President Bola Tinubu on Wednesday said he would soon transmit the 2024 supplementary Appropriation Bill to the National Assembly, to enable his administration to continue in its task of providing good governance to Nigerians.
He stated that the budget proposal, aimed at fostering prosperity, development, and progress, would fast-track the ongoing positive stride of the government.
The President hinted this shortly after flagging off the old national anthem “Nigeria, We Hail Thee,’ at a joint sitting of the Senate and the House of Representatives in Abuja.
At the joint session of the National Assembly marking the Silver Jubilee Of Nigeria’s 4th Republic, Tinubu enjoined the lawmakers to continue to dedicate themselves to the service of their fatherland.
The President was accompanied on the visit to the National Assembly Complex by Vice President, Kashim Shettima, Secretary to the Government of the Federation, George Akume, and Governor of Borno State, Babagana Zulum, and his son, Seyi Tinubu, among other dignitaries.
Expressing his readiness to deliver on his mandate, Tinubu reminded the lawmakers that the task of nation-building is a collective one involving all citizens, adding that as representatives of the people, they carry a huge burden of responsibility.
He said, “Charting a new path is a question of programme for development. I submitted the 2024 budget to you and you expeditiously passed it. We are walking the talk. I will soon bring the 2024 supplementary Appropriation Bill. Building this nation so that the future of our grandchildren will be filled with prosperity, development and progress is a step in the right direction.”
He also urged the lawmakers to look inward and contribute their quota to nation-building, noting that no foreign aid can give Nigerians the country they can be proud of.
He explained, “Our friends, old and new, to every Nigerian, I say congratulations for 25 years of unbroken democracy. Out of respect, I want to say thank you very much for bringing us to this stage. For building the institution, for building this country.
“You are first and foremost leaders that speak for our people. And you have been at the forefront of this institution. The hallowed chambers represent our consciousness of freedom and sense of belonging.
“You see, this is our diversity representing all parts and how we blend to be brothers and sisters. Without this House, probably I may not have found the path to the presidency. I started from here. And that is why I am giving my respect this morning to you, to please continue to collaborate, work together, and build our country.
“Nobody, no aid, no other institution or personality will help us unless we do it ourselves. No number of aid coming from foreign countries or any other nation can do it. They (foreign nations) take care of themselves first. Let us work together to build our nation, not only for us but for generations yet unborn,” he added.
On January 1, 2024, Tinubu signed the N28.7tn 2024 Appropriation Bill into law after rigorous checks by the National Assembly and budget defence by Ministries, Department and Agencies.
The budget size was an increase of N1.2tn from N27.5tn proposed months earlier by the president.
Speaking after signing the document, the president said the implementation of the budget would be “efficiently pursued and vigorously monitored”.
“All the institutional mechanisms shall be held to account in ensuring diligent implementation,” he said
Some of the key estimates are capital expenditure, N10tn; recurrent expenditure, N8.8tn; debt service, N8.2tn, and statutory transfers, N1.7tn.
However, fluctuations caused by the free fall of the naira, revenue instability and improved oil prices have affected financial projections made by the government.
The new plan by the government is also in tandem with recommendations by the International Monetary Fund to pass a supplementary budget to accommodate the proposed minimum wage increase for workers.
This is because the negotiated amount may surpass the budgeted amount in the original 2024 budget.
“The authorities noted that a supplementary budget may be needed to accommodate the outcome of the ongoing wage structure negotiations which may exceed what they had included in the 2024 budget,” the international body stated in a report this month.
In the 2024 budget, the government allocated N6.48tn for personnel costs but the international lender posits that the amount may be insufficient.
The IMF further noted that the country’s budget deficit for 2024 is expected to surpass projections, owing to implicit subsidies for fuel and electricity alongside rising interest expenses on debt.
The PUNCH also reported the Red Chamber plan to revisit the budget following the incessant fall of the naira against the United States dollar.
Proffering reasons for a review, the Chairman of the Senate Committee on Appropriation, Solomon Adeola, in an interview said, “Yes, the budget was indeed passed at N800 to a dollar but as we speak, it’s no longer visible as the dollar currently stood at N1450 to a naira.
“And I can tell you that there is a need for us to revisit the budget as the variables upon which the budget is predicated are no longer there. So all we need to do is just take our time and do some internal workings within the landing cost of petroleum product per litre of fuel.
“After this, we can now collaborate with the current budget that we have so that we can give NNPC what the actual figure for this landing cost will be, and then any savings arising from that can be planned upon for a supplementary budget or reallocation of some project within the budget,” he added
Commenting on the issue, financial experts also affirmed that the passage of a supplementary budget has become necessary following significant changes in government projections.
The Group Managing Director of Cowry Asset Management Limited, Johnson Chukwu, said it was difficult to speculate a budget that the content is not known.
He said, “It is nearly impossible to talk about the supplementary budget because we do not know the revenue projection or the expenditure projection. We do not even know if its going to be a surplus budget or a deficit budget.
“The direction of it would determine the impact or what we say about it. I advise we wait for the budget to be drafted.”