC goes into defaults and liquidity, it affects every borrowing done by the country, even the sub-nationals. Your lenders will come back to you and say your country cannot longer pay,” he said.

    The NNPC group chief executive officer added that subsidy constituted a huge amount of money which the country might not be able to survive and pay its debts.

    Kyari, while admitting that Nigerians would have problems with the removal of fuel subsidy and that it would impact on inflation, assured that government was working on putting in place palliatives to cushion the effect.

    According to him, President Bola Tinubu has directed some engagements and some palliatives will be put in place soon.

    Kyari added that the market would stabilise with time following the removal of fuel subsidy and the current pump price when other players came in.

    “There is a transition going on now and NNPC cannot continue to be sole importer. So, we know that this is going to vanish, the market will stabalise,” he said.

    On when the country would have all its four refineries working, Kyari said there was an ongoing process of rehabilitation of the refineries.

    He added that one of the refineries would come on stream before the end of 2023 while the second one would come on stream in 2024 and the third one would follow there after.

    He maintained that the fuel subsidy regime was gone for good because government could no longer sustain it.

    “Of course it is very obvious that we can no longer afford it. Subsidy bills have piled up, the country is not able to settle NNPC for the money we are spending on subsidy.

    “And therefore, pricing petroleum at the market is the right thing to do at this point in time and I believe that this would benefit the country in the long time,” he said.

  • Automatic promotion to workers not captured in 2023 budget – Lawmaker

    Automatic promotion to workers not captured in 2023 budget – Lawmaker

    A lawmaker in Abia, Chief Obinna Ichita, has said that the 2023 Appropriation Act passed by the state House of Assembly did not capture the State Government’s automatic promotion to Local Government workers.

    Ichita, representing Aba South State Constituency, made the disclosure during an interactive session with newsmen in Umuahia on Friday.

    He was reacting to the automatic promotion announced by Gov. Okezie Ikpeazu during a meeting with civil servants in the state on Thursday.

    He said: “The automatic promotion to Local Government workers coming barely by one week to the election is a mere subterfuge.

    “There are workers who are owed up to 36 months salary arrears and never enjoyed any promotion for many years under Ikpeazu’s administration.

    “The governor has not paid workers allowance and other entitlements since he assumed office in 2015.

    “Therefore, the announcement is deceptive and cannot fly.

    “Also, there is no provision in the 2023 budget to cover the salaries for the promotion.

    “If he was genuine, he would have increased the provision for recurrent expenditure for us to assume that he planned to promote workers.”

    Ichita further described the governor’s gesture as “an insult on the collective sensibility of our people.

    “It shows that he thinks that the workers are fools to be carried away by his unrealistic promise,” he said.

    He, therefore, advised the workers to ignore the pronouncement and take it as one of the governor’s phoney promises.

    “He promised to build Enyimba Economic City, Education City at Owerrinta, reconstruction of Ahiaohuru and Ariaria markets in Aba before the end of 2021.

    “He also promised an underground tunnel at Ifeobara Pond and revitalisation of the education and health sectors but all these and many others have remained unfulfilled,” he said.

    The lawmaker also took a swipe at the governor for not paying attention to critical roads in some parts of Aba, including the Port Harcourt Road, which he started but abandoned midway.

    He also listed the Omuma Road, Obuohia Road and Ohanku Road, among the deplorable roads in the commercial city begging for attention.

    He similarly expressed concern over the dilapidation of the Abia State University Teaching Hospital, Aba, saying that the only functional unit at facility was the mortuary.

    Ichita, who is the APGA Deputy Governorship Candidate, also spoke about the prospects of the party in the March 18 polls.

    He said that the party, which bears the Igbo identity, was fully acceptable to the people of the state.

    “APGA will win the governorship poll overwhelmingly because our people believe in us,” he said.

    He also described the party’s Governorship Candidate, Prof. Greg Ibe, as the candidate to beat.

