The executive and legislative arms of government must work assiduously in partnership with other stakeholders to resolve grey areas in the N17.13 trillion 2022 budget in order to ensure effective execution for the benefit of Nigerians, writes JOSEPH INOKOTONG.
President Muhammadu Buhari assented to the 2022 budget and 2021 Finance Billion the New Year eve. However, a thorough scrutiny of the document reveals that it is ladened with landmines that may explode and render the Appropriation Act difficult for effective implementation. He admitted this much when he complained about worrisome insertions by the National Assembly before giving nod to the Appropriation Bill to keep pace with the tradition of restoring a predictable January to December fiscal year, as provided for in the Constitution of the Federal Republic of Nigeria, which his administration resuscitated.
This development calls for wide consultation by the key players, the National Assembly and the Executive, working in concert with other stakeholders to enhance quick resolution of the contentious areas and pave way for speedy implementation of the Appropriation Act.
Indeed, the 2022 Budget provides for an aggregate expenditure of N17.13 trillion, an increase of N735.85 billion over the initial Executive Proposal for a total expenditure of N16.391 trillion. The President informed that N186.53 billion increase came from additional critical expenditures that he had authorised the Minister of Finance, Budget and National Planning, Zainab Ahmed, to forward to the National Assembly.
President Buhari, while expressing strong reservations on the ‘‘worrisome changes’’ made by the National Assembly to the 2022 Executive Budget proposal, he announced readiness to revert to the law makers with a request for amendment as soon as the National Assembly resumes to ensure that critical ongoing projects cardinal to his administration do not suffer a setback due to reduced funding.
He recounted how he had stated during the presentation of the 2022 Appropriation Bill to the National Assembly that the fiscal year 2022 would be very crucial in his administration’s efforts to complete and put to use critical agenda projects, as well as improve the general living conditions of Nigerians. ‘‘It is in this regard that I must express my reservations about many of the changes that the National Assembly has made to the 2022 Executive Budget proposal”, the obviously unhappy President fumed.
In the President’s words, ‘‘some of the worrisome changes are as follows:‘‘Increase in projected FGN Independent Revenue by N400 billion, the justification for which is yet to be provided to the Executive; reduction in the provision for Sinking Fund to Retire Maturing Bonds by N22 billion without any explanation; 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. This is particularly worrisome because personnel cost provisions are based on agencies’ nominal roll and approved salaries/allowances; furthermore, an 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; 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.’’
‘‘Furthermore, an 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;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.’’
President Buhari also expressed concern in the reductions in provisions for some critical projects, including N12.6 billion in the Ministry of Transport’s budget for the ongoing 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 introducing over 1,500 new projects into the budgets of this Ministry and its agencies”.
The grey areas which unsettled President Buhariare inexhaustive as hefurtherexpressed concern on the: ‘‘Inclusion of new provisions totaling N36.59 billion for National Assembly’s projects in the Service Wide Vote which negates the principles of separation of Powers and financial autonomy of the Legislative arm of government”.
It is pertinent to note that the changes to the original Executive proposal are in the form of new insertions, outright removals, reductions and/or increases in the amounts allocated to projects. For instance, ‘‘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. Reduction in the provisions for many strategic capital projects to introduce ‘Empowerment’ projects.
“The cuts, insertions,outright removals, reductions and/or increases in the provisions for several of these projects by the National Assembly may render the projects unimplementable or set back their completion of, especially, some of this Administration’s strategic capital projects. Most of the projects inserted relate to matters that are basically the responsibilities of State and Local Governments, and do not appear to have been properly conceptualised, designed and costed. Many more projects have been added to the budgets of some MDAs with no consideration for the institutional capacity to execute the additional projects and/or for the incremental recurrent expenditure that may be required”, President Buhari pointed out.
The “worrisome changes” have brought to the fore, once again, the raging debate on the power of the National Assembly to thinker with the original budget sent to it by the executive, and the infamous budget padding saga. Analysts are of the view that if the issue is not resolved fast, it may continue to throw spanner to the works of successive administration’s budgets.
President Buhari’s concern that “the cuts in the provisions for several of these projects by the National Assembly may render the projects unimplementable or set back their completion, especially some of this Administration’s strategic capital projects”, may not be misplaced.
