A N2.18 trillion supplemental budget was approved by the federal government on Monday for the fiscal year 2023. This would finance critical matters such as national security and defense. The provision of welfare benefits for employees and Nigerians in general was another goal of the additional funds.
Following President Bola Tinubu’s led Federal Executive Council meeting this week at the Aso Rock Villa, State House Correspondents were briefed on the financing details by Minister of Budget and Economic Planning Abubakar Bagudu.
“To sustain the gains made in security, N605 billion is allocated for national defense and security,” stated Bagudu. Since the money would be given to security services before the year ends, it will quicken the sector’s benefits.
“Equally a sum of N300bn was provided to repair bridges, including Eko and Third Mainland bridges, as well as construction, rehabilitation and maintenance of many roads nationwide before the return of the rainy season.
“The sum of N210bn was provided for the payment of wage Awards. In negotiation with the Nigeria Labour Congress, the federal government agreed to pay N35, 000 each to about 1.5 million employees of the federal government and that covers September, October, November and December 2023.”
“You may recall that the federal government secured a $800 million loan from the World Bank to pay cash transfers of N25,000 to 15 million households,” Bagudu said in elucidating the rationale for the N400 billion cash transfer payments that the Council had authorized. Two months, October and November, are covered by the $800 million.
The Minister further revealed that “this N100bn is for the additional month that the federal government is funding, as the President graciously approved.”
In order to promote the increase of output, he said, the Council also allocated N200 billion for seed, agricultural input, supplies, and agricultural tools, as well as infrastructure. Meanwhile, N100 billion was set aside to upgrade the Federal Capital Territory’s infrastructure.
The Independent National Electoral Commission also got N18bn for the conduct of elections in Bayelsa, Kogi and Imo in November. To fulfill its palliative promises to Nigerians, FG voted N5.5bn for the take-off of the student loan scheme in January 2024.
“The supplementary budget also includes N8bn for the take-off grant of new ministries and N200bn for capital supplementation to deal with urgent requests made to the President from various parts of the country,” Bagudu said.
While the FG intends to fund the extra-budgetary spending from revenues accruable to it from its recent policies like the removal of subsidy on petrol, it is leaving no stones unturned as it ordered the DMO to raise the nation’s domestic borrowing ceiling to source for more money from the debt market to support its planned expenditures when necessary.
“It is not anticipated that there would be borrowing, but to the extent there will be, the debt management office will raise it. This is not recourse to Ways and Means,” the Minister explained.
The former Kebbi State Governor also reiterated the administration’s commitment to maintain the January-December budget implementation cycle.
He cited the legislative and executive backgrounds of the President, Vice President, and other members of the Council, stating that the “budgeting process is benefiting from this collective wisdom and would foster mutual respect for institutions which will narrow the areas for dispute.”
