2020 budget: Diverse opinions further greet Senate debate

As the debate on the 2020 budget entered the second day on Thursday, senators further expressed diverse views as some picked holes in the appropriation bill while others commended President Muhammadu Buhari.

Senator Emmanuel Bwacha (PDP Taraba) said Nigeria’s budget lacks implementation discipline to make budgets effective.

He said: “It has become an annual ritual and we still do it. The President by tradition would lay the budget and whatever comes out of it is nobody’s business. I’m saying this because since 1999, Budget implementation has not reached 70 per cent. This is very worrisome.

“We do not take budgeting as a serious business. It may be difficult to achieve 100 per cent implementation but we could achieve a significant improvement in our budget implementation.

“We need to diversify our economy because we are operating a mono economy. However, the budget estimates before us did not reflect this posture.

“The allocation to the agriculture sector does not really portray a nation that is prepared to diversify. We are only prospered to speak from both sides of our mouths. We need to walk the talk if we really want to achieve a significant growth in our economy. This is a worrisome development in our budget system.

“As parliament, we do not care to follow up by asking questions for obvious reasons. Oversight functions have also become a ritual. We have to take it seriously as a parliament”.

Bwacha criticised the 2019 budget implementation which he said was barely implemented.

“Is it fair to say we have a 2019 budget which has not been implemented? As we speak now, nothing has been done. We have the 2019 Appropriation Act and we are discussing the 2020 budget proposal. We refused to address this aspect of our shortcomings.

“No nation moves forward without discussing what happened in the past. Some of the projects being implemented now are not even in the 2019 budget”, he quipped.

Senator Ajibola Basiru (APC Osun) also said that the 2019 budget was not being fully implemented because it was passed and signed into law towards the end of the 8th National Assembly.

He was factual in saying that the running budget is facing implementation crisis.

“What struck me looking at the budget is that the revenue projections and infrastructure show a 70 per cent deficit in the 2019 budget”, he said.

On the 2020 budget, Ajibola noted with concern the N2.18 trillion proposed deficit, while he also said sectoral allocations to some ministries are short of expectations.

He said: “People are looking at allocation to key sectors and the revenue to fund the projects. For instance, when you talk of the N256 billion being allocated to works; I have it on good authority that what is even required to take care of the outstanding in the Ministry of Works and Housing is in the excess of N500 billion.

“Yet, many people are hailing the N256 billion allocated for works, describing it as huge. We should also be looking at the aspect of progressive taxation”.

Senator Ibikunle Amosun (APC Ogun Central) said revenue generation is key factor to budget implementation and insisted that it can reduce debt service but that the state of Nigeria’s infrastructure is bad.

“If you look critically, everything revolves on revenue. If you look at production on yearly basis, for economy to develop, the infrastructure must be there.

“For example, the time it will take you to move from Abeokuta to Ekiti, you would have been in London. That is, our infrastructure is seriously bad. Also, debt service will be reduced when we increase our revenue,” Amosun stated.

In his own contribution, Senator Istafanus Gyang (PDP Plateau North) said Nigerians expect the president to address insecurity, infrastructure deficit and fund the defence sector before implementation of the budget will be achieved.

“What Nigerians expect from the President (Buhari) is how this budget will translate to addressing insecurity, infrastructure deficit among others. The budget allocation of Defence is grossly inadequate and also, stable power supply will stabilise economic drive,” he said.

Some senators said the early submission of the appropriation bill will facilitate its quick passage by the National Assembly, as well as return the country’s budget cycle to the January-December timeline as provided by Constitution.

Senator Matthew Urhoghide (PDP, Edo South) applauded President Buhari over his determination to reverse the poor annual budgetary practice that characterised late submission of the appropriation bill to the National Assembly.

He said: “What President Buhari did this year, is a complete deviation from what we have been seeing in terms of procedure in the presentation of our annual budget estimates to the National Assembly.

“For the first time, the provisions of the Fiscal Responsibility Act (FRA) were strictly adhered to. Last year, we had the budget presented to the National Assembly before the MTEF/FSP came.

“We know the Act states very clearly that MTEF/FSP must come first, and the National Assembly must pass it, before the budget estimates come.

“This is the first time we are adhering strictly to this procedure. It is commendable on the path of President Buhari and the leadership of the National Assembly.”

Urhoghide, while calling on the Federal Government to ensure that capital expenditure in the 2020 Budget benefits Nigerians, added that “the provisions of the FRA as regards the budgetary execution and meeting of targets must be adhered to.”

Senator Bassey Akpan (PDP, Akwa-Ibom North East), also commended President Buhari for throwing his weight behind the amendment of the Deep Offshore Inland Revenue Act.

According to the lawmaker, Nigeria stands to benefit “an additional N400 billion for this year” with an amendment to the Act.

He, however, stressed that the Committees on Appropriation and Finance of the National Assembly have a task to balance the submission of the President.

“What we do as a National Assembly must reflect equitable distribution of available resources to the good of all Nigerians,” Akpan said.

Senator Clifford Ordia (PDP, Edo Central), while lending his voice to the debate of the budget estimates, said “this budget of growth and job creation is apt at this point in time in the history of our national development because when fully implemented, it will go a long way in removing our youths from the streets.”

He added: “The infrastructural development of this country needs to be handled holistically with timelines. This is the only way we can be able to attract investors to this country.”

While commending President Buhari for providing N296 billion sinking funds for payment of local contractors, Ordia urged the Federal Government to ensure that those owed over a period of time are duly paid.

Speaking on the manufacturing sector, the lawmaker said “It is supposed to be one of the major sectors contributing to our GDP. Unfortunately, this is not the case.

“Presently, the manufacturing sector and in fact the private sector only contribute about nine percent to our GDP.

“This will not create the right environment that would create jobs for our young school leavers,” Ordia added.

Senator Ayo Akinyelure (PDP, Ondo Central) bemoaned the high level of unaccountability by Ministries, Departments and Agencies of government charged with the responsibility of revenue generation.

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According to him, revenues accruable to agencies such as the Nigerian National Petroleum Corporation (NNPC), Nigeria Immigration Service (NIS) and Federal Inland Revenue Service (FIRS) if accounted for, are sufficient to fund the Nigeria’s annual budget.

He said: “Not much emphasis is made in the revenue of government. The revenue of NNPC if accounted for can fund the national budget.

“The internal revenue of the immigration is not accounted for. They are made away with by contractors.

“When we talk about increase in VAT, the Federal Inland Revenue must double its efforts when it comes to remittance of revenues.”

The Senate adjourned debate on the 2020 budget estimates till next week Tuesday.

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