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Economy & Politics

President Buhari signs 2021 budget of N13.58 trillion

President Muhammadu Buhari has signed the 2021 Appropriation bill of N13.5 trillion into law.

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Buhari sacks DG National Directorate of Employment, Nasiru Argungu

President Muhammadu Buhari has signed the 2021 Appropriation Bill of N13.588 trillion into law today, 31st December 2020.

The budget estimate increased by N505.61 billion from the initial N13.082 billion presented by the President to the National Assembly earlier in October.

READ: National Assembly ready to pass 2021 Budget before end of 2020 – Senate President

Breakdown

  • Recurrent Expenditure – N5.64 trillion
  • Capital Expenditure – N4.125 trillion
  • Debt Servicing – N3.324 trillion
  • Statutory transfer – N496.528 billion

READ: Nigeria records debt service to revenue ratio of 99% in first quarter of 2020.

Nairametrics had reported that the Nigerian Senate agreed to pass the appropriation bill of N13.588 trillion, indicating an increase of 31.9% from N10.3 trillion approved for the 2020 fiscal year.

The parameters & fiscal assumptions underpinning the 2021 appropriation bill

  • Benchmark oil price of 40 US Dollars per barrel.
  • Daily oil production estimate of 1.86 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day).
  • Exchange rate of N379 per US Dollar.
  • GDP growth projected at 3.0%
  • Inflation closing at 11.95%

READ: House of Reps calls for larger capital projects for the Army in 2021

What you should know

  • Recurrent expenditure (N5.64 trillion) represents 41.5% of the total budgeted amount while the N4.125 trillion budgeted for capital expenditure represents 30.4% of the total budget.
  • The 2021 budget is tagged “Budget of Economic Recovery and Resilience”.
  • Oil revenue for the year is projected at N2.01 trillion, while Non-oil revenue is estimated at N1.49 trillion.

READ: Electoral Reform: Introduction of technology enhances credibility of elections – INEC

What this means

The signing of the bill before the end of the year indicates that the budget will run from January 1st to December 31st, 2021.

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    Business News

    MDAs did not remit N3 trillion to Consolidated Revenue Fund in 6 years – Senate

    Senate Committee investigations showed that MDAs were operating under illegalities in relation to funds remittance to the CRF.

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    The Nigerian Senate stated that Ministries, Departments, and Agencies (MDAs) did not remit over N3 trillion to the Consolidated Revenue Fund (CRF) of the Federal Government between 2014 and 2020.

    This was disclosed by Chairman, Senate Committee on Finance, Senator Solomon Adeola (APC – Lagos), in a statement on Sunday in Abuja.

    The lawmaker disclosed this after the Senate’s investigation on the failure to remit 1% stamp duty by MDAS within the same time period, which saw the Minister of Finance, Zainab Ahmed and the DG of Budget Office, Ben Akabueze, present themselves to the committee.

    According to the Senate Committee, investigations revealed that MDAs were operating under illegalities in relation to funds remittance to the Consolidated Revenue Fund, citing that revenue meant to be remitted may have been wasted.

    READ: FG probes NPA over N165 billion unremitted surplus, suspended MD responds

    What the senator said on unremitted CRF

    “The committee decided to probe the revenue remittances by agencies of government.

    The government cannot continue to borrow yearly while the revenue from agencies that the government is financing with the borrowings are spent contrary to the laws of the land.

    From submissions already made and calculations from the Fiscal Responsibility Commission, about 60 Government-Owned Enterprises (GOEs), may have about N3 trillion of government revenue still unremitted in their coffers. Or already spent on frivolous expenditure contrary to the Constitution and FRA 2007.

    We cannot continue to run government business as we used to do in this time when there are huge demands for government to fund needed infrastructure and other socio-economic programmes,”  Senator Adeola said.

    The Finance Minister told the Senate Committee that the FG is considering an approach to calculate and deduct the operating charges from sources before remitting to MDAs.

    READ: FG generates over N1.4 trillion from operating surplus

    In case you missed it

    • Socio-Economic Rights and Accountability Project (SERAP) has asked President Muhammadu Buhari to probe the reported N39.5 billion duplicated and mysterious projects inserted in the 2021 budget.
    • This comes as a report by BudgIT revealed 316 duplicated capital projects totalling N39.5 billion, a 14% increase to the security sector allocation with no audit done in 5 years and many others.

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    Economy & Politics

    2021 Budget: SERAP asks Buhari to probe N39.5 billion mysterious, duplicated projects

    SERAP has asked President Muhammadu Buhari to probe the reported N39.5 billion duplicated and mysterious projects inserted in the 2021 budget.

