By Nathaniel Zaccheaus, Abuja
The two chambers of the National Assembly yesterday gave accelerated consideration and approval to President Bola Tinubu’s request for the injection of a fresh N6.2trn into the N27.5trn 2024 budget.
Tinubu made his request via a letter read on the floor of the Senate by its President, Godswill Akpabio, during plenary yesterday.
The same letter was read on the floor of the House of Representatives.
Tinubu specifically sought the withdrawal of N3.2trn from the Consolidated Revenue Fund, for capital expenditure.
The President also in the letter sought the withdrawal of another N3trn from the consolidated revenue fund for additional recurrent expenditure for the year ending on the 31st day of December, 2024.
The President equally sought the National Assembly’s nod Act to amend the Finance Act, 2023, to impose and charge windfall tax on banks and to provide for the administration of the tax and matters related thereto.
If the requested N6.2trn is injected into the N27.5trn 2024 budget, the 2024 budget size will increase to N33.7trn.
The letter is titled, “Transmission of Appropriation Amendment Bill 2024 And Finance Act Amendment Bill 2024 For Consideration.”
It read, “Under Section 58 (2) of the Constitution of The Federal Republic of Nigeria 1999 (as amended), I forward, herewith, the above-named Bills for consideration and passage by the Senate
“The Appropriation Act (Amendment) Bill 2024 seeks to amend the Principal Act to provide the sum of N3.2trn for Renewed Hope Infrastructure Projects and other critical infrastructure projects to be undertaken across the country and N3trn to meet recurrent expenditure requirements necessary for the proper operation of the Federal Government, expenditure which is to be funded by expected revenues accruing to the Federal Government.
“Furthermore the proposed amendments to the Finance Act 2023 are required to impose a one-time windfall tax on the foreign exchange gains realised by banks in the 2023 financial statements to fund capital infrastructure development, education, and healthcare access as well as public welfare initiatives all of which are essential components of the Renewed Hope Agenda
“While appreciating the Senate’s expeditious consideration of this submission please accept, Distinguished Senate President, the assurances of my highest regard.”
The Senate consequently adjusted its rules to enable the red chamber to consider the bill for a second reading.
The request for its presentation for a second reading was presented by the Senate Leader, Opeyemi Bamidele.
Bamidele, having moved for the suspension of Senate Rules 78 to allow for the process of second reading, said the bills were first read on July 17, following the transmission of the bills to the Senate by President Bola Tinubu.
He said the 2024 appropriation act amendment bill sought to amend the authorisation of issuance from the consolidated fund sum of N3.2trn for capital expenditure and N3trn for recurrent expenditure.
He said the amendments sought in the Finance Act 2023 were to impose a one-time windfall tax on the banks on foreign exchange gains realised in their 2023 financial statements.
He said the amendment to the Finance Act was also designed to further provide for general tax administration in the country.
Bamidele said the 2024 appropriation amendment bill was needed to fund renewed hope infrastructure projects and other critical infrastructure projects to be undertaken across the country.
He said the bills were also needed to meet other recurrent expenditure requirements, necessary for proper operations of Federal Government expenditure.
According to him, the expenditure will be funded by expected revenue accruing to the Federal Government of Nigeria.
This, he said, would help fund capital infrastructure development, education, healthcare access, and public welfare initiatives.
According to him all of the projects are essential components of the renewed hope agenda of the administration.
He said all the projects embarked on are laudable and would enhance the provision of critical needs of Nigerians.
He informed his colleagues that the sum of N3.2trn would be for capital expenditure, while N3trn would go for recurrent expenditure, and both would be spent before the end of 2024.
Senator Adamu Alero, (PDP-Kebbi), who seconded the motion said it was necessary to support the bill because of the expected minimum wage for workers.
He urged the lawmakers to pass the amendment as the bill was required to source the required funds for minimum wage payment and infrastructure project construction.
“Because there is no money in the 2024 budget if we don’t provide money for the minimum wage this month, there will be a public outcry, Nigerians have been patient and have waited,” he stated.
Aliero commended President Bola Tinubu for the bills, saying that its passage would also help in the completion of legacy projects.
Deputy President of the Senate, who was presiding plenary at that moment said the amendment sought in the 2024 Appropriation Act was designed to provide additional revenue to the 2024 budget revenue profile.
Senator Seriake Dickson (PDP-Bayelsa) suggested that the bill on amendment of the finance act should be stood down, advising on the need to seek expert views on the proposed imposition of taxes on banks.
He also said details of the documents were not yet before the federal lawmakers.
He recalled the backlash from the public over a bill he said was previously passed in a hurry, noting that legislators should avoid public ridicule in the handling of legislative activities.
Dickson also disagreed with suggestions that the amendment to the Appropriation Act and the amendment to the Finance Act, 2023, be lumped together.
He said, “I don’t believe we lumped the two bills together in a way and manner we are doing and if I have my way Mr President, I like to suggest that we step the Finance bill down.
“Let it not be that without the experts and critical stakeholders participating in public hearings. I think that we should be very cautious when we are discussing taxation and even these banks we intend to generate N500bn are all running around to meet capitalisation. These are two critical bills that we don’t have details yet.”
Other senators, who supported the bills include Senator Garuba Maidoki (APC-Kebbi) Adetokunbo Abiru (APC-Lagos), and Adams Oshiomhole (APC-Edo).
The Chairman of the Senate Committee on Finance, Senator Sani Musa, noted that banks earn enormous profits which can be inferred from their end-of-the-year reports.
He said the profit was made possible due to robust policies of the government, hence, it should not be difficult for banks to be taxed.
He said, “Money bills are very important bills. The point is that if you look at the end-of-year report, you discover that commercial banks are making so much money despite the hardship pervading the country.
“I think banks should be well taxed because they make this profit out of the pronouncement made by this government. The reason for removing oil subsidy, the reason for abridging the gap is for the good of this country.”
Deputy President of the Senate, Senator Jibrin Barau (APC-Kano), after the bills passed a second reading referred the bills separately to Senate Committees on Appropriations and Finance for further legislative inputs.
He informed his colleagues that part of the additional funds sought would be used to finance the minimum wage which is expected to arrive in the National Assembly before the end of July.
The Committees are to report back to the plenary in one week.
After contributions by other senators Barau, who presided over the plenary called for voice votes, and it was passed for a second reading.
