President of the Senate, Ahmad Lawan, said on Thursday that the 2020 capital budget performance of Ministries, Departments and Agencies (MDAs) of the government have been improved by the early passage of the budget.
He gave his assessment during the debate on the 2021 Appropriation bill before the National Assembly.
Lawan stated that the low capital budget implementation, which characterised previous budgets, has significantly improved with 2020 budget as MDAs executed between 50 and 75 percent of their capital budget.
He said, “Some Ministries and projects have received up to 75 percent funding. There’s none that has received less than 50 percent.
“While this may not be exactly what we want, it is still an improvement and we will continue to urge the executive to implement the budget up to 100 percent.
“But I believe that we have seen the benefit of passing the budget in good time, and this is something that we will continue to do,” the Senate President said.
He described the return to January – December budget cycle as a major milestone under the Buhari administration and the Ninth Assembly.
He said, “in the last three days, we’ve witnessed submissions which raised issues about the budget estimates presented to us by Mr. President.
“This is in continuation of our efforts to ensure the desirable cycle that we have taken the annual budget to (January – December) will be a legacy.
“This will be our legacy as the 9th National Assembly and the legacy of Mr. President. We have been able to do this together and there’s definitely a difference in the implementation of the 2020 budget compared to the others.
On revenue generated by the government, Lawan blamed the low earnings on the failure of revenue agencies to remit all monies into the Federation Account.
He advocated improved revenue generation, collection and remittance methods as way of shoring the nation’s revenue figures.
“Like all of us, I also have some observations. Firstly, I think our revenue generation, collection and remittances need to be better.
“There are many agencies of government that are supposed to be generating revenues and they do so, but they don’t remit all that they are supposed to,” he said.
The Senate President announced that the relevant Committees would interface on a monthly basis with revenue generating agencies to evaluate their performance and device ways on how same can be improved where they under-perform or fail to meet revenue targets.
He added that doing so would reduce the deficit contained in next year’s budget and subsequent ones, as well as reduce Nigeria’s dependence on loans to finance capital projects which the country direly needs.
“When we are able to get more revenues, we will reduce the deficit, because this budget has big deficit, and this is because we simply have no resources as at today and we need to have our infrastructure in place.
“So, the issue is for us to diversify the funding and finances of the projects. We may not do completely without borrowing, but we could do diversification of the sources of funding. We could go for Public Private Partnership like many Senators here suggested, so that we reduce the necessity to borrow.
“Whatever it takes, we have to provide infrastructure in this country, otherwise, we would never move beyond where we are,” Lawan said.
The Senate President while underscoring the importance of oversight by the National Assembly, harped on the need for the Federal Government to cut down on the cost of governance by merging some of its agencies.
“The responsibility of the National Assembly or Parliament is that whatever we appropriate is properly, economically and efficiently applied. This is an oversight function that we must continue to do.
“Before we pass the 2021 budget, we should be able to know how much of the 2020 has been implemented. This is because some projects need to be rolled over to 2021, and we need to know the extent to which they have been funded in the 2020 financial year,” he said.
The 2021 Appropriations bill which passed the second reading on Thursday was referred by the Senate President to the Committee on Appropriations for further legislative work.
The Committee_ which is chaired by Senator Jibrin Barau (APC – Kano North), was given four weeks to report back to the Senate.
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