The Nigerian Senate on Thursday, November 30, 2023 began debate on the general principles of the 2024 Appropriations Bill, presented by President Bola Ahmed Tinubu for consideration and approval of the National Assembly.
The bill was sponsored by Senator Michael Opeyemi Bamidele (APC- Ekiti State)
Opeyemi leading debate on the general principles of the bill said the bill was deemed to have been read the first time by virtue of its being laid before the Joint Session of the National Assembly on November 29.
Senator Bamidele said the bill seeks to authorize the issue out of the Consolidated Revenue Fund of the Federation total sum of 27.5 trillion for the year ending 31st December 2024.
He listed major highlights of the budget to include oil price benchmark of 77.96 dollars per barrel and baily oil production estimate of 1.78 million barrels per day, of condensates of 300,000 to 400,000 barrels per day and an exchange rate of 750 naira to the dollar.
The Lawmaker said that based on the fiscal assumptions and parameters, total federally-collectible revenue was estimated at N16.87 trillion in 2024, while total federally distributable revenue was estimated at N11.09 trillion in 2024.
Senator Bamidele who is the majority leader of the senate, said total revenue available to fund the 2024 Federal Budget was estimated at N9.73 trillion.
This, he said includes the revenues of sixty-three Government-Owned Enterprises, while oil revenue was projected at N1.92 trillion, non-oil taxes estimated at N2.43 trillion.
He said Federal Government independent revenues was projected to be N2.21 trillion.
Senator Bamidele said other revenues were N762 billion, while the retained revenues of the GOEs amount to N2.42 trillion.
He said from the total N27.5 trillion proposed for 2024, statutory transfers were N744.11bilion billion. while non-debt recurrent costs were N10.26 trillion and personnel Costs N4.99 trillion.
The Lawmaker also said that pensions, gratuities and retirees’ benefits were projected to be N854.8 billion while overheads was N1.11 trillion.
He said capital expenditure of N8.7 trillion, including the capital component of statutory transfers, debt service of N8.25 trillion and sinking fund of N243.73 billion was proposed to retire certain maturing bonds.
Senator Bamidele said from the the scenario, recurrent expenditure was still too high constituting over 43 per cent of the total budget outlay, adding that it was expected that the total fiscal operations of the Federal Government would result in a deficit of N9.8 trillion, representing 3.88 per cent of estimated GDP.
This, he said was above the three per cent threshold set by the Fiscal Responsibility Act, 2007.
He said to finance the deficit was to engage in new borrowings totalling N7.83 trillion and N294.49 billion from privatization proceeds adding that the deficit would also be financed from N1.06 trillion drawn from bilateral, multilateral loans secured for specific development projects programmes.
Senator Bamidele, however, said there was a growing concern over continued borrowing, but the administration resorted to it to finance fiscal gaps.
“But let me state here that the debt level of the Federal Government is still within sustainable limits. Very importantly, these loans are used to finance critical development projects and programmes aimed at improving our economic environment and ensuring effective delivery of public services to our people.”
He urged the lawmakers to approve the second reading of the Appropriation Bill, 2024 for consideration by the appropriation committee and its sub-committees.
Contributing, Senator Osita Ngwu (PDP-Enugu)said President Bola Tinubu has fulfilled his campaign promises with actions by inputting issues of food security and poverty alleviation in the budget estimates.
He said there was the need to ensure a review of the Petroleum Industry Act(PIA) to ensure the continuous ramp-up of oil production to fund the deficit in the budget.
All other senators, who made contributions in day one of the debate commended President Tinubu for the budget, saying it was indeed a budget of renewed hope.
They called for full implementation of the budget by the executive when approved.
The debate on the budget proposal will likely end on Friday or next week Tuesday given the number of senators who may want to contribute.
House of Representatives
Likewise, the House of Representatives also commenced debate on the Bill.
The debate is seeking to authorise the issuance from the Consolidated Revenue Fund of the Federation the total sum of N27.5 Billion Naira.
After various contributions to the debate, the House passed the 2024 appropriation bill for first reading.
The House leader, Professor Julius Ihonvbere, laid the bill for the second reading.
He stated that the Budget of renewed hope has been crafted to address insecurity, strengthen the growing Economy as well as create an enabling Environment for Education among others.
Contributing to the debate, Hon Ahmed Jaha said that maintained that effective oversight on Ministries Department and Agencies of Government by appropriate House Committees, and the timely release of funds will enable the full implementation of the Budget.
For his part the Chief whip of the House, Usman Kumo, said that the most interesting aspect of the President’s presentation was the priority to security.
For Sada Soli, the resolve by the President to block leakages is vital. and the need to address problems in IPPIS to address personnel costs.
For Bello Elrufa’i, the key to reducing waste in government is the implementation of the Steve Oronsanye’s report.
He said that the government was spending so much on serving of to many government agencies.
Other lawmakers also contributed to the debate.
The House thereafter adjourned to Friday 1st December for the continuation of the debate.
