President Muhammadu Buhari stated yesterday that if the National Assembly did not approve N23.7 trillion in extra-budgetary spending, it would cost the federal government N1.8 trillion in interest.

Fidel Info reports that the President added that his administration has included sufficient funding in the 2023 budget to ensure the smooth running of the upcoming general elections and the transition plan.

Recall that Buhari had asked the National Assembly to approve a certain amount that he said came from loans made by the Central Bank of Nigeria (CBN) over a ten-year period for emergencies.

After a boisterous session last week, the Senate put the President’s proposal on hold because Senators Betty Apiafi and Thompson Sekibo claimed it was unconstitutional.

Additionally, they required that the Senate receive information on how the money was used before it could approve the request.

Buhari, however, stated that he had no plan to challenge the lawmakers’ decision while addressing during the signing ceremony for the N21.83 trillion 2023 budget at the Presidential Villa, Abuja.

He said:  “I also urge the National Assembly to reconsider its position on my proposal to securitize the federal government’s outstanding Ways and Means balance at the Central Bank of Nigeria, CBN.

“As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.

“I have no intention to fetter the right of the national assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.”

“Failure to grant the securitization approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus three percent and the negotiated interest rate of nine percent and a 40-year repayment period on the securitized debt of the Ways and Means.”

The President also accused the National Assembly of introducing N770.72 billion new projects into the 2023 budget proposal he submitted, adding that the national legislative body increased the provisions made by Ministries, Departments, and Agencies, MDAs, by N58.55 billion.

He said the aggregate expenditure of N21.83 trillion was an increase of N1.32 trillion over the initial executive proposal for a total expenditure of N20.51 trillion.

He explained that the 2022 Supplementary Appropriation Act would enable the administration respond to the havoc caused by the recent nationwide floods on infrastructure and agriculture sectors, and asked the Minister of Finance, Budget and National Planning to subsequently provide more details of the approved budget and the supporting 2022 Finance Act.

”We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal.  The amended fiscal framework for 2023 as approved by the National Assembly, showed additional revenue of N765.79 billion, and an unfunded deficit of N553.46 billion.”

”It is clear that the National Assembly and the executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified.”

”I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion. The National Assembly also increased the provisions made by Ministries, Departments, and Agencies (MDAs) by N58.55 billion,” he said.

Buhari said his decision to sign the 2023 Appropriation Bill into law as passed by the National Assembly was to enable its implementation to commence without delay, considering the imminent transition process to another democratically elected government.

He, however, directed the Minister of Finance, Budget, and National Planning to engage with the legislature to revisit some of the changes made to the executive budget proposal, expressing the hope that the National Assembly would cooperate with the executive arm of government in this regard.

He urged the National Assembly to reconsider its position on his proposal to securitize the Federal Government’s outstanding Ways and Means of balance at the Central Bank of Nigeria, CBN.

Buhari thanked the National Assembly for approving his request for an extension of its validity date to March 31, 2023.

He directed the Ministry of Finance, Budget, and National Planning to work towards the early release of the 2023 capital votes to enable Ministries, Departments and Agencies to commence the implementation of their capital projects in good time to support efforts to deliver key projects and public services as well as improve the living conditions of Nigerians.

Reiterating that the 2023 Budget was developed to promote fiscal sustainability, macroeconomic stability and ensure a smooth transition to the incoming administration, the President said it was also designed to promote social inclusion and strengthen the resilience of the economy.

He pledged that adequate provisions had been made in the budget for the successful conduct of the forthcoming general elections and the transition program.

According to him, “As I mentioned during the presentation of the 2023 Appropriation Bill, the budget was developed to promote fiscal sustainability, macroeconomic stability, and ensure smooth transition to the incoming administration.

“The budget was also designed to promote social inclusion and strengthen the resilience of the economy. Adequate provisions have been made in the 2023 Budget for the successful conduct of the forth-coming general elections and the transition program.”

On achieving revenue targets for the budget, the President directed MDAs and Government Owned Enterprises, GOEs, to intensify their revenue mobilization efforts, including ensuring that all taxable organizations and individuals pay taxes due.

To achieve the objectives of the 2023 Budget, he said relevant agencies must sustain current efforts toward the realization of crude oil production and export targets.

”To augment available fiscal resources, MDAs are to accelerate the implementation of Public Private Partnership initiatives, especially those designed to fast-track the pace of our infrastructure development.”

On the Finance Bill 2022, the President expressed regrets that its review, as passed by the National Assembly, was yet to be finalized.

”This is because some of the changes made by the National Assembly need to be reviewed by the relevant agencies of government. I urge that this should be done speedily to enable me assent law,” he said.

In his remarks, the Senate President, Ahmad Lawan, assured that the National Assembly would work to ensure increased funds for the government and reduce the rate of deficit in the budget.

“But that is not to say that we should raise taxes that will be out of the roof to cause problems for our citizens. But I believe that as a National Assembly, in the next five months, we must be looking at increasing the funds available to the government and also ensuring that the deficit budget is minimized in the next assembly by the grace of God,” he said.

On his part, speaker of the House of Representatives, Femi Gbajabiamila, denied any padding or jerking up of the budget, explaining that the lawmakers had done very well in meeting their constitutional mandate.

“If you understand constitutional democracy, there are different layers of government and it’s called separation of powers. Ours is for us to receive proposals and that’s why they’re called proposals anywhere in the world.”

“The National Assembly has done very well in meeting its constitutional mandate. It takes all arms of government to be on board to give a true working document for the country. The executive did everything they could; and we have even a wider view, a bird’s eye view of what’s going on in all the agencies.”

”We have also complemented what the executive has done. It’s all for the good of the country and that’s what we’ve done,” he said.