Reps pass second reading of N43.5trn Appropriation Repeal and Re-enactment Bill 2024/2025

The House of Representatives on Wednesday passed for second reading the Appropriation Repeal and Re-enactment Bill 2, 2024–2025, marking a critical step toward consolidating the country’s budgetary process and addressing the current anomaly of running multiple budgets simultaneously.

The development followed the transmission of a request from President Bola Tinubu to the House, urging lawmakers to consider the bill.

The letter was formally read on the floor by Deputy Speaker Benjamin Kalu, who highlighted the key objectives and provisions of the proposed legislation.

According to the letter, the bill seeks to authorise the release of N43,561,041,744,507 from the Consolidated Revenue Fund of the Federation, comprising N1,742,786,788,150 for statutory transfers, N8,270,960,606,831 for debt service, N11,268,513,380,853 for recurrent non-debt expenditure, and N22,278,780,968,673 for capital expenditure and development fund contributions for the year ending 31 December 2025.

“The bill is designed to bring an end to the practice of running multiple budgets concurrently, while at the same time ensuring reasonable – indeed, unprecedentedly high – capital performance rates on the 2024/2025 capital budget,” Mr Kalu read.

The legislation further provides for a transparent and constitutionally grounded appropriation mechanism, enabling the orderly consolidation and allocation of critical, time-sensitive expenditures. It is aimed at ensuring that emergency spending and urgent developmental needs can be met without undermining fiscal discipline.

The bill also strengthens implementation discipline and accountability by requiring that appropriated funds be applied strictly for purposes specified in the appropriation schedules, with any deviations requiring prior approval of the National Assembly.

It outlines corrective measures for genuine errors that may hinder implementation and mandates the separate recording of excess revenues, with expenditure limited to acts approved by the National Assembly.

The legislation, according to the President, also enforces due process, compliance, and periodic reporting on releases and agency revenues, including any assistance received.

The bill was subsequently read for both first and second readings without debate before Mr Kalu referred it to the Committee on Appropriation for further legislative scrutiny.

The current fiscal situation has highlighted the urgency of the measure.

Nigeria is currently operating three budgets simultaneously: the 2024 budget of N28.7 trillion, a supplementary budget of N6.2 trillion, which brings the total to N35.5 trillion, and the 2025 budget of N54.99 trillion.

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This overlap disrupts the normal budget cycle, which typically runs from January to December of each fiscal year.

The repeal and re-enactment of the appropriation bill essentially means that the budgets will be rebudgeted and consolidated, allowing funds from these previous budgets to be rolled over for implementation.

In his letter, President Tinubu emphasised that the move is intended to end the practice of running multiple budgets concurrently.