Contrary to expectations that the N8.612 trillion 2018 budget estimates would be passed by April, the National Assembly has deferred the approval of this year’s budget till May 2018.
This comes as the National Assembly has extended the lifespan of the capital component of the 2017 budget till May 31st, 2018.
This was contained in a letter by the Joint Senate and House of Representatives Committee on Appropriation to the Accountant General of the Federation on Monday.
Chairman, House Committee on Appropriations, Mustapha Dawaki, stated this at the 2018 National Budget Hearing in Abuja on Tuesday. The programme was jointly organised by the Joint Senate and House Committees of Appropriation.
Although President Muhammadu Buhari had in his presentation of the 2018 appropriation bill to a joint session of the National Assembly on November 7, 2017, called for speedy enactment of the budget by December 31st, 2017 to allow for the January to December budget cycle, both legislative chambers have blamed the late approval of the bill to refusal of heads of ministries, departments and agencies to show up to defend their respective budgets.
Speaking after the Minister of Power, Works and Housing, Babatunde Fashola, made his presentation at the event, Dawaki, however, explained that if the budget is not passed by April 24thas assured by the Speaker, House of Representatives, Yakubu Dogara, then the N2.06 trillion 2017 capital budget would run till May 31st, 2018.
He said that contractors should continue working, adding that budget account will not be closed until budget is passed and assented to by the president or until the 31st of May, 2018.
His words: “We are told that the office of the Accountant General is expected to close the account as at March ending. But we have written a letter yesterday (Monday) drawing his attention to the fact that the budget should be extended to May 31st.
“But if the passage of the budget, as expected to happen on the 24th of April, and the President assents to it, whichever comes earlier then the Accountant General should strictly adhere to the content of that letter.
“So, contractors should continue working. Budget account will not be closed until budget is passed or assented by the President of until 31st of May, 2018“.
Analysts have warned that the delay in passing the 2018 budget could undermine the effective implementation of the 2017-2020 Economic Recovery and Growth Plan (ERGP).
There are concerns over the consistent delay in the consideration and signing of the proposal into law.
Findings by BusinessDay revealed that between 2008 and 2017, the earliest the budget had been passed was February of the year where the budget is considered.
For instance, the 2008 budget was passed into law in April 2008, 2009 budget by March 2009 as well as 2010 proposal by April 2010.
Others are: May for 2011 budget, April for 2012 budget, February for 2013 budget as well as May for 2014 to 2017 budget respective
In his presentation, Fashola disclosed that a total of N109 billion was being owed to 138 contractors by the Federal Government.
He also lamented that the procurement law has made businesses difficult for small business owners.
The Minister suggested an immediate amendment to the law to remedy the situation.
Declaring the event open, Senate President, Bukola Saraki, expressed regrets that government’s revenue has been declining.
“We are concerned about Government-Owned Enterprises whose operating surpluses have always been significantly lower than projections. Invariably, over the years, the performance of independent revenues has fallen short by at least 50 per cent. While we work towards setting new performance standards for government corporations as well as developing stronger oversight frameworks to improve performance in independent revenues, we do expect more realistic projections of Corporations operating surpluses”.
He further observed that non-oil revenue performances have been impacted by policy inconsistencies and leakages.
“That is why we had required that the 2018 Budget proposal be accompanied by a 2018 Finance Bill (which has so far not been received by the National Assembly). Let me therefore use this opportunity to, once again, emphasise the need for the Finance Bill. We want government to show clarity and consistency in its policies and to see how these will square up to its financial projections for 2018.”he stated
The Senate President also stressed the need to ensure real value for money in government spending as well as prioritise spending on locally made goods.
He said that the Made-in-Nigeria initiative, with particular regard to government procurements, is already the thrust of a significant law passed by the 8th National Assembly – and which has the added advantage of helping to revamp our industrial base.
In his remarks, Dogara reiterated that no amount of blackmail from any quarters will force the National Assembly to abandon Zonal Intervention Projects (ZIP), also known Constituency Projects.
The sum of N100 billion is appropriated yearly for the implementation of the constituency projects across 109 senatorial districts and 360 federal constituencies across the federation.
He explained that though the instrumentality of zonal intervention projects has been grossly misunderstood, it does not change the fact that it has brought development across all federal constituencies and federal presence to remote and forgotten areas in the country.
“Over the years, the efforts of legislators, especially at the National Assembly to inject equity in budget patronage nationwide through the instrumentality of zonal intervention projects has been grossly misunderstood and terribly maligned mostly by those who are deliberately ignorant and have concocted their own concept of constituency projects which they apply as their yardstick of measurement.
“I make bold to state that, but for Zonal Intervention Projects, many communities in Nigeria would never have enjoyed any form of Federal Government patronage. Put differently, zonal intervention projects represent the only evidence of Federal government presence in most rural communities of Nigeria.
“Consequently, as representatives of the people, no amount of blackmail from any quarters will force us to abandon our resolve to ensure even development across all federal constituencies,” he said.
