…as federal lawmakers okay Amendments To Finance Act On 50% Banks Windfall
WorldStage Newsonline– Nigeria’s Senate and the House of Representatives have okayed Amendments to Finance Act on 50% Banks Windfall.
The two chambers of the federal lawmakers gave the approval on Tuesday as they passed the N6.2 trillion 2024 Appropriation Act (Amendment Bill) 2024.
The money bill was transmitted to the federal parliament on Wednesday July 17th, 2024 by President Bola Tinubu and it was meant to provide for the sum of N6,222,595,926,139.
Out of the amount, the sum of N3, 222,595,926,139.00 was meant for Capital Expenditure and the sum of N3,000,000,000,000.00 is for Recurrent Expenditure.
While the N3.2trn is meat to fund legacy projects, and other sectors of the economy, the other N3trn is expected to fund the new minimum wage of N70,000.
The two chambers had last week suspended their rules to accommodate the first and second reading and referred it to the Committee on Appropriations for further legislative action.
Leading the debate on the legislation at the committee of supply on Tuesday, Chairman, Senate Committee on Appropriation, Senator Solomon Adeola, reminded his colleagues that the N28,777,404,073,861 2024 Appropriation Bill was passed into law by the National Assembly, last year and was subsequently assented to by the President on January, 1, 2024.
Adeola said, “The 2024 Appropriation Act (Amendment) Bill seeks to among others, make available additional funds for Renewed Hope Infrastructure Development Projects, to be undertaken across the country and to meet other recurrent expenditure requirements, such as the minimum wage increase necessary for effective governance of the Federation.
“Considering the fact that the Committee was mandated to report back to the Senate on the Bill within one week, the Senate Committee on Appropriations consulted widely with the leadership of the Committee and other critical stakeholders.
“More significantly, it met and deliberated with the Hon. Minister of Budget and Economic Planning, Senator Atiku Bagudu and deliberated on the scope of the Bill, as well as, it’s source of funding the projects.
“Subsequently, the Committee processed the Bill together with its House counterpart, in line with relevant rules of legislative practice and procedures.”
Adeola said the Committee observed the need to provide the government equity component of the Renewed Hope Infrastructure Projects and other critical projects to be undertaken across the country and other recurrent expenditure requirements, like the provision for the new minimum wage, among others, which necessitated the request for the Amendment of the 2024 Appropriation Act.
He said the additional expenditure contained in the Amendment Bill would be financed by the one-time windfall tax on banks’ foreign exchange profits for the year 2023 as approved by the National Assembly.
The Committee recommended the authorization and issuance from the Consolidated Revenue Fund of the Federation, the sum of N35,055,536,770,218
He said, N1,742, 786,788,150 would be for Statutory Transfers, N8,270,960,606,831 for Debt Service, and 11,268,513,380,853 for Recurrent (Non-Debt) Expenditure.
Adeola added that the sum of N13,773,275,994,384 would be for contribution to the Development Fund for Capital Expenditure for the year ending on the 31st day of December, 2024
None of the senator expressed objection to the bill and the Senate dissolved to the Committee of Supply to discuss the clause by clause consideration of the Bill.
In the sectoral under recurrent expenditure component of the budget, Contingency recurrent has the highest vote of N2.536 trillion, followed by the Ministry of Defence which has sum of N1.308trillion proposed for it.
Others are the Ministry of Police Affairs, N869.120billion , Ministry of Education N857billion , Ministry of Health and Social Welfare N667.577billion , National Social Investment Programme Agency , N200billion etc .
Under the capital expenditure component , the Ministry of Works has the highest projected sum of N1 404trillion , followed by Ministry of Agriculture and food security with projected sum of N1.334trillion .
Others are Ministry of Health and Social Welfare , N486.456billion , Ministry of Education , N431. 829billion , Ministry of Finance N353.949billion , Ministry of Power N264.265billion , Aids and Grants funded projects N685 . 632billion , Contingency ( capital ) N200cbillion, Zonal Intervention etc.
