The President, who signed the budget into law today, December 31 “for its implementation to commence in January 2022” said he would revert to the national assembly soon to correct all the anomalies.
Buhari complained that most of the projects inserted into the budget by the national Assembly “relate to matters that are basically the responsibilities of State and Local Governments, and do not appear to have been properly conceptualized, designed and costed.”
The President listed other “worrisome changes” to include the following:
“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. Nevertheless, provisions for some critical projects were reduced. These include:
Reduction of N12.6 billion in the Ministry of Transport’s budget for the ongoing Rail Modernisation projects,
Reduction of N25.8 billion from Power Sector Reform Programme under the Ministry of Finance, Budget and National Planning, and
Reduction of 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.
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.
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.
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 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.
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.
It is surprising that despite the National Assembly increasing projected revenue by N609.27 billion, the additional Executive request of N186.53 billion for critical expenditure items could not be accommodated without increasing the deficit, while the sum of N550.59 billion from the projected incremental revenues was allocated at the discretion of National Assembly.”
President Buhari reiterated that he signed the 2022 Appropriation Bill into law to enable its implementation to commence on 1st January 2022. “However, I will revert to the National Assembly with a request for amendment and/or virement as soon as the Assembly resumes to ensure that critical ongoing projects that are cardinal to this administration, and those nearing completion, do not suffer a setback due to reduced funding.”
