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Senate Approves More Loans for FG, Passes 2023 Budget

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CEM REPORT, FINANCE | The Senate at the close of plenary on Wednesday approved President Muhammadu Buhari’s request for an N819.54 billion domestic loan aimed at fixing the country’s infrastructure.

The President said the new loan will cater for the capital expenditure component of the 2022 budget

The total sum of N819, 536,937,813 is expected to cover the following ministries;

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Federal Ministry of Agriculture and Rural Development: N69,247,175,770

Federal Ministry of Works and Housing: N704,789,762,043

Federal Capital Territory: N30,000,000,000 and Federal Ministry of Water Resources: N15,500,000,000.

Recall that Buhari in a letter read by the President of the Senate, Ahmad Lawan, appealed for an amendment to the 2022 Acts expression clause 12, as passed and assented to.

He added that “The 2022 Appropriation Acts states, in line with the provisions of section 318 of the constitution of the Federal Republic of Nigeria, this Bill expires after 12 months starting from January, 1 to December 31, 2022, once assented to.

“The proposed 2022 appropriation supplementary budget submitted to National Assembly for consideration as well as recent 2022 capital releases to the MDAs are likely to be utilised before December 31st, 2022 due to the late release of the funds which will lapse if the capital implementation is not extended beyond December 2022.”

Lawan on his part said the extension of the implementation period of the 2022 budget to March 31, 2023, will provide the required time for implementation of the N819.5bn 2022 supplementary budget raised by the President.

Also at plenary, the Senate passed into law the Finance Bill 2022 following a third reading on the floor of the Senate.

[READ ALSO] Loans to Economy Records All-Time High in 2022

According to a statement, at the end of a plenary session on Wednesday, Senator Adeola Solomon moved the motion for the Senate to receive and consider the report on the Finance Bill, 2022 by the Senate Committee on Finance.

The move was seconded by Senator Isah Jibrin after which the bill was read for the third time and then passed.

The 2022 Finance Bill proposed amendments to some fiscal laws such as the capital gains tax, company income tax, Customs Excise Tariff Act, Federal Inland Revenue Service Act, personal income tax, and Stamp Duties Act.

Similarly, the Senate approved Nigeria’s 2023 Appropriation Bill.

This was consequent upon a motion moved by Senator Barau Jibrin that the Senate should receive and consider the report by the Committee on Appropriations, and this was seconded by Senator Yusuf A. Yusuf.

The report was presented after which the Senate resolved to the Committee of Supply to consider the report Clause by Clause.

Senate President Ahmad Lawan congratulated the lawmakers and urged FG to implement the 2022 Appropriations Act. He said:

“Congratulations to this very Distinguished Senate and let me commend all of us in this Ninth Senate for promising and delivering on our promise. This is our Fourth and last Budget before the expiration of our tenure.

“I want to take this to urge the Executive arm of government to implement the 2022 Appropriations Act. We expect total implementation.

“It should be total because this has been what this administration has always tried to do since we came in 2019 and therefore the country and people are better for it. Let me commend the National Assembly for passing the Finance Bill which also guides the implementations of the Appropriations that we pass.”  

Recall that in October, President Muhammadu Buhari presented the 2023 fiscal budget to the joint session of the National Assembly.

Buhari proposed an annual budget of N20.51 trillion for the year 2023, a 19.8% increase when compared to the N17.13 trillion approved for 2022 including the supplementary budget.

The 2023 appropriation bill, which was themed ‘Budget of Fiscal Sustainability and Transition’, total revenue available to fund the budget for the year estimated at N9.73 trillion, leaving a deficit of N10.78 trillion, representing 4.78% of the nation’s GDP and higher than the 3% threshold set by the Fiscal Responsibility Act 2007.

The highlight of the presented budget is given below:

A sum of N744.11 billion was earmarked for statutory transfers.

Non-debt recurrent costs stood at N8.27 trillion

Personnel costs at N4.99 trillion

Pensions, Gratuities, and Retirees’ benefits of N854.8 billion

Overheads of N1.11 trillion

Capital Expenditure of N5.35 trillion, including the capital component of statutory transfers.

Sinking fund of N247.73 billion to retire certain maturing bonds.

Debt service cost stood at N6.31 trillion.

 

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