The Nigerian Senate on Thursday, approved the request by President Bola Tinubu to amend the 2022 Supplementary Act totalling N819 billion.
The red chamber also gave the president the go-ahead to remove N500 billion from the N819 billion to provide palliatives for vulnerable Nigerians in the wake of the fuel subsidy removal.
Tinubu said the fund would enable the federal government to cushion the effect of the recent removal of subsidy on petroleum products.
The proposed legislation is titled, “A bill for an act to amend the 2022 Supplementary Appropriation Act to provide the extraction of funds from the Supplementary Appropriation Act for the provision of palliatives to cushion the effects of fuel subsidy.”
Tinubu, in another official communication, urged the Senate to approve a borrowing request of $800 million. He said the approval would enable the federal government to fund the 2023 Supplementary Budget, when approved by the legislature.
The same request had earlier been sent to the upper chamber by the former President Muhammadu Buhari administration in the ninth National Assembly, but it was not treated by the former Senate President Ahmad Lawan-led red chamber.
Buhari had at the twilight of his administration forwarded the official communication to the ninth Senate in May.
The ninth Assembly could not consider the request, which was approved by the Federal Executive Council before its tenure ended in June 11.
Tinubu, in a fresh letter read by Senate President Godswill Akpabio during plenary, asked the 10th Senate to approve the borrowing request.
The president, in the letter, explained that the loan would be used to scale up the National Social Safety Net Programme.
He said the new borrowing would be sourced from the World Bank.
Part of the president’s letter read, “Please note that the Federal Executive Council led by President Muhammadu Buhari approved an additional loan facility to the tune of $800m to be secured from the World Bank for the National Social Safety Net programme. Copy of Federal Executive Council’s extract attached.
“You may also wish to note that the purpose of the facility is to expand coverage of shock responsive safety net support among the poor and vulnerable Nigerians. This will assist them in coping with basic needs.
“You may further wish to note that under the conditional cash transfer window of the programme, the federal government of Nigeria will transfer the sum of N8, 000 per month to 12 million poor and low income households for a period of six months, with a multiplier effect on about 60 million individuals.
“In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.
“It is expected that the programme will stimulate economic activities in the informal sector, and improve nutrition, health, education, and human capital development of beneficiaries’ households.
“Given the above, I wish to invite the Senate to kindly grant approval for the additional loan facility of $800 million to be secured from World Bank for the National Social Safety Net Programme.
“While hoping that this submission will receive expeditious consideration by the Senate, please, accept the assurances of my highest regards.”
Giving further clarifications on the official communications from the president, Chairman, Senate Committee on Appropriation, Senator Solomon Adeola, said the N819 billion Supplementary Budget was passed during the consideration of the controversial Central Bank of Nigeria’s N22.7 trillion ways and means advances.
Adeola said, “I want my colleagues to understand what we are doing here. In 2023, there were two budgets that were passed, the main budget and the supplementary budget.
“As per the main budget, that is currently on going. The supplementary budget was passed when there was consideration for ways and means by the Senate and that amounted to N819 billion.
“It was signed into law by former President Muhammadu Buhari, while the 2023 budget was ongoing. The Supplementary budget had yet to be implemented.
“Now, we are all aware of the current happenings and reforms being introduced by this new administration, which include subsidy removal and some other economic reforms put in place.
“There is no doubt that these are challenging times for Nigerians, which this present administration must attend to urgently.
“The supplementary budget of 819billion will be amended to take care of some of this palliatives.
“As such, the president went to the documents and reordered and that was where this said 500 billion is coming from.”
The senate president called for a closed session, which lasted about 30 minutes.
After the executive session, Akpabio gave a breakdown of the supplementary budget. He said N500 billion was for palliatives and other capital expenditure to cushion the effect of the recent subsidy removal. He also said N185, 236,937,815 had been approved for the Ministry of Works and Housing to alleviate the effect of the severe flooding experienced in the country in 2022 on road infrastructure across the six geopolitical zones.
Akpabio said N19,200,000,000 had been approved for the Federal Ministry of Agriculture to ameliorate the massive destruction to farmlands across the country during the severe flooding experienced last year.
The sum of N35 billion was allocated to National Judicial Council, while N10 billion was allocated to the Federal Capital Territory Administration for critical projects
The National Assembly also got N70 billion to support the working conditions of new members.
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