On Saturday, the Nigerian Senate bulldozed its way through a storm of controversies to pass the 2024 budget, boasting an eye-watering increase of about N1.2 trillion. The approval, a hefty bump from the N27.5 trillion initially proposed by President Bola Tinubu in November, now stands at an imposing N28.7 trillion.
Raising eyebrows and fueling the already fervent discourse on fiscal responsibility, the upper legislative chamber took a bold step by pegging the benchmark of oil prices at $77.96 per barrel of crude oil. This move is seen as an effort to align with the current volatile market values of the coveted commodity on the international stage.
However, what has gripped the nation’s attention is the slew of allocations and adjustments that accompanied the budget passage. The federal lawmakers nodded approvingly to an oil production rate of 1.78 million barrels per day and held steadfast to an exchange rate of N800 to a US dollar. GDP growth rate found its place in the budget at a promising 3.88%, while the budget deficit was greenlit at a staggering N9.18 trillion.
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In a theatrical denouement, Senate President Godswill Akpabio, amidst an air of tension and dissent, declared the budget’s passage after a majority of lawmakers supported it through a voice vote. This contentious approval followed a thorough consideration of a report presented by the Chairman of the Senate Committee on Appropriations, Adeola Olamilekan.
Olamilekan, presenting the report, recommended a financial rollercoaster ride. A whopping N1.7 trillion was greenlighted for Statutory Transfers, while Debt Service came with a jaw-dropping price tag of N8.2 trillion. The drama didn’t end there – recurrent (non-debt) expenditure weighed in at N8.7 trillion, and capital expenditure made its grand entrance at a princely sum of N9.9 trillion.
The reason behind this budgetary crescendo
According to Olamilekan, the joint National Assembly Committee on Appropriation identified a critical need for additional funding in areas not listed in the initial Appropriation Bill presented by President Tinubu. The inadequacy in budgetary allocations for certain Ministeries, Departments, and Agencies (MDAs) was exposed, leading to this staggering increase.
But the Senate’s financial theatrics didn’t stop at the national budget. In an audacious move, the National Assembly decided to swell its 2024 budget from N197 billion to an astounding N344 billion. This eye-watering 75% increase from the initial proposal and a 51% surge from the 2023 budget allocation have left tongues wagging and pens scribbling.
What ignited the most fervent debates was the detailed breakdown of the National Assembly’s bounty. A staggering N78.624 billion was earmarked for the House of Representatives, while the Senate bagged a cool N49.145 billion. However, the extravagant allocations didn’t stop at lawmakers’ pockets.
In a brazen display of indulgence, the National Assembly set aside N4 billion for the construction of a new National Assembly Recreational Centre and a further N6 billion to build car parks. These revelations have reignited discussions about the bloated cost of governance in Nigeria.
The allocations rolled out like a red carpet for opulence – N4.5 billion was approved for the completion of the National Institute for Legislative and Democratic Studies (NILDS) building. Furthermore, N2.7 billion was greenlit for the furnishing of committee meeting rooms and other offices within the Senate building.
The National Assembly spared no expense, allocating N3 billion each for infrastructure upgrades and the establishment of a modern printing press. Another N3 billion was earmarked for purchasing books in the National Assembly library. Specific allocations included N2.5 billion to the Pension Board, N1.230 billion for retired clerks and permanent secretaries and a cool N1 billion for constitution review.
To add a layer of irony to the entire spectacle, the Senate Appropriations Committee secured a cozy N200 million, while the Public Accounts Committee claimed its share with N130 million. The House was not left behind, garnering N150 million for their Public Accounts Committee.
The Socio-economic Rights & Accountability Projects (SERAP) has decided that enough is enough, boldly declaring their intent to sue the National Assembly for what they term an “outrageous and unlawful increase” in allocations for lawmakers. SERAP has framed the move as an assertion of the people’s voice against the backdrop of millions of Nigerians grappling with extreme poverty.
“We’re suing the National Assembly over the outrageous and unlawful increase in the allocations for lawmakers from N197 billion to N344 billion, to satisfy their lavish lifestyles while millions of Nigerians live in extreme poverty,” the organization announced.
The Senate’s budgetary maneuvers have become a catalyst for a broader discussion about the role of the National Assembly and the urgent need for financial prudence in the country.