President Muhammadu Buhari has cited the need to cushion the harsh socio-economic realities occasioned by the outbreak of coronavirus, as well as meeting the health challenges posed by the situation, as reasons for reviewing the 2020 Budget.
President Buhari explained his reasons for proposing the Appropriation (Repeal and Amendment) Act, 2020, at the State House yesterday during the signing of the new budget which was passed by the National Assembly in June.
He, however, revealed that ministries, departments and agencies would be given 50 per cent of their capital allocations by the end of the month.
The N10.81 trillion Appropriation (Repeal and Amendment) Act, 2020, was N216 billion above the original 2020 Budget of N10.59 trillion.
The signing was witnessed by the Vice-President, Professor Yemi Osinbajo (SAN); Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha; and the Chief of Staff to the President, Professor Ibrahim Gambari.
Also present at the brief ceremony were the Senate President, Ahmed Lawan; and Speaker Femi Gbajabiamila.
Others were the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed; Minister of State, Budget and National Planning, Clement Agba; Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele; Director-General, Budget Office of the Federation, Dr Ben Akabueze; Senior Special Assistant to the President on National Assembly Matters (Senate), Senator Babajide Omoworare; and his counterpart for the House of Representatives, Hon. Umar el-Yakub.
While thanking the National Assembly for the prompt review and passage of the amendments to the 2020 Appropriation Act, President Buhari recalled that he signed the 2020 Appropriation Act into law on Tuesday, December 17, 2019.
The president said the 2020 Amended Budget underscores his administration’s firm commitment to effectively contain the spread of Covid-19 and protect the lives and livelihood of our people.
President Buhari directed that efforts be made to ensure effective implementation of the budget to realise its laudable objectives, considering recent budget implementation challenges.
He also directed that all ministers are to ensure that their ministries, departments and agencies intensify capital project delivery efforts and fully cooperate with the Ministry of Finance, Budget and National Planning to achieve the laudable objectives of the budget.
He affirmed that government had made some progress in the implementation of the Appropriation Act 2020, noting that as at May 31, 2020, the sum of N253.33 billion has been released for the implementation of capital projects.
Buhari revealed that the Federal Ministry of Finance, Budget and National Planning is in the process of effecting budgetary releases that will ensure that all ministries, departments and agencies receive at least 50 per cent of their amended capital budgets by the end of this month.
“However, it became necessary to revise the Appropriation Act 2020 in response to recent developments, in particular, the Covid-19 pandemic. Crude oil prices in the world market declined sharply from a high of $72.20 per barrel in January 2020 to below $20 per barrel in April 2020, and have since remained around $40 per barrel.
“Nigeria’s crude oil production quota has been reduced as part of the efforts of the Organization of Petroleum Exporting Countries (OPEC) to strengthen the oil market. Global trade has generally been disrupted as almost all economies were locked down for protracted periods in the wake of the Covid-19 pandemic.
“All these developments are plunging the global economy into recession, and Nigeria has not escaped the impact of this. In effect, the assumptions underlying the 2020 Appropriation Act are no longer sustainable.
“It is therefore imperative to adjust our expected revenues, considering the widespread disruptions in domestic and international economic activities due to the Covid-19 pandemic, and the containment measures taken in response thereto.
“Understandably too, we needed to reallocate resources in the Appropriation (Repeal and Amendment) Act, 2020 to ensure effective implementation of required health and emergency measures, as well as to mitigate the negative socio-economic effects of the COVID-19 Pandemic.
“The 2020 Amended Budget, which I have just signed into law today, underscores our administration’s firm commitment to effectively contain the spread of Covid-19 and protect the lives and livelihood of our people. With these budget amendments, as well as our recently launched N2.3 trillion stimulus programme, we are well-positioned to safeguard the economy.
“Considering recent budget implementation challenges, I have directed that efforts be made to ensure effective implementation of the Appropriation (Repeal and Amendment) Act, 2020 in order to realise its laudable objectives.
“All ministers are to ensure that their ministries, departments and agencies intensify capital project delivery efforts and fully cooperate with the Ministry of Finance, Budget and National Planning to achieve the laudable objectives of the budget.
“We have, nevertheless, made some progress in the implementation of the Appropriation Act 2020. As at 31st May, 2020, the sum of N253.33 billion has been released for the implementation of capital projects.
“The Federal Ministry of Finance, Budget and National Planning is in the process of effecting budgetary releases that will ensure that all ministries, departments and agencies receive at least 50 per cent of their amended capital budgets by the end of this month.
“The Appropriation (Repeal and Amendment) Act, 2020, that I have just signed into law, provides for aggregate expenditures of N10.81 trillion, which is an increase of N216 billion over the level of expenditure initially proposed in the 2020 Appropriation Act. The Minister of Finance, Budget and National Planning will provide further details of the 2020 Amended Budget”, he explained.
Speaking to State House Correspondents after the ceremony, the President of the Senate, Senator Lawan, said the National Assembly had to pass the revised budget without delay, in order to cushion the harsh effects of the Covid-19 pandemic on Nigerians.