President Bola Tinubu has raised the appropriation bill for the 2025 fiscal year from N49.7 trillion to N54.2 trillion, as announced on Wednesday.
The president communicated this increase through separate letters sent to both the Senate and the House of Representatives the previous day.
Senator Atiku Bagudu, the Minister of Budget and National Planning, clarified that the increase aims to secure additional revenue for the enhancement of the Bank of Agriculture and the Bank of Industry.
Bagudu further noted that the increment is intended to bolster the administration’s diversification initiative by allocating more funds to the solid minerals sector and infrastructure development.
However, Hon. Kingsley Chinda, a member of the House of Representatives, criticized the method of the increment's presentation, asserting that it should not have been delivered in letter form.
Senate President Godswill Akpabio read Tinubu’s letter during the Senate plenary, while Speaker Tajudeen Abbas presented it in the House of Representatives.
Tinubu attributed the N4.53 trillion increase in the appropriation bill to heightened revenues reported by various federal revenue-generating agencies.
He specified that the Federal Inland Revenue Service (FIRS) contributed an additional N1.4 trillion, the Nigeria Customs Service added N1.2 trillion, and other Government-owned Agencies (GOEs) generated N1.8 trillion.
The Ministry of Solid Minerals Development emerged as the primary beneficiary of the additional funds, receiving N1 trillion.
Initially, this ministry, led by Minister Dele Alake, was allocated N6 billion by the Budget Office for the 2025 fiscal year, which was later increased to N9 billion by the National Assembly's joint committee on Solid Minerals.
Following the reading of the letter, the Senate President directed the request to the Senate Committee on Appropriations for prompt review.
Akpabio announced that the review and approval of the budget would be finalized by the end of February.
In a letter, Tinubu stated, “I am writing to inform you of the availability of additional revenue totaling N4,530,479,970,637 and to suggest its allocation within the 2025 Appropriation Bill to enhance the budget’s alignment with the nation’s most urgent priorities and goals.
“This additional revenue, obtained from key agencies, presents a significant opportunity to tackle Nigeria’s pressing challenges and further its development agenda.”
He noted that Government-Owned Enterprises (GOEs) contributed an extra N1,823,879,970,637, while the Federal Inland Revenue Service (FIRS) generated N1,497,600,000,000.
Tinubu indicated that the federal government’s share of the revenue increase rose from N22.1 trillion to N25.1 trillion, with the Nigeria Customs Service (NCS) contributing N1,209,000,000,000.
The federal government’s share of the revenue increase also grew from N6.5 trillion to N9 trillion.
He remarked, “With this additional revenue, the total budget size of the 2025 appropriation bill will rise from N49.7 trillion to N54.2 trillion, reflecting our dedication to inclusive growth and security.”
The president recommended that the proposed additional revenues be allocated to the Ministry of Solid Minerals Development, the Bank of Agriculture, the Bank of Industry, and other essential sectors.
Tinubu proposed, “I suggest that these funds be directed towards the following transformative expenditure areas: Solid Minerals Sector, with N1 trillion allocated to support economic diversification by harnessing the potential of Nigeria’s extensive solid mineral resources, which remain an underutilized revenue source and a crucial component of non-oil growth.
“Recapitalization of the Bank of Agriculture (BoA) – N1.5 trillion. This initiative aims to transform Nigeria’s agricultural sector, ensure food security, and empower smallholder farmers and agribusinesses.”
Recapitalization of the Bank of Industry (BoI) is set at N500 billion, aimed at delivering essential support to small and medium enterprises (SMEs), fostering local manufacturing, and decreasing reliance on imports.
The allocation for Critical Infrastructure Projects (RHID Fund) amounts to N1.5 trillion, with N380 billion designated for irrigation development through the River Basin Development Authorities.
For Transportation Infrastructure, a total of N700 billion is proposed, which includes N300 billion for the construction and rehabilitation of vital roads and N400 billion for the development of light rail networks in urban areas.
The president has also proposed N50 billion for Border Communities Infrastructure, N250 billion for Military Barracks Accommodation, and N120 billion for Military Aviation.
In justifying the allocation of N1 trillion to the Ministry of Solid Minerals, Tinubu emphasized that it would enhance economic resilience and lessen dependence on the fluctuating oil sector by establishing alternative revenue sources.
Furthermore, he noted that this initiative would promote regional equity by facilitating development in resource-rich yet underserved regions, thereby strengthening rural economies.
He added that it would also aid in the processing and export of minerals, ultimately increasing foreign exchange earnings.
Tinubu stated that the recapitalization of the Bank of Agriculture would empower smallholder farmers and agribusinesses by improving their access to affordable credit. This initiative is anticipated to boost agricultural productivity and support agro-industrial value chains.
Moreover, he indicated that the bank's recapitalization would enhance export competitiveness by promoting the export of high-value crops and alleviating pressure on the naira.
In a similar vein, the N500 billion allocated for the recapitalization of the Bank of Industry, according to the president, is intended to provide affordable financing for innovation and entrepreneurship. He further asserted that it would stimulate industrial growth and bolster local manufacturing, thereby reducing unemployment and broadening the tax base through industrial expansion.
