The Senate, on Wednesday, passed an executive communication from the President Muhammadu Buhari seeking the extension of the implementation of the capital aspects of the 2020 Appropriation Act, from December 31, 2020, to March 31, 2021.
This follows the request by the president, through the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, in a letter to the National Assembly on Tuesday asking for the extension to enable the executive to implement the capital aspect of the budget.
The President had pointed out that the outbreak of the coronavirus pandemic, prevented the ministries, department, and agencies of government from implementing the capital aspects of the budget.
Senate Leader, Yahaya Abubakar, had moved the motion for the extension of the implementation of the 2020 Appropriation Bill to December 31, 2020, and was seconded by Senate Minority Leader, Eyinnaya Abaribe.
The senate then resolved into committee of the whole to consider the Bill, in order to extend the implementation of the capital aspects of the 2020 Appropriation Act to March 31, 2020, after it went through first and second readings.
This was subsequently read the third time and passed, with the lawmakers amending section 12 of the 2020 Appropriation Act by adding a proviso that the implementation of the capital component of the 2020 budget be extended to March 2021.
This means that the two proposed fiscal documents, when signed into law, would run concurrently.
Senate President, Ahmad Lawan, after the approval, gave assurance to Nigerians that the extension of the 2020 Appropriation act did not alter the January to December budget cycle of budget implementation.
The Senate explained that it took the decision to extend the implementation of the capital components of the 2020 budget till March to ensure proper utilization of the funds already disbursed to the MDAs.
What the extension of the appropriation act means
- The extension of the 2020 Appropriation act means that the capital components of the budget, which could not be achieved due to the outbreak of the coronavirus pandemic, and led to a sharp drop in revenue and lockdown of the economy, would now see its implementation extended further.
- It also means that the 2 proposed fiscal documents, that is the 2021 Appropriation act and the extended 2020 Appropriation act, when signed into law, would run concurrently.
A Bill for an act to amend the 2020 Appropriation Act in order to extend the implementation of the capital aspects
of the Budget to 31st March 2021 and for related matters 2020 is read the Third Time and Passed.#TodayInSenatePlenary
— The Nigerian Senate (@NGRSenate) December 16, 2020