Reps pass N20.51trn Appropriation bill through Second Reading

The House of Representatives, on Wednesday, passed through the Second Reading of the N20.51 trillion Appropriation bill for the 2023 fiscal year, which was formally laid before the joint session of the National Assembly last Friday by President Muhammadu Buhari.

The lawmakers who spoke during the debate on the general principles of the 2023 budget proposal tagged ‘‘Fiscal Sustainability and Transition’, expressed concerns over the rationale behind the projected N435/$ exchange rate against differential with the exchange rate at the parallel market, adding that the country’s debt profile may hit N70 trillion by next year.

During their separate contributions, Deputy Minority Leader, Hon. Toby Okechukwu and Hon Leke Abejide expressed grave concerns over the geometrical increase in the fiscal deficit and the huge disparity between the N435/$ proposed exchange rate benchmark and N740/$ at the parallel market as well as the 1.69 million oil benchmark.

On his part, Hon Okechukwu noted that “in the real market, it is N740. It’s a complete distortion of reality and we have operated that way, running two parallel markets regarding the exchange rate of this country.

“Mr Speaker, the benchmark we have as per OPEC quota is 1.69 million barrels per day. Today, what we have set out to do is less than 1.8 million that we should be doing.

On the fiscal deficit, he said: “What is also sad is that the level of borrowing that has been done; the last budget we did 3.5, today, we are going to borrow. The debt servicing we are going to do for the next budget is going to be from 3.6, we are going to do 6.31 trillion. If you combine that with the recurrent expenditure, what we are going to spend on overhead personnel is about more that 70 per cent of the budget. What is left for production? How can a country who is spending that amount of money be able to be productive?

“We need to take some steps back and let me remind you, the PIA that was done by this Parliament presupposes that subsidy should have been withdrawn. Subsidizing petroleum products is a breach of that law. And we have continued to it when Mr President when he was a candidate claimed that oil subsidizing is a scam. I am surprised that this scam has continued to run and it’s been amplified by this government. Time is of essence of we have to face our reality.

“I will suggest and advise this parliament to be courageous and do its job. Suddenly, we are reducing the subsidy to 6 months, first half of the bill because it’s been an election issue. The government had no courage to undertake that enterprise. The subsidy is coming off from the second half of next year. It’s has been political. It is not driven by patriotism.

“I think this House should be courageous to face the reality and ensure that we retool the budget so that it can be effective for Nigerians. The last budget of President Goodluck Jonathan budgeted 4.8 trillion. Now, we are budgeting 20 trillion. If you check the amount in dollars, they are of the same amount. It’s about $30 billion and today you can see how the country has been run around. Parliament will do its job and we will retool the budget accordingly,” he noted.

On his part, Majority Chief Whip, Hon. Mohammed Mongunu commended Federal Government over the level of budget implementation despite the revenue shortfall constraints, and its resolve to achieve 100 percent implementation level by the end of 2022, which currently stands at 70% implementation level.

In the bid to shore-up adequate revenue generation, he urged Federal Government on the need to diversify the economy, especially in the area of mining and agriculture as well as bring more Nigerians into the tax net so that there will be more tax for the purpose of implementing our budget, as well as the removal of fuel subsidy which gulps trillions of naira that ordinarily should have been funding our much-needed infrastructure needs.

Also speaking, Hon Leke Abejide (ADC-Kogi), who observed that most Ministries, Departments and Agencies (MDAs) have not awarded contracts for projects despite that money has been released to them as at the last quarter of 2022, further alleged that the Federal Ministry of Finance, Budget and National Planning “has not released money for most projects and now we are talking about 2023.

On the exchange rate, he posited that the gap between the projected N435.37 to a dollar and the N740 exchange rate at the autonomous market may you compound the current economic woes.

“So, if the naira is going to be devalued, it should be devalued now to discourage this round tripping system that is currently going on in Nigeria. The oil revenue is projected at N1.92 trillion that’s if only we can keep up with the target of 1.69 million barrels per day. As it stands, it is over ambiguous to put it at 1.69 million barrels per day. As it is now, if there is a possibility it should be something that will be near perfection maybe like 1.3 million so that our economy will not be distorted. Because anything short of that will lead us to more borrowing.

