2022 Budget Archives — Business Bells

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Tag: 2022 Budget

  • BudgIT Uncovers 460 Duplicated Projects Worth N378.9bn in 2022 Budget

    BudgIT Uncovers 460 Duplicated Projects Worth N378.9bn in 2022 Budget

     

    BudgIT, a civic-tech non-profit organisation, says 460 projects amounting to N378.9 billion were duplicated in the 2022 budget.

     

    Iyanu Fatoba, communications associate at BudgIT, disclosed this in a statement.

     

    On December 31, 2021, President Muhammadu Buhari signed the N17.13 trillion 2022 appropriation bill into law.

     

    The presidency had submitted a proposed fiscal budget of N16.391 trillion to the national assembly, but the lawmakers later raised it to N17.127 trillion — an increase of N735.8 billion.

     

    BudgIT said it uncovered the discrepancies after examining the 21,108 capital projects in the budget.

     

    “Our preliminary analysis of the 21,108 capital projects in the 2022 approved budget revealed 460 duplicated projects amounting to N378.9 billion,” the statement reads.

     

    “Recall that BudgIT observed 316 duplicated projects inserted into the 2021 FG Budget approved by NASS. ICPC verified 257 duplications, while the Budget Office confirmed the existence of only 185 duplicated projects worth N20.13bn, after which it informed the public that funds were not released for the projects in 2021.”

     

    BudgIT also mentioned the occurrence of “inflated projects” amounting to billions of naira directly linked to the State House and the presidency.

     

    It listed them to include N20.8 billion requested by the presidency to construct a 14-bed presidential wing at the existing State House Medical Center; N28.72 million requested for the purchase of two units of 10kg washing machine and six units of LG televisions in the State House, Lagos Liaison Office, among others.

     

    Speaking of projects approved under ministries, departments and agencies (MDAs) that do not have the capacity to execute them, BudgIT said the National Agency for Great Green Wall (NAGGW) has N1.3 billion or 64% of its capital budget dedicated to purchasing motorcycles, street lights and other projects outside its mandate.

     

    The organisation also raised questions on the ministry of environment which has an allocation of N67.8 million to construct “gun armories” in Cross River, Kaduna, Borno and Yobe states, even though the ministry is not a security agency.

     

    It also said the River Basin Development Authorities (RBDA) had metamorphosed into an agency that constructs roads and supplies street lights.

     

    “A cumulative total of N6.3billion was allocated to supplying street lights in 73 communities across the 36 states, while N14.8 billion was allocated for the construction of 219 roads across 36 states; whereas the majority of the roads are the responsibilities of state and local governments and not the federal government,” the statement reads.

     

    Speaking on the findings, Gabriel Okeowo, BudgIT’s country director, described the duplicated projects as “loopholes for fraud”.

     

    According to him, they are crimes against the 86 million Nigerians living below the poverty line, an injustice to hardworking taxpayers and an open mockery of countries and lending institutions that intend to lend Nigeria N6.29 trillion in 2022.

     

    “BudgIT is currently finalising its detailed analysis of the approved FG 2022 budget which would be presented to all stakeholders in the executive and legislative arm of government as well as the general citizens,” Okeowo added.

     

    “In the meantime, we call on the government to prioritise projects that are of utmost benefit and exercise discipline in implementing duplicated and poorly costed projects in the 2022 budget.”

     

    BudgIT also urged Nigerians, CSOs, the private sector, the international community, and reformers to join the call for an urgent redress of the issues to ensure public funds work for all Nigerians and not for a privileged few politicians.

     

  • Buhari Signs N17.126trn 2022 Budget Into Law, Laments ‘Worrisome Changes’

    Buhari Signs N17.126trn 2022 Budget Into Law, Laments ‘Worrisome Changes’

     

     President Muhammadu Buhari has signed into law the 2022 Appropriation Bill and the 2021 Finance Bill.

     

    The President signed the documents in the Presidential Villa on Friday in the presence of Senate President Ahmed Lawan, Speaker of the House of Representatives, Femi Gbajabiamila, and other members of the Federal Executive Council.

     

    Speaking at the event, the President said the 2022 Budget, just signed into law, provides for aggregate expenditures of N17.127 trillion, an increase of N735.85 billion over the initial Executive Proposal for a total expenditure of N16.391 trillion.

     

    The President explained that N186.53 billion of the increase however came from additional critical expenditures that he had authorised the Minister of Finance, Budget and National Planning to forward to the National Assembly.

     

    ‘‘The Minister will provide the public with the details of the budget as passed by the National Assembly, and signed into law by me,’’ he said.

     

    ‘President laments worrisome changes’

     

    President Buhari also expressed strong reservations on the ‘‘worrisome changes’’ made by the National Assembly to the 2022 Executive Budget proposal.

     

    He announced that he would revert to the National Assembly with a request for amendment as soon as the Assembly resumes to ensure that critical ongoing projects cardinal to this administration do not suffer a setback due to reduced funding.

     

    The President recounted that during the presentation of the 2022 Appropriation Bill, he had stated that the fiscal year 2022 would be very crucial in his administration’s efforts to complete and put to use critical agenda projects, as well as improve the general living conditions of our people.

     

    ‘‘It is in this regard that I must express my reservations about many of the changes that the National Assembly has made to the 2022 Executive Budget proposal.

     

    ‘‘Some of the worrisome changes are as follows:

    ‘‘Increase in projected FGN Independent Revenue by N400 billion, the justification for which is yet to be provided to the Executive:

     

    ‘‘Reduction in the provision for Sinking Fund to Retire Maturing Bonds by N22 billion without any explanation;

     

    ‘‘Reduction of the provisions for the Non-Regular Allowances of the Nigerian Police Force and the Nigerian Navy by N15 billion and N5 billion respectively.

     

    ‘‘This is particularly worrisome because personnel cost provisions are based on agencies’ nominal roll and approved salaries/allowances;

     

    ‘‘Furthermore, an increase of N21.72 billion in the Overhead budgets of some MDAs, while the sum of N1.96 billion was cut from the provision for some MDAs without apparent justification;

     

    ‘‘Increase in the provision for Capital spending (excluding Capital share in Statutory Transfer) by a net amount of N575.63 billion, from N4.89 trillion to N5.47 trillion.’’

     

    President Buhari also expressed concern in the reductions in provisions for some critical projects, including N12.6 billion in the Ministry of Transport’s budget for the ongoing Rail Modernisation projects; N25.8 billion from Power Sector Reform Programme under the Ministry of Finance, Budget and National Planning; N14.5 billion from several projects of the Ministry of Agriculture, and introducing over 1,500 new projects into the budgets of this Ministry and its agencies.