2020 revised budget: Reps approve $7.031bn, £995m external loan for FG, States

The House of Representatives on Wednesday approved President Muhammadu Buhari’s request to obtain $7.031 billion and £995million external loan.

Breakdown of the external loan approved showed that the sum of $5.513 billion is to finance Federal Government’s revised 2020 budget deficit, £995 million to improve food security while $1.5 billion is for state governments facing fiscal challenges arising from the COVID-19 pandemic.

According to the report, the House had in June 2020 approved the request to obtain the $5.513 billion to finance the proposed revised 2020 budget deficit, but “due to the absence of adequate information on the second and third terms on Mr President’s request, the Committee in agreement with the Hon Minister, Federal Ministry of Finance, Budget & National Planning deferred consideration of the external borrowing request relating to funding of priority projects of the Federal Government to be captured in the budget estimates for 2021 and facilities to support the State Governments to face the challenges of the COVID-19 pandemic.”

In the same vein, the House approved the sum of $1.5 billion external borrowings to finance State Governments facing fiscal challenges arising from the COVID-19 pandemic.

Breakdown of the $1.5 billion showed that $750 million for State Fiscal Transparency Accountability and Sustainability Program is to attract 2.45% per annum (0.7% service charge, 0.5% commitment charge, and 1.25% interest rate), 5 years grace period, and 25 years tenor while $750 million for COVID-19 Action Recovery and Economic Stimulus Program to support state-level efforts to protect livelihoods, ensure food security and stimulate economic activity is to attract 0.75% per annum and 0.25% commitment charge and 1.25% interest rate), 5 years grace period and 25 years tenor.

Export-Import Bank of Brazil (BNDES) and Deutsche Bank of Germany are to provide 671 million Euros and 324 million for the Green Imperative to enhance mechanisation of agriculture and agro-processing in Nigeria at 3 years and 2 years grace period, 15 years and 7 years tenors as well as 2.935% and 2.87% interest rate per annum respectively.

The resolution was passed after the adoption of the recommendations of the House Committee on Aids, Loans and Debt Management chaired by Hon Ahmed Dayyabu, during the Committee of Supply.

The lawmakers affirmed that the terms and conditions of the loans from each Lender as contained in a duly executed Loan Agreements be forwarded to the National Assembly for proper documentation.

Also at plenary, the House approved the N1,678,715,061,014 budget for the Nigeria Customs Service for the year ending 31st December 2021.

The lawmakers approved the budget sequel to the adoption of the recommendations of the House Committee on Customs and Excise, chaired by Hon Leke Abejide.

According to the report, Nigeria Customs Service is expected to generate revenue from the 7% collection and 60% from the comprehensive Import Suspension Scheme (CISS) worth N257,183,671,694.71 out of which N99,719 722 681 71 is for Personnel Cost, while the sum of N19,530,769,000 is for Overhead Cost and the sum of N137,933,270,013 is for Capital Cost of the Nigeria Customs Service for the year ending 31 December 2021.

According to the report, the Committee considered an initial target of N1.465 trillion inadequate and as such increase it to N1.678 trillion based on the following factors: The target for 2021Fiscal year was less than N1.562 trillion collected in 2020 by NCS, the expanded excisable item to include Carbonated drinks, reduction of Levy on new vehicles and devaluation of naira that will increase the volume of money collected in naira term.

The lawmakers also observed that the 7% Cost of Collection for 2021 of N111,573,991,091 being projected revenue available to the service be approved for the Nigeria Customs Service.

They also noted that the 2% Value Added Tax (VAT) share for 2021 of NCS from N375 billion available to the Service be approved for the Nigeria Customs Service.

The lawmakers further stressed that the 60% share of Comprehensive Import Supervision Scheme (CISS) of N47,007,935,827.20 for the 2021 intervention Fund from the (CISS) be approved for the Nigeria Customs Service.

The House also stated that the Retained Earnings of N91,101,744,776.51 be approved for the Nigeria Customs Service for the 2021 fiscal year.

Similarly, the House approved the total sum of N99,719,722,681.71 as personnel cost; N19,530,769,000 as Overhead cost; N137,933,270,013 as capital cost for the year ending 31st December 2021.

The House also tasked the Central Bank of Nigeria (CBN) should as matter of urgency procure the four Scanners for Nigeria Customs Service from the best Scanners Manufactures either from Germany or America but not China-made Scanners.

In the same vein, the House approved the sum of N216.647 billion budget for the Federal Inland Revenue Service (FIRS) for the 2020 fiscal year.

The lawmakers approved the budget after the adoption of the recommendations of the House Committee on Finance, chaired by Hon. James Abiodun Faleke.

Breakdown of the report showed that from the total sum of N216,646,579,231; the sum of N107,521,496,984 is for Personnel Cost; the sum of N56,469,218,415 is for Overhead Cost while the sum of N52,655,863,832 is for Capital Project of the Federal Inland Revenue Service for the year ending 31st December 2021.

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

We Have Not Had Water Supply In Months ― Abeokuta Residents

In spite of the huge investment in the water sector by the government and international organisations, water scarcity has grown to become a perennial nightmare for residents of Abeokuta, the Ogun State capital.  Reps approve $7.031bn, £995m external loan for FG, States  ;  Reps approve $7.031bn, £995m external loan for FG, States  ;  Reps approve $7.031bn, £995m external loan for FG, States  ;  Reps approve $7.031bn, £995m external loan for FG, States.