President Muhammadu Buhari on Tuesday signed the N21.83 trillion budgetary provisions for 2023 along with the N819.5 billion 2022 Supplementary Appropriation Bill into law.
He appended his signature to the budget few minutes past 10a.m at the Presidential Villa, Abuja, in the watchful eyes of Vice President Yemi Osinbajo; the Senate President, Ahmad Lawan; Speaker of the House of Representatives, Femi Gbajabiamila, among other top government functionaries.
Significantly, the 2023 budget will go down history as the last budget President Buhari would assent to before leaving office in May 2023.
He said the budget was adequately planned to capture provisions for the general elections which kicks off effectively by February, this year.
Breaking the budgetary provisions down, Buhari said the aggregate expenditures of N21.83 trillion has an increase of N1.32 trillion over the initial executive proposal for a total expenditure of N20.51 trillion.
He explained that the 2022 Supplementary Appropriation Act would enable the administration to respond to the havoc caused by the recent nationwide floods on infrastructure and agriculture sectors.
As it is customary, he said the Minister of Finance, Budget and National Planning will subsequently provide more details of the approved budget and the supporting 2022 Finance Act.
“We have examined the changes made by the National Assembly to the 2023 executive budget proposal.
“The amended fiscal framework for 2023 as approved by the National Assembly shows additional revenues of N765.79 billion, and an unfunded deficit of N553.46 billion.
“It is clear that the National Assembly and the executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified.
“I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion. The National Assembly also increased the provisions made by ministries, departments and agencies (MDAs) by N58.55 billion.”
President Buhari said his decision to sign the 2023 Appropriation Bill into law as passed by the National Assembly was to enable its implementation commence without delay, considering the imminent transition process to another democratically elected government.
He, however, directed the Minister of Finance, Budget and National Planning to engage with the legislature to revisit some of the changes made to the executive budget proposal, expressing the hope that the National Assembly will cooperate with the executive arm of government in this regard.
He urged the National Assembly to reconsider its position on his proposal to securitise the Federal Government’s outstanding Ways and Means balance at the Central Bank of Nigeria (CBN).
“As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.
“I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.
“Failure to grant the securitisation approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3% and the negotiated interest rate of 9% and a 40- year repayment period on the securitised debt of the Ways and Means.”
There was uproar at the National Assembly over the passage of N23.7 trillion Ways and Means advances collected by the Federal Government from the CBN in the last ten years.
President Buhari had in a letter read at the National Assembly sought for restructuring of the N22.7 trillion Ways and Means advances collected from CBN within the last ten years in addition to N1 trillion to be collected as fresh domestic loan.
To ensure more effective implementation of the 2022 capital budget, President Buhari thanked the National Assembly for approving his request for an extension of its validity date to March 31, 2023.
The president directed the Ministry of Finance, Budget and National Planning to work towards early release of the 2023 capital votes to enable ministries, departments and agencies commence the implementation of their capital projects in good time to support efforts to deliver key projects and public services as well as improve the living conditions of Nigerians.
Reiterating that the 2023 budget was developed to promote fiscal sustainability, macroeconomic stability and ensure smooth transition to the incoming administration, the president said it was also designed to promote social inclusion and strengthen the resilience of the economy.
He pledged that adequate provisions have been made in the budget for the successful conduct of the forthcoming general elections and the transition programme.
On achieving revenue targets for the budget, the president directed MDAs and government owned enterprises (GOEs) to intensify their revenue mobilisation efforts, including ensuring that all taxable organisations and individuals pay taxes due.
To achieve the laudable objectives of the 2023 budget, the president said relevant agencies must sustain current efforts towards the realisation of crude oil production and export targets.
“To augment available fiscal resources, MDAs are to accelerate the implementation of public private partnership initiatives, especially those designed to fast-track the pace of our infrastructural development.
“This, being a deficit budget, the associated borrowing plan will be forwarded to the National Assembly shortly.
“I count on the cooperation of the National Assembly for a speedy consideration and approval of the plan.”
On the Finance Bill 2022, the president expressed regret that its review as passed by the National Assembly is yet to be finalised.
“This is because some of the changes made by the National Assembly need to be reviewed by the relevant agencies of government. I urge that this should be done speedily to enable me to assent into law,” he said.
The president thanked the Senate President, the Speaker of the House of Representatives, and all the distinguished and honourable leaders and members of the National Assembly for the expeditious consideration and passage of the Appropriation Bill.
He also recognised the roles played by the Ministers of Finance, Budget and National Planning, the Budget Office of the Federation, the Senior Special Assistants to the President (Senate and House of Representatives), the Office of the Chief of Staff, as well as all those who worked tirelessly and sacrificed so much towards producing the 2023 Appropriation Act.
In his reaction shortly after the budget was signed, Senate President Ahmad Lawan said the signing of the 2023 and three appropriation bills by Mr. President today marked the fourth consecutive signing of the annual appropriations passed by the-ninth National Assembly.
He commended members of the National Assembly for this feat.
“When we came in, we promised that we’re going to pass the budgets, the annual budgets before the end of each year. And we have kept that promise by the grace of God. Nothing can be better than this, because this is one feat that has influenced even states, many states rushed to ensure that they passed and assent to their annual budgets before the end of the year.
“Let me also say that the reform in bringing the Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF & FSP), the budget, the appropriation bill, the finance bill, I think is a worthwhile development that should be continued”.
Lawan admitted that they didn’t do as they had wished to do.
“But I think at the risk of sounding immodest, the ninth National Assembly has passed the Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF & FSP), at normal time, passed the appropriation bill, passed the finance bill. And of course, we are very glad that we have been able to do that”, he said.
Meanwhile, Speaker of the House of Representatives, Femi Gbajabiamila, while reacting on adjustments in the budget, said it behooves the National Assembly, where it dims it necessary to adjust figures, either downwards or upwards. And that’s exactly what they have done. (Daily Independent)
