The budget was presented to the federal lawmakers on Thursday 8th October and it took the two chambers, 73 days to process the bill which was on Monday laid on the table in both chambers and consequently passed into law.
With the approval of the Committees on Appropriation of both chambers, the National Assembly has thereby authorised the issue from the Consolidated Revenue Fund (CRF) of the Federation, the total sum of N13,588,027,886,175, an increase of N505 billion from the initial proposal of N13,082,420,568,233 presented to the federal lawmakers by President Muhammadu Buhari.
The N505 billion increase in the 2021 fiscal policy was necessitated by the need to upscale the National Social Investment Programme (NSIP) with N365 billion and a discovered under-projection of revenue to the tune of N100 billion.
The Senate Committee on Appropriation chaired by Senator Barau Jibrin (APC, Kano North), said it observed the impact of COVID-19 on all aspects of national life, a remarkable increase in Nigeria’s oil price hovering between $47 and $50 per barrel in the international market, which is above the $40 benchmark price earlier approved by the National Assembly.
It said other observations included the discovery of under-projection of the total revenue to the tune of N100 billion; need to enhance the budget structure in order to allow for the reflation of the economy and accelerate its recovery from recession; and the dire need for optimal allocation and judicious utilisation of the available scarce resources for economic recovery, diversification, enhancement of competitiveness and social inclusion.
The committee, therefore, recommended that given the increasing global oil prices beyond the approved $40 benchmark, the executive arm of government may wish to a submit a Supplementary Appropriation Bill in order to fund critical areas that will further aid the acceleration of the economy out of the present recession.
The House approved the use of 10 per cent out of monies recovered from corruption cases for the expenditure of the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligent Unit.
“The Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligent Unit (NFIU) are authorized to change and defray from all monies standing in credit to the units as revenues or penalties or sanctions at 10 per cent for the technical setup and operational cost at the units in this financial year,” the report on the 2021 budget presented by the chairman, House Committee on Appropriation, Hon. Aliyu Betara, reads.
Consequently, the National Assembly unanimously approved 2021 Appropriation Bill as recommended by the committee with a Statutory Transfer = N496,528,471,273 billion; Reccurrent Expenditure = N5,641,970,060,680 trillion; Capital Expenditure = N4,125,149,354,222 trillion; Debt Servicing = N3,324,380,000,000 trillion; and GDP Growth Rate of 3.00%, with a Total Expenditure of N13,588,027,886,175.
The Senate Committee added the 2021 budget was based on the parameters approved by the National Assembly when it considered the Medium Term Expenditure Framework/Fiscal Strategy Paper last week Thursday.
Benchmark Price of Crude Oil was fixed at $40USD Per Barrel; Crude Oil Production at 1.86mbpd; Exchange Rate at N379/US$; and Gross Domestic Production (GDP) Growth Rate at 3.00 per cent.
For Capital Expenditure in the year 2021, the sum of N24,090,340,416 was budgeted for the Presidency; N127,850,984,984 for Ministry of Defence; N7,994,280,245 for Ministry of Foreign Affairs; N19,721,066,865 for Federal Ministry of Information and Culture; N38,846,293,565 for Ministry of Interior; N2,491,111,568 for Office of the Head of the Civil Service of the Federation; N218,432,074 for Auditor General of the Federation; N17,882,480,948 for Ministry of Police Affairs; N17,664,285,343 for Ministry of Communication and Digital Economy; and N45,647,587,613 for the Office of the National Security Adviser.
Others such as the Infrastructure Concessionary Regulatory Commission had N353,678,953; Office of the Secretary to the Government of the Federation – N45,637,061,225; Special Duties and Inter-Governmental Affairs – N8,872,787,424; Federal Ministry of Agriculture and Rural Development – N211,077,457,584; Federal Ministry of Finance, Budget and National Planning – N376,359,450,498; Federal Ministry of Industry, Trade and Investment – N64,760,781,172; Federal Ministry of Labour and Employment – N63,526,109,193; Federal Ministry of Science and Technology – N107,061,118,360; Federal Ministry of Transport – N209,736,113,910; Federal Ministry of Aviation – N70,189,215,332; and Federal Ministry of Power – N206,745,895,389.
In addition, N3,340,140,120 was approved for Ministry of Petroleum Resources; N12,605,747,806 for the Ministry of Mines and Steel Development; N399,694,565,222 for the Federal Ministry of Works and Housing; N110,455,765 for the National Salaries and Wages Commission; N261,170,602 for the Fiscal Responsibility Commission; N159,745,000,315 for the Federal Ministry of Water Resources; N5,097,558,027 for the Federal Ministry of Justice; N1,363,636,403 for the Independent Corrupt Practices and Related Offences Commission; N37,330,762,421 for the Federal Capital Territory Administration.
The sum of N22,024,592,197 was approved for the Ministry of Niger Delta Affairs; N10,639,249,276 for the Federal Ministry of Youth and Sports Development; N11,204,210,256 for Ministry of Women Affairs; N156,172,307,765 for the Federal Ministry of Education; N134,591,025,027 for Federal Ministry of Health; N24,554,710,490 for Federal Ministry of Environment; N4,839,951,093 for National Population Commission; and N75,768,539,782 for the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development.
Meanwhile, the Senate President warned that the National Assembly would not accede to another request from the Executive to extend the capital implementation of the 2020 budget.
Lawan stated this in his remark after the upper chamber passed the N13.588 trillion budget for the 2021 fiscal year.
According to Lawan, the National Assembly’s approval granting an extension for implementation of the capital component of the 2020 budget last week, should therefore be fully utilised by Ministries, Departments and Agencies of Government.
He added that the extension of capital implementation of the 2020 budget till 31st March 2021; alongside the implementation of the 2021 budget starting in January 2021, would guarantee sufficient injection of funds into Nigeria’s economy.
“For Nigerians, this budget that has been passed in the National Assembly today is to ensure that the economy is supported fully through public expenditure because the economy of our country depends largely on public expenditure.
“The budget extension period for implementation of the 2020 budget, which we did last year, is to ensure that the funds that are available for 2020 are not lost.
“So, there will be two budgets running; funds from 1st January 2021, up to 31st March 2021; and then the implementation of the 2021 budget itself to start from January. That is an absolute fight against the recession we are suffering from.
“With a projected 3 per cent growth in our Gross Domestic Product (GDP) in the 2021 budget, we believe that the recession which Nigeria is in will be over before the end of the first quarter.”
Lawan, while urging the Executive arm of government to ensure the implementation of the 2020 budget till March 2021 as extended last week by the Legislature, warned that the National Assembly would reject any further extension request on the implementation of capital expenditure contained in the 2020 budget.
“I want to urge the executive arm of government, first to ensure that they implement the 2020 budget that will last up till 31st March 2021.
“There will be no extension after 31st March. Everyone must be on their toes in the Ministries, Departments and Agencies to ensure they implement the budget 2020.
“And for 2021, we have to do everything and anything possible to ensure that we implement the budget like we tried to do in 2020.
“I believe that the economy of Nigerians will receive the right kind of boost from the implementation of the two budgets,” the Senate President said.
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