Bills to Strengthen Budget Preparation, Implementation, Auditing Passes Second Reading

•Proposed legislation on business facilitation also scales second reading

Udora Orizu in Abuja

The House of Representatives at plenary yesterday passed through second reading, a bill seeking to establish the Office of Budget Management of the Federation and provide a legal framework for the country’s budget process.

The proposed legislation is to ensure effective regulation of budget preparation, presentation, implementation and auditing.

It was sponsored by the Speaker, Hon. Femi Gbajabiamila, and Chairman Committee on Legislative Agenda, Hon. Henry Nwawuba.

When passed into law, the office established shall have the general duty to prepare the annual budget proposal for presentation to the National Assembly by the president.

According to a copy of the bill seen by THISDAY, the office shall supervise the implementation of the budget by ministries, departments and agencies of the federal government to ensure compliance with the law and policies of the administration.

It shall also evaluate the effectiveness of programs, policies, of the MDAs to ensure consistency with governing priorities and provide budget function, implement budget and fiscal policies of the Federal Government of Nigeria.

The Office shall also apply concrete indicators to measure the performance of the annual budget to ensure delivery of the expected development outcomes as set out in various development plans

It shall further approve the withdrawal of statutorily approved funds from the federation accounts for the purpose of implementing the appropriations law of the federal government and provide quarterly reports of budget performance and implementation to the National Assembly.

The bill proposed that the office be headed by a Director General of Budget who shall be appointed by the President to hold office for a period of six years and shall not be eligible for re-appointment.

The Director General shall be the chief executive and chief accounting officer of the office who will be responsible for the day-to-day management of the affairs of the office; paid such remuneration as may be approved by the President on the recommendation of the Salaries and Wages Commission.

The DG shall from time to time, review the formats of requisitions and approvals of withdrawals of funds from the accounts of the Federal Government of Nigeria subject to conditions as set out in the constitution of the Federal Republic of Nigeria and Acts of the National Assembly.

The Director General shall also enforce limits on budgetary expenditure set by the National Assembly.

The bill also proposes that the budget process calendar shall commence the first week of June in each financial year when the Minister responsible for Finance issues a Budget Call Circular to all the relevant Ministries, Departments and Agencies.

It states that all institutions of government shall, in compliance with the Fiscal Responsibility Act, formulate their budget for the fiscal year for submission to the relevant authority for incorporation into the National Budget not later than the first week of July in each financial year.

Furthermore, the bill provides that the President or his representative shall, not later than the second week of September in each financial year, present the annual budget proposal as an Appropriation Bill to a joint session of the National Assembly.

Also at the plenary, the lawmakers passed through second reading a Bill for an Act to amend the trafficking in Persons (Prohibition) Enforcement and Administration Act, 2004 to make provisions for enhanced efficiency in the operations of the National Agency for the Prohibition of Trafficking in Persons, review the mode of appointment of the Director-General of the Agency, strengthen the composition of its governing board and review the offences and penal provisions.

The proposed legislation was sponsored by Hon. Ibrahim Isiaka, Hon. Onofiok Luke and 10 other lawmakers.

In a related development, the Business Facilitation (Miscellaneous Provision) Bill 2022, also known as the “Omnibus Bill” has passed Second Reading at the House of Representatives.

In a statement signed by the Special Adviser to the President on Ease of Doing Business/PEBEC, Dr. Jumoke Oduwole, explained that the House had passed the First Reading on June 22, 2022.

The Bill had also passed second reading at the Senate on July 20, 2022.

‘‘The Omnibus Bill is an intervention of the Presidential Enabling Business Environment Council (PEBEC) aimed at consolidating and amending outdated legislative provisions towards removing bottlenecks for micro, small and medium enterprises.

“It also seeks to ensure the sustainability of business climate and give statutory force to Executive Order 001 of 2017 on the promotion of Transparency and Efficiency in the Business.

‘‘It would be recalled that the that the Federal Executive Council approved the bill on March 23, 2022, which was a culmination of 4 years of collaborative work by public and private sector stakeholders in the legal community anchored by the PEBEC through a sub-committee led by the Honourable Attorney General of the Federation, and implemented by a technical working group with the Federal Ministry of Justice legal drafting team and representatives from leading law firms and consultancy firms.

‘‘Stakeholders eagerly look forward to the speedy passage of the Bill by both chambers of the 9th National Assembly and signing into law by Mr President in order to reap the attendant benefits for the Nigerian economy,’’ the statement read.