In the correspondence, he articulated that the allocation of N120 billion for Military Aviation will enhance Nigeria's aviation capabilities, ensuring that the military can effectively respond to emerging security threats.
A Philosophical Argument for Military Funding:
The cornerstone of a prosperous nation is its capacity to safeguard its citizens. Without security, no infrastructure, innovation, or progress can be realized or maintained.
The government bears a constitutional responsibility to protect lives and property, and military funding transcends mere financial considerations; it is a moral obligation.
By channeling resources into our armed forces, we demonstrate our commitment to eradicating terrorism, preserving the dignity of our populace, and fostering an environment conducive to economic growth.
This budget not only signifies our dedication to securing Nigeria in the present but also aims to establish a future where every citizen can live and prosper without fear.
This allocation strategy highlights the administration's commitment to promoting inclusive growth, tackling security issues, and embedding resilience within Nigeria's economic framework.
He further remarked that these investments will enhance stability by addressing significant infrastructure gaps, particularly in neglected areas, while bolstering national security through investments in agriculture, solid minerals, and manufacturing, thereby reducing dependence on oil revenues.
Stimulating economic growth: By improving infrastructure, supporting small and medium enterprises, and unlocking Nigeria's extensive economic potential.
He urged the National Assembly to adopt and incorporate these proposals into the 2025 Appropriation Bill, reflecting a collective commitment to national development.
He also expressed willingness to provide further information or clarification if needed.
Bagudu, who spoke to reporters shortly after bidding farewell to Tinubu at the presidential wing of Nnamdi Azikiwe Airport in Abuja, elaborated on the rationale behind the increased budget proposal. He noted, "You will recall that Mr. President submitted a N49 trillion budget to the National Assembly and legislated."
The legislative process progressed with ongoing discussions between the executive branch and the National Assembly. Both the National Assembly and the Economic Management Team continued to scrutinize all financial data.
During this examination, the Senate Committees on Appropriation, National Planning, and Finance determined that increased revenue could be generated by urging all institutions to enhance their efforts, with the Federal Inland Revenue Service affirming its capacity to exceed the previously submitted figures.
Additionally, it was concluded that government-owned enterprises and the customs service could also contribute more significantly to revenue generation.
As a result, an additional revenue of over N4.5 trillion was identified and presented to the president.
Bagudu noted that an adjustment to the Medium Term Expenditure Framework (MTEF) would be forthcoming.
He elaborated, stating, “When the budget was submitted, the MTEF was revised. The initially approved MTEF was based on a budget of less than N49 trillion, thus necessitating a consequential amendment to the MTEF.”
However, Chinda criticized the method of increasing the 2025 appropriation bill.
Chinda expressed that while he did not oppose the budget increase, he believed that budget presentations from the executive should not be delivered in the form of a letter.
In response, Deputy Speaker Benjamin Kalu asserted that he merely read a letter from Tinubu, emphasizing that the House could regulate its proceedings under Order 1, Rule 1.
Chinda remarked, “I just heard the deputy speaker deliver a commendable budget speech. However, I believe that is not the role of a parliamentarian, Mister Speaker. My point of order pertains to amending Section 80…”
Kalu interrupted, maintaining that he only read a letter and not a budget speech from the president.
Kalu clarified, “Please correct that; we did not present the budget on behalf of the executive. The executive provided us with a letter, and according to our rules, we are required to read the letter from Mr. President.”
Chinda asserted that the budget being submitted to the parliament should not be presented in the form of a letter.
He stated, “What I am emphasizing is that the budget presented to parliament does not come in the form of a letter. This is the crux of the objection. According to Section 83 of the Constitution, the president is required to present income and expenditure projections to parliament, which has been done previously.
“Therefore, what we received today as a letter is difficult to categorize. The procedure may not be appropriate. It is not merely an addendum.
“My esteemed colleagues, let us remember that the 2024 budget is still in progress and has not yet been finalized, and we are still seeking funds to support the 2024 budget, which is one of the reasons for the extension of its duration.
“If we have additional funds, there are appropriate areas for their application, which would ultimately benefit the country. As we look ahead to 2025, if we anticipate additional revenue, it is our responsibility to review the budget, allocate it judiciously, and return it to the executive.”
Chinda further contended that when the executive submits a budget, it is common for the legislature to increase a budget of N4 trillion to N5 trillion by the time the consideration is complete.
“However, the process and procedure we are following today are entirely unfamiliar to me. It does not align with either our constitution or the rules of the House,” Chinda insisted.
In contrast, Kalu maintained his position, asserting that the 2025 appropriation bill was still under consideration by the National Assembly.
He remarked, “Parliament operates through its committees. We cannot perform the duties of the appropriation committee during plenary sessions. If there is any matter concerning the budget of the Federal Republic of Nigeria, and we have received communication regarding it, it is our responsibility, particularly with the authority granted to this chair by Order 2, Rule 2.”
Kalu then requested, “Minority Leader, could you please read Order 1 Rule 2?”
Kalu examined the text, which stated, “The procedures within the House of Representatives, especially sub-rule two, shall govern all instances not addressed herein or by sectional or other directives, precedence, or established practices of the House through resolution.”
No comments:
Post a Comment