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From Juliana Taiwo-Obalonye, Abuja
President Muhammadu Buhari has signed the 2022 budget into law, even as he criticised what he described as the deliberate inclusion as well as increase of non-critical projects by the National Assembly, in place of “critical projects” needed to make good his promises to Nigerians.
The President, who did the signing at 10:11 am, yesterday, at the Council Chambers of the State House, Abuja, said he wished it had been the other way round.
Present at the occasion was President of the Senate, Dr Ahmad Lawan; Speaker of the House of Representatives, Hon. Femi Gbajabiamila, Secretary to the Government of the Federation, Boss Mustapha, and Zainab Shamsuna Ahmed, Minister of Finance, Budget and National Planning. The document was presented by Senator Babajide Omoworare, Senior Special Assistant to the President on National Assembly Matters (Senate).
The signing came barely a week after lawmakers in the House of Representatives and Senate passed a budget of N17.126 trillion in which they increased the benchmark price of crude from $57 to $62 per barrel. Expressing his disappointment over the lawmakers’ decision to increase the initial estimates of the budget by over N700 billion, Buhari argued that some of the projects were the responsibilities of the states.
The President who noted that he signed the budget to keep up with the tradition of observing the January-to-December fiscal year as provided in the Constitution, remarked that the 2022 Budget, provides for aggregate expenditures of N17.127 trillion, with an increase of N735.85 billion over the initial Executive Proposal for a total expenditure of N16.391 trillion. He explained that N186.53 billion of the increase came from additional critical expenditures that he had authorised the Minister of Finance, Budget and National Planning to forward to the National Assembly.
He also announced his administration’s decision to start work on the 2023 Budget, which he described as a “transition budget.” Work will start in earnest on it, he added, to ensure early submission of the 2023-2025 Medium-Term Expenditure Framework and Fiscal Strategy Paper as well as the 2023 Appropriation Bill to the National Assembly. He, therefore, directed heads of ministries, departments and agencies (MDAs) to cooperate with the Ministry of Finance, Budget and National Planning, and the Budget Office of the Federation, to realise the objective.
He also expressed strong reservations on the “worrisome changes’’ made by the National Assembly to the 2022 Executive Budget proposal. He announced that he would revert to the two chambers with a request for amendment as soon as the National Assembly resumes to ensure that critical on-going projects cardinal to the success of the administration do not suffer a setback owing to reduced funding.
Among areas he expressed disappointment with, with regard to the “worrisome changes” brought into the budget include (1) increase in projected FGN Independent Revenue by N400 billion; (2) reduction in the provision for Sinking Fund to retiring Maturing Bonds by N22 billion without explanation (3) reduction of the provisions for the Non-Regular Allowances of the Nigerian Police Force and the Nigerian Navy by N15 billion and N5 billion respectively, (4) increase of N21.72 billion in the overhead budgets of some MDAs, while the sum of N1.96 billion was cut from the provision for some MDAs without apparent justification; (5) increase in the provision for capital spending (excluding capital share in statutory transfer) by a net amount of N575.63 billion, from N4.89 trillion to N5.47 trillion.”
He also deplored the reductions of provisions for some critical projects, including N12.6 billion in the Ministry of Transport’s budget for the on-going Rail Modernisation projects; N25.8 billion from Power Sector Reform Programme under the Ministry of Finance, Budget and National Planning; N14.5 billion from several projects of the Ministry of Agriculture, and the introduction over 1,500 new projects into the budgets of the ministry and its agencies.
Inclusion of new provisions totalling N36.59 billion for National Assembly’s projects in the Service Wide Vote, he added, negates the principles of separation of powers and financial autonomy of the legislative arm of government. The changes to the original Executive proposal, he said, were in the form of new insertions, outright removals, reductions and/or increases in the amounts allocated to projects. “Provisions made for as many as 10,733 projects were reduced while 6,576 new projects were introduced into the budget by the National Assembly,” he noted.
On COVID-19 and budget implementation, the President said despite the lingering adverse effects of the pandemic, he was happy with the success recorded in the implementation of the 2021 Budget, noting that the sum of N3.94 trillion provided for the implementation of capital projects by MDAs during the fiscal year has been released fully. He commended the understanding and speedy action of the National Assembly on the matter.
As the 2022 Budget will be the last full year budget to be implemented by his administration, he emphasized the criticalness of its effective implementation to delivering legacy projects, promoting social inclusion and strengthening the economy. To achieve the objectives of the 2022 Budget, President Buhari pledged that the Federal Government would further intensify revenue mobilisation efforts.
“The Ministry of Finance, Budget and National Planning will implement all measures required to ensure timely and targeted release of capital votes,” he said. He expressed optimism in the ability of the government to finance the budget considering the positive global oil market outlook and the continuing improvement in non-oil revenues.
But in his reaction to the President’s expression of disappointment with NASS over the contentious areas, Dr. Lawan, the Senate President while commending the President on his timely signing of the budget added that the changes made to the budget were done in good fate.
The Speaker of the House of Representatives, Femi Gbajabiamila, commended the President’s directives to MDAs to commence the preparation for 2023 budget early.
