NASS May Not Pass Appropriation Bill By Dec

Senate Leader, Senator Ahmed Lawan, has explained why the National Assembly may not pass the 2018 budget by December as projected by the executive.

According to him, while the time frame for passage of the budget should not be a priority to the lawmakers, they should rather ensure that the budget is implementable, and that there is justice, fairness and equity in the distribution of projects.

Speaking to State House correspondents at the presidential villa yesterday, Lawan noted that the 2017 budget took effect from June and it is not possible to complete its implementation in six months.

Advising the government not to terminate the budget prematurely, he said, “It depends on how it goes; you know we are supposed to be working on the same page, working for the same people of Nigeria and we will like to see the National Assembly working in tandem with the executive arm of government.

“These things will be determined by what the budget looks like- the estimates presented to us- because naturally we always try to do a very thorough job, a very patriotic job to ensure that the budget is implementable, to ensure there is equity, fairness and justice in the distribution of projects across the country.

“We will like to see that done but we shouldn’t just do that at all costs. We should be looking at the benefits that could accrue from doing that and whether it is possible to just do it at once or maybe reduce the period in two phases or even more.

“The 2017 budget took effect from June this year. If it is possible for us to complete the implementation of the budget in six months from June, so be it but that also requires that we implement the budget properly because these are projects that are supposed to bring development, relief and succour to Nigerians.

“If it is not possible, we shouldn’t force it on ourselves that we must terminate it. Regardless of what happens, we should look at the potential consequences of completing it in December or whether we need to extend it a little bit more into March for example, but these are issues that when we engage between ourselves; the executive and the legislature, we will be able to sort them out for the benefit of Nigerians”.

Asked if the Senate is satisfied with the implementation of the 2017 budget so far, he said, “We are still working to ensure that implementation of the 2017 budget continues. So far, it hasn’t been able to be implemented the way we thought it would. You remember that there are certain things that you don’t just get them to happen at once.

“Some processes must take place before you finally have projects kicking off. So, I believe that between now and when the 2017 budget circle will be completed, much would have been done and achieved”.

PMB presents 2018 budget Tuesday

Meanwhile, President Muhammadu Buhari will lay the 2018 budget estimates to a Joint Session of the National Assembly by 2:00pm on Tuesday next week.

Accordingly, the president has notified the legislature in a letter addressed to the two chambers of the National Assembly requesting for a slot to address a joint session of the National Assembly and lay his third budget proposal on November 7.

Buhari had presented the 2016 Budget Proposal on December 22, 2015 and that of 2017 on December 14, 2016.

The president’s letter titled, ‘Laying of the 2018 Budget Proposal Before the National Assembly’, was read by Senate President Bukola Saraki during plenary yesterday.

The letter reads in part: “Pursuant to Section 81 of the 1999 Constitution, may I crave the indulgence of the National Assembly to grant me the slot of 1400 hours onTuesday, 7th November, 2017 to formally address the joint session of and lay before the National Assembly, the 2018 budget proposal”.

Preparatory to the presentation of the 2018 budget to the National Assembly, President Buhari had on Tuesday, October 18 transmitted the 2018-2020 Medium Term Expenditure Framework, MTEF and Fiscal Strategy Paper (FSP) to the legislature.

In a letter addressed to the Senate president, Buhari also noted that pursuant to the provisions of the Fiscal Responsibility Act, the preparation for the eventual submission of the 2018 budget to the National Assembly was “progressing well”.

Under the MTEF, the executive is proposing an oil benchmark of $45 per barrel for the 2018 budget, a production target of 2.3 million barrels per day and an exchange rate of $305 to the dollar.

The presentation of the MTEF came on the heels of the appeal made by the opposition Peoples Democratic Party (PDP) to the National Assembly to consider the plight of Nigeria’s unborn children and reject the president’s request for approval of $5.5 billion external loans.

Again, the MTEF and FSP were designed against the backdrop of an adverse global economic environment.

Buhari, in the covering letter for the MTEF, said the document had been prepared against the backdrop of generally adverse global economic uncertainty as well as fiscal challenges and recovery in the domestic economy to ensure that planned spending is set at prudent and sustainable levels and consistent with government’s overall developmental objectives and inclusive growth.

The president further sought the consideration and expeditious approval of the MTEF and FSP “to bring the 2018 FGN Budget preparation process to a timely closure”.

The House of Representatives had on December 13, 2016 adopted the 2017 to 2019 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), just as it fixed the exchange rate of Naira to a dollar at N350 as against the N290 recommended by the executive.

Foreign reserves rise by $7.98bn in 10 months

Meanwhile, the foreign reserves monitored by the Central Bank of Nigeria (CBN) appreciated by $7.98 billion between January and October 2017.

This came on the heels of steady increase in global oil prices and increased activity in the investor exporter window.

The foreign reserves opened this year at $25.84 to close October 31, 2017 at $33.83 billion, an increase of 30.9 per cent this year.

According to LEADERSHIP Friday findings, the price of Organization of Exporting Countries (OPEC) basket of 14 crudes countries gained 9.9 per cent to $58.57 per barrel as at October 31, 2017 from 53.3 it started trading early this year.

Global Oil prices continued to rally around $60 per barrel and extended to new heights on Wednesday, with Brent Crude climbing to a level last seen in mid-2015, stoking hopes in the industry that the market has finally turned a corner, following a three-year slump.

An oil price recovery has been under way since June, as crude demand finally starts to outpace supply, with Brent rallying by almost 40 per cent to $61 per barrel.

This is even as the global oil glut that had built up over the previous three years is beginning to draw down

For the third quarter of 2017, the external reserves gained $7.53 billion or 29.2 per cent from $25.8 billion it opened January to $33.33 billion, the highest in almost three years.

CBN spokesman, Mr Isaac Okorafor, had noted that the increase in foreign reserves can be attributable to peace in the oil-rich Niger-Delta region of the country, which resulted in increased oil output and earnings.

He said with the sustained interventions, the apex bank has been able to push foreign exchange demand away from the parallel market into the formal regulated market.

In the second quarter, the oil sector grew significantly by 17.04 percentage points from -15.40 per cent recorded in Q1 2017 to 1.64 per cent, reflecting the relative peace in the Niger Delta, increased oil output from the region and increase in oil prices.

The nation’s economy recently exited from recession, with data from the National Bureau of Statistics (NBS) showing that the Gross Domestic Product (GDP) expanded by 0.55 per cent in the second quarter (Q2) of 2017.

The growth in GDP was driven mainly by the performance of the oil and gas and three other sectors. Between January and September 2017, the foreign reserves gained $7.53 billion or 29.2 per cent from $25.8 billion it opened January to $33.33 billion, the highest in almost three years.

Between January and August, the foreign exchange buffer of CBN appreciated by estimated $5.97 billion from $25.8 billion it opened this year.

Statistics on the CBN website revealed that the external reserves increased by 17.2per cent to $30.29 billion on March 30, 2016 from $25.84 billion it opened this year.

Specifically, the external reserves for the first time in 2017 hit $30 billion on March 8 and hovering around $29 billion and $28 billion in February. OPEC price basket of 14 crudes had closed at $50.04 a barrel in March.

The federal government’s 2017 budget was based on the production of 2.2 million barrels per day at the reference price of $42.5 per barrel in the global market, a benchmark the executive used in preparing the budget.

Finance experts had said steady increase in global oil prices continued to impact on CBN’s foreign exchange buffer and the nation’s economy in general.