Senate passes N243.4bn 2019 FCT budget

Tunde Opalana, Abuja

The Senate on Tuesday passed the 2019 Appropriation Bill of the Federal Capital Territory (FCT) by approving the N243, 374, 511, 077.00 billion budget for the fiscal year.

Also, the Senate approved the obtaining of a $266m foreign loan by Niger state.

The 2019 FCT Appropriation Bill presented at plenary by the Senate Leader, Sen. Ahmed Lawan was considered and eventually, passed second and third readings.

A breakdown of the total budget indicate that N55, 043, 425, 247.00 is for personnel cost and N57, 610, 188, 661.00 is for overhead cost while the balance of N130, 720, 897, 169.00 is for capital projects.

The bill is for the service of the Federal Capital Territory, Abuja for the financial year commencing from January 1 and ending December 31, 2019.

Also yesterday, the Senate approved that Niger state should go ahead to obtain a $266 million development policy operation loan from the Islamic Development Bank (IDB).

The Senate said the proposed loan is contained in the 2016-2018 external borrowing plan of President Muhammadu Buhari. The approval followed the recommendation of the Senate Committee on Local and Foreign Debts

Presenting the report, the committee Chairman, Senator Shehu Sani said that the loan from the Islamic Development Bank is proposed to finance key programmes of the state government aimed at stimulating internally generated revenue and develop critical infrastructure that will attract private investors to the state, and thus increase employment opportunities to residents and citizens.

He explained that “the Islamic Development Bank is a budget-support facility to finance budget gaps that governments often encounter in implementing their annual budgets.”

Recall that the Senate had on July 27, 2017 and November 9, 2017 mandated the committee to consider the Niger state loan request as contained in the 2016-2018 approved external borrowing plans following its approval of the loans’ request from seven states.

In its findings and observations, the Senate committee pointed out that the credit facility has an attractive low financing data of 1.25 per cent interest, moratorium of five years and a 25 –year- maturity tenure.

The committee, in its report said: “According to the latest Dept Management Office figures, Niger state has a total debt stock of $232.1 million,” adding that “approving the current loan request of $266 million for Niger state will bring its total debt stock to $498.1 million.”