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    SERAP asks Buhari to probe N39.5 billion duplicated, mysterious projects

    Socio-Economic Rights and Accountability Project (SERAP) has asked President Muhammadu Buhari to probe the reported N39.5 billion duplicated and mysterious projects inserted in the 2021 budget.

    This is to know if public funds have been diverted in the guise of implementing the projects and prosecute those allegedly involved including those from the executive and the National Assembly.

    The request from SERAP follows a report from BudgiT last week, where they alleged that there are 316 duplicated capital projects worth N139.5 billion in the 2021 budget.

    This disclosure is contained in a public statement issued by SERAP on Sunday, May 9, 2021, and can be seen on its website.

    SERAP said that the investigation of the alleged duplicated and mysterious projects, which are part of the 2021 appropriation bill of N13.588 trillion, should establish whether public funds have been mismanaged, diverted or stolen in the guise of implementing these projects.

    READ: SERAP asks NASS leadership to probe missing N4.4 billion, threaten legal action

    What SERAP is saying in its letter

    In the letter dated 8th May 2021 and signed by SERAP, Deputy Director, Kolawole Oluwadare said: “The misallocation of public funds for duplicated and mysterious projects has seriously undermined the ability of the indicted MDAs, and the government to ensure respect for Nigerians’ human rights through developing and implementing well-thought-out policies, plans, and budgets.”

    The letter from SERAP partly reads, “BudgIT had in a report last week stated that there are 316 duplicated capital projects worth N39.5 billion in the 2021 budget. The duplicated and mysterious projects are contained in the 2021 appropriation bill of N13.588 trillion signed into law in December 2020.”

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    These damning revelations suggest a grave violation of the public trust, and Nigerians’ rights to education, health, water, sanitation, and a clean and satisfactory environment because the indicted MDAs have misallocated public funds at the expense of the people’s access to basic public services, and enjoyment of rights.”

    READ: SERAP gives FG 7 days to disclose details of payment of N729bn to 24.3m Nigerians

    SERAP urges you to ask the heads of the MDAs involved to explain why they allegedly failed to ensure strict compliance with constitutional and international standards of transparency and accountability in the preparation, processes and decisions on their budgets, and to return any misallocated public funds to the public treasury.”

    Investigating and prosecuting any allegations of mismanagement, diversion and stealing of public funds budgeted for the 316 duplicated and mysterious projects would allow your government to use the budget to effectively promote Nigerians’ access to essential public goods and services.

    Publishing the ‘implementation status’ of the duplicated and mysterious projects would allow Nigerians to hold their government to account in the spending of public funds. This is particularly true for marginalized and excluded groups, such as people living in poverty, women, children, and persons with disabilities, as the budget has a disproportionate impact on their welfare.”

    READ: SERAP sues Buhari over FG’s plan to borrow N895bn from dormant accounts, unclaimed dividends

    We would be grateful if the recommended measures are taken within 14 days of the receipt and/or publication of this letter. If we have not heard from you by then, the Incorporated Trustees of SERAP shall take all appropriate legal actions to compel your government to comply with our request in the public interest.” 

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    SERAP also urges you to direct Mrs Zainab Ahmed, Minister of Finance Budget and National Planning to publish full details of current ‘implementation status’ of the duplicated and mysterious projects, and any spending on the projects to date, including the 115 projects inserted in the budget of the Ministry of Health; the 23 projects inserted in the budget of the Ministry of Education, and 10 projects inserted in the budget of the Ministry of Water Resources.

    READ: Instruct EFCC, ICPC to monitor spending on Coronavirus, group tells Buhari

    The following ministries are reportedly involved in the duplicated and mysterious projects: Ministry of Health with 115 projects; Ministry of Information and Culture with 40 projects; Ministry of Agriculture and Rural Development with 25 projects; Ministry of Education with 23 projects; Ministry of Transportation with 17 projects; and Ministry of Science and Technology with 17 projects.”

    Others are the Ministry of Environment with 13 projects; Ministry of Power with 11 projects; Ministry of Labour and Employment with 11 projects, and Ministry of Water Resources with 10 projects.”

    The letter was copied to Mr Malami; Professor Bolaji Owasanoye, Chairman Independent Corrupt Practices and Other Related Offences Commission (ICPC); Mr Abdulrasheed Bawa, Chairman, Economic and Financial Crimes Commission (EFCC); and Mrs Ahmed, the Finance Minister.

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