“The capital expenditure is put at N5.35 trillion while the debt servicing was put at N6.31 trillion and I discovered that our revenue generating agencies are not doing what they ought to do. There are so many leakages and what is discouraging people from blocking these leakages is because the reward system is so poor.

Also speaking, Hon Sada Soli (APC-Katsina) underscored the need for various Standing Committee to thoroughly scrutinise the Personnel Cost of various MDAs, adding that all the MDAs “have a surplus under Personnel Cost and it is now being investigated by the ICPC.

“So, I have to draw your attention to this. There are a lot of things that are going wrong because we overlook the issue of Personnel Costs in our budget scrutiny. This is the time to scrutinize this Personnel Cost. A lot of shenanigans is going on with the issue of Personnel Cost. So, we must not shy away from scrutinising it, cut if we need to because a lot is going wrong.

He also warned that with the key assumption in the 2023 budget, the country will be compelled to devalue the naira.

“Also, we must carry out enforcement of the management of performance framework. That will increase operating surpluses in 2023. We must increase this in the maritime sector and then the oil and gas sector and bring in revenue. The way I look at it, with additional borrowing of N10 trillion the debt profile will be getting to about N53 trillion by next year.

“So, if we through the account by the CBN (Central Bank of Nigeria) which is currently about N20 trillion, then we will have a debt revenue of about N70 trillion in 2023. This is a source of concern even though Nigeria has not defaulted in the payment of servicing of its debts but in the nearest future we might default.”

In his remarks, Chairman, House Committee on Judiciary, Hon. Onofiok Luke underscored the need to prioritize infrastructure, social investment, power and security; just as he commended Mr President over the provision of N150 billion in the statutory transfer to the National Judicial Council.

According to him, “in the last one month, we have seen the efforts of our security operatives in trying to curb the issue of insecurity. Mr Speaker, Abuja at a point, which is the centre was under threat. If the Brigade of Guards of Mr President was attacked, that means the life of the common man in the city of Abuja is under threat, just like the lives of common men in the 36 states of the federation. But we have seen the efforts of our military, both the Airforce, and the Army men, and even the police in trying to curb this situation.”

He also tasked President Buhari on the need to implement Steve Oronsaye’s report with a view to reduce the cost of governance.

In the same vein, Hon. Kasim Maigari who emphasised on the need to improve on the capital expenditure argued that the 2023 budget “is a submission of organized corruption by the civil servants. Mr Speaker, you just mentioned that it is only this government that you implement 100% capital project. But Mr Speaker sir, 50% of this amount release for the capital project goes to the pocket of the civil servants.

“Mr Speaker, we are not looking at the project duplications. Last time Mr Speaker, 2021 let me take you back, Ministry of Works in their budget there’s item they said total general repairs from Gorore, Maigaruwa and Jere. The next line they said general repairs Maigaruwa, Jere, Nazin. That’s 200 million each. It’s duplication and they are not doing the work. I was from that place. I went to that place several times. Mr Speaker, the only work I saw in that place was done by FERMA.

“Mr Speaker sir, the issue of splitting the budget, they can propose a budget of 3 billion or 4 billion and they’ll allocate 150 million for that project. For God’s sake how can we do that project. Project that is supposed to be 6 billion and they make a proposal of 150 million and this 150 million will be released 100% to them. They cannot go to site because the money will not be enough for the contractor to go to site.

“I think we have to look at this budget very critical. If we leave this to continue like this you will always see ongoing when the project will not move from where it is. It is very important colleagues. As the committee works, they should look at these projects. You cannot propose two billion project and release 80 million. We have to look at this very seriously.

“And what annoys me Mr Speaker sir, the NGOs, the anti-corruption agencies they’re not saying anything about these projects. All they’re after is ZIP. ZIP will send somebody Kano. The total ZIP is 45 million and if you’re constructing a classroom project under ZIP, they must send somebody from ministry of social circuit, ICPC. How much are you spending on them? They sponsor them from that project. When people are stealing billions nobody is talking about it.

“I think it’s very important we should look at these projects. I have a project I reported several times. In power they budgeted 100million, they released that 100 million. Another year they budgeted 100 million nothing has been done there. I have project in water resources 100million to construct dam. They’ve not done anything up till now and 100million was released and ICPC is not saying anything.”

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