N’Assembly raises 2021 budget by N505.607bn, appropriates N13.588trn

Both chambers of the National Assembly on Monday passed the 2021 budget totalling N13,588,027,886,175 which is N505,607,317,924 above the initial sum of N13,082,420,568,233 presented by President Muhammadu Buhari for consideration.

Highlight of the bill passed showed that N496,528,471,273 appropriated for Statutory transfer, N5, 641,970,060,680 for Recurrent Expenditure, N4, 125,149,354,222 for Capital Expenditure and N3,324,380,000,000 for Debt Servicing.

In approving the budget, the National Assembly was guided by revenue parameters such as ; $40 dollars per barrel as benchmark price of crude oil, 1.86 million barrel per day crude oil production, N379 to a dollar exchange rate and 3.00 percent Gross Domestic Product (GDP) growth rate.

The differential sum of N505,607,317,924, according to the Chairman, Senate Committee on Appropriation, Senator Barau Jibrin was partly derived from the late receipt of spending request for the up scaling of the National Social Investment Programme (NSIP) from the Executive amounting to N365 billion.

He added that the committee during consideration of the 2021 appropriation bill discovered an under projection of the total revenue to the tune of N100 billion.

There is an increase of N12,040,000,000 in the amount appropriated for Statutory transfer to N496,528,471,273 from N484,488,471,273 and also an increase of N521,469,395,152 in capital expenditure to N4,125,149,354,222 from N3,603,679959,070.

However, there was reduction of N7,902,077,208 in amount earmarked for Recurrent Expenditure from N5,649,872,137,888 to N5,641,970,060,680 and reduction of N20 billion from N3,344,380,000,000 to N3,324,380,000,000.

The Senate as well passed the recommendation of the Appropriation Committee that the executive should submit a supplementary budget in the first quarter of 2021.

The recommendation reads “in view of the increasing global oil prices beyond the benchmark of $40, the Executive may wish to submit a supplementary appropriation bill whenever it seems fit in order to fund critical areas that will further help to accelerate the movement of our economy out of its current state of recession”.

Senate President, Ahmad Lawan said the supplementary budget will be expended on provision for purchase , transportation, logistics and storage of COVID -19 vaccines expected to be administered on about 200 million Nigerian population.

He disclosed that the leadership of the National Assembly will soon meet with members of the Presidential Task Force on COVID -19 and other relevant government agencies on modalities for purchase, transportation, storage and administration of the vaccine.

The supplementary budget is also expected to cater for increase funding of security agencies and purchase of equipment to ensure safety of lives and properties.

For Capital Expenditure in the year 2021, the sum of N24,090,340,416 was budgeted for the Presidency; N127,850,984,984 for Ministry of Defence; N7,994,280,245 for Ministry of Foreign Affairs; N19,721,066,865 for Federal Ministry of Information and Culture; N38,846,293,565 for Ministry of Interior; N2,491,111,568 for Office of the Head of the Civil Service of the Federation; N218,432,074 for Auditor General of the Federation; N17,882,480,948 for Ministry of Police Affairs; N17,664,285,343 for Ministry of Communication and Digital Economy; and N45,647,587,613 for the Office of the National Security Adviser.

Others such as the Infrastructure Concessionary Regulatory Commission had N353,678,953; Office of the Secretary to the Government of the Federation – N45,637,061,225; Special Duties and InterGovernmental Affairs – N8,872,787,424; Federal Ministry of Agriculture and Rural Development – N211,077,457,584; Federal Ministry of Finance, Budget and National Planning – N376,359,450,498; Federal Ministry of Industry, Trade and Investment – N64,760,781,172; Federal Ministry of Labour and Employment – N63,526,109,193; Federal Ministry of Science and Technology – N107,061,118,360; Federal Ministry of Transport – N209,736,113,910; Federal Ministry of Aviation – N70,189,215,332; and Federal Ministry of Power – N206,745,895,389.

In addition, N3,340,140,120 was approved for Ministry of Petroleum Resources; N12,605,747,806 for the Ministry of Mines and Steel Development; N399,694,565,222 for the Federal Ministry of Works and Housing; N110,455,765 for the National Salaries and Wages Commission; N261,170,602 for the Fiscal Responsibility Commission; N159,745,000,315 for the Federal Ministry of Water Resources; N5,097,558,027 for the Federal Ministry of Justice; N1,363,636,403 for the Independent Corrupt Practices and Related Offences Commission; N37,330,762,421 for the Federal Capital Territory Administration.

The sum of N22,024,592,197 was approved for the Ministry of Niger Delta Affairs; N10,639,249,276 for the Federal Ministry of Youth and Sports Development; N11,204,210,256 for Ministry of Women Affairs; N156,172,307,765 for the Federal Ministry of Education; N134,591,025,027 for Federal Ministry of Health; N24,554,710,490 for Federal Ministry of Environment; N4,839,951,093 for National Population Commission; and N75,768,539,782 for the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development.

