Lawan stated this in his remark after the upper chamber passed a N13.58 trillion budget for the 2021 fiscal year.

According to the Senate President, the National Assembly’s approval granting extension for implementation of the capital component of the 2020 budget last week, should therefore be fully utilised by Ministries, Departments and Agencies of Government.

He added that the extension of capital implementation of the 2020 budget till 31st March, 2021; alongside the implementation of the 2021 budget starting in January 2021, would guarantee sufficient injection of funds into Nigeria’s economy.

“For Nigerians, this budget that has been passed in the National Assembly today, is to ensure that the economy is supported fully through public expenditure, because the economy of our country depends largely on public expenditure.

“The budget extension period for implementation of the 2020 budget, which we did last year, is to ensure that the funds that are available for 2020 are not lost.

“So, there will be two budgets running; funds from 1st January, 2021, up to 31st March, 2021; and then the implementation of the 2021 budget itself to start from January. That is absolute fight against the recession we are suffering from.

“With a projected 3 per cent growth in our Gross Domestic Product (GDP) in the 2021 budget, we believe that the recession which Nigeria is in will be over before the end of the first quarter.”

Lawan, while urging the Executive arm of government to ensure the implementation of the 2020 budget till March 2021 as extended last week by the Legislature, warned that the National Assembly would reject any further extension request on the implementation of  capital expenditure contained in the 2020 budget.

“I want to urge the executive arm of government, first to ensure that they implement the 2020 budget that will last up till 31st March, 2021.

“There will be no extension after 31st March. Everyone must be on their toes in the Ministries, Departments and Agencies to ensure they implement the budget 2020.

“And for 2021, we have to do everything and anything possible to ensure that we implement the budget like we tried to do in 2020.

“I believe that the economy of Nigerians will receive the right kind of boost from the implementation of the two budgets,” the Senate President said.

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The meeting which had in attendance principal officers from both chambers, was presided over by the President of the Senate, Ahmad Lawan, and the Speaker of the House of Representatives, Femi Gbajabiamila.

The Senate President, in his welcome address told the Executive arm of Government to ensure that the interest of Nigerians remained protected in the proposed cut to the 2020 national budget.

Lawan also expressed the willingness of the federal lawmakers to expeditiously consider the proposed amendment to the 2020 budget which the minister said would be presented to the National Assembly by next week.

“The budget amendment is very important, but I believe that when we are faced with this kind of challenge (COVID-19 pandemic), it is an emergency and we should do everything and anything possible to fast track the passage and implementation of the government intervention that is so critical and crucial at this stage.

“I believe that we shouldn’t delay it any longer. Next week, and I will suggest the early part of next week, we should have that document (MTEF) ready so that we can consider it alongside the budget. It is supposed to be the tonic of what Nigerians are waiting for.

“We have listened to the various adjustments you have made to avoid going into recession. However, to avoid going into a deeper recession, I think we need to do a little bit much more.

“After this meeting with the leadership, I suggest that you engage with our relevant committees in the Senate and House of Representatives to look at the nitty gritty that would be considered more in detail at the presentation level.

“On the whole, let me assure you that the National Assembly and Executive arm are on the same page, and that is to say that we will work to ensure that we have a budget 2020 amendment that will address the needs of the people of this country.

“One thing is that the net public expenditure must be targeted at net maximum performance for the benefit of the people of this country.

“In other words, we must come up with an amended budget that is operable and favorable to Nigerians,” Lawan said.

In his remarks, the Speaker of the House of Representatives, Femi Gbajabiamila, called on the Federal Government to adopt a feasible benchmark in the proposed amendment to the 2020 budget.

“The benchmark is so critical and so important, because once you pass the law, it becomes difficult to adjust that benchmark, and then what happens to the excess?

“We have always had problems with the Excess Crude Account, potentially an account which has no backing of the law. So, let’s even assume that the price remains static at $35, that means we have $10 going to the Excess Crude Account which we have no control over in terms of spending, that is why we guard that benchmark price very jealously.

