National Assembly Amends 2025 Appropriation Bill, Increases Recurrent Expenditure

•Transmits investments, securities bill to Tinubu for assent

•Senator Umeh frets over alleged false figures by companies

Ndubuisi Francis and Sunday Aborisade in Abuja

The National Assembly yesterday, amended the law authorising the issuance of N54.9 trillion as the 2025 budget by correcting allocation errors affecting certain Ministries, Departments, and Agencies (MDAs) of the federal government.

This comes as the Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, revealed yesterday that the National Assembly has already transmitted the Investments and Securities Bill (ISB 2024 to President Bola Ahmed Tinubu for assent.

The amendment to the 2025 appropriation bill led to a reallocation of funds, increasing the budgetary provisions for some agencies while reducing allocations for others.

The amendment motion was sponsored by the Chairman of the Senate Committee on Appropriations, Solomon Adeola, and was considered at the Committee of Supply.

One of the adjustments was an increase in the recurrent (non-debt) expenditure, which was initially set at N13 trillion but has now been raised to N13.5 trillion, an increase of approximately N500 billion. Another correction was the initial capital expenditure of N23.9 trillion which was reduced to N23.4 trillion. This marked a reduction of about N500 billion. Despite these adjustments, the total budget remains unchanged at N54.9 trillion.

The adjustments meant that the N500 billion reduced from the capital expenditure was added to that recurrent (non-debt) expenditure.

The 2025 budget was originally passed by both chambers of the National Assembly on February 13.

It increased President Bola Tinubu’s proposed N54.2 trillion budget to N54.9 trillion.

The increment marked an upward adjustment of approximately N750 billion.

The earlier approved budget included allocations of N3.6 trillion for Statutory Transfers, N14.3 trillion for Debt Service, N23.9 trillion for Capital Expenditure, and N13.8 trillion for Fiscal Deficit. However, Tinubu has yet to give his assent to the budget.

Adeola, while presenting the amendment motion, explained that a review of the budget revealed errors in the line items passed by both chambers of the National Assembly.

He proposed maintaining the total budget figure at N54.9 trillion, with no changes to Statutory Transfers at N3.6 trillion and Debt Service at N14.3 trillion.

He recommended increasing recurrent (non-debt) expenditure from N13 trillion to N13.5 trillion and reducing capital expenditure from N23.9 trillion to N23.4 trillion.

The Senate President, Godswill Akpabio, put the amendments to a vote, and they were overwhelmingly supported by the senators.

However, Akpabio later rescinded the Senate’s earlier decision on the affected line items and passed the amendment version.

He noted that the amendment was to ensure clarity and transparency.

The adjustment in the line items for the Recurrent was the Ministry of Defence, which was reduced from N2.51 trillion to N2.49 trillion.

Others were, the Ministry of Police Affairs, revised from N1.225 trillion to N1.224 trillion.

Total pensions, gratuity, and retirement benefits increased from N950 billion to N1.44 trillion.

Military pensions and gratuities was also adjusted from N252.6 billion to N383.9 billion.

In the same vein, National Pension Commission (PENCOM) allocation was increased from N529.4 billion to N804.7 billion.

On the other hand, corrections in the capital allocation included Presidency which was reduced from N144.4 billion to N142.7 billion.

Others were the Federal Ministry of Agriculture and Food Security, adjusted from N1.95 trillion to N1.83 trillion and the Federal Ministry of Works revised from N2.04 trillion to N2 trillion.

Similarly, the Federal Ministry of Education was reduced from 953.9 billion to N944.6 billion.

Meanwhile, the Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, revealed yesterday that the National Assembly has already transmitted the Investments and Securities Bill (ISB 2024 to President Bola Ahmed Tinubu for assent.

Izunaso, who spoke during the budget defence session of  the Securities and Exchange Commission (SEC) in Abuja, stated that the parliament was expecting the president to sign the bill into law within the next 30 days.

He said:  “The Senate President has signed the Investments and Securities Bill 2024 and it has now moved to the Executive for assent. We have 30 days for that to happen and we expect that the President will assent to it.”

Izunaso, also told the meeting that the Committee had followed up with a written directive to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, to include a N10 billion special fund for investor education in the capital market as part of the 2025 budget.

In his remarks, Senator Anthony Yaro, commended SEC  for the approach taken in 2024, adding that with positive happenings like the ISB and reduction in deductions, SEC was expected to perform better.

His words: “I believe these developments will boost your performance in 2025. We know your capacity and what you can do, but you need to do more.”

In his presentation, the SEC Director General, Dr. Emomotimi Agama, expressed appreciation of the Commission to the National Assembly for the support and contribution of the Committee which has moved the market forward in 2024.

Agama noted that in 2024 Nigeria was one of the best performing markets in the world.

“Your support has gingered the market, there is a new spirit and that support has assisted us to achieve what we achieved together.

“Last year, we wished that the federal government’s 50 percent deduction would be reduced to 20 percent but we could not achieve that in 2024.

“We are glad to say that with the intervention of the committee and the Chairman, the Minister has signed the reduction of the deduction from 50 percent to 20 percent. We are hopeful that the implementation will take effect from March 1,” he stated.

He observed that the 2024 budget was properly administered, adding that while projected income was N22.4 billion, gross income received was N26.9 billion with a surplus of 20.34 percent.

“We achieved 100 percent and went above it by 20 percent. Expenditures for the period was N20.8 billion while N12.68 billion went to deductions. Our net surplus was then N2.5 billion,” he explained.

On the reductions in penalties collected in 2024, Agama stated that the role of the Commission was to encourage market participants to comply with laid down rules and regulations.

The SEC DG stated that penalties are charged when participants do not comply adding that the reduction is due to high level of compliance in the market, adding: .

“If you prepare participants and they comply, penalties will certainly be reduced. That reduction means the market is beginning to comply which increases efficiency,” he added.

Agama stressed that the capital market operates a disclosure regime rather than a merit regime,  noting:  “Every company and director has a responsibility for figures that are disclosed to the public. It is our responsibility to monitor the same to ensure that documents provided to members of the public are accurate.

“If they do not meet standards, such institutions will be penalised”.

Contributing to the 2024 budget performance, Senator Victor Umeh expressed worry about false information being put out to the public by companies in a bid to defraud Nigerians.

 “I am worried about regulation and enforcement so that companies would not just bring up cooked figures to defraud Nigerians. Let your eyes be on those that use the market to defraud Nigerians” he added.