…FG’s N13.98tn budget for 2022
…Naira/USD rate, N410.15
The House of Representatives has approved the 2022-2024 Medium Term Expenditure Framework/Fiscal Strategy Paper, giving the green light to the Executive to present the estimates of the 2022 budget to the Legislature.
President Muhammadu Buhari had forwarded the MTEF/FSP document to the National Assembly in July.
On Tuesday, the House at its plenary presided over by the Speaker, Rep. Femi Gbajabiamila, in Abuja, approved the MTEF/FSP report.
The document was laid before members by the Chairman, Committee on Finance, Rep. James Faleke, who also briefed the House on the findings and the recommendations.
The House approved the N13.98trillion proposed at the country’s budget for 2022 and several other parameters across the three years.
The report reads partly, “That the following sundry parameters in the 2022-2024 MTEF/FSP document be also approved: (a) Federal Government of Nigeria retained revenue of N8.36trillion; total Federal Government of Nigeria proposed expenditure of N13.98 trillion;
“(b) Fiscal deficit of N5.62 trillion (including GOEs);
“(c) New Borrowings of N4.89 trillion (including Foreign and domestic Borrowing), subject that the provision of the details of the borrowing plan be brought for approval by the National Assembly;
“(d) Statutory transfers, totalling, N613.4 billion;
“(e) Debt Service estimate of N3.12 trillion;
“(f) Sinking Fund to the tune of N292 billion;
“(g) Pension, Gratuities & Retirees Benefits of N567 billion;
“(h) Aggregate FGN Expenditure of N13.98 trillion; made up of Total Recurrent (Non-debt) of N6.21 trillion; Personnel Costs (MDAs) of N3.47 trillion; of Capital expenditure (exclusive of Transfers) N3.26 trillion; Special Intervention (Recurrent) amounting to N350 billion; and Special intervention (Capital) of N10billion.”
On daily crude oil production, the House approved 1.88mbpd, 2.23mbpd, and 2.22mbpd for 2022, 2023 and 2024 respectively “in view of average 1.93mbpd over the past three (3) years and the fact that a very conservative oil output benchmark has been adopted for the medium term in order to ensure greater budget realism.”
For the crude oil benchmark, the House approved the proposed oil price of USD$57per barrel for 2022 and USD$55 for 2023 and 2024 “based on oil forecast by the World Bank and consultation with the Nigerian National Petroleum Corporation.”
Similarly, the Exchange Rate of N410.15/US$ was approved for 2022-2024 as proposed by the executive arm of government, while the projected GDP growth rate of 4.20 per cent was also approved.
The projected inflation rate approved by the House is 13.00%.
Other recommendations approved by the House are listed below:
“That there should be a continuous review of the Fiscal Responsibility Act to ensure that all revenues are remitted to the Consolidated Revenue Fund (CRF) as at when due, in order to curtail frivolous deductions and diversion of funds by the Ministries Department Agencies.
“That all laws relating to mining businesses should be reviewed as a matter of urgency to ensure upward review of rates applied to royalties, ground rent and licenses renewal of all mining companies operating in Nigeria to ensure transparency in the collection of revenue by the relevant agencies of the government and also look into the issues of illegal mining activities by recommending stringent sanctions in the proposed new laws.
“That the Nigeria Customs Service should accelerate the process of installing scanners at all ports across the country to curb the issue of underpayment of custom duties on imported goods which has resulted in huge loss of revenue to the government and to further improve its activities at all borders across the country in order to curb the issues of smuggling across border areas;
“The Committee recommends urgent implementation of the Petroleum Industry Act (PIA) recently assented to by the President in order to curtail the problems of smuggling and round-tripping of petroleum products imported into the country to save the under-recovery cost.
“That the proposed revenue budget of the Government Owned Enterprises (GOEs) should be reviewed upward to show the reflection of their capabilities to generate more revenue as a result of the findings of the Committee.
“That the offices of the Accountant General (AGF), Auditor General of the Federation (AuGF) and Fiscal Responsibility Commission (FRC) be strengthened in the area of staffing and proper funding of its activities to ensure optimal performance of their duties in order to adequately monitor the remittances of all government revenues.
“That the Act establishing some MDAs be reviewed and amended as a matter of urgency to evidence a more nationalistic interest, as these amendments will assist to generate more revenue to the coffers of the government.
“That the federal government budget be reviewed and be purged of some agencies that demonstrated capacity to stand on their own without any recourse to Federal Government of Nigeria Budget for example; National Agency for Food and Drug Administration and Control (NAFDAC) and Nigerian College of Aviation Technology, Zaria (NCAT).”
