Clash imminent as Nigerian Senators move to cage Executive over excess crude funds

The Nigerian Senate, on Tuesday, said it will include a clause in the 2018 Appropriation Act that will stop the Executive from spending excess funds realised from the sale of crude oil.

The upper legislative chamber said though the law is explicit on how excess funds should be spent, the Executive arm deliberately refuses to revert to the National Assembly to get approval before spending the monies.

The Red Chamber took the decision, when it considered and passed the 2018-2020 Medium Term Expenditure Framework and the Fiscal Strategy Paper (FSP).

Deputy Leader of the Senate, Bala Ibn N’Allah, who canvassed the idea, said the move was to stop the “reckless spending” of non-budgeted funds by the Executive arm, and ensure that the rule of law is followed.

He said: “I am sorry to use this phrase reckless spending. That is what the Executive has been involved in. Every year, it spends excess funds realised from sale of crude oil without any approval from the National Assembly.

“The Central Bank of Nigeria (CBN) opened an account called Excess Crude Account. All the extra monies realised from sale of oil are paid into this account. This is despite the fact that the law states that such monies should be paid into the Federation Account.

Read also: Senate passes Medium Term Expenditure Framework (MTEF)

“Going forward, I recommend that we insert in the 2018 budget, a clause to stop the Executive from spending excess funds realised from sale of oil without approval by the National Assembly.”

In the meantime, the Senate has adopted the recommendations of its Joint Committee on Finance and Appropriation that 2.3 million barrels per day be approved, as proposed by the Executive for the 2018 budget.

It has also adopted $47 per barrel as benchmark price for 2018 budget. It adopted N305 to a dollar as official exchange rate. This approval is in tandem with the original proposal submitted by the Executive.

It adopted the projected N5.279 trillion for non-oil revenue in 2018. It also approved N1.699 trillion for new borrowing for 2018 fiscal year. The Senate equally approved 3.5 per cent growth rate for the fiscal year.

Meanwhile, the 2018 Appropriation Act has scaled second reading in the Senate.

The budget which stood at N8,612,236,953,214 (Eight trillion, Six Hundred and Twelve Billion, two hundred and Thirty-six million, nine hundred and fifty three thousand, two hundred and Fourteen Naira), was passed yesterday.

The Senate has also adjourned sittings for two weeks. It is expected to reconvene on Tuesday, 19th December for consideration of report of the budget for passage it into law.

Determined to pass the budget, President of the Senate, Bukola Saraki, tasked the committee on Appropriation to ensure that public hearing as scheduled was successful.

Saraki also advised government Ministries, Departments and Agencies (MDAs) to subject themselves to the scrutiny of Senate committees. He added that heads of MDAs who avoid the defence of will be sanctioned.

“I want to urge heads of Ministries, Departments and Agencies that this is no time for anyone to travel. We must conclude budget defense before the 19th of December, hence, we look forward to see those affected to honour our invitation,” Saraki said.

Ehisuan Odia

 

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