Outrage As Nigeria’s Minister Of Power Unable To Defend N42bn Project In 2022 Budget Before Senate

 Former minister of state for works and housing, now Minister of Power, Abubakar Aliyu’s, inability to defend N42billion budget project he presented to the senate for the 2022 budget has caused serious reactions amongst social media users.

Mr Abubaka on Tuesday appears before the Senate Committee on Power to defend the ministry’s 2022 budget proposal.

He, however, faltered when the panel began to pick holes in the budget and question how previous funds were expended.

Mr Aliyu faltered when the committee demanded an explanation for N42 billion proposed for the Zungeru Power Plant project which was tagged “new” in the 2022 budget proposal when N25 billion was already budgeted for the same project in 2021.

The Senate Minority Leader and member of the panel, Enyinnaya Abaribe, questioned how a project, which already gulped N25 billion, was tagged “new” for another N42 billion to be expended in 2022.

He said, “Why should an ongoing project be tagged new. Does the term “new” refer to a new loan for the project or new Zungeru project which has been increased to N43 billion in the ministry’s 2022 budget?”

In his response, the minister apologised for the word “new” and said, it was a typographical error.

While he confirmed that the project as captured in the proposed budget was not a new one, he explained that the multilateral loans are handled by the Ministry of Finance.

He, thereafter, referred the question to the head, energy resources of the ministry who also affirmed that the project was provided for by the ministry of finance for loan arrangements.

After Mr Abaribe’s observation, the senators recalled that the same amount generated controversy between lawmakers of both chambers who described the amount as outrageous during the 2021 budget defence session.

The Chairman of the committee, Gabriel Suswam, noted that the loans collected are being paid back with no projects on the ground, to show what the loans were tied to.

The minister was therefore asked to return with all necessary details on the project as and its expenditure.

Mr Aliyu presented a 2022 budget proposal of N301 billion for the ministry, with N294 billion for capital.

He said the federal government is set to commission the $1.3bn 700MW Zungeru Hydroelectric Power Project, and the 40MW Kashimbilla Power Station in Taraba State, by the end of December 2021

We’ll Borrow More To Finance N6.258trn 2022 Budget – Federal Government Says

 

The Federal Executive Council (FEC) presided over by President Muhammadu Buhari, on Wednesday, October 6, approved the 2022 Appropriation Bill for an aggregate expenditure of N16.39 trillion.

It also affirmed its plan to do more borrowings to finance the N6.258 trillion deficit in the proposed 2023 budget.

Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, disclosure this while briefing State House Correspondents.

According to her, “If we just depend on the revenues that we get, even though our revenues have increased, the operational expenditure of government, including salaries and other overheads, is barely covered or swallowed up by the revenue. So, we need to borrow to be able to build these projects that will ensure that we’re able to develop on a sustainable basis.

Nigeria’s borrowing, has been of great concern and has elicited a lot of discussions. But if you look at the total size of the borrowing, it is still within healthy and sustainable limits.

As at July 2021, the total borrowing is 23% of GDP. When you compare our borrowing to other countries, we’re the lowest within the region, lowest compared to Egypt, South Africa, Brazil, Mexico, the very lowest, and Angola.

We do have a problem of revenue. Our revenues have been increasing. We just reported to Council that our revenues from non-oil has performed, as July, at the rate of 111%, which means outperforming the prorated budget.

But our expenditure, especially staff emoluments have been increasing at a very fast rate making it difficult to cope with funding of government.

So, what we have to do is a combination of cutting down our cost, as well as increasing revenue to be able to cope with all that is required for government to do, including salaries, pensions debt service, as well as capital expenditure