National Assembly passes N21.82trn 2023 budget

…N967.48bn for statutory transfers; N6.55trn for debt service; N8.32trn for recurrent (non-debt) expenditure; N4.49trn for debt services

.Extends 2022 budget implementation to March 31, 2023

By Tunde Opalaba, Haruna Salami, Tom Okpe

Both chambers of the National Assembly on Wednesday passed the 2023 Federal Government budget estimated at N21.82 trillion.

The approved budget was jerked by N1.31 trillion which was moved from the initial N20.1 trillion to N21.8 trillion.

Also, the National Assembly on Wednesday passed the 2022 supplementary budget of N819.5 billion.

However, the upper chamber has suspended consideration of restructuring of the controversial N22.719 trillion Ways and Means expenditure requested by President Muhammadu Buhari.

The passage of the 2023 budget by the Senate followed the receipt and consideration of the report of the Committee on Finance on the Finance Bill, 2022 by Senator Adeola Solomon and that of Appropriations by Senator Barau Jibrin.

The House of Representatives on the other hand passed the 2023 estimation following consideration and approval report of its committee on appropriation with an increase of N1 trillion over proposed estimates by the executive.

Out of the total sum, N967.48 billion is for statutory transfers, N6.55 trillion is for debt service, N8.32 trillion is for recurrent, (non-debt) expenditure while the sum of N5.97 trillion is for contribution to the development fund for capital expenditure for the year ending, 31st December, 2023.

From the statutory transfers, the National Judicial Council takes N165 billion; Niger-Delta Development Commission gets N119.93 billion, Universal Basic Education N103.28 billion; Independent National Electoral Commission (INEC) N173.63 billion; National Human Right Commission N4.5 billion; North East Development Commission N59.03 billion; Basic Health Care Fund N51.64 billion and National Agency for Science and Engineering Infrastructure (NASENI) N51.64 billion.

Also under the statutory transfers, National Assembly Severance/Inauguration of outgoing and incoming 9th and 10th Assembly (Legislators and Legislative Aides) is allocated N30.17 billion, National Assembly Office gulps N30.49 billion; Senate N33.26 billion, House of Representatives N51.99 billion; National Assembly Service Commission N10.55 billion; National Institute for Legislative and Democratic Studies (NILDS) N7.41billion and Service Wide Vote N671.3 million.

Further breakdown shows that Office of Retired Clerks and Permanent Secretaries take N1.05 billion, National Assembly Library Building N4.25 billion; Constitution Review N850 million; Completion of NILDS headquarters N2.5 billion; Construction of National Assembly Service Commission Building N10 billion and Public Complaints Commission N10.69 billion.

For debt service, domestic debts (including Ways and Means) get N4.49 trillion; foreign debts is allocated N1.81 trillion; sinking fund to retire maturing loans takes N247.72 billion.

Under recurrent expenditure (Non-debt) the presidency is allocated N76.40 billion, defence gets N1.09 trillion, ministry of foreign affairs N93.68 billion, federal ministry of information & culture N59.82 billion; interior N278.69 billion; Police Affairs N777.40 billion; communications and digital economy N32.13 billion; National Security Adviser N172.60 billion and Secretary to the Government of the Federation takes N70.08 billion.

Also for the recurrent expenditure, Federal Ministry of Special Duties & Inter-Governmental Affairs gets N4.79 billion; Agriculture and Rural Development N85.41 billion; Finance, Budget and National Planning N29.99 billion; Industry, Trade and Investment N16.82 billion; Labour and Employment

N15.52 billion, Science, Technology and Innovation N52.33 billion; Transport N18.01 billion; Aviation N9.43 billion; Petroleum Resources N33.15 billion and Works and Housing N34.98 billion.

For the capital expenditure, Presidency is allocated N20.11 billion, defence gets N285 billion, Foreign Affairs N5.85 billion; Information & Culture N11.87 billion; Interior N45.62 billion; Police N60.64 billion; National Security Adviser N70.33 billion; Agriculture and Rural Development N248.35 billion, Finance, Budget and National Planning N166.74 billion.

Further breakdown of the capital expenditure indicated that Science, Technology and Innovation is allocated N132.57 billion; Transport N74.26 billion; Aviation N49.41 billion; Power N56.14 billion; Works and Housing N398.27 billion; Federal Capital Territory Administration N15.47 billion; Education N153.73 billion; Health N134.90 billion and Humanitarian Affairs, Disaster Management and Social Development N32.05 billion.

Meanwhile, implementation period for the N18.12trillion 2022 Federal Government budget has been extended to March 31, 2023.

The National Assembly on Wednesday acceded to request for the extension during consideration of the N819.5 billion supplementary budget at plenary.

The request for an extension became necessary as clause 12 of the Appropriation Act and section 318 of the 1999 Constitution stipulate 12 calendar months for implementation of budget in any fiscal year.

Implementation of the 2022 budget supposed to have ended on December 31, 2022, having started on January 1, 2022.

President Muhammadu Buhari in a letter read in plenary on Wednesday, sought for amendment on the Act for extension of the implementation period.

In a the letter to that effect read on the floor of the Senate by President of the Senate, Ahmad Lawan, Buhari said: ” I write to request your consideration for an amendment into the 2022 Acts expression clause 12,as passed and assented to.

“The 2022 Appropriation Act states, in line with the provisions of section 318 of the constitution of the Federal Republic of Nigeria, this Bill expires after 12 months starting from January, 1 to the December, 31, 2022, one assented to.

“The proposed 2022 appropriation supplementary budget submitted to National Assembly for consideration as well as recent 2022 capital releases to MDAs are likely to be utilized before December, 31st, 2022 due to the late release of the funds which will lapse if the capital implementation is not extended beyond December, 2022.

“In the light of the above, the National Assembly is requested to amend the 2022 Acts expression clause to reflect March 31, 2023 for the capital components only”.

The Senate accordingly gave the request expeditious consideration and passage by making it pass the required legislative processes within 30 mins.

In his remarks, Lawan said extension given implementation period of the 2022 budget to March 31, 2023, will provide the required time for implementation of the N819.5billion 2022 supplementary budget raised by the President.

But Senator Muhammad Ali Ndume (APC Borno South), during brief debate on the request, called for caution in view of shortness of available time.

“Mr President, my worry on this extension and supplementary budget is the reality of what we are doing.

“N819.5billion 2022 supplementary budget targeted for implementation during the extended period, should have been merged with the 2023’budget which will also be passed today.

“Is not possible for the N819.5billion supplementary budget implemented within 90 days from now .Let no deceive ourselves but if the Senate wants to go ahead, so be it “, he said.

The Senate however went ahead with passage of extension of implementation period for 2022 budget.

Also, the Senate on Wednesday passed the 2022 Supplementary Budget of N819.536 billion earlier forwarded to it by President Muhammadu Buhari

The supplementary budget according to the President is for the 2022 fiscal year to fix critical infrastructure destroyed by floods across the various states in the country.

The supplementary budget is meant for the capital expenditure component of the 2022 budget with attendant increase of deficit to N8.17trillion.

President Buhari added that the N819.5billion supplementary budget will be financed by additional domestic borrowings.

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The breakdown of the supplementary budget as passed by the Senate shows that a sum of N69 billion is earmarked for Agriculture and Rural development; N704 billion to Works and Housing; N15.5 billion for Water Resources while N30 billion is earmarked for FCT to address critical infrastructure destroyed by floods.

Meanwhile, a cross section of senators spoke their minds on the budget before passage with Senator Ali Ndume suggested that the Supplementary budget should be incorporated into the 2023 budget to allow more room for implementation of identified projects.