President Muhammadu Buhari said yesterday it would cost the federal government N1.8 trillion in interest, if the National Assembly failed to approve N23.7 trillion in extra-budgetary spending.The President also said his government had made adequate provisions in the 2023 budget for the successful conduct of the forthcoming general elections and the transition programme.
Recall that Buhari had asked the National Assembly to approve the sum he said were funds provided by the Central Bank of Nigeria, CBN, through loans for emergencies in the space of 10 years.
The Senate had last week, suspended the request of the President after a rowdy session, as
Senators Betty Apiafi and Thompson Sekibo had argued that the request was not constitutional.
They also demanded that before the Senate could approve the request, it must have the details of what the funds were spent on.But speaking at the signing ceremony of the 2023 budget of N21.83 trillion at the Presidential Villa, Abuja, Buhari said he had no intention to contest the decision of the lawmakers.
He said: “I also urge the National Assembly to reconsider its position on my 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 three percent and the negotiated interest rate of nine percent and a 40-year repayment period on the securitised debt of the Ways and Means.”The President also accused the National Assembly of introducing N770.72 billion new projects into the 2023 budget proposal he submitted , adding that the national legislative body increased the provisions made by Ministries, Departments and Agencies, MDAs, by N58.55 billion.
He said the aggregate expenditure of N21.83 trillion was 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 respond to the havoc caused by the recent nationwide floods on infrastructure and agriculture sectors, and asked
the Minister of Finance, Budget and National Planning to 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, showed additional revenue 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,” he said.
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 would cooperate with the executive arm of government in this regard.”
He urged the National Assembly to reconsider its position on his proposal to securitize the Federal Government’s outstanding Ways and Means balance at the Central Bank of Nigeria, as reported by vanguardnews.
Buhari thanked the National Assembly for approving his request for an extension of its validity date to March 31, 2023.
He 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 had been made in the budget for the successful conduct of the forthcoming general elections and the transition programme.
According to him, “As I mentioned during the presentation of the 2023 Appropriation Bill, the budget was developed to promote fiscal sustainability, macroeconomic stability and ensure smooth transition to the incoming administration.
