•Lawmakers begin debate on PIB next week
By Adetutu Folasade-Koyi and Fred Itua, Abuja
Presidency’s hope of presenting the N6.86 trillion 2017 Appropriation Bill to the National Assembly by October 31 has failed.
There were indications, earlier, that barring any change, President Muhammad Buhari would present estimates of the 2017 Appropriation Bill to a joint session of the National Assembly before next Monday.
In preparation for the presentation on October 4, the President forwarded the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), for 2017-2019, which explains fundamentals of government’s revenue and expenditure to the National Assembly in August before lawmakers embarked on their summer recess.
The MTEF is a precursor to the national budget.
The proposed MTEF/FSP for next year projects aggregate revenue to fund the 2017 budget to increase over the 2016 estimate of N3.855 trillion by about eight per cent (or about N313 billion).
The content of the document sent to the Senate was the same draft approved by the Federal Executive Council (FEC) which pegged the crude oil benchmark for the 2017 budget at $42.50 per barrel and the exchange rate at N290 to one dollar.
Minister of Budget and National Planning, Senator Udoma Udo Udoma, had explained that government intends to use $42.50 as a reference price in 2017, while projecting $45 in 2018 and $50 in 2019.
He said, “in terms of oil production, we are keeping to the same level of this year for 2017 and that is 2.2 million barrels per day. For 2018, 2.3 million barrels per day and for 2019, 2.4 million barrels per day.”
On Gross Domestic Product (GDP) growth, Udoma said government was targeting in 2017, a three per cent growth rate, 4.26 in 2018 and for 2019, a 4.04 per cent.
A source in the Ministry of Budget and National Planning told Daily Sun yesterday that inability of the National Assembly to debate and approve the MTEF/FSP means no new budget can be prepared and presented to the National Assembly.
“The framework for the new budget is stuck in the National Assembly. From the executive side, we concluded work on the budget, having presented details to Non-Governmental Organisations (NGOs), civil societies and even the National Economic Council (NEC) headed by Vice President Yemi Osinbajo.
“After those levels of consultations and approvals, the MTEF/FSP was then presented to the Federal Executive Council (FEC), this was after all federal ministries, departments and agencies (MDAs) had defended their allocations in the Ministry of Budget and National Planning.
“Thereafter, the MTEF/FSP was sent to the National Assembly for consideration and approval.
“As it is, if the National Assembly does not consider the documents and approve, what will the Budget Office of the Federation and the Budget Ministry work with?”
Last week, Buhari’s Senior Special Assistant on National Assembly Matters, Senator Ita Enang, has promised the 2017 budget will be presented very early so that implementation can start in January 2017.
Meanwhile, the Senate will, next week, commence debate on the Petroleum Industry (Governance) Bill (PIB) and possibly, debate amendment of the Independent National Electoral Commission (INEC) Act. The two bills are among 24 others expected to be debated next week.
According to its Notice Paper, the MTEF and FSP will be considered on Wednesday in accordance with the Fiscal Responsibility Act 2007.
While the report of the Committee on INEC is expected to be laid by its Chairman, Abu Kyari, on Tuesday, the chamber will deliberate on the report the following day with a view to taking a decision on amendments of the law setting up and guiding activities of the commission.
However, the PIB will lead to other major issues which the Senate would focus on in the week as passage of the law forms the crux of the legislative efforts aimed at repositioning the economy.
The PIB has been in the National Assembly since 2008. The late President Umaru Musa Yar’Adua forwarded the bill to the National Assembly, hoping that it would reform the oil and gas sector.