Federal government has projected a budget of N13.98 trillion for 2022.
The minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed this to State House correspondents yesterday after the Federal Executive Council meeting presided over by President Muhammadu Buhari at the Presidential Villa .
According to her, the finance ministry presented to the federal government the projected revenues for 2022 to 2024.
She specifically noted that for 2022, government was expecting total revenues of N6.54 trillion and rN2.62 trillion to accrue to the Federation Account and Value Added Tax (VAT) respectively.
Stating that there will be a net oil and gas revenue available for the Federation Account Allocation Committee (FAAC) for distribution will be N6.151 trillion in 2022,
In a related development, the senate yesterday jerked up President Muhammadu Buhari’s N895.842 billion supplementary budget to N982 billion, an increase of N87 billion.
President Buhari had about two weeks ago transmitted a supplementary appropriation bill of N895.842,465,917 to the National Assembly for consideration and approval.
On the 2022 proposed budget, Ahmed added that this revenue is projected to increase to N9.15 trillion in 2023.
She said” The total expenditure that we have projected and approved by Council is an aggregate expenditure of N13.98 trillion. This includes N1.1 trillion of government-owned enterprises expenditure as well as grants and donor funds. donor funded projects in the sum of N62.24 billion.
“This means that this budget is just three per cent higher than the 2021 budget in terms of the size of expenditure.
We’ll also reported to council the budget deficit and the financing items for the expenditure.
“The budget deficit that is projected for 2022 is N5.62 trillion, up from N5.60 trillion in 2022. This amount represents 3.05 per cent of the estimated GDP, which is slightly above the three per cent threshold that is spent suffered in the Fiscal Responsibility Act.
“The FRA and empowers Mr. President to exceed the threshold if in his opinion, the nation faces national security threats. And it is our opinion and FEC agreed that we can exceed it.
“The deficit is going to be financed by new foreign borrowing. And domestic borrowing, both domestic and foreign in the sum of N4.89 trillion on privatisation proceeds of N90.73 billion and drawdowns from existing project titles of N635 billion.
“I just want to state that the projected debt to revenue ratio in the report is 43% which, of course, we know Nigerians all have concerns about. The actual debt to revenue ratio in 2019 was 58 per cent. So this is an improvement over over 2019. In 2020, the ratio was up to 85 per cent. So 2022 is a significant improvement on 2020.”
The minister also disclosed that she presented a memo for the approval of the 2022 to 2024 medium term expenditure framework and the fiscal strategy paper as required by the Fiscal Responsibility Act.
She explained that the MTEF/FSP describes the federal government’s socio economic and developmental objectives and priorities for the reporting period of 2022 to 2024 as well as the fiscal strategies that we’re going to put in place and policies to achieve the priorities.
According to her, “The MTEF/FSP consists of medium term macro economic projections, fiscal targets and estimates of revenue and expenditure including government’s financial obligations.
“Key information is that the Nigerian economy is recovered from a negative growth of -1.8 per cent in 2020, to 2.5 per cent in 2021, and then to 4.2 per cent in 2022.
“Also, the inflation has moderated from like two months high, it’s now moderated and coming down to 17.93 per cent. And our foreign reserves standard $34.2 billion at the end of May, which is $640 million declined from the previous month.
“The key macro assumptions that were presented on Council approved is that there’ll be a crude oil benchmark price of $57 per barrel for 2022, a crude oil production of 1.88 million barrels per day, and a dollar exchange rate of N410.15 to one US dollar, an inflation rate of 13 per cent in 2022, and a nominal GDP of 149.369 trillion.
“What is interesting is that the non-oil GDP continues to grow at 169.69 trillion compared to oil GDP of 14.68 trillion included in the nominal GDP. Nominal consumption is 130,49.36 billion.
Asked why the government is so optimistic about the growth in 2022, she said “it is a global phenomenon, that because of all the fiscal and monetary initiatives that we’re taking globally, during the 2019/2020 pandemic period, that the effect of that is going to ramp up growth sharply.
“So, we’ve seen that ramp up in the global economic growth sub-Saharan Africa, in emerging economies and also is the same thing with the Nigerian economy but that wins out in 2023, when the growth moderates from 4.2 to 2.3 per cent
Speaking on the passage, Senate President, Ahmad Lawan said it was only one step in the process adding that it is targeted at tackling insecurity and COVID-19 pandemic.
He advised the committees of the National Assembly to follow the spending of the funds and ensure the money is judiciously utilise.
“The proper use of the money will determine the approval of the 2022 budget,” Lawan said.
The Appropriation Committee Chairman, Senator Jibrin Barau, had last week pleaded with the upper chamber to allow the Joint Committees of the Senate and House of Representatives come up with a harmonised report on the supplementary appropriations bill to facilitate its eventual passage.
While reading the report, Barau said the committee recommended N982 billion in the supplementary bill which was unanimously passed by the Senate, jerking up the supplementary budget by N87 billion.
FG Okays N16bn For Ecological Projects
The federal government has approved the sum of N16 billion for ecological projects across the country .
Special adviser media and publicity to the president, Femi Adesina disclosed this to State House correspondents after the federal executive council meeting president over by president Muhammadu Buhari at the Presidential Villa.
According to him, they are soil erosion/flood control and pollution control intervention projects.
He stated “the Ecological Fund Projects for the 3rd and 4th Quarters of last year were approved.
“They are soil erosion/flood control and pollution control intervention projects, in favour of various contactors, in the total sum of N16,041,101,334.79, inclusive of 7.5 per cent VAT.
“These are the projects approved for implementation today: Erosion, Flood Control, Bridge Reconstruction and Road improvement at Umulmenyi Nkpa Communities of Bende LGA, Abia State; Gully Erosion Control Works at Umuokoro Lower Okata Community, Ihitte/Uboma LGA, Imo State; Imaku Omi Erosion Control Project, Ogun Waterside Local Government (Phase II), Ogun State.
“Afforestation, Combating Land Degradation, Road Improvement Measures in Aworiosun, Ikoyi Agroforestry Community, Isokan LGA, Osun State; Erosion Control at Calabar Free Trade Zone, Calabar, Cross River State; and Erosion and Road Improvement Works at Yelwa Primary School and Police Station Road, Yola, Adamawa State.
“Others are Ecological Problem at Federal College of Education Technical, Gombe, Gombe State; Flood and Erosion Menace Affecting Lau Community and its Environs in Lau LGA, Phase II, Taraba State; Erosion and Flood Control at Birnin Kudu, Budiga, Babaidu, Kafin Gana, Sammiya/ Buji LGA, Gofara, Yayarin Tukur, Birnin Kudu LGA, Jigawa State; Flood Erosion Control Works from Kano Road to Main Water Channel in Daura, Katsina State, Phase II; Asa River/Isale Koko Erosion and Flood Control Project, Ilorin East LGA, Kwara State.
“Erosion Flood Control and Environmental Degradation in Agaie and Lapai Community, Niger State; Soil Erosion, River Channelization and Slope Protection within Maitama District (Phase III), Federal Capital Territory (FCT), Abuja.
Adesina also said there was approval for the revised estimate total cost on the contract for the construction of Damaturu-Gasua-Nguru 132 KVA Double Circuit Transmission Line for Transmission Company of Nigeria (TCN).
During his briefing, Minister of Transportation,Rotimi Amaechi said the council approved the purchase of Canty Towers, in Victoria Island, Lagos, for the new headquarters of Nigerian Maritime Administration and Safety Agency, which is, NIMASA, in the sum of N17, 471,500,130.54 inclusive of 7.5 per cent tax.