During the consideration of the bill, Sen Stella Oduah said the 2021 budget took special care of the poverty alleviation by increasing the National Social Intervention Programme (NSIP).

Sen. Sani Musa (Niger East) charged the Defence ministry to justify the huge amount appropriated to the sector by funding security agencies in the country.

This he said will ensure adequate protection of lives and properties.

Sen. Musa called for a proper auditing of funds allocated to the armed forces or else the security lapses will continue. Meanwhile, President of the Senate, Ahmad Lawan, has said that the National Assembly would not accede to another request from the Executive to extend the capital implementation of the 2020 budget.

According to him, the National Assembly’s approval granting extension for implementation of the capital component of the 2020 budget last week, should therefore be fully utilized by Ministries, Departments and Agencies of Government.

He added that the extension of capital implementation of the 2020 budget till 31st March, 2021; alongside the implementation of the 2021 budget starting in January 2021, would guarantee sufficient injection of funds into Nigeria’s economy.

“For Nigerians, this budget that has been passed in the National Assembly today, is to ensure that the economy is supported fully through public expenditure, because the economy of our country depends largely on public expenditure.

“The budget extension period for implementation of the 2020 budget, which we did last year, is to ensure that the funds that are available for 2020 are not lost.

“So, there will be two budgets running; funds from 1st January, 2021, up to 31st March, 2021; and then the implementation of the 2021 budget itself to start from January.

That is absolute fight against the recession we are suffering from. “With a projected 3 percent growth in our Gross Domestic Product (GDP) in the 2021 budget, we believe that the recession which Nigeria is in will be over before the end of the first quarter.”

Lawan, while urging the Executive arm of government to ensure the implementation of the 2020 budget till March 2021 as extended last week by the Legislature, warned that the National Assembly would reject any further extension request on the implementation of capital expenditure contained in the 2020 budget.

“I want to urge the executive arm of government, first to ensure that they implement the 2020 budget that will last up till 31st March, 2021.

“There will be no extension after 31st March. Everyone must be on their toes in the Ministries, Departments and Agencies to ensure they implement the budget 2020.

“And for 2021, we have to do everything and anything possible to ensure that we implement the budget like we tried to do in 2020.

“I believe that the economy of Nigerians will receive the right kind of boost from the implementation of the two budgets,” the Senate President said.

Also, the House of Representatives passed N13.5trillion as the country’s budget for 2021.

The figure is up by N505billion from the original estimate of N13.08trillion that President Buhari laid before a joint session of the National Assembly on October 8.

The House approved $40 as the crude oil benchmark for the budget and approved N4.1trillion for capital expenditure, N5.6trillion for recurrent expenditure and N3.3trillion for debt servicing.

The sum of N496billion was also approved for statutory transfers.

The House achieved the objective of keeping to the January-December budget cycle by passing the budget after spending slightly over two months at the legislature.

Speaking after the passage, Speaker Femi Gbajabiamila commended the efforts of lawmakers in working assiduously to ensure that the country pulled through 2020, a year he described as trying and challenging.

He cited the coronavirus pandemic as a phenomenon that altered all calculations in 2020 and put the capacities of nations to whither the storm to test.

Gbajabiamila recalled how the House responded quickly to the pandemic by not only initiating legislative interventions but also giving necessary backing to Executive proposals aimed at taming the deadly virus.

He cited the commitment of lawmakers to pass the 2021 budget of N13.5trillion to maintain the January-December budget cycle and make provisions for development, as one of such sacrifices.

“Today, we have passed the budget in the House of Representatives in good time to maintain the January to December budget cycle in line with the commitments we made when we resumed office.

“The January to December budget cycle is necessary to ensure effective implementation of our annual budgets to meet our nation’s development challenges.

By our joint efforts and the grace of God, we will maintain this standard for every year we are in office, and leave a legacy for our successors to aspire to,” the speaker stated.

On the coronavirus pandemic, the speaker said much as it took all by surprise, the House acted swiftly to save lives, while members also made personal sacrifices.

Gbajabiamila explained that “within the limits of our brutal realities, with our options limited by a scarcity of resources, by dilapidated infrastructure and outdated laws, we acted to slow the spread of the disease, to treat the sick, comfort the afflicted and provide for the most vulnerable of our nation’s citizens.

“The truth is, we have done better than many believed was possible, better than many nations, even the most advanced.

Our economy has taken a big hit, but through partnership with the private sector, government has been able to prevent the nightmare scenarios that some predicted.

“Members of the House, together and individually made financial contributions to support welfare provisions for citizens.

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There is virtually no constituency in the country that did not feel the impact of efforts by their representatives.

I commend you all, and I thank you most sincerely.”

He recalled how the House in an unprecedented single-day session passed the Emergency Economic Stimulus Bill to provide targeted economic relief in response to the emerging threat.

Gbajabiamila noted that though the bill did not become law, it later became the foundation on which the government rolled out many relief packages to cushion the harsh effects of the pandemic on Nigerians.