……Says budget to achieve macroeconomic goals, good governance
Gov. Yahaya Bello has presented an Appropriation Bill, Budget Outlay of N145.8 billion for the 2022 fiscal year to Kogi House of Assembly for “Frank review and approval.”
Presenting the Appropriation Bill tagged, “Budget of Accelerated Results” to the Assembly on Thursday in Lokoja, Bello said the total Budget was divided into Recurrent Expenditure of N90,151 billion representing 61.79 per cent.
The Capital Expenditure, according to him, is N55.744 billion representing 38.21 per cent adding that the total budget package for year 2022 was N145,896,072,913 as against the N160.560 billion revised budget for year 2021.
“This represents a decrease of N14.664 billion or 9.13 per cent when compared with the 2021 Revised Budget”, he said.
According to the governor, out of the total estimated Recurrent Revenue of N96.792 billion, Estimated Personnel Cost for the period is N45.119 billion whereas N45.031 billion is Overhead Costs, thereby giving N90.151 billion as a total Recurrent Expenditure for the year 2020.
He gave the total budget expenditure outlay as follows: Administration – N50,23 billion representing 34.43 per cent and Economic – N41.926 billion representing 28 per cent.
Others are Law and Justice – N4.720 billion representing 3.24 per cent and Social – N49.015 billion representing 33.6 per cent.
The governor noted that accountability and open governance starts with timely and transparent showcase of government income, proposed expenditure plan and levels of performance and pledged to an honest, realistic and sustained implementation of the year 2020 budget as usual.
“In order to keep this undertaking and avoid derailment by any means, we have factored into this Budget policies, outcomes and targets consistent with those Sustainable Development Goals (SDGs) identified in our blueprint documents as most urgently needed by the larger spectrum of our populace”, he said.
Bello also undertook to on behalf of his administration to complete every single project they started in the 21 Local Government Areas and to pay the contractors and at the same time, cutting down the cost of governance for the benefit of the people.
Speaking earlier, Speaker of the House, Prince Matthew Kolawole described budget as an important policy tool that provides an avenue for both the Executive and the Legislature to collaborate in the management of the state economy for equitable and efficient allocation of resources.
He said that the power of the Assembly to approve budgets include the power to analyse, debate, amend and enact into law the estimates presented by the governor.
He said that the processes were designed to achieve a realistic distribution of resources and optimal opportunity for the people but regretted that though budgets had always been well conceived, implementation had remained a major challenge.
Kolawole therefore, urged all ministries departments and parastatals to be more alive to their responsibilities and avoid all tendencies that might impede the process of successful implementation of the budget.
He commanded the governor for some of the landmark projects being executed across the three Senatorial Districts of the state and particularly implored the governor to rehabilitate the Hassan Usman Katsina Road leading to the Assembly and the state High court among others.
He assured that the house would accord the 2022 Appropriation Bill a speedy passage to enable the government to commence in earnest, its implementation.
The News Agency of Nigeria (NAN) reports that Bello presented N130.5 billion for the 2021budget.
He said the budget is divided into the recurrent expenditure of N70.04 billion representing N56.72 percent and capital expenditure of N56.49 billion representing N43.28 percent.
He said that the total estimated recurrent revenue of the budget was N82.4 billion consisting of N20.9 billion which will be realized from internal sources, while N45.4 billion comes from the federation account.(NAN)
Senate Gives Kyari, NUPRC Boss 24 Hours To Appear For Budget Defense
The Chairman of the Senate Appropriation Committee, Senator Adeola Olamilekan, on Wednesday, directed the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, to appear before the committee in 24 hours.
Olamilekan, who asked Kyari to appear in company of the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), warned that failure to appear undermines the legislature and sabotages the process.
They are required to present the list of all individual companies operating with OML licenses in Nigeria as well as total production output approved on a daily basis.
The lawmaker expressed concerns that some of the revenues required to drive the 2024 budget was attributed to the NNPCL, which according to him, was owned by the Federal Government and responsible to it, and by extension the three arms of government.
The NNPCL, had earlier shunned for a second time, summons by the Senate to appear before its committee probing over N11trn expenditure on turn around maintenance of refineries in the country between 2010 and 2023.
The absence of Kyari, whose entity is at the centre of the investigation, stalled efforts by the Senate panel to make progress on the matter.
Economic: IMF Wrong On Nigeria’s Projections – Budget Office
The Director-General of the Budget Office of the Federation, Ben Akabueze, says the International Monetary Fund (IMF) has been wrong in its projections of the Nigerian economy in the last four years.
“In the last four years, IMF has got it wrong about our projections,” Akabueze said on Channels Television’s Politics Today programme on Wednesday. “Our actual growth have always beat their projections.”
Akabueze spoke on the economic projections of the President Bola Tinubu government for 2024.
On November 29, 2023, the President presented his maiden budget estimates of N27.5trn for the year 2024 to the National Assembly (NASS).
According to the President, the economy is expected to grow by 3.76%, while “inflation is expected to moderate to 21.4 percent in 2024”.
“Budget deficit is projected at 18 trillion naira in 2024 or 3.88 percent of GDP (Gross Domestic Product (GDP),” the President had added.
The President’s projection was at variance and “ambitious” to the prediction of IMF earlier in October. The Washington-based lender had projected that the country’s economy would grow at 3.1% in 2024.