“Is there a possibility of having a proviso built in in the budget…So that there can be an automatic kick in if the benchmark price goes beyond $26 or $27. We want you to explore that possibility.

“So, I think you should study the market and see what happens next week by the time you present the adjusted budget,” Gbajabiamila said.

Speaking on Nigeria’s debt profile, the Speaker said, “I would also want to address the issue of our deficit and tie it with the issue of debt relief. I’m not sure I heard any presentation on how much we owe and how much we are paying back in this budget.

“The reason I asked is that at the moment, I believe, for want of a better word, some of our creditors are very vulnerable right now. And depending on how you package your case, I believe they should be the ones coming to beg you to take debt relief, if not outright cancellation.”

Earlier, the Minister of Finance, Zainab Ahmed, while briefing the leadership of the National Assembly said, “the US$57 crude oil price benchmark approved in the 2020 budget is no longer sustainable.”

The minister said further that: “It is necessary to reallocate resources in the 2020 budget, to ensure the effective implementation of required emergency measures, and mitigate the negative socioeconomic effects of the COVID-19 pandemic.”

Ahmed stated that in line with the global economic outlook and relevant domestic considerations, the assumptions underpinning the 2020-2022 Medium Term Expenditure Framework (MTEF) and the 2020 Budget was revised to slash crude oil benchmark price from US$57 per barrel to US$25 per barrel; reduce crude oil production benchmark from 2.18 million barrels per day to 1.9 mbpd.

She added that the federal government also adjusted the budget exchange rate to N360/US$1; and reduced the upfront fiscal deductions by the Nigerian National Petroleum Corporation (NNPC) for mandated Oil and Gas sector expenditures by 65 percent from N1.223 trillion to N424 billion.

She disclosed that the amount available for funding the 2020 Budget is now estimated at N5.548 trillion, down from N8.419 trillion, a revised revenue estimate which is 34 percent (N2.87 trillion) lower than what was initially approved.

Federal Government’s aggregate expenditure budget was slashed by N88.412 billion; Statutory Transfer from N560.47 billion to N397.87 billion; and Overhead costs of Ministries, Departments and Agencies of Government from N302.43 billion to N240.91 billion.

Debt Service provision was, however, increased from N2.453 trillion to N2.678 trillion.

On Provision of N500 billion for COVID-19 Intervention Fund, the Finance Minister in her presentation explained that N263.63 billion will be sourced from Federal Government Special Accounts, N186.37 billion from Federation Special Accounts and the balance of N50 billion expected as grants and donations.

According to her, “the sum of N186.37 billion will be applied toward COVID-19 interventions across the federation, while an additional N213.60 billion was provided in the Service Wide Votes for COVID-19 Crisis Intervention recurrent expenditures.”

She disclosed that while a total of N100.03 billion was provisioned in the Intervention Fund for new capital spending, the Federal Government carried out a cut in capital expenditures for Ministries, Departments and Agencies of Government from N1.564 trillion to N1.262 trillion.

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Lawan stated this on Friday shortly after the Senate passed a N278.3 billion budget for the Federal Capital Territory (FCT) for 2020 fiscal year.

The Senate President said the inflow of disbursed funds as a result of Nigeria’s return to the January – December budget cycle would see to the injection of resources by government starting in January 2020.

“One thing stands out clear; this ninth Senate is prepared to change Nigeria for the better.

“For passing the 2020 budget before the end of December, for the president to sign the budget before the end of December, and for the budget to start taking effect from 1st January, definitely the Nigerian economy will see significant changes, because the inflow of the disbursement of funds by government will be an injection of some resources into the economy.

“This is something that was not available previously. We believe that the executive has a role to ensure that the 2020 budget is implemented fully as much as our resources can accommodate,” Lawan said.

Speaking on the FCT budget passed by the National Assembly, the Senate President said, “As the State Assembly of the FCT, we have discharged our responsibility. The next thing is for FCT to ensure that it implements the budget.

“I will on behalf of all of us, urge the Committee on FCT to be steadfast and ensure that what we have passed here is what is implemented.

“We will work together with the executive arm to ensure we get those revenues that are supposed to fund the budget that we have passed.

