By Nathaniel Zacchaeus
The Senate in a rowdy session yesterday stepped down President Muhammadu Buhari’s request for the approval of N23.7trn Ways and Means Advances.
The President last week, demanded the restructuring of N23.7trn Ways and Means advances given to the federal government by the Central Bank of Nigeria (CBN).
Buhari in his letter said Ways and Means are advances from the Central Bank of Nigeria to the federal government for emergency funding of delayed receipt of fiscal deficit
*Lawmakers argue ‘Ways & Means Advances’ not known to the constitution
Tension grew when Senator Betty Apiafi, from Rivers State, raised a point of order to stop the presentation of the report by the Chairman of the Senate Committee on Finance, Senator Solomon Adeola.
Apiafi noted that Nigeria’s constitution does not recognise the use of ‘Ways and Means’ to request National Assembly approval for extra-budgetary spending.
She insisted that Buhari should instead forward a Supplementary Budget request for the consideration of the federal parliament.
She said constitutionally, Ways and Means of expenditure was not known to the Nigerian Constitution.
She was however ruled out of order by the President of the Senate, Ahmad Lawan for allowing the report to be presented before kicking against it.
The anger of the Senators against the report was expressed when being presented with negative background noise during its presentation by Senator Adeola.
Adeola presented his report, amidst uproar as all attempts to make the lawmakers maintain decorum were ignored.
He recommended that the Senate should invite the executive arm of government to provide further information about Buhari’s request by Friday.
Immediately after Adeola concluded his presentation the red chamber became chaotic with the senators engaged in hot arguments among themselves.
Lawan hurriedly called for a closed-door session when the tension inside the chamber became unbearable
Determined to kill the report at all costs, Senator Thompson Sekibo also from Rivers State, rose through constitutional orders by citing sections
80, 83, Section1,13(1) of the 1999 Constitution and section 38 of the CBN Act to kick against the request.
He said, ” Section 80 of the 1999 constitution as amended states that all revenues or other monies raised or received by the Federation, not being revenue and other monies payable under this constitution or any act of the National Assembly into any other public fund of the federation established for a particular purpose shall be paid into and form one consolidated revenue fund of the federation.
“No money shall be withdrawn from the consolidated revenue fund of the federation except to meet expenditure that is charged upon the fund or where the issue of those monies has been authorised by an appropriation act, supplementary act or an act passed in pursuance of section 81 of the constitution.
“No money shall be withdrawn from any account other than the consolidated revenue fund of the Federation unless the issue of those monies has been authorised by the Act of the National Assembly.
“Section 80 (4) states that no money shall be withdrawn from the consolidated revenue fund or any other fund of the Federation except by the approval of the National Assembly, except in the manner prescribed by the National Assembly.
“Section 38 of the CBN Act states: Any money collected by the Federal Government as loan or emergency fund in form of Ways and Means Advances, must be refunded before collection of another one.
“Mr President, the relevant laws quoted, clearly show that the N22.7trn Ways and Means Advances already spent by Federal Government without informing the National Assembly was wrong and will be unfair as representatives of Nigerians to approve this request,” he said.
Efforts by the Senate President to make Senators back down proved abortive as many of them, left their seats and shouted, no, no!!!
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The development hurriedly made Lawan call for a close session for about one and a half hours to douse the tension.
After the closed session, the Senate following the amendments to the Adeola panel’s report, resolved to step down the restructuring of N22.7trn Ways and Means.
*Domestic debt hits N22trn as NASS approves N819.54bn supplementary budget
However, both chambers of the National Assembly yesterday approved President Buhari’s request for N819.54bn domestic loan.
The money was meant to fix the infrastructure destroyed by floods across the country.
The Bill is titled “A Bill for an Act to authorise the issue from the Consolidated Revenue Fund (CFR) the total sum of N819, 536,937,813 for the year ending March 31, 2023.
Chairman of the joint committee, Senator Jibrin Barau presented the report of his panel on the request at plenary.
Barau recalled that the 2022 Supplementary Appropriation Bill of N819, 536,937,813 all of which were Capital Expenditure was read for the first time on Wednesday, Dec. 21.
He said, “The senate subsequently read the bill the second time and referred it to the Appropriation Committee in conjunction with Committees on Agriculture and Rural Development; Works and Housing; and Water Resources for further legislative action.”
He said that the bill sought to among other things, make available additional funds to cushion the effects of the 2022 flood on road infrastructure, agriculture, water infrastructure, and completion of some ongoing critical projects that had achieved about 85 per cent completion.
