Senate considers Buhari’s N180bn virement request

Nigeria senate

The Nigeria Senate on Wednesday gave consideration to President Muhammadu Buhari’s request for legislative approval for virements totalling N180.8bn in the 2016 budget to cater for some sectors of the economy.
The Senate referred the request to its Committee on Appropriations and Finance, which was mandated to report back to the lawmakers in one week.
In the virement request, which was read in both chambers of the National Assembly on October 25, 2016, the same day the Senate rejected the $29.96bn external borrowing plan of the President, Buhari explained that the request was for the transfer of funds already appropriated for special intervention programmes, both recurrent and capital, to critical recurrent and capital items.
The virement is to take care of shortfall in provisions for personnel costs, inadequate provision for the amnesty programme, continued requirements to sustain the war against insurgency and the depreciation of the naira.
Meanwhile, soon after the House of Representatives rose on Wednesday, members of the All Progressives Congress went into a closed door meeting to discuss the virement request.
Investigations showed that the main agenda was to canvass support for the N180bn request to be approved at the committee stage.
The meeting was convened by the Majority Leader, Femi Gbajabiamila.
One member, who did not want to be quoted, shared some of the details with one of our correspondents.
“A lot of explanations went on at the meeting. It was essentially to woo the APC caucus in particular to support the virement, especially now that it has successfully reached the committee stage,” the source said.

Recovered loot to part-fund N2.69tn 2017 budget deficit

Minister of Budget and National Planning, Senator Udo Udoma

The Federal Government is proposing to fund part of the 2017 budget deficit of N2.69tn from funds recovered from treasury looters.
The proposal is contained in the Medium Term Expenditure Framework/Fiscal Strategy Paper, which was submitted to the National Assembly.
The Senate had two weeks ago dismissed the 2017-2019 MTEF/FSP sent to it by President Muhammadu Buhari, describing the documents as “empty” and as such should not be considered.
The MTEF provides the basis for annual budget planning and consists of a macroeconomic framework that indicates fiscal targets, estimates, revenues and expenditures, including the government’s financial obligations in the medium term.
The document, prepared by the Ministry of Budget and National Planning, also sets out the underlying assumptions for the projections, provides an evaluation and analysis of the previous budget, and presents an overview of the consolidated debt and potential fiscal risks.
In the document, a copy of which was obtained by our correspondent in Abuja, the Federal Government is proposing to spend the sum of N6.86tn in 2017, with total revenue of N4.16tn.
It said based on the funding gap of N2.69tn, an effective strategy would be adopted in financings the deficit.
For instance, the government said while part of the deficit would be financed with recoveries from looted funds, the rest would be from borrowings.
However, the document did not provide details of the amount to be borrowed or the recoveries to be used to finance the budget deficit.
It read in part, “Based on the revenue and expenditure estimates, the fiscal deficit is estimated to increase by about N492bn or 22.32 per cent from the estimate of N2.2tn in 2016.
“However, while this remains below the maximum three per cent of the Gross Domestic Product stipulated in the Fiscal Responsibility Act, 2007, it is projected to take a downward turn afterwards.
“The deficit is to be financed mainly by borrowing as well as recoveries of misappropriated public funds/assets.”
The document stated that the government, in consideration of its debt sustainability position, would remain prudent in its borrowing programme.
“Borrowing will be geared towards funding critical capital projects that have potential to effectively increase productivity, and hence, provide mechanism for refinancing the debt,” it added.
The Federal Government had in June this year released the list of recovered loot.
The Minister of Information, Culture and Tourism, Alhaji Lai Mohammed, had in a statement said that the recoveries were made between May 29, 2015 and May 25, 2016.
The government gave the breakdown of the recovered loot as N78,325,354,631.82; $185,119,584.61; £3,508,355.46 and €11,250.
According to the minister, a separate amount of cash and assets worth over N2tn have also been seized, adding that the assets and cash seized under interim forfeiture totalled $9bn, N126bn, £2.4m and €303,399.
He added that funds awaiting return from foreign jurisdictions totalled $321,316,726.1; £6,900,000 and €11,826.11.

National Assembly adjourns sitting over member’s death

Resumption of plenary by the National Assembly after eights week recess failed on Tuesday following announcement of the death of a member of the House of Representatives, Mr Elijah Oluwatayo.

The aborted resumption was to mark the beginning of the second legislative year of the 8th assembly.

The Speaker of the House of Representatives, Mr Yakubu Dogara, while reading a letter from the family of the deceased, said that Oluwatayo (APC-Lagos) died on July 20, 2016 at the age of 66.

Dogara also announced the death of three former members of the House – Muhammed Useni, Alex Eze and Etim Atakpa.

He said that Useni represented Makarfi Federal Constituency of Kaduna state from 1999 to 2003, while Eze represented Nsukka/Igboeze Constituency of Enugu state within the same period.

He said Atakpa represented Ikot Ekpene/Essien Udim/Obot Akara Federal constituency of Akwa Ibom from 1992 to 1993 on the platform of the defunct National Republican Convention.

He said, “As a serving member is involved, and as the tradition of the House demands, we have to adjourn sitting till Wednesday to honour the deceased.”

The House of Representatives in the 8th National Assembly has recorded four deaths of members since inauguration in June, 2015.

(PUNCH)

National Assembly to reconvene Sept. 20

The National Assembly Management on Tuesday announced the postponement of resumption date for Senate and House of Representatives from Sept. 13 to Sept. 20.

Clerk to the National Assembly, Sani Omolori, in a statement, requested all lawmakers to resume sitting on the rescheduled date.

The National Assembly had on July 21 proceeded on a seven-week recess to resume on Sept. 13.

“This is to inform all Distinguished Senators and Honourable Members of the National Assembly that resumption date of both Houses in plenary has been rescheduled from Sept. 13, 2016 to Sept. 20, 2016.

“All distinguished Senators and Honourable Members are by this notice, requested to resume sitting in plenary on Tuesday,” the statement said.