How 2020 budget signed by Buhari was ‘padded’ with N264 billion

President Muhammadu Buhari signing 2020 budget
President Muhammadu Buhari signing 2020 budget

In October, when President Muhammadu Buhari presented the 2020 Appropriation Bill before a joint session of the upper and lower Houses of the National Assembly, his proposal was an aggregate of ₦10.3 trillion.

However, when he signed the bill into law in December, after the National Assembly’s perusal, the new aggregate was about ₦10.6 trillion — a difference of about ₦264 billion.

The Senate Committee Chairman on Appropriation, Ibrahim Barau, who first made this known, said the increase was targeted at offsetting the infrastructural deficit in the country.

Analysis

Nonetheless, analysis of the add-ons obtained by PREMIUM TIMES has shown that the Federal Capital Territory Authority (FCTA) is the most favoured institution in the increments across Ministries, Departments and Agencies.

Mr Buhari initially budgeted ₦28.4 billion for the FCTA but upon passage, its new capital expenditure was increased to ₦62.41 billion.

In spite of the infrastructural rot bedeviling the capital city, renovation of the National Assembly complex would chalk off ₦37 billion from this.

Thus, for the coming year, renovation of the legislature building would gulp more funds than the entire stretch of the federal roads in the country would get.

Next to FCTA is the Universal Basic Education (UBE) Commission. Its capital allocation, which falls under the category of statutory transfers, got a raise of about ₦21.6 billion — up from ₦4.6 billion to ₦26.2 billion.

The increment is billed to cater for a flurry of vague projects inserted by federal lawmakers.

These include the “supply of instructional materials to various schools in the North-east,” priced at ₦500 million, same as the “supply of laptops and writing materials to schools in Borno State.”

Curious increase

In terms ratio of increase, the presidency’s Office of the Senior Special Assistant on MDGS (OSSAP-MDGS) took the lead.

The capital expenditure of the office which was initially ₦34 million is now ₦5.1 billion.

What the over ₦5 billion increment is for, among others, includes “supply of goods, fertilisers rice, maize and beans in Katsina” and “supply of tricycles, motorcycles, sewing machines,” each of which will cost ₦500 million; as well as “supply of new Toyota Hiace buses, utility vehicles SDG intervention,” which would gulp ₦1.9 billion.

‘Free money’

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) in its recent report categorised projects of these nature — capacity building and empowerment programmes as they are called — as “free money without accountability, aside from being difficult to track.”

An analysis done by this newspaper on the other projects tucked under the budgets of other institutions by federal lawmakers also showed that a slew of them are the same controversial projects that the ICPC recommended be suspended from the nation’s budgetary system.

READ ALSO: How we’ll ensure proper implementation of 2020 budget — Gbajabiamila

Like last year, when over 391 projects were smuggled by federal lawmakers into the budgets of the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and Border Communities Development Agency (BCDA), this year too, over 300 projects found their ways into the two agency’s budgets.

The said ICPC report singled out these two agencies as “conduits for embezzling funds” because of the size, type and number of projects domiciled under them.

This is notwithstanding the fact that some projects in both agencies are overpriced.

Changed presidential stance

When federal lawmakers, while exercising their power over the budget document last year, altered the initial proposal by adding over ₦500 billion and 6,000 new projects, the president was unimpressed and reacted quickly. Not so this time around.

That was a time when the relationship between the legislature and the executive was at an impasse. Then, the president chided the legislators for hijacking the executive’s role of proposing projects.

Mr Buhari, who is now serving his second and final term in office, said then that the funds for some necessary projects have been cut and some unnecessary ones got a raise.

“The National Assembly made cuts amounting to N347 billion in the allocations to 4,700 projects submitted to them for consideration and introduced 6,403 projects of their own amounting to N578 billion.

“Many of the projects cut are critical and may be difficult, if not impossible, to implement with the reduced allocation. Some of the new projects inserted by the National Assembly have not been properly conceptualised, designed and costed and will therefore be difficult to execute.

 2020 APPROPRIATION    
AGRIC
ExecutiveNASSDifference
FEDERAL COLLEGE OF FISHERIES AND MARINE TECHNOLOGY - LAGOS99684960265207571225523907520
FEDERAL CO-OPERATIVE COLLEGE- OJI RIVER105405082839913482872937297459
NIGERIA STORED PRODUCTS RESEARCH, ILORIN419098749772904381223099450625
NIGERIA INSTITUTE OF OCEANOGRAPHY AND MARINE RESEARCH130654933656191028104312553474
0
0
FCTA0
FEDERAL CAPITAL TERRITORY ADMINISTRATION284228044316240715436033984349929
0
TRADE AND INVESTMENT0
SMALL AND MEDIUM ENTERPRISE DEVELOPMENT AGENCY OF NIGERIA11021125886148501338323829007946
0
SGF0
BORDER COMMUNITES DEVELOPMENT AGENCY373142348491926854105461261926
NATIONAL BOUNDARY COMMISSION440975845973927053532951208
0
0
LABOUR AND EMPLOYMENT0
NATIONAL DIRECTORATE OF EMPLOYMENT10247865541399854722612973760672
0
0
MINISTRY OF HUMANITARIAN AFFAIRS, DISASTER MANAGEMENT0
NATIONAL AGENCY FOR THE PROHIBITION OF TRAFFIC IN PERSONS3387866711838786671150000000
NATIONAL COMMISSION FOR REFUGEE111125228561201659305008913645
0
PRESIDENCY0
OFFICE OF THE SENIOR SPECIAL ASSISTANT TO THE PRESIDENT - MDGS (OSSAP-MDGS)3400661451063062835072299669
0
0
SCIENCE AND TECHNOLOGY0
PROJECT DEVELOPMENT INSTITUTE - ENUGU506198467095469846704485000000
NIGERIAN BUILDING AND ROAD RESEARCH INSTITUTE - LAGOS93116100902065338083411341770744
ENERGY COMMISSION OF NIGERIA118061004478176100446637000000
0
0
FEDERAL MINISTRY OF WATER RESOURCES0
ANAMBRA/ IMO RBDA338562600045721597001186533700
BENIN/ OWENA RBDA29882048003118794560130589760
CHAD BASIN RBDA25735200003487844000914324000
CROSS RIVER RBDA280070284344329627011632259858
HADEJIA-JAMAûARE RBDA364776597556083423991960576424
LOWER BENUE RBDA410648800064676537352361165735
LOWER NIGER RBDA28768889753846544526969655551
OGUN/ OSUN RBDA107569336639169086982841215332
SOKOTO RIMA RBDA235630929255813092603224999968
UPPER BENUE RBDA26621305423416772135754641593
UPPER NIGER RBDA143286944039660539202533184480
EDUCATION
UNIVERSAL BASIC EDUCATION (UBE) COMMISSION46054817102617925173821573770028
146432441246

2020 Budget Analysis.xlsx

“Furthermore, many of these new projects introduced by the National Assembly have been added to the budgets of most MDAs with no consideration for institutional capacity to execute them or the incremental recurrent expenditure that may be required,” a displeased Mr Buhari said.

With the relationship between the two arms of government now ‘cordial’, the president simply heaped praises on the National Assembly for passing the budget in record time.

This is in spite of obvious concerns according to an analysis of the 2019 budget, for which the legislators were reproached.

“It is my pleasant duty, today, on my 77th birthday, to sign the 2020 Appropriation Bill into law.

“I’m pleased that the National Assembly has expeditiously passed this Bill. Our Federal Budget is now restored to a January-December implementation cycle,” pleased this time around, Mr Buhari wrote on his Twitter page.


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