“I believe that in this regard, we will not allow the FCT Administration to do what is not acceptable. We must ensure that this FCT is reclaimed, because there are so many things that are not going right.

“We need to ensure that the FCT is safe, that residents and visitors alike come in here and do their businesses safely in a very secured environment.

“This is supposed to be the most secured city in Nigeria, because this is the seat of government.

“If we are not able to provide that security that befits the status of the FCT, the story outside of Nigeria will not be good for the country.

“I believe that we have done our job, and what is left is for FCT to take up its responsibility to ensure that this budget is implemented,” Lawan added.

While calling on Committees of the National Assembly to beam its light on revenue generating agencies, Lawan charged the legislature on oversight to ensure that government spending were consistent with implementation of the 2020 budget.

“But we also have a responsibility to ensure that we continue to evaluate the revenues of generating agencies, and ensure revenues come in, and every available provision in the budget should be treated equally because this document is a law.

“On oversight, it is probably the most important thing that we have to do to ensure the budget 2020 is implemented for the benefit of Nigerians. So, we will take a special way with dealing with oversights.

“All our committees will carry out their oversight fully on the executive arm of government. We believe that this is not trying to make someone uncomfortable.

“This is the best way to go to ensure that there is the implementation of those laudable and notable projects that will make life better for Nigerians,” he added.

Lawan stated that the National Assembly upon its return next year from the Christmas break will take on critical legislations such as the Petroleum Industry Bill (PIB) as well as Constitutional Amendment.

The passage of the FCT budget was sequel to the consideration of a harmonized report of the Senate and House of Representatives Committees on Federal Capital Territory (FCT) Statutory Appropriation bill, 2020.

Chairman of Senate Committee on FCT, Abubakar Kyari, in his presentation, gave a breakdown of expenditure to include: N55,878,241,095 as Personnel costs; N62,343,723,435 as Overhead costs; bringing Recurrent expenditure to a total of N118,221,964,530.

According to Kyari, the sum budgeted for Capital Expenditure in the 2020 fiscal year for the Federal Capital Territory is N160, 133,401,417.

Both the Senate and the House of Representatives on Friday adjourned plenary till January 28, 2020.

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This was even as the upper chamber approved the report of the Conference Committee of the Senate and House of Representatives on the Finance bill passed by the National Assembly recently.

President Muhammadu Buhari, in a letter dated December 10, 2019 and addressed to the President of the Senate, Ahmad Lawan, requested the National Assembly to consider the 2020 budget proposal of the FCTA.

Buhari, in his letter, explained that the request to the Senate was in compliance with Sections 121 and 299 of the 1999 Constitution (as amended).

The letter reads: “Pursuant to Sections 121 and 299 of the 1999 Constitution of the Federal Republic of Nigeria (as amended), I forward herewith, the 2020 statutory budget proposal of the Federal Capital Territory Administration, for the kind consideration and passage by the Senate.

“While hoping that this submission will receive the usual expeditious consideration of the Senate, please accept, Distinguished Senate President, the assurances of my highest consideration.”

Meanwhile, the upper chamber also on Wednesday referred President Buhari’s request for the confirmation of the Chairman and Members of the Federal Inland Revenue Service (FIRS) to the Senate Committee on Finance.

It also referred the President Buhari’s request for the confirmation of Edward Lametek Adamu as Chairman, Assets Management Corporation of Nigeria (AMCON) to the same committee for further legislative action.

The committee, which is chaired by Senator Olamilekan Adeola, is expected to submit its report on December 18, 2019, before the National Assembly adjourns on Thursday for Christmas break.

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The ninth Senate of the Federal Republic of Nigeria made history on Thursday, December 5, with the passage of the 2020 Appropriation Bill into law, thereby fulfilling the promise of the legislature to return the budget cycle to January – December period as it used to be.

Until few years after the return to democracy in 1999, Nigerians had become used to the January to December budget cycle such that individuals, businesses and corporations plan their activities in line with the cycle, but the ritual was distorted due largely to disagreement between the legislature and the executive, resulting in not only late presentation of the budget, but late passage and assent by the president.

