Nigeria can finance the international capital market but… —FMDQ


By Aduragbemi Omiyale

The federal government has received approval to present a budget of 13.98 trillion naira to the National Assembly for fiscal year 2022.

This authorization was given on Tuesday by the House of Representatives during the adoption of the Medium-Term Expenditure Framework / Budgetary Strategy Document (CDMT / FSP) 2022-2024 barely a week after the The Senate adopted the same document.

This followed the presentation of the MTEF / FSP report to members of the Green Chamber of Parliament yesterday by the Chairman of the Finance Committee, Mr. James Faleke.

Business post reports that in July 2021, President Muhammadu Buhari forwarded the MTEF / FSP document to the legislative branch of government for approval. It was then given to the commission for action, and yesterday the report was tabled by Mr. Faleke.

In the report, it was said that revenue of 8.36 trillion naira would be retained, while the total tax expenditure plan of 13.98 trillion naira for next year was approved, including the recurring total ( excluding debt) of 6.21 trillion naira, personnel costs (MDA) of 3.47 trillion naira, capital expenditure (excluding transfers) 3.26 trillion naira, special intervention (recurring) of 350 billion naira and special intervention (capital) of 10 billion naira.

In addition, the House declared that it had no problem with the proposed budget deficit of 5.62 trillion naira, new borrowing of 4.89 trillion naira subject to the provision of details of the borrowing plan. be submitted for parliamentary approval, while statutory transfers of N613.4 billion have been approved.

The lower arm of the National Assembly also estimated debt service at 3.12 trillion naira, the sinking fund at 292 billion naira and pensions, gratuities and retirement benefits at 567 billion naira.

Regarding the daily production of crude oil, the Chamber approved respectively 1.88 mbpd, 2.23 mbpd and 2.22 mbpd for 2022, 2023 and 2024 “taking into account the average of 1.93 mbpd over the three (3 ) years and the fact that a very cautious oil production benchmark has been adopted in the medium term in order to ensure greater budgetary realism.

As for the crude oil benchmark, $ 57 per barrel has been approved for 2022, $ 55 for 2023 and 2024 “on the basis of oil forecasts from the World Bank and consultation with the Nigerian National Petroleum Corporation (NNPC)”.

Likewise, the exchange rate of 410.15 N / $ 1 has been approved for 2022-2024 as proposed by the executive branch of government, while the projected growth rate of gross domestic product (GDP) of 4.20 % was also approved, with the projected inflation rate being set at 13.00 percent.

In a statement released by officials, it was stated that “there should be an ongoing review of the Fiscal Responsibility Act to ensure that all income is paid into the Consolidated Revenue Fund by the due date, so reduce frivolous deductions and embezzlement by departmental agencies of ministries.

In addition, it was said that all laws relating to mining companies should be urgently reviewed to ensure an upward revision of the rates applied to royalties, land rents and license renewals of all mining companies operating in Nigeria. in order to ensure transparency in the collection of revenues by the relevant government agencies and also examine the problems of illegal mining activities by recommending strict penalties in the proposed new laws.

In addition, the House advised the Nigerian Customs Service to expedite the process of installing scanners in all ports in the country in order to tackle the problem of underpayment of customs duties on imported goods, resulting in has resulted in a huge loss of revenue for the government and to further improve its activities at all borders of the country in order to tackle the smuggling problems through the border areas.

“The Committee recommends the urgent implementation of the Petroleum Industry Law (PIA) recently sanctioned by the President in order to reduce the problems of smuggling and round trips of petroleum products imported into the country in order to save costs. under-recovery costs, “the statement said. Noted.

Parliament suggested that “the offices of the Accountant General (AGF), the Auditor General of the Federation (AuGF) and the Budgetary Responsibility Commission (FRC) be strengthened in the area of ​​staffing and funding. of its activities to ensure optimal performance of their functions. in order to adequately monitor the disbursements of all government revenue ”, while“ the law establishing certain MDAs needs to be urgently reviewed and amended to demonstrate a more nationalist interest, as these changes will help generate more revenue in the coffers of the government. the state. government.”

In the statement, the House called for the federal government budget to be “reviewed and purged of certain agencies that have demonstrated their ability to fend for themselves without any recourse to the budget of the federal government of Nigeria, for example; National Agency for Food and Drug Administration and Control (NAFDAC) and Nigerian College of Aviation Technology, Zaria (NCAT).


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