Barau said that the supplementary bill would be financed through additional domestic borrowings, which would raise the 2022 budget to N8.17 trillion only, and Deficit/GDP to 4.43 per cent.
He further said that the committee observed that the effects of the 2022 flood across the country and its attendant consequences on roads, bridges, farmlands, and the water sector necessitated the supplementary bill request.
“Ministries Departments and Agencies (MDAs) involved in the Supplementary Appropriation Bill requests are Federal Ministry of Agriculture and Rural Development.
“Federal Ministry of Works and Housing and Federal Ministry of Water Resources”.
The chairman said the committee recommended that the Ministry of Agriculture and Rural Development gets N69, 247, 175, 770.
According to him, the Ministry of Works and Housing is to get N704, 789, 762, 043 while Federal Capital Territory (FCT) is to get N30, 000,000,000.
“Federal Ministry of Water Resources is to get N15, 500, 000, 000,” Barau said.
In his contribution, Senator Smart Adeyemi (APC-Kogi) said that the budget would be of benefit to all the nooks and crannies of the country.
“The projects will help in guaranteeing security and ensuring the socio-economic development of rural areas,” he said.
However, Senator Ali Ndume (APC-Borno) expressed reservations over the implementation of the projects.
He said, “I worry that this is the reality of what we are doing today. It is today that this Senate has considered extending the budget by 90 days.
“This budget even if approved, how realistic is it going to be? By the time we process this and the due process that is required in budget implementation for contract execution cannot be circumvented. If that is the case, assuming we pass it today, we have 90 days to implement it.
“If it is agreed that some of these monies have to be spent within 90 days. It is not possible. Let us not deceive ourselves. We should amend the 2023 budget to take care of these projects so that they will have 12 months of implementation.”
The budget was, thereafter, approved and passed after going through the Committee of Supply.
It nevertheless approved that the Federal Government should source the N819.5bn from the N1trn it was requesting, from the CBN.
It clarified that the approved N819.5bn would be used for funding for the 2022 supplementary budget.
Buhari had through an executive communication last week, seeking the approval of the National Assembly for N819.54bn supplementary budget.
The request, according to the President, would form part of the 2022 Appropriation Act.
Buhari in the letter read by the President of the Senate, Ahmad Lawan, said the supplementary appropriation request was meant for the capital expenditure component of the 2022 budget.
The approval of the Senate has increased the 2022 Budget deficit to N8.17trn, and the deficit-to-GDP ratio of 4.43 per cent.
It has also pushed the country’s domestic debt to over N22trn.
The new borrowing also increased the Federal Government’s domestic borrowing in 2022 to N3.33trn.
To enhance the implementation of the projects listed in the supplementary bill, the Senate extended the life span period of the N18.12trn 2022 budget to March 31, 2023.
The budget in line with provisions of clause 12 of the Appropriation Act and section 318 of the 1999 constitution which stipulate 12 calendar months for implementation of the budget in any fiscal year, supposed to have
ended on December 31, 2022, having started on January 1, 2022.
But Buhari in a letter read in plenary last week Wednesday sought the amendment to the Act for an extension of the implementation period.
In the letter read by the Senate President, Ahmad Lawan, Buhari said, “I write to request your consideration for an amendment into the 2022 Acts expression clause 12, as passed and assented to.
“The 2022 Appropriation Act states, in line with the provisions of section 318 of the constitution of the Federal Republic of Nigeria, this Bill expires after 12 months starting from January 1 to December 31, 2022, one assented to.
“The proposed 2022 appropriation supplementary budget submitted to National Assembly for consideration as well as recent 2022 capital releases to MDAs are likely to be utilized before December, 31st, 2022 due to the late release of the funds which will lapse if the capital implementation is not extended beyond December 2022.
“In the light of the above, the National Assembly is requested to amend the 2022 Acts expression clause to reflect March 31, 2023, for the capital components only.”
The Senate accordingly gave the request expeditious consideration and passage by making it pass the required legislative processes within 30 minutes.
Lawan, in his remarks, said the extension given the implementation period of the 2022 budget to March 31, 2023, will provide the required time for implementation of the N819.5bn 2022 supplementary budget raised by the President.
The sum of N708bn was approved for the Ministry of Works and Housing; N69bn for the Ministry of Agriculture; N30bn for the Federal Capital Territory and N15bn for the Ministry of Water Resources.
The Senate extended the implementation period for the 2022 budget and approved N819.5bn 2022 Supplementary Budget.
The Senate President nevertheless, went ahead to put the approval to vote and he ruled in favour of senators who echoed ‘ayes’ in support of the bill.