The situation of late passage of the budget got to its peak during the 8th National Assembly particularly because of the uneasy relationship which resulted in incessant friction between the Presidency and the Bukola Saraki-led National Assembly.

The 2019 budget, for example, was presented to the National Assembly on December 19, 2018. It took the legislature a little over four months before it was passed into law on April 30, 2019 and assented to by the President on May 27, 2019. The injection of projects, particularly those to be executed in the constituencies of the lawmakers, was partly responsible for the delay. In exercise of their powers of appropriation as expressed in the 1999 Constitution in Section 80, Subsections 1- 4, the legislators inserted their constituency projects into the budget. The President, on the other hand, kicked against the insertions, subjected the passed budget to almost a month of vetting to sort out the grey areas, thereby delaying presidential assent.

The resultant effect of development like this as we have seen with many budgets is the incalculable harm to the economy. Infrastructure projects, which catalyse economic development, suffer the most and as this happens, the welfare of the people take a plunge.

The passage of the 2020 budget by the Senate and House of Representatives on Thursday has however brought renewed hopes in the National Assembly and Nigeria. Upon assuming the mantle of leadership of the National Assembly, President of the Senate, Ahmed Lawan, vowed to return the country to the January – December budget cycle. To achieve this, several parleys were held between the Presidency and principal officers of the National Assembly, the result of which culminated in the presentation of the budget on October 8.

The Senate President took it further by mandating the standing committees of the ninth Senate, with concurrence from the House of Representatives, to use the remaining period in the month of October to carry out the defence of the budget by various Ministries, Departments and Agencies (MDAs). Lawan’s resolve further received a boost with the directive by the President that all heads of MDAs must not travel out of the country until they have successfully defended their respective budget. The National Assembly Complex thus became a sort of Mecca as heads of the various MDAs trooped in to take turns. The various committees dutifully carried out their assignment, most times worked very late in the night and presented their reports to the Appropriation Committee, which in turn played its own role before the eventual presentation and subsequent passage of the budget by the Senate on December 5, 2019.

Before the passage of the 2020 budget, the Ahmad Lawan led National Assembly had already taken the initiative to ensure that the implementation of the budget does not go the way of previous ones. It is common knowledge that the budgets of precious years have witnessed abysmal performance and much of this is critically affected by the poor revenue inflow, especially as oil production and export remained below the Budget estimates and the general performance of the economy impacting negatively on non-oil revenue. But desirous of significantly putting an end to this ugly trend, the Ahmad Lawan-led-Senate had before now passed three critical bills that would not only see to the generation of more revenues, but will also ensure that the process of implementing the budget, especially its capital components are fast tracked and the desired results achieved.

The first among the three critical bills is the Deep Offshore and Inland Basin Production Sharing Contract Act (amendment) Bill, passed into law on October 15 with the expectation of making Nigeria richer by at least $1.5bn in 2020. According to the Senate, the IOCs had failed to remit a total sum of N7trn ($21bn) to the Federal Government in the last 26 years based on non-implementation of the PSC Act. This was even when the law provided for a review anytime the price of crude oil exceeds $20 per barrel or every 10 years since the passage of the law which successive government and the legislature failed to do until the coming of the ninth Senate under the able leadership of Distinguished Senator Ahmad Lawan.

It is therefore a landmark achievement by the ninth National Assembly as an additional injection of $1.5bn to the national treasury in 2020 as a result of the amendment of the act can only mean one thing – more revenue for the provision of critical infrastructure across the country.

Next is the Finance Bill, 2019, presented alongside the 2020 Appropriation Bill to the joint session of the National Assembly. One of the key components of the amended bill is to increase government revenues through various measures part of which include widening the tax base for non-resident companies, increase in Value Added Tax from 5% to 7.5% and removing the tax exemption granted for dividends or incomes received from companies charged under Petroleum Profits Tax Act.

