Updated: Senate Passes 2022 Appropriation Bill

*Okays Buhari’s N276.8bn virement request

*Adjourns plenary till January 18, 2022

By Deji Elumoye and Juliet Akoje in Abuja

Twenty-four hours after the House of Representatives okayed the 2022 budget, the Senate also followed suit as it passed an aggregate expenditure of N17.126 trillion as budget for the 2022 fiscal year.
The Red Chamber also approved the N276.8 billion request of President Muhammadu Buhari for the funding of expenditure in the 2021 budget before adjourning plenary to January 18, 2022.

The passage of the budget was sequel to the consideration of a report by the Appropriation Committee on the 2022 Appropriations Bill.

Presenting the report, Chairman of the Committee, Senator Barau Jibrin, said the revenue projection for the 2022 budget was predicated on the Medium Term Expenditure Framework/Fiscal Strategy Paper approved by the National Assembly.

Barau recalled that the National Assembly had approved 1.88mbpd Daily Oil Production and US$62 as against $US57 proposed by the executive arm of government.

He explained that the increase in oil price Benchmark from US$57 to US$62 was done to reflect the current market value in the international market.

The ranking Senator added that the exchange rate was pegged at N410.15/US$1, Gross Domestic Product (GDP) Rate at 4.2 and Inflation Rate at 13 percent.

According to him, out of the N17,126,873,917,692 approved, N869,667,187,542 is for Statutory Transfer; N6,909,849,788,737 is for Recurrent Expenditure; N5,467,403,959,863 is for Capital Expenditure; and N3,879,952,981,550 is for Debt Service.

The Committee in its recommendations stated that additional revenues discovered should be provided to the Works and Housing Ministry for funding of critical projects, Independent National Electoral Commission (INEC), for the 2023 General Elections, Defence and the National Population Commission for the 2022 Population Census.

It added also that N98 billion naira increase in deficit should be approved to take care of some of the additional requests from the executive arm of government.

A breakdown of recurrent expenditure shows that N61,079,757,342 was budgeted for the Presidency in 2022, N996,09 1,292,618 for Defence, N79,243,483,198 for the Ministry of Foreign Affairs, N55,796,274,038 for Federal Ministry of Information and Culture, N257,626,461,524 for Ministry of Interior, N7,919,353,247 for Office of the Head of Civil Service of the Federation, and N4,476,854,068 for the Auditor General for the Federation.

While the Federal Ministry of Police Affairs received N518,532,292,470, the Ministry of a communications and Digital Economy got N23,387,996,618, National Security Adviser – N155,820,2 14,009, Infrastructure Concession Regulatory Commission – N1,344,674,257, Secretary to the Government of the Federation – N62,575,420,244, Federal Ministry of Special Duties and Inter-Governmental Affairs – N4,439,614,685, Federal Ministry of Agriculture and Rural Development – N75,544,228,649, and Federal Ministry of Finance, Budget and National Planning – N28,604, 104,969.

In addition, the Federal Ministry of Industry, Trade and Investment received N17,966,745,438, Federal Ministry of Labour and Employment – N14,453,726,978, Federal Ministry of Science, Technology and Innovation – N49,683,523,165, Federal Ministry of Transport – N15,892,132,819, Federal Ministry of Aviation – N7,692,548,460, Federal Ministry of Power – N6,262,156,943, and Ministry of Petroleum Resources – N30,502,257, 191.

Also, N12,038,392,758 was budgeted for the Ministry of Mines and Steel Development, N31,935,604,197 for Federal Ministry of Works and Housing, N870,534,226 for National Salaries, Incomes and Wages Commission, N456,245,928 for Fiscal Responsibility Commission, N10,669,058,320 for Federal Ministry of Water Resources, N26,761,780,448 for Federal Ministry of Justice, and N11,655,253,717 for the Independent Corrupt Practices and Related Offences Commission.

Others are Federal Capital Territory Administration – Nil, Federal Ministry of Niger Delta – N2,569,680,304, Federal Ministry of Youth and Sports Development – N185,489,102,966, Federal Ministry of Women Affairs – N2,103,758,084, Federal Ministry of Education – N593,473,925,256, Federal Ministry of Health – N462,858,698,619, Federal Ministry of Environment – N22,796,647,842, National Population Commission – N8,880,618,082, and Ministry of Humanitarian Affairs, Disaster Management and Social Development – N7,669,972,542.

Other Executive bodies such as the Federal Code of Conduct Bureau received N2,343,845,401, Code of Conduct Tribunal – N830,910,644, Federal Character Commission – N3,272,871,999, Federal Civil Service Commission – N1,217,473,478, Police Service Commission – N926,505,919, and Revenue Mobilization, Allocation, and Fiscal Commission – N2,337,230,632.

Also on Wednesday, the Senate approved President Muhammadu Buhari’s request for the virement of N276,757,232,395 billion to fund expenditures in the 2021 budget.

The approval followed the consideration of a motion sponsored by the Senate Leader, Yahaya Abdullahi.
In the motion entitled: “2021 Appropriation Virement Proposal”, Senator Abdullahi Abdullahi recalled that on Tuesday, 21 December, 2021, the Senate President read a communication from the President of the Federal Republic of Nigeria requesting for virement of the 2021 Appropriation Act to fund critical expenditure in the 2021 Budget.

He noted also that pursuant to Section 3 of the Appropriation Act 2021, amounts Appropriated under the Act can be vired only with the approval the National Assembly.

“Aware that the details of the expenditures proposed for the virement are contained in Schedule 1 hereto attached, while Schedule 2 shows the source of the funds to be vired for the items in Schedule 1; and
“Further aware that the 2021 Budget Implementation is faced with challenges that will require additional funding for some critical and urgent Line Items in the Budget”.

President Buhari in his virement request contained in a letter dated December 16, 2021, said the sum of N276,757,232,395 would be sourced from the N365 billion Service Wide Vote for Upscaling of National Social Investment Programme (NSIP).

A breakdown of the virement request detailed by the Federal Ministry of Finance, Budget and National Planning showed that N199,129,053,400 was for payment of local contractors debts, public service wage adjustment for MDAs, OSSAP SDGs Projects 3 and Group Life Assurance for all MDAs.

In addition, N4,500,821,569 is for the Federal Ministry of Education, N2,335,167,265 for the Nigeria Airforce, N4,617,811,857 for the Ministry of Defence, N25 billion naira for the National Assembly in settling minimum wage areas of National Assembly Staff and Intervention to settle outstanding liabilities owed local contractors.

Others are N20,038,920,773 for the Federal Roads Maintenance Agency (FERMA), N762,678,972 for the Nigeria Correctional Services, N592 million naira for the Federal Roads Safety Commission (FRSC) as financial assistance for the execution of 2021 End of Year Special Patrol Operation.

Also, the sum of N19,780,778,558 was funding for the Federal Medical Centre, Katsina, University of Maiduguri Teaching Hospital, Ahmadu Bello Teaching Hospital, Zaria, Usman Danfodio University Teaching Hospital, Sokoto, Lagos University Teaching Hospital, University of Nigeria Teaching Hospital, Enugu, University of Benin Teaching Hospital, and Jos University Teaching Hospital.

The Senate at the end of Wednesday’s plenary adjourned sitting for the Christmas break till Tuesday, January 18, 2022.