…adjourns plenary till January 18, 2022
The Senate on Wednesday passed an aggregate expenditure of N17,126,873,917,692 trillion naira as budget for the 2022 fiscal year.
The passage followed the consideration of a report by the Appropriations Committee on the 2022 Appropriations Bill.
Chairman of the Committee, Senator Barau Jibrin, said the revenue projection for the 2022 budget was predicated on the Medium Term Expenditure Framework/Fiscal Strategy Paper approved by the National Assembly.
Barau recalled that the National Assembly had approved 1.88mbpd Daily Oil Production and US$62 as against $US57 proposed by the executive arm of government.
He explained that the increase in oil price Benchmark from US$57 to US$62 was done to reflect the current market value in the international market.
He added that the exchange rate was pegged at N410.15/US$1, Gross Domestic Product (GDP) Rate at 4.2 and Inflation Rate at 13 percent.
The lawmaker explained that out of the N17,126,873,917,692 passed, N869,667,187,542 is for Statutory Transfer; N6,909,849,788,737 is for Recurrent Expenditure; N5,467,403,959,863 is for Capital Expenditure; and N3,879,952,981,550 is for Debt Service.
The Committee in its recommendations stated that additional revenues discovered should be provided to the Works and Housing Ministry for funding of critical projects, Independent National Electoral Commission (INEC), for the 2023 General Elections, Defence and the National Population Commission for the 2022 Population Census.
It added also that N98 billion naira increase in deficit should be approved to take care of some of the additional requests from the executive arm of government.
A breakdown of recurrent expenditure shows that N61,079,757,342 was budgeted for the Presidency in 2022, N996,09 1,292,618 for Defence, N79,243,483,198 for the Ministry of Foreign Affairs, N55,796,274,038 for Federal Ministry of Information and Culture, N257,626,461,524 for Ministry of Interior, N7,919,353,247 for Office of the Head of Civil Service of the Federation, and N4,476,854,068 for the Auditor General for the Federation.
While the Federal Ministry of Police Affairs received N518,532,292,470, the Ministry of a communications and Digital Economy got N23,387,996,618, National Security Adviser – N155,820,2 14,009, Infrastructure Concession Regulatory Commission – N1,344,674,257, Secretary to the Government of the Federation – N62,575,420,244, Federal Ministry of Special Duties and Inter-Governmental Affairs – N4,439,614,685, Federal Ministry of Agriculture and Rural Development – N75,544,228,649, and Federal Ministry of Finance, Budget and National Planning – N28,604, 104,969.
In addition, the Federal Ministry of Industry, Trade and Investment received N17,966,745,438, Federal Ministry of Labour and Employment – N14,453,726,978, Federal Ministry of Science, Technology and Innovation – N49,683,523,165, Federal Ministry of Transport – N15,892,132,819, Federal Ministry of Aviation – N7,692,548,460, Federal Ministry of Power – N6,262,156,943, and Ministry of Petroleum Resources – N30,502,257, 191.
Also, N12,038,392,758 was budgeted for the Ministry of Mines and Steel Development, N31,935,604,197 for Federal Ministry of Works and Housing, N870,534,226 for National Salaries, Incomes and Wages Commission, N456,245,928 for Fiscal Responsibility Commission, N10,669,058,320 for Federal Ministry of Water Resources, N26,761,780,448 for Federal Ministry of Justice, and N11,655,253,717 for the Independent Corrupt Practices and Related Offences Commission.
Others are Federal Capital Territory Administration – Nil, Federal Ministry of Niger Delta – N2,569,680,304, Federal Ministry of Youth and Sports Development – N185,489,102,966, Federal Ministry of Women Affairs – N2,103,758,084, Federal Ministry of Education – N593,473,925,256, Federal Ministry of Health – N462,858,698,619, Federal Ministry of Environment – N22,796,647,842, National Population Commission – N8,880,618,082, and Ministry of Humanitarian Affairs, Disaster Management and Social Development – N7,669,972,542.
Other Executive bodies such as the Federal Code of Conduct Bureau received N2,343,845,401, Code of Conduct Tribunal – N830,910,644, Federal Character Commission – N3,272,871,999, Federal Civil Service Commission – N1,217,473,478, Police Service Commission – N926,505,919, and Revenue Mobilization, Allocation, and Fiscal Commission – N2,337,230,632.
The Senate, after passing the 2022 budget, adjourned plenary till January 18, 2022 for the Christmas break.