Equally important is the passage of the amendment to the Public Procurement Act. According to Senate President Ahmad Lawan, the “public procurement process in Nigeria has been a big bottleneck for some time probably since it was passed.” This is one reason why many projects earmarked for execution in a budget cycle are never achieved because of the processes involved, but as a result of the several provisions included in the amendment, the procurement process will become more simplified and easily achieved.

With the three critical bills put together and the return of the budget cycle from January-December, the road is now clearer to actualise the objectives of the 2020 budget with an early start and more revenues to implement Infrastructure projects that will catalyse economic development and take Nigeria to the next level. Senate President Ahmad Lawan justified this in his remark after the passage of the 2020 appropriations bill when he said “With the recent passage of landmark legislations such as the Production Sharing Contract (PSC) Act, Finance Bills & Public Procurement Bills by the National Assembly, the Executive arm of government is now sufficiently empowered to ensure successful implementation of the 2020 Budget.”

It is therefore safe to say that Distinguished Senator Ahmad Lawan has delivered on his promise of an early passage of the budget and by extension leading a National Assembly that works for Nigerians.

*Usman is Special Assistant on New Media, Office of the President of the Senate

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To achieve this target date, Lawan directed the Senate Committee on Appropriations to submit its report on the 2020 budget proposals on November 26, 2019.

Lawan gave the directive on the floor of the Senate during plenary.

The Senate President stated that the committee’s compliance to lay its report on November 26 would facilitate the passage of the 2020 budget on November 28, before the National Assembly proceeds on Christmas break.

He said: “On the Budget 2020 we are working on, the ball is now in the court of Senate Committee on Appropriations, the last committee standing.

“All the committees have done their work so well within the defined parameters and we, therefore, expect the Appropriations Committee to produce the report and lay it here by the 26th of November, next two weeks.

“I believe that the same thing will be done in our sister chamber, the House of Representatives, so that we are able to pass the Appropriation Bill 2020 on the November 28, by the Grace of God.”

Meanwhile, a total of twelve bills scaled first reading on the floor on Tuesday.

The bills are: National Religious Equity Commission (Est.) bill, 2019, sponsored by Senator Stella Oduah; Constituency Development Fund (Est.) bill, 2019, by Senator Ali Ndume; National Agency for Technology Incubation (Est.) bill, 2019, by Senator Ajayi Boroffice; National War College Act (Amendment) bill, 2019, by Senator Aliyu Wamakko; Compulsory Free Universal Education Act (Amendment) bill, 2019, by Senator Rose Oko, and Private Security and Forensic Investigation Bureau of Nigeria (Est.) bill, 2019, by Senator Barinanda Mpigi.

Others are: Police Act (Amendment) bill, 2019, by Senator Betty Apiafi; Federal University of Agriculture and Technology Funtua (Est.) bill, 2019, by Senator Bello Mandiya; Federal College of Education (Technical) Kaima, Kwara State (Est.) bill, 2019, by Senator Sadiq Umar; Federal University of Gashua (Est.) bill, 2019, by Senator Yahaya Abdullahi; Federal Medical Centre Dekina, by Senator Jibrin Isah, and National Commission for the Prohibition of Hate Speeches (Est.) bill, 2019, by Senator Aliyu Sabi Abdullahi.

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President of the Senate, Ahmad Lawan, made this declaration on Friday in Abuja.

“The National Assembly will do the right thing; which is to work on the budget and pass it,” Lawan said at the unveiling of the Legislative Agenda of the House of Representatives.

He said they would not allow any minister or anyone “to frustrate our desire to pass the 2020 Budget before the end of this year. So, it is an opportunity for all those concerned with defending their budgets, to take the advantage.”

The Senate President has been consistent in his desire to reverse the current unpredictable financial year to a more predictable January to December cycle of budgeting.

To achieve what some people consider a tall order, the leadership of the ninth National Assembly has repeatedly warned government officials to take advantage of the opportunity to defend their budget estimates on schedule.

Lawan, who is also the Chairman of the National Assembly, said: “One thing that we have collectively decided in the National Assembly, is to pass the budget 2020 before the end of the year.

“Already, the House has suspended plenary; the Senate will do same on Tuesday next week for the consideration of budget defence by Ministries, Departments and Agencies of government.