    According to him, Ibe is the highest single private employer of labour with a huge investment in education in the state.

    “Others take their investments to other cities because they say that there is no significant return on investment in Abia,” Ichita said.

    He also said that beyond building a university, the Gregory University, Uturu, Ibe was also making substantial contribution to the health sector through his free medical and surgery services to the people.

    He expressed joy over Wednesday’s  Supreme Court judgment that affirmed Ibe’s candidacy for the election.

    He said that with the judgment, the judiciary acquitted itself as the last hope of the common man and respecter of no person.

    Ibe’s emergence from the party’s primary was challenged by three other governorship aspirants.

    They included Chief Etigwe Uwa (SAN), Mr Chikwe Udensi and Gen. Ijioma Ijioma (rtd).

  • BREAKING: Buhari signs N21.83trn 2023 Budget into Law

    BREAKING: Buhari signs N21.83trn 2023 Budget into Law

    President Muhammadu Buhari on Tuesday in Abuja signed into law his last Appropriation Bill and the 2022 Finance Bill.

    The President signed the documents in the Presidential Villa in the presence of Senate President, Ahmed Lawan; Speaker of the House of Representatives, Femi Gbajabiamila, and other members of the Federal Executive Council.

    Speaking at the event, President Buhari said the 2023 Budget, just signed into law, provides for aggregate expenditures of N21.83 trillion, an increase of N1.32 trillion over the initial Executive Proposal.

    The President said he signed the appropriation bill into law to enable implementation to commence without delay.

  • January-December budget cycle: Why Buhari’s assent to the 2023 budget is coming late

    January-December budget cycle: Why Buhari’s assent to the 2023 budget is coming late

    Barring last minutes changes, Nigeria’s President Muhammadu Buhari will sign the 2023 Appropriation Bill into law next Tuesday, as part of his first official assignments in the new year. This is expected to be the last Appropriation Bill the President will sign before leaving office in May 2023.

    The Senate President Ahmed Lawan who gave the hint on Friday after a closed-door meeting at the State House, Abuja, noted that both chambers of the National Assembly only passed the bill on Wednesday December 28, for the President’s assent.

    “We are looking forward to Mr. President signing the Appropriation Bill 2023, by the grace of God, on Tuesday…both chambers have passed the Appropriation Bill 2023 on Wednesday, and I’m sure that Mr. President and his team, on the executive side will work on what we have done,” Lawan said.

    The National Assembly has also extended the capital implementation period of the 2022 Appropriation Act to March 31, 2023 following a request by the President, citing amongst other reasons, late capital releases to Ministries, Departments and Agencies, which may not be fully utilized at the constitutional expiration period of December 31st.

    Section 318 of the 1999 constitution stipulates 12 calendar months for the implementation of the budget in any fiscal year and the 2022 Appropriation Act which took effect in January ought to have elapsed Saturday.

    “The proposed 2022 appropriation supplementary budget submitted to National Assembly for consideration as well as recent 2022 capital releases to MDAs are likely to be utilized before December, 31st, 2022 due to the late release of the funds which will lapse if the capital implementation is not extended beyond December, 2022.

    “In the light of the above, the National Assembly is requested to amend the 2022 Acts expression clause to reflect March 31, 2023 for the capital components only,” President Buhari’s letter to the National Assembly read.

    Timeline on Buhari’s assent to appropriation bills in the last seven years

    Since assuming office on May 29, 2015, President Buhari has signed a total of seven appropriation bills to law and part of his second-term ambition was to return the budget cycle to January- December fiscal year.

    President Buhari signed the first Appropriation Bill (N6.06 trillion) after his assumption of office on May 6, 2016, while his Vice Yemi Osinbajo, acting as President, signed the N7.4 trillion 2017 Appropriation Bill on June 12, 2017 while Buhari was away on medical vacation in London.

