The Nigerian Senate has summoned Minister of Finance, Budget and National Planning Zainab Ahmed over the insertion of N206 billion into the 2023 budget of the Ministry of Humanitarian Affairs, Disaster Management and Social Development.
the minister was summoned by the Senate Special Duties Committee, chaired by Senator Yusuf Yusuf on Monday during a meeting with Sadiya Farouq, Minister of Humanitarian Affairs, on the ministry’s defense budget for 2023.
The humanitarian minister said that the money was for projects in 2022, but it was not released and now it is repeated almost 10 times.
The Senate Committee wanted to know why it was necessary to borrow the N206 billion in the budget, stating that,
- “In 2023, he intends to borrow N206 billion for a project. What are the projects to be implemented and are they captured in the Medium Term Expenditure Framework? If so, what are the specific project locations and activities attached to this?”
Farouq replied,
- “Yes, we mentioned the projects for 2022, which were not disclosed and part was part of the Northeast Development Commission (NEDC). The money was not released and now we have seen it repeated almost 10 times.
- “We are also going to clarify from the Ministry of Finance to find out why this increase despite the fact that the previous year the money for the project was not even released. So we’ll get the details and then send them to you about it.”
He added that the expansion of the projects of the National Social Protection Network (NSSNP) under the National Social Protection Network, the Transfer of Condition in Cash, the updating of the National Social Registry and the Rapid Response Registry (RRR) are to cushion the inflation effect.
He pointed out that the amount is going to be used because it is something that was negotiated between the Ministry of Finance and the World Bank.
The committee chair approved the motion to summon the finance minister to explain the N206 billion increase.
For context: President Muhammadu Buhari proposed an annual budget of N20.51 trillion for the year 2023, an increase of 19.8% compared to the N17.13 trillion approved for 2022, including the supplementary budget.
- A sum of N744.11 billion was allocated for legal transfers.
- Recurring non-debt costs stood at Naira 8.27 trillion
- Staff costs at N4.99 trillion
- Pensions, gratuities and retiree benefits of N854.8 billion
- Overheads of N1.11 trillion
- Capital expenditures of N5.35 trillion, including the capital component of statutory transfers.
- Sinking fund of N247.73 billion to retire certain maturing bonds.
- The cost of debt service stood at N6.31 trillion.
Total revenue available to finance the budget for the year was estimated at N9.73 trillion, leaving a deficit of N10.78 trillion, representing 4.78% of national GDP and exceeding the 3% threshold set by the Fiscal Responsibility Act of 2007.