Senate grills Udoma, Adeosun over implementation of 2017 budget

Lawmakers on the Senate committees on Appropriation and Finance, on Tuesday, slugged it out with the Ministers of Budget and National Planning, and Finance, Mr Udoma Udo Udoma and Mrs Kemi Adeosun respectively, over the performance of the 2017 budget.

The meeting which lasted for over two hours, had in attendance, over 20 senators, while the minister of state for Budget and National Planning, Zainab Ahmed and Director-General of Budget Office was on ground.

The hot exchange started when the chairman of the Senate committee on Appropriation, Senator Danjuma Goje, questioned the poor releases of capital budget, despite an increase in revenue generation by the Federal Government.

He mandated the Minister of Finance to give a breakdown of how much had been released so far, vis-a-vis, what the Federal Government generated within the period. Other lawmakers who spoke, issued similar queries.

“We need to know how much the Federal Government has released so far for capital projects in the 2017 budget. We need to also know how much the agencies have generated as revenues within this period. Nigerians are asking questions and we need to talk to them,” Goje queried.

Minister of Budget and National Planning, Udoma, stepped in. He said there is a wrong impression that not much had been released for capital projects in the 2017 budget.

He said since June, when the 2017 budget was signed into law by the Vice President, Professor Yemi Osinbajo, about N300 billion, out of over N2 trillion, had been released for capital projects.

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Udoma said: “There is a general impression that we have not released much in 2017. Between January and June, the 2016 was still running. We released over N1.2 trillion for capital projects in the 2016 budget. That is what is partly responsible for the current exit of economic recession.

“We have released over N300 billion for capital projects from the 2017 budget. We actually intend finalise the 2018 budget so that we can submit the budget this month. We need to return to the January-December calendar in budget implementation. The funding of the 2017 budget is partly going to come from borrowings. It is a little bit edgy. We need approval to keep the process flowing.

“We cannot expect a release of N2.1 trillion in four months. the pace of expenditure is still going on. Many of the projects will be rolled over. Revenues are better than last year, but it will not be enough to fund the budget. We need to borrowing and we are borrowing.

“Constituency projects are parts of the budget. There is time between now and end of the year. It is a bit too early. We will make more releases.”

He said oil production in the Niger Delta has risen to two million barrels per day, as against the one million produced from the region last year. He said the increase in production is as a result of the relative peace in the area.

“Oil production in the Niger Delta stands at two barrel per day, compared to about one million we produced last year,” he said.

Adeosun, while responding to series of questions from lawmakers, said the budget is programmed in such a way that funding of capital projects will be sourced through borrowings.

She maintained that despite an improvement in revenue generation, the arrangements in the 2017 budget document cannot be altered. She also blamed the slow pace of borrowing, especially from local sources, on high interest rates.

The Minister said it is easier to borrow from the international market, since interest rates are cheaper and the lifespan of the borrowings usually last longer than the ones sourced locally.

She said: “Our borrowing plan is very clear. The cost of domestic borrowing is very high. The interests rates are high. That is why we borrow from the international market. The interest rates are cheaper and they are also longer. As money comes in, we are pushing it out.

“In an idea world, if the Central Bank of Nigeria was under the Ministry of Finance, I would have set the interest rate at 4 per cent. That is not the case here. The CBN is independent and that was made possible by the National Assembly.”

Adeosun declined to reveal when the Federal Government will make the next release for capital projects. She said she cannot give any assurance until the National Assembly approves series of loan requests currently before it.

She said: “I want to get back to you. I am waiting for the National Assembly’s resolution to approve our loan request. Once I have it, I will be able to give you a definite time when we will make the next releases. Give us what we need and we will give back what is needed.

“I have some borrowing plans in the National Assembly that have not been approved. Everything is being delayed. We are begging you to help us. We know how tough it was for us to get the Chinese to give us a loan. But that cannot happen without the approval of the borrowing plan.”
By Ehisuan Odia …

 

 

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