FG releases N100bn Consumer Credit Fund for manufacturers

From Isaac Anumihe, Abuja

The Federal Government, yesterday, announced that it will provide  N100 billion to support the  manufacturing sector.

Minister of Budget and Economic Planning, Senator Atiku Bagudu who disclosed this in Abuja during an interaction with newsmen, said that the  manufacturing sector  is facing a serious challenge. So, the Consumer Credit Fund would help to revive the sector

“A budget is a statement of the intent of the government. It’s not an obligation to spend it. It creates a legal power for the executive  to spend money.

Our economy can gain if many people can pay for goods and services over a period of time just as it’s being done around the world. And it will help our manufacturing sector.

“The Consumer Credit is a veritable tool to provide access to goods and services to a lot of Nigerians. A committee is working on this. It has not been implemented. The money has not been withdrawn” he noted, adding that the fund is a catalytic fund and it’s expected to grow” he said

The minister also disclosed that the government is providing N100 billion for agriculture sector. On this, he explained that the fund is supposed to attract more funding so that the mortgage industry will grow bigger.

The government, he noted, has equally made available N100 billion Energy Transition Fund to support the provision of Compressed Natural Gas (CNG) vehicles.

“When fuel subsidy was removed the government quickly provided  N100 billion to support the provision of CNG vehicles which consume less gas than fuel.

Also, as part of efforts to cushion the effects of hardship for students, the government provided a total of N60 billion students loan. While N50 billion was captured in the budget, another N10 billion was appropriated in the supplementary budget.

“There was a N10 billion provision in the supplementary budget. Right now, we have N60 billion of students loan in the two budgets. We believe that our students should have an additional option,” he said.

In addition to this, Bagudu stated that the government has earmarked Youth Development Fund and Project Preparation Fund.

The minister used the opportunity to douse the tension  surrounding the alleged padding of N3.6 billion in the budget.

According to him, the word, ‘padding’ is a tautology and it’s now seen to be negative. He  explained that the constitution allows the president to present a budget document to the National Assembly and the National Assembly has the right by constitution to add or subtract from the budget.

So, he said, when these constitutional rights are performed, it’s not padding.

“Our constitution necessitated that Mr president submits a budget proposal to the National Assembly.

There has been a debate of the appropriation powers of the National Assembly.

“What is the power of the National Assembly as regards the budget? I started by saying that there’s no Supreme Court judgement on that yet. In fact, the National Assembly has the last word when it comes to appropriation. So, they have the right to increase budget line.

When we submit budget, the budget is distributed to committees of the Senate.

“When people talk about padding the word has been narrowed to a negative form whereas in reality there can be no appropriation without either addition or subtraction” he said

Bagudu further explained that the president submitted to the National Assembly a consolidated revenue fund  of N27,503,404,073,861 but the National Assembly authorised a consolidated revenue fund of N28,777,404,073,861.

“A bill for an act to authorise the issue from the Consolidated Revenue Fund of the Federation the total sum of N27,503,404,073,861

only, of which N1,376,352,359, 690 only is for statutory transfers and  N8,490,960,606,831  only is for debt service” he said.

But the national assembly authorized N28, 777,404,073,861.

“This act authorised the issue from the consolidated revenue fund of the federation the total sum of N28, 777,404,073,861” he said