President Muhammadu Buhari signed a record setting N17.13 trillion appropriation bill for the year 2022, on Friday 31st of December, 2021.
Present with him were Ahmed Lawan, the President of the Senate, Femi Gbajabiamila, the Speaker of the House of Representatives and Zainab Ahmed, the Minister of Finance, Budget, and National planning. This was done almost a week after the appropriation bill was passed by the Senate and the House of Representatives.
The budget was increased from N16.391 trillion, the initial proposal, to N17.126 trillion, by the two chambers. The oil benchmark was also raised from $57 per barrel to $62 per barrel. The President expressed worry at some insertions and removal done on the Budget by the National Assembly and vowed to clarify such when both chambers resume from the Yuletide break.
The president explained however, that N186. 53 billion included in the increase resulted from the additional critical expenditure, which he authorized the Minister of finance, budget and National Planning to direct to the National Assembly.
“The Minister will provide the public with the details of the budget as passed by the National Assembly, and signed into law by me,” President Buhari said.
Oil production was fixed at 1.88 million barrels a day; the exchange rate was set at N410.15 to the dollar, GDP was set at 4.2 per cent and inflation was set at 13 percent.
He also stated that work will start in earnest to ensure that the 2023-2025 medium-term expenditure framework and fiscal strategy paper, along with the 2023 Budget, which is going to be a transition budget, are both submitted early to the National Assembly.
The president therefore instructed the heads of ministries, departments and agencies (MDAs) to work hand-in-hand with the ministry of finance, budget and national planning in order to achieve this goal.
Sanwo-Olu Signs N1.758 Trillion Appropriation Bill Into Law
Babajide Sanwo-Olu, the Governor of Lagos State, signed the 2022 Appropriation Bill of N1.758 trillion into law on Friday 31st of December, 2021.
The Lagos State House of Assembly had passed the budget estimate on Wednesday 29th of December, 2021 and tagged it ‘Budget of Consolidation’. The initial budget was N1.38 trillion but was eventually stipulated at N1.758 trillion.
At the State House, Ikeja, Lagos, he stated that the increase was due to the fact that both the Executive and the House of Assembly sought to incorporate all financing options for the project of the Blue and Red Line rail, and also other capital projects, without putting undue pressure on the debt sustainability and the cash flow.
Governor Sanwo-Olu stated that approximately N1.166trillion would be spent on capital expenditure while N591 billion would be expended in recurrent expenditure.
“This budget represents 66 per cent capital expenditure and 34 per cent recurrent expenditure. Through this, we are creating significant value for our people and we are assuring you of a stronger 2022.” He said.
He also stated that he was excited about what 2022 could bring for his administration in relation to executing projects and what benefits it would provide to the citizens. He was hopeful the budget could help to deepen further the THEMES agenda of his administration.
“We are excited with what we can do for our people and we believe it will further consolidate our efforts in all areas. We’ll see greater impacts and real dividends to the people,” Sanwo-Olu said.
Mr Sam Egube, the State Commissioner for Economic Planning and Budget, stated in his remark that shared vision of the Executive and the Legislature, to ensure the development and growth of Lagos and its People had given birth to the budget outcome.
Hon. Gbolahan Yishawu, the Chairman of the House Committee on Economic Planning and Budget, stated that the appropriation bill was passed within five weeks without compromise to the level of scrutiny, in large part to the Speaker, Mudashiru Obasa, who prompted the lawmakers to ensure the budget met the approved standards and was handed over in time.
He maintained that the Legislature were committed to the ‘THEMES’ agenda championed by the administration of Governor Sanwo-Olu.
Sanwo-Olu had presented the budget on the 24th of November, 2021, estimated at that time at N1.388 trillion, for passage by the State House Assembly.
Hon. Gbolahan Yishawu stated that the budget was structured to complete all projects, along with those that will be initiated in 2022.
Ayade, Oyetola and others also sign 2022 Appropriation into Law
Ben Ayade, the Governor of Cross Rivers State signed into law the 2022 appropriation bill, on Friday 31st of December, 2021, at the State Executive Council Chamber of the Governor’s Office in Calabar.
The governor stated that the N354.55 billion budget would guarantee that most industries established by his administration will take off with their goods in the market.
“Most of the industries we started have all been completed. This budget is therefore aimed at getting the products from these industries into the market in quick and agglutinated succession.” The Governor said.
He said any budget for a developing economy must include the dream, vision and aspiration of the administration for its economy.
“Any budget that is limited to what you can earn does not belong to the Third World developing economies. It is only the economy that has matured, stabilized and fermented that could have envelope budgeting.”
He stated that although the budget seems large, it is relatively small in relation to what the administration seeks to achieve, and it is the last budget for a full year.
Amongst other state governors who have reportedly signed the appropriation bill for the 2022 fiscal year are the Osun State Governor, Adegboyega Oyetola, who signed the N 129.7 billion budget into law, the Ogun State Governor, Dapo Abiodun, who assented to a N350.7 billion budget for 2022 and Governor Okezie Ikpeazu of Abia State, who signed the appropriation bill of N147.28 billion into law.
