President Muhammadu Buhari has asked the National Assembly to remove N887.99 billion worth of projects inserted into the 2022 budget.
The president, who identified over 130 projects in the budget that should be deleted, also queried the lawmakers for including their own expenditure (of projects worth 16 billion) in the budget of the Executive.
This, he said, negates the principles of separation of powers and financial autonomy of the Legislature.
Mr Buhari’s request was contained in a letter to the National Assembly seeking amendments to the 2022 Appropriation Act where he also asked the lawmakers to approve N2.55 trillion to fund subsidy in 2022.
The letter was read out at the start of plenary in both the Senate and House of Representatives.
Mr Buhari’s request to the National Assembly comes about two months after he queried them for making worrisome changes to the 2022 budget.
Some of the changes, he had noted, are the increase in the federal government’s projected ‘Independent Revenue’ by N400 billion; for which, he said, the justification is yet to be provided.
In the letter, the president said it was imperative to remove all capital projects that were replicated in the 2022 Appropriation Act.
He identified 139 of the 254 projects in the budget totaling N13.24 billion to be deleted.
He also emphasised the need to reinstate four capital projects of N1.4 billion in the Executive Proposal for the Federal Ministry of Water Resources; and N22.0 billion cut from the provision for the Sinking Fund to retire mature loans needed to meet government’s obligations under already issued bonds.
He explained that N106.1 billion has been earmarked for capital expenditures and N43.8 billion for recurrent expenditure and then asked the lawmakers to make room for the amendments by removing inserted projects.
“I, therefore, request the National Assembly to make the above amendments without increasing the budget deficit.
“I urge you to roll back some of the N887.99 billion of projects earlier inserted in the budget by the National Assembly to accommodate these amendments,” part of the letter read.
Mr Buhari also asked the lawmakers to restore the provisions made for various key capital projects in the 2022 Executive Proposal that were cut by the National Assembly.
This, he said, is to ensure that critical ongoing projects that are cardinal to this administration, and those nearing completion, do not suffer a setback due to reduced funding.
“It is equally important to reinstate the N25.81 billion cut from the provision for the Power Sector Reform Programme in order to meet the Federal Government’s commitment under the financing plan agreed with the World Bank.
“In addition, it is necessary to reinstate the four capital projects totaling N1.42 billion in the Executive Proposal for the Federal Ministry of Water Resources that were removed in the 2022 Appropriation Act.
“Furthermore, there is critical and urgent need to restore the N3 billion cut from the provision made for payment of mostly long outstanding Local Contractors’ Debts and Other Liabilities as part of our strategy to reflate the economy and spur growth.
“You will agree with me that the inclusion of National Assembly’s expenditures in the Executive budget negates the principles of separation of powers and financial autonomy of the legislature. It is, therefore, necessary to transfer the National Assembly’s expenditures worth N16.59 billion in the Service Wide Vote to National Assembly Statutory Transfer provision.”
The lawmakers were also asked to reinstate the N22.0 billion cut from the provision for Sinking Fund to Retire Mature Loans to ensure that government can meet its obligations under already issued bonds as and when they mature.
Mr Buhari queried the National Assembly for cutting the provisions of the recurrent spending of Nigeria’s Foreign Missions, which he said, “are already constrained, are capable of causing serious embarrassment to the country as they mostly relate to office and residential rentals.”
“Similarly, the reductions in provisions for allowances payable to personnel of the Nigerian Navy and Police Formations and Commands could create serious issues for government. It is therefore imperative that these provisions be restored as proposed.
“It is also absolutely necessary to remove all capital project is that replicated in the 2022 Appropriation Act; 139 out of the 254 such projects totaling N13.24 billion have been identified to be deleted from the budget.”
Some significant and non-mandate projects were introduced in the budgets of the Ministry of Transportation, Office of the Secretary to the Government of the Federation and Office of the Head of Civil Service of the Federation, the president complained.
He also said there are several other projects that have been included by the National Assembly in the budgets of agencies that are outside their mandate areas. To this regard, he directed the Ministry of Finance, Budget and National Planning to work with the relevant committees to comprehensively identify and realign all such misplaced projects.
The lawmakers are expected to consider the proposed amendments by the president on another legislative day.
