Aduragbemi Omiyale
By Aduragbemi Omiyale
The federal government has been given the approval to present to the National Assembly a budget of N13.98 trillion for the 2022 fiscal year.
This authorisation was given on Tuesday by the House of Representatives when it passed the 2022-2024 Medium Term Expenditure Framework/Fiscal Strategy Paper (MTEF/FSP) barely a week after the Senate passed the same document.
This followed the presentation of the MTEF/FSP report before members of the green chamber of the parliament yesterday by the Chairman, Committee on Finance, Mr James Faleke.
Business Post reports that in July 2021, President Muhammadu Buhari had forwarded the MTEF/FSP document to the legislative arm of government for approval. It was later handed over to the committee for action and yesterday, the report was laid by Mr Faleke.
In the report, it was said that revenue of N8.36 trillion would be retained, while the total fiscal spending plan of N13.98 trillion for next year was approved, comprising total recurrent (non-debt) of N6.21 trillion, personnel costs (MDAs) of N3.47 trillion, capital expenditure (exclusive of transfers) N3.26 trillion, special intervention (recurrent) of N350 billion, and special intervention (capital) of N10 billion.
Also, the House said it has no issue with the proposed fiscal deficit of N5.62 trillion, new borrowings of N4.89 trillion subject that the provision of the details of the borrowing plan be brought for approval by the parliament, while statutory transfers of N613.4 billion were okayed.
The lower arm of the National Assembly also put the debt service estimate at N3.12 trillion, the sinking fund at N292 billion, and pension, gratuities and retirees benefits at N567 billion.
On daily crude oil production, the House approved 1.88mbpd, 2.23mbpd, and 2.22mbpd for 2022, 2023 and 2024 respectively “in view of average 1.93mbpd over the past three (3) years and the fact that a very conservative oil output benchmark has been adopted for the medium term in order to ensure greater budget realism.”
As for the crude oil benchmark, $57 per barrel was approved for 2022, $55 for 2023 and 2024 “based on oil forecast by the World Bank and consultation with the Nigerian National Petroleum Corporation (NNPC).”
Similarly, the exchange rate of N410.15/$1 was approved for 2022-2024 as proposed by the executive arm of government, while the projected gross domestic product (GDP) growth rate of 4.20 per cent was also approved, with the projected inflation rate was put at 13.00 per cent.
In a statement issued by the reps, it was stated that, “That there should be a continuous review of the Fiscal Responsibility Act to ensure that all revenues are remitted to the Consolidated Revenue Fund (CRF) as at when due, in order to curtail frivolous deductions and diversion of funds by the Ministries Department Agencies.”
In addition, it was said that all laws relating to mining businesses should be reviewed as a matter of urgency to ensure upward review of rates applied to royalties, ground rent and licenses renewal of all mining companies operating in Nigeria to ensure transparency in the collection of revenue by the relevant agencies of the government and also look into the issues of illegal mining activities by recommending stringent sanctions in the proposed new laws.
Furthermore, the House advised the Nigeria Customs Service to accelerate the process of installing scanners at all ports across the country to curb the issue of underpayment of customs duties on imported goods which has resulted in huge loss of revenue to the government and to further improve its activities at all borders across the country in order to curb the issues of smuggling across border areas.
“The Committee recommends urgent implementation of the Petroleum Industry Act (PIA) recently assented to by the President in order to curtail the problems of smuggling and round-tripping of petroleum products imported into the country to save the under-recovery cost,” the statement noted.
The parliament suggested that “the offices of the Accountant General (AGF), Auditor General of the Federation (AuGF) and Fiscal Responsibility Commission (FRC) be strengthened in the area of staffing and proper funding of its activities to ensure optimal performance of their duties in order to adequately monitor the remittances of all government revenues,” while the “Act establishing some MDAs be reviewed and amended as a matter of urgency to evidence a more nationalistic interest, as these amendments will assist to generate more revenue to the coffers of the government.”
In the statement, the House urged that the federal government budget should be “reviewed and be purged of some agencies that demonstrated capacity to stand on their own without any recourse to Federal Government of Nigeria Budget for example; National Agency for Food and Drug Administration and Control (NAFDAC) and Nigerian College of Aviation Technology, Zaria (NCAT).”
