Legislature

Humanitarian minister claims N206b inserted in the ministry’s budget is for purchase of military equipment

Published

2 years ago

December 2, 2022

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***As Finance minister failed to appear

The Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar-Farouq, on Thursday, told Senators that the N206billion inserted in the ministry’s budget was meant for purchase of military equipment.

The Minister had disowned the money last week saying it was allegedly ‘inserted’ into the Ministry’s Budget by the Ministry of Finance.

The committee had requested the two Minister’s to appear to clear the air on the controversial N206b however, while the Humanitarian minister appeared with her permanent secretary, the Finance minister failed to turn up.

Umar-Farouq spoke when she appeared before the Senate Committee on Special Duties chaired by Senator Yusuf Yusuf (APC – Taraba Central).

At the resumed budget defence on Thursday, when asked for further clarification on the matter by the lawmakers, Umar-Farouq said: “On the N206billion, when we saw it, we didn’t understand what it was meant for because the explanation wasn’t clear.

“If you put N206billion in Humanitarian Affairs ministry’s budget and the narration is purchase of military equipment, definitely something is wrong.

“That’s why I said I’m not going to say anything about it until we get clarification from the Ministry of Finance.

“If we had requested for N206billion

for a different project and then in the Appropriation Bill, it is reading something else, we will not own it.

“When pressed further by the lawmakers whether she requested the N206billion for another project, but it came with another narration, she simply said, “It is not exactly that way, and that’s why we need that clarity from Finance ministry”.

However, the Minister of Finance, Mrs. Zainab Ahmed had on Wednesday, cleared the air on the allegations of N206 billion inserted in the 2023 budget of the Ministry of Humanitarian Affairs, Disaster Management, and Social Development.

In a special meeting with the House of Representatives Committee on Appropriation which invited her alongside the Director General of the Budget Office, Ben Akubeze, and the affected minister, Sadiya Umar Farouq, Ahmed said that there was a wrong coding of the projects.

She said the monetary provision was made for the social safety nets projects, stressing that it was an 800 dollars project that has been approved by the board of the world bank and the Federal Executive Council.

According to her, the loan was fully negotiated by the government of Nigeria with the full involvement of the Ministry of Humanitarian Affairs.

Ahmed had said: “The 2023 Budget proposal has been prepared with the utmost sincerity of purpose and in line with established regulations and procedures.

“Over the past week, there has been a lot of misinformation in the media regarding certain provisions in the 2023 budget totaling N423.8billion.

“The expenditures questioned are mostly related to provisions for multilateral and bilateral loan-funded projects.

“It is instructive that all these projects are now the subject of controversy and were included in the budgets of the MDAs which were transmitted to the supervising Ministers for their review and feedback on 4 October 2022 before the presentation to both the FEC and NASS.

“Until these recent controversies, none of the concerned MDAs raised any issues on the projects with our ministry.

“Traditionally, Multilateral/Bilateral financial institutions provide project-tied loans to the Federal government of Nigeria.

“These loans were previously not fully captured in the FGN budget; only the provisions for counterpart funds & debt service were included in the FGN budget.

“So, in 2021, we realized there was a gap that was underreporting and in 2021 and 2022 we started making this report.

“The sum of N206,242,395,000 was provided in the budget of the Humanitarian Affairs, Disaster Management and Social Development to provide for the social safety need project.

“This is an 800 dollars project that has been approved by the board of the world bank and approved by the federal executive council. This loan was fully negotiated by the government of Nigeria with the full involvement of the ministry of humanitarian affairs.

“This project is domiciled in the FAHADM&SD Headquarters. The World Bank is the funding source for the project, with the projected drawdown of $473,500,000, which is equivalent to N206,242,395,000, using the N435.57/USD exchange rate applicable to the 2023 budget.

“This project was correctly described in the submission from IERD for the 2023 budget, but regrettably, a wrong code was inadvertently used in the process of inputting it, which resulted in it being captured as Purchase of Security Equipment in the GIFMIS Budget Preparation System (BPS), which has a limited dropdown range of project descriptions/codes.

“The same project was correctly captured in the 2022 budget of the FAHADMSD in the amount of N12,304,500,000 [ERGP1180310], based on the projected drawdown of $30m at N410.15/$ 2022 budget exchange rate.”

Ahmed also said that the same situation occured in the ministries of Defence and Power respectively, ruling out wrongful insertions.

“The Honourable Minister of Defence wrote to Mr. President requesting the immediate release of $1,363,880.40 and N158,928,045.37 to implement Phase 1 of the project. HM-MoD also requested the sums of $12,274,923.60 and N11,946,311,375.18 to implement Phases 2 and 3 of the project, all of which Mr. President graciously approved.

“Further to Mr President’s approval, 50% of the requirement for Phases 2 & 3, amounting to N8,600,000,000 (using the exchange rate of N435.57/USD), has been included in the 2023 budget proposal of the MoD.

“The 2023 proposed budget for the FMoP includes a total of N195,465,151,790.65 MBPL with a breakdown as follows:

“Zungeru Hydroelectric Power Project: funded by Export-Import Bank of China. Amount: USD175,757,149.92, which is N76,554,541,790.65.

“Power Sector Recovery Operation (PSRO); funded by World Bank. Amount: USD 162,000,000, which is N70,562,340,000.00.

“Nigeria Electrification Project (NEP) to be executed by the Rural Electrification Agency (REA), funded by World Bank and AfDB. Amount: USD55,000,000, which is N23,956,350,000.00.

“The Nigeria Electricity Transmission, to be executed by Transmission Company of Nigeria (TCN)): funded by the World Bank. Amount: USD56,000,000, which is N24,391,920,000.000.

“The total projected drawdown for the four projects is USD448,757,149, which is N195,465,151,790 at N435.17/$.

“The Federal Ministry of Education (FME) – NUC. The amount in question here relates to the 2022 budget, during which it had a projected loan drawdown of $30m equivalent to N12,304,500,000 (at exchange rate of N410.15/USD). The issue relating to this arose from the NASS committee’s review of FME’s 2022 budget implementation.

“The project is the “Second Africa Higher Education Centres of Excellence for Development Impact Project” and the financier is the World Bank.

“For 2023, the amount captured for this project and the Sustainable Procurement, Environmental and Social Standard Enhancement Project is N26,134,200,000 (60 million US Dollars at 345.57 per $; both are World Bank funded projects.

“The current issues would have been easily clarified between the respective MDAs and the FMFBNP had the affected agencies followed the established budget processes.

“The proposed 2