    On June 20, 2018, President Buhari assented to the 2018 Appropriation Bill of N9.12 trillion, while those of 2019 and 2020 were signed on May 27, 2019 and December 17, 2019, respectively. However, the 2019 Appropriation Bill was later revised from N10.59 trillion to N10.8 trillion which was signed by President Buhari on July 10, 2020.

    In keeping with his goal to return the country to the January- December budget cycle, the President also timely signed the 2021 and 2022 Appropriation Bills on 31st December 2021 and 2022 respectively.

    It is therefore expected that the President will assent to the 2023 budget on Tuesday, which is already a few days late, judging by the timeline for the last three years.

  • Senate passes N21.8 trn 2023 budget

    Senate passes N21.8 trn 2023 budget

    The Senate on Wednesday, passed the N21.8 trillion 2023 budget. This followed the adoption of the report of the Senate Committee on Appropriation at plenary.

    Presenting the report, the Chairman of the Committee, Sen. Jibrin Barau said that the commitee did a thorough job by examining inputs from its sub-committees before reaching the final figure.

    “We hereby recommend that the Senate do consider and approve a Bill for an Act to authorise the issue from the Consolidated Revenue Fund (CFR) of the Federation the total sum of N21.8 trillion.

    “Of which N967 billion is for Statutory Transfers, N6.5 billion only is for debt service. N8.3 trillion is for recurrent (Non-Debt) expenditure.

    “While N5.9 trillion for contribution to the Development Fund for Capital Expenditure for the year ending December 2023,” he said.

    He said that the budget was raised from the N20.5 trillion submitted by the Executive by N1.3 trillion.

    Barau said that President Muhammadu Buhari had on Oct. 7, laid before a joint sitting of the National Assembly the 2023 Appropriation Bill christened”Budget of Fiscal Consolidation and Transition”.

    He said that the President had proposed an oil price benchmark of 70 dollars, which was raised to 75 dollars by the National Assembly.

    “The Executive proposed an exchange rate of N435.57 to a dollar while the national assembly approved same,” he said.

    In his remarks, Senate President Ahmad Lawan, said that the passage of the budget was in line with the National Assembly’s pledge to reverse to the January- December budget cycle.

    “This our fourth budget and last before the expiration of our tenure and we have kept that promise,” he said.

    Lawan also urged the executive to strive hard to implement the 2022 supplementary budget.

    “We have also passed the supplementary dudget for 2022. We expect total implementation. No selective implementation,” Lawan said.

    Meanwhile, the Senate has adjourned plenary until Jan. 17, 2023.

  • BREAKING: Reps pass 2023 budget, increase figures to N21.82trn

    BREAKING: Reps pass 2023 budget, increase figures to N21.82trn

    The House of Representatives on Wednesday passed the 2023 appropriation budget, raising the N20.51 trillion presented by President Muhammadu Buhari to N21.82 trillion.

    This followed the consideration and approval of the report of the House committee on Appropriation at plenary in Abuja.

    Presenting the report of the committee on Appropriations, the Chairman of the Committee, Rep. Muktar Betara commended the chairmen and members of various committees.

    He lauded their efforts at keeping to the January to December budget calendar initiated by the 9th National Assembly.

    The budget showed an increase of over N1 trillion proposed estimates of the executive. Out of the total sum, N967.48 billion is for statutory transfers, N6.55 trillion is for debt service, while N8.32 trillion is for recurrent (non-debt) expenditure.

    The sum of N5.97 trillion is also for contribution to the development fund for capital expenditure for the year ending.

    Buhari in adocument tagged, “Budget of Fiscal Stability and Transition” reflected a total budget of N20.51 trillion which represents about N750 billion increase from the N19.76 trillion projected in the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper already passed by both chambers of the National Assembly.

    Out of the N20.15 trillion, N8.27 trillion was proposed as non-debt recurrent costs,  N6.31 trillion earmarked for debt servicing, N5.35 trillion for capital expenditure (including the capital component of statutory transfers) while N4.99 trillion was earmarked for personnel costs.