Buhari Raises 2022 Budget Proposal to N16.45trn

•Sends revised 2022-2024 MTEF-FSP to N’Assembly for amendment

•Presents appropriation bill tomorrow

•INEC to get additional N100bn for 2023 general elections

Deji Elumoye, Udora Orizu and Juliet Akoje in Abuja

President Muhammadu Buhari yesterday sought the approval of the National Assembly to increase the 2022 appropriation bill from N13.98 trillion to N16.45 trillion in a revised 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP) amendment forwarded to the legislative arm.

This is just as indications emerged in the two chambers of the Assembly that the 2022 Appropriation Bill will be presented by the President Buhari to a joint session of the federal lawmakers on Thursday as exclusively reported by THISDAY yesterday.

The president’s fresh request was contained in a three-page letter seeking an amendment to the 2022-2024 MTEF/FSP, which was recently approved by both chambers.

The federal lawmakers had last week, passed the MTEF-FSP retaining all the projections submitted to it by the President in July.

Both Senate and the House of Representatives referred the request letters to both chambers committee on finance to expedite action on the Amendment to meet up with Thursday possible presentation of budget by the President.

President Buhari in the letter said the revision was necessitated by the need to reflect the new fiscal terms in the Petroleum Industry Act (PIA) 2021, as well as other critical expenditures in the 2022 Budget.

According to him, the underlying drivers of the 2022 fiscal projections, such as oil price benchmark, oil production volume, exchange rate, GDP growth, and inflation rate reflect emergent realities and the macroeconomic outlook remained unchanged as in the previously approved 2022-2024 MTEF-FSP.

Arising from this, and other critical expenditure that should be accommodated in the 2022 appropriation bill, the President explained that changes in the projections in the framework included a N341.87 billion decrease in gross revenue projection from N8.870 trillion to N8.528 trillion.

He also said the federal government’s aggregate expenditure (including GOEs and Project-tied Loans) was projected to increase by N2.47 trillion, from N13.98 trillion to N16.45 trillion.

President Buhari further explained that there was aN100 billion additional provision for Independent National Electoral Commission (INEC) to prepare for 2023 general elections in the country.

The letter, which was read at Tuesday plenary in the two chambers by Deputy Senate President, Senator Ovie Omo-Agege who presided at Senate plenary and House Speaker, Hon Femi Gbajabiamila, read in part, “It is with pleasure that: forward the Revised 2022-2024 Medium Term Fiscal ‘Framework (MTEF) for the kind consideration and approval of the House of Representatives. The fiscal effects of PIA implementation are assumed to kick in by mid-year 2022.

“The revised 2022-24 Fiscal Framework is the premised on hybrid of January-June (based on current fiscal regime) and July-December (based on PIA fiscal regime), while 2023 and 2024 are now fully based on the PIA.

“The provision of N54 billion to NASENI which represents one per cent FGN Share of Federation Account. Additional provision of N510 billion in the Service Wide Votes to cater for National Poverty Reduction with Growth Strategy (N300 billion), police Operations Fund (N50 billion), Hazard Allowance for Health workers (N50 billion), Public Service Wage Adjustments (additional N80 billion), and MDAs’ Electricity Bills Debt (additional N37 billion).

“Additional Capital provision of N1.70 trillion, attributed to projected increases in Capital Supplementation by N179.1 billion, GOEs Capital by N222.1 billion; TETFUND Expenditure by N290.7 billion; Multilateral/Bilateral Project-tied Loans by N517.5 billon, and MDAs’ Capital Expenditure by N390.5 billon (including N178.1 billion provision for population and housing census to be carried out in 2022.

“The Aggregate Deficit (inclusive of GOEs and Project-tied Loans) is projected to increase by N692.0 billion or to 3.42 per cent of Gross Domestic Product (GDP) from 3.05 per cent of GDP. I herewith forward the Revised 2022-2024 MTEF. As the 2022 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved Revised 2022-2024 MTEF. I seek the cooperation of the National Assembly for expeditious legislative action on the submission.”

At the Senate, the Deputy Senate President, after reading the President’s letter referred same to the Committee on Finance.

The Committee which is Chaired by Senator Solomon Olamilekan Adeola was mandated to report back tomorrow, Wednesday, October 6, 2021.

“You will have to report back to us latest tomorrow (Wednesday), to enable us use it as a predicate for the budget presentation on Thursday”, Omo-Agege said.

Senate Leader, Senator Yahaya Abdullahi, immediately after the Deputy President of the Senate , Ovie Omo – Agege finished reading the request, informed the Senate that 2022 budget presentation would be made by President Buhari to joint session of the National Assembly on Thursday this week.

“In view of the planned 2022 budget presentation to joint session of the National Assembly by President Muhammadu Buhari this Thursday, I move for suspension of our relevant rules for expeditious consideration of the revised 2022 – 2024 MTEF/ FSP documents.

“In doing this, I move that lead debate on the request should be skipped and that it should be transmitted to our committee on Finance for the required scrutiny for just 24 hours , which makes the committee’s report to be submitted on Wednesday in plenary to pave way for the Thursday budget presentation by the President. I so move,” he added.

Accordingly, in line with parliamentary practices and procedures, the leader’s motion was seconded by the Minority Leader, Senator Eyinnaya Abaribe, and adopted by the Senate when put to voice votes.

At the House, Gbajabiamila after reading the letter thereafter referred it to the Finance Committee chaired by Hon. James Faleke.

He said the Committee should get to work on the amendment, adding that there was the possibility that Buhari would present the appropriation bill on Thursday.

His words: “Finance Committee should get down to work on the amendment, there’s a possibility that Buhari will present the budget on Thursday.”

Shortly after the letter was read in the House, a member, Hon. Ossai Nicholas Ossai, raised a point of order saying the MTEF was a money bill, saying every money bill passes all stages including the first reading and second reading, at which point it must be subjected to debate before being sent to the committee.

Corroborating Ossai’s statement, the Minority Leader, Hon. Ndudi Elumelu citing relevant House rules told Gbajabiamila to allow the lawmakers debate the amendment at the plenary, Wednesday.

Elumelu said, “Yes you had ruled on the point of order raised by Ossai on issue of the need to debate the general principles of the bill whether brought in for amendment or a fresh bill. If you go to paragraph four of the same point of order, it says during debates for money bills, member should be given five minutes each to make submissions.

“You just read a letter as to the effect that there has been changes to the earlier approved MTEF which has led to his bringing a letter asking to of course make some adjustments. “Confining such adjustments to the House Committee on Finance for them to deliberate and bring back in two days and announcing possibility of president presenting the proposed 2022 estimates on Thursday, if you look at the time frame it would seem we are hasty to look at those items that make it different from what we had approved.”

Ruling them out of order, Gbajabiamila said, “Both you and Hon Ossai had referred to Order 12 Rule 19 and you referred to paragraph 4. The said Order 12 Rule 19 is talking about the budget. The MTEF is not the budget. We are not discussing about the appropriation bill today. You are ruled out of order.”