“Only the window of October is available for budget defense. Any Minister or Head of Agency who decides to travel out of Nigeria, without defending his or her respective budget would have no opportunity to do so.”

Lawan commended the House of Representatives on the prompt passage of the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) just like the Senate did.

Lawan stated that “this shows the commitment, capacity and willingness of the House to work assiduously for Nigeria to make progress,” stressing that “we are going to work jointly to ensure that we maintain and sustain this momentum.”

Lawan said the desire of the ninth National Assembly is to ensure that Nigerians get better in structure and social services.

On the Legislative Agenda that was unveiled, Lawan said both Senate and the House of Representatives have many things in common adding that the two chambers had great deal of understanding of positive things for Nigeria.

He said that even though the legislative agenda of the two chambers were separately treated, “we have the same mission; and it is to take Nigeria to greater heights in the next four years.”

Lawan added that the next thing is to transform and translate the prevailing stability within the two chambers into productivity by way of legislative implementation of the legislative agenda.

The Senate last month deliberated on its Legislative Agenda and adopted it.

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The approval followed the adoption of a 16-point recommendations by the National Assembly Joint Committee Finance and National Planning which considered the MTEF and FSP documents.

Part of the recommendations approved by the Senate was to increase the Federal Government’s total expenditure estimates in the MTEF/FSP from N10.002 trillion to N10,729.4 trillion.

This amounts to an increase of additional N729 billion.

News Agency of Nigeria, NAN, reports that the joint committee had conducted a public hearing on the MTEF and FSP on October 2.

The committee had engaged revenue generating agencies in the country on the contents of the MTEF and FSP forwarded by President Muhammadu Buhari for consideration.

Following debates by over 20 senators on the recommendations, Senate adopted the 57dollars per barrel as crude oil benchmark price for the fiscal year 2020.

It also approved the retaining of N305 to one dollar to ensure economic stability.

It also adopted 2.18 mbpd as daily crude oil production output in 2020.

It noted that the 2.18mbpd approved would be realised, given concerted efforts by Nigerian National Petroleum Corporation, NNPC, and security agencies to combat oil theft and vandalism.

It also recommended an increase in the revenue target of Nigeria Customs Service (NCS) from N942.6 billion to N1.5 trillion, given the performance of the NCS in the last nine months.

It further recommended that N557.4 billion from the revenue increment of NCS be used to reduce borrowing by N200 billion and increase capital expenditure.

This, it said, would help decrease the size of the budget deficit from N1.7 trillion to N1.5trillion and also increase capital available to MDAs by N357 billion from N1.01trillion to N1.367 trillion.

It recommended the adoption of N1.5 trillion as the amount for new borrowing, adding that the borrowing must be tied to critical projects to increase productivity.

It also recommended the earmarking of 1 per cent of the consolidated revenue to finance basic healthcare.

It recommended that proper investigation be carried out on the electronic collection of stamp duties domiciled with the Central Bank of Nigeria, CBN, to ensue accountability and increase revenue base.

It also recommended proper investigation on NNPC to ascertain the actual cost associated with the joint venture oil agreements.

It recommended for a call for an urgent review of the Fiscal Responsibility Act and other laws of the revenue generating agencies to align with current realities.

It further urged the National Assembly to expedite action on the passage of the finance bill which would be brought along with the budget.

This, it said, the passage would make for easy implementation of the 2020 budget, most especially in the area of Value Added Tax, VAT.

Making his remark on the recommendations, President of the Senate, Dr. Ahmad Lawan, thanked the committees for the speedy consideration of the MTEF and FSP.

He said the passing of the MTEF and FSP would usher in the presentation of the 2020 budget by President Muhammadu Buhari.

Lawan said there was the need for the Federal Inland Revenue Services, FIRS, to widen the tax net to generate more revenue for capital expenditure.

Lawan said there was the need for other revenue generating agencies to provide their revenue performances, noting that only that of the NCS was indicated in the recommendation.

He also called for the diversification of the economy from a mono economy via agriculture, solid minerals and tourism.

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