This is contained in the 2016 amended budgetary proposals passed yesterday by the National Assembly.
The proposal, which marks a clear departure from the past, has now made it compulsory for the Accountant-General of the Federation (AGF) to maintain a separate record for the documentation of revenue accruing to the Consolidated Revenue Fund (CRF) in excess of oil price benchmark adopted in the 2016 Budget.
According to the amended budgetary proposals waiting for President Muhammadu Buhari’s signature, revenue accruing from sales of crude oil in excess of $38 per barrel, the Petroleum Profit Tax and Royalty on oil and gas will be captured in the new record to be kept by the AGF.
In the past, withdrawals from the Excess Crude Account (ECA) were subject to the approval of the president. But, with the new law, any withdrawal from the ECA must be secured with an Act of Parliament.
Besides, the AGF will henceforth forward to the National Assembly details of funds released to government agencies immediately such funds are released.
The 2016 Amended Appropriation Bill passed by the National Assembly has also mandated Finance minister to “ensure that that funds appropriated under this Act are released to the appropriate agencies and or organs of government as and when due, provided that no funds for any quarter of the fiscal year shall be deferred without prior waiver from the National Assembly.”
Yesterday’s passage of the N6.06 trillion marked the take off of the zero-based budgeting system espoused by the new administration.
The amended proposal, waiting to become law, mandates “all accounting officers of Ministries, Parastatals and Departments of government who control heads of expenditures shall upon the coming into effect of this Act furnish the National Assembly on quarterly basis with detailed information on the Internally Generated Revenue (IGR) of the agency in any form whatsoever.”
Another introduction to the budgetary process is that “the bill will run for a course of 12 months, starting from the date it is assented into law.”
In the past, the country operated a budgetary process that technically begins its course from January to December, but where there is a delay in the passage of the subsequent year’s budget, the National Assembly grants the executive a grace of three to four months to spend money in lieu of a proper Budget Act.
Going by the amended proposal, former presidents/Heads of State and vice presidents/Chiefs of General Staff have N2.3 billion earmarked for their entitlements.
All retired Heads of Civil Service of the Federation (HoSF) and Federal Permanent Secretaries will share some N2, 599,702,192. A princely N59, 803,309,186 has been budgeted for Military pensions and gratuity. Those who will retire from the federal civil service this year will be paid N3, 523,892,396 as retirement benefits.
Under the Service-Wide Votes, N14, 690,036,516 has been set aside for Group Life Insurance for all Ministries, Departments and Agencies (MDAs) including the Department of State Services (DSS), Insurance of Sensitive Assets and Youth corps members.
For Capital Supplementation, especially the National Job Creation Scheme/Graduate Internship Scheme, the National Assembly approved that N2 billion; sinking fund for infrastructural development (N10 billion); transition to Sustainable Development Goals (SDGs) (N609,037,225); SDG programmes (N3, 378,044,922); SDG monitoring and evaluation (N581,777,918); consultancy, fees, survey and short term and long term studies for SDGs (N474,533,376) and SDG)communication and advocacy (N427,080,038).
The Ministry of Finance pet project – the Efficiency Unit has N500 million to do its job and capital exigencies/adjustments to capital cost will spend N5.5 billion. The Senate approved N4 billion for the Capital Development of National Institute for Legislative Studies.
The National Assembly Clinic got N1 billion; Special Intervention/Constituency projects (N100 billion) and federal initiative for North-east (pilot Counterpart Funding Contribution) (N12 billion).
While expenditure on public service reforms, including payment of severance benefits to federal civil servants is to take N1. 5 billion, N10, 255, 000, 000 has been approved for the payment of the Nigerian Police’ improved remunerations package, including covering shortfalls recorded under the item in 2014 and 2015.
Also, the Public Service Wage Adjustment, including arrears for promotion and salary increases for personnel of ministries, departments and agencies (MDAs) is to cost N33, 397, 400, 000 while outstanding payment to health professionals is to be settled with N3 billion.
Apart from allocations under the defence votes, the armed forces’ internal security operations is to receive N13 billion and additional N8 billion has been allocated to Operation Lafiya Dole, the on-going military operations in the Northeast.
Also included under the service-wide votes are: Nigeria’s contributions to West African Examinations Council (WAEC) and other international organisations (N6 billion); country contributions to Pan-African Writers’ Association (N208 million); assorted contributions to African Union (AU) and others (N3. 5 billion) and a sub-head titled “External Financial Obligations” (N8. 5 billion).
Some N12 billion has been allocated for “Contigency”; N500 million for “Pilgrims Support Services”, N2. 5 billion for “Provision of Security Equipment for Selected Public Buildings” and service-wide training of Budget/Planning Officers on GIFMIS Budget Preparation System and project monitoring (N1 billion).
Under the service-wide votes, stipends and allowances for 30, 000 Niger Delta ex-militants is to get N7, 875, 000; Presidential Amnesty Programme Operational Cost (N1, 834, 149, 261) and the Presidential Amnesty Programme’s Re-integration of Transformed ex-Militants (N10, 290, 739).
Indigenous contractors are to heave a sigh of relief soon as N25. 5 billion has been allocated for the settlement of Federal Government debts and liabilities to them and N5, 005, 000, 000 has been allocated for the payment of refund to states as reimbursements for the federal road projects they undertook and the financing/or seed money for Nigeria’s Nuclear Energy Programme will get N2 billion.
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