One of the critical projects in the 2022 budget which may be affected if the seeming impasse between the executive and legislative arms remains unresolved is Defence and Security Sector allocated N2.29 trillion, representing 13.4% of Budget. The amount is for the Military, Police, Intelligence & Para-Military (Recurrent & Capital expenditure).
To compound matters, in the words of the Minister of Finance, Budget and National Planning, Mrs. Zainab Shamsuna Ahmed,”the country has technically been at war, with the pervasive security challenges across the nation; this has necessitated massive expenditures on security equipment and operations, contributing to the fiscal deficit”.She added, “Having witnessed two economic recessions we have had to spend our way out of recession, which contributed significantly to the growth in the public debt; it is unlikely that our recovery from each of the two recessions would have been as fast without the sustained government expenditure funded partly by debt.
A cut in the budgetary provision for this sector may spell doom for the country. The economy itself may suffer stunted growth if the underlying parameters are not correct as envisaged the planners, talk less of wrong adjustments and faulty implementation.
Infrastructure is allocated N1.42 trillion in the budget, representing 8.3 percent. This includes provisions for Works and Housing, Power (inclusive of PSRP Provisions), Transport, Water Resources and Aviation.
Some selected projects in the 2022 budget are: N833 million Balance payment for procurement of 3 X JF; 17 Thunder Aircraft, support equipment and spares including targeting Pod for JF – 17, complete with aircraft arms & ammunition; N792 billion Procurement of 30/32/35 metre hydro survey ship & landing ship tank; N1 billion Procurement of 3 X AW109 Helicopters andpart payment for procurement of 1 X AW139 Helicopter.
Others are: N4.4 billion for the completion of Naval War College Nigeria complex; N1.4 billion upgrade of Nigerian Navy Reference; N2.09 billion provision for capital projects for National Commission for Persons with Disability (NCPD) and N25 billion provided for Nigeria Youth Investment Fund.
For roads and bridges, the 20202 budget captures the following: over N168 billion for the construction and rehabilitation of roads in every geo-political zone of the country, such as: counterpart funding for the dualisationof Makurdi – Enugu Road; counterpart funding for the dualisation of Akwanga – Jos – Bauchi – Gombe Road; reconstruction of the outstanding sections of Benin – Ofosu – Ore – Ajebandele – Shagamu Expressway; construction of Bodo – Bonny Road; rehabilitation of Yola-Hong-Mubi Road; dualisation of Ilorin – Jebba – Mokwa/Bokani Junction Road; rehabilitation of Nguru-Gashua-Bayamari Road, Section I (Nguru-gashua) Phase II; dualisation of Ilorin-Kabba-Obajana Junction to Benin (various sections); rehabilitation of 9th Mile-Enugu-Port Harcourt Dual Carriageway including 9th mile bypass; upgrading and rehabilitation of Keffi – Akwanga – Lafia Road Project; rehabilitation of Zaria-Funtua-Gusau-Sokoto- BirninKebbiC/No. 6029a and dualisation of Suleja-Minna Road, Niger StateC/No. 6077.
Also, over N54 billion has been earmarked for construction and renovation of various Bridge projects nationwide. They are: N162 million counterparts funding for construction of joint border bridge at Mfum/Ekok under the Nigeria/Cameroun International highway and transport facilitation programme, and N409 million emergency rehabilitation and maintenance of 3rd Mainland Bridge.
Another area that requires quick attention is the issues raised by the leadership of the Manufacturers Association of Nigeria (MAN) during an advocacy to President Buhari on making the manufacturing sector contribute more to the Nigerian economy. Although the President told the Mansur Ahmed-led executives of MAN that the relevant Ministry would revisit their concerns about the increase in excise duties on the identified products and other tariff-related matters, the Finance Act 2021 provides for Excise Duty of N10/liter imposed on all Non- alcoholic, Carbonated and Sweetened Beverages. This is at variance with the President’s promise and aim of the budget to create 21 million jobs and lift 35 million people out of poverty.
For the 2022 Budget to further accelerate the economy’s recovery and facilitate the completion of critical projects, as well as improve the general living conditions of the people and enthrone shared prosperity, all hands must be on deck for quick resolution of all contending issues that may impede the realisation of set goals.
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