President Buhari transmits Business Facilitation bill to N’Assembly
The Senate has received the Business Facilitation (Miscellaneous Provisions) Bill 2022, forwarded to the National Assembly by President Muhammadu Buhari, for consideration and passage.
The bill was accompanied by a letter dated 17th June, 2022.
The letter, addressed to the Senate President, Ahmad Lawan, was read during plenary on Tuesday.
President Buhari, in the letter, explained that the expeditious consideration and passage of the bill would promote the ease of doing business in Nigeria.
It reads, “Pursuant to Sections 58(2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), I forward herewith the Business Facilitation (Miscellaneous Provision) Bill 2022 for the kind consideration of the Senate.
“Business Facilitation (Miscellaneous Provision) Bill 2022 seeks to promote the war of doing business in Nigeria by amending relevant legislation.
“While hoping that this submission will receive the usual expeditious consideration of the Senate, please accept, Distinguished Senate President, the assurances of my highest consideration.”
N5 trillion urgently needed to cushion effects double digits increase on ordinary Nigerians – World Bank
The World Bank has warned that Nigeria could lose about N5trillion in 2022 from gasoline subsidies.
The bank also said that N5 trillion is urgently needed to cushion ordinary Nigerians from the crushing effect of double-digit increases in the cost of basic commodities.
The World Bank said in it Nigeria Development Update (NDU) released on Tuesday in Abuja.
The report said: “When we launched our previous Nigeria Development Update in November 2021, we estimated that Nigeria could stand to lose more than N3 trillion in revenues in 2022 because the proceeds from crude oil sales, instead of going to the federation account, would be used to cover the rising cost of gasoline subsidies that mostly benefit the rich”.
World Bank Country Director for Nigeria Shubham Chaudhuri, however noted: “Sadly, that projection turned out to be optimistic. With oil prices going up significantly, and with it, the price of imported gasoline, we now estimate that the foregone revenues as a result of gasoline subsidies will be closer to 5 trillion Naira in 2022.
“N5 trillion is urgently needed to cushion ordinary Nigerians from the crushing effect of double-digit increases in the cost of basic commodities, to invest in Nigeria’s children and youth, and in the infrastructure needed for private businesses small and large to flourish, grow and create jobs.”
The report noted: “Nigeria is in a paradoxical situation: growth prospects have improved compared to six months ago but inflationary and fiscal pressures have increased considerably, leaving the economy much more vulnerable”.
Nigeria’s banking sector now immune to economic shock – NDIC
Nigeria Deposit Insurance Corporation (NDIC) has said that the banking sector is now immunized to withstand shocks that may impact the economy and the financial system.
Mr Bello Hassan, Managing Director of NDIC said this at a retreat for members of the Senate Committee on Banking, Insurance and other Financial Institutions with the NDIC, in Lagos.
Any change in fundamental macroeconomic variables or relationships that has a significant impact on macroeconomic outcomes and measures of economic performance, such as unemployment, consumption, and inflation, is referred to as an economic shock.
Mustapha Ibrahim, Executive Director (Operations), who represented the NDIC boss, said Nigerian banking industry was currently resilient to most of these difficulties, particularly external shocks over which the Corporation had no control.
He said: “We have tried to immunise the system to withstand shocks that may be impacting on the economy and the financial system”.
Hassan, further said that effective risk-based management remained critical to a safe and sound financial system.
“The NDIC and the Central Bank of Nigeria have a very robust supervisory framework under the risk-based supervisory format the risk-based approach is actually proactive. For the most part, we try to anticipate all these risks – Macro, micro, domestically and globally – to address them continuously.
“So, it is so dynamic that we also are constantly on a real-time basis, monitoring the industry continuously and fine-tuning our supervisory tools, both onsite and offsite, to mitigate some of the challenges the banks may be facing,” he said.
On his part, Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, said the retreat demonstrated progress in creating lasting and workable relationships in the national interest.
Sani, who was represented by Senator Olubunmi Adetunbi, was optimistic that the outcome will aid in the strengthening of the financial and banking sectors, particularly the corporation’s supervisory and regulatory role.
“The National Assembly and NDIC are key institutions critical to the growth and development of the Nigerian economy. While we provide the legal and institutional frameworks, NDIC carries out its regulatory or supervisory responsibilities in order to safeguard the banking sector.
“Engagement of this nature gives us the platform to deeply look into our activities and responsibilities and also examine how far we have gone in carrying out our mandate as required. It helps in injecting fresh ideas into our operations which will materialise into an improved, effective and efficient service delivery to Nigerians,” he said.
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