However, the Budget Office boss said IMF’s projections “do not represent the holy grail on economic growth”, adding that the organisation “can’t get it right better than the people who have direct responsibility for managing their individual economies”.
Akabueze said the growth rate projected by the Tinubu government in its maiden budget “doesn’t even yet reflect the ambition of the government”, adding that the incumbent administration “wants to double the GDP before the end of the first term”.
He said the 2024 budget estimates awaiting approval at the National Assembly was “way too small” to Nigeria’s need but the government had to cut its coat according to its cloth.
The Budget Office director general insisted that despite the criticisms against the 2024 budget estimates, the appropriation bill caters for the poor in terms of healthcare, security, education and the economy.
TINUBU: SECURITY, JOB CREATION, POVERTY REDUCTION TOP PRIORITIES OF 2024 BUDGET
President Bola Tinubu says Nigeria’s national defence and internal security, local job creation, macro-economic stability, investment environment optimization, human capital development, poverty reduction, and social security are some of the top priorities of the 2024 Budget of Renewed Hope.
Addressing a joint session of the National Assembly on the 2024 Federal budget proposal on Wednesday in Abuja, President Tinubu said the nation’s internal security architecture will be overhauled to enhance law enforcement capabilities with a view to safeguarding lives, property, and investments across the country.
He said the proposed budget prioritizes human capital development, with particular attention given to children, because human capital remains the most critical resource for national development.
“To improve the effectiveness of our budget performance, the government will focus on ensuring value for money, greater transparency, and accountability. In this regard, we will work more closely with development partners and the private sector.
“To address long-standing issues in the education sector, a more sustainable model of funding tertiary education will be implemented, including the Student Loan Scheme scheduled to become operational by January 2024,” the President affirmed.
Speaking on the economy, President Tinubu said a stable macro-economic environment is crucial in his administration’s bid to catalyze private investment and accelerate economic growth; hence, his government shall continue to implement business and investment friendly measures for sustainable growth.
“We expect the economy to grow by a minimum of 3.76 percent, above the forecasted world average. Inflation is expected to moderate to 21.4 percent in 2024. In preparing the 2024 Budget, our primary objective has been to sustain our robust foundation for sustainable economic development. A critical focus of this budget and the medium-term expenditure framework is Nigeria’s commitment to a greener future.
“Emphasizing public-private partnerships, we have strategically made provisions to leverage private capital for big-ticket infrastructure projects in energy, transportation, and other sectors. This marks a critical step towards diversifying our energy mix, enhancing efficiency, and fostering the development of renewable energy sources. By allocating resources to support innovative and environmentally conscious initiatives, we aim to position Nigeria as a regional leader in the global movement towards clean and sustainable energy.
“As we approach the COP28 climate summit, a pivotal moment for global climate action, I have directed relevant government agencies to diligently work towards securing substantial funding commitments that will bolster Nigeria’s energy transition. It is imperative that we seize this opportunity to attract international partnerships and investments that align with our national goals. I call upon our representatives to engage proactively to showcase the strides we have made in the quest to create an enabling environment for sustainable energy projects.
“Together, we will strive for Nigeria to emerge from COP28 with tangible commitments, reinforcing our dedication to a future where energy is not only a catalyst for development but also a driver of environmental stewardship,” he said.
The President said a conservative oil price benchmark of 77.96 U.S. Dollars per barrel and a daily oil production estimate of 1.78 million barrels per day were adopted after a careful review of global oil market trends, and that a Naira to U.S. Dollar exchange rate of 750 naira per U.S. Dollar was adopted for 2024 as well.
Giving a breakdown of the 2024 Appropriation Bill, the President said: “Accordingly, an aggregate expenditure of 27.5 trillion naira is proposed for the Federal Government in 2024, of which the non-debt recurrent expenditure is 9.92 trillion naira while debt service is projected to be 8.25 trillion naira and capital expenditure is 8.7 trillion naira. Nigeria remains committed to meeting its debt obligations. Projected debt service is 45% of the expected total revenue.
“The budget deficit is projected at 9.18 trillion naira in 2024 or 3.88 percent of GDP. This is lower than the 13.78 trillion naira deficit recorded in 2023, which represented 6.11 percent of GDP. The deficit will be financed by new borrowings totaling 7.83 trillion naira, 298.49 billion naira from Privatization Proceeds, and 1.05 trillion naira draw down on multilateral and bilateral loans secured for specific development projects.”
President Tinubu said his administration remains committed to broad-based and shared economic prosperity, adding: “We are reviewing social investment programmes to enhance their implementation and effectiveness. In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households.”
He also said efforts will be made to further contain financial leakages through the effective implementation of key public financial management reforms.
The President commended the patriotic resolve of the 10th National Assembly to collaborate with the Executive on the mission to renew the hope of Nigerians and deliver on the promises made to Africa’s largest population.
“As you consider the 2024 Budget estimates, we trust that the legislative review process will be conducted with a view to sustaining our desired return to a predictable January-December fiscal year. I have no doubt that you will be guided by the interest of all Nigerians. We must ensure that only projects and programs with equitable benefits are allowed into the 2024 Budget. Additionally, only projects and programs that are in line with the sectoral mandates of MDAs and those which are capable of realizing the vision of our administration should be included in the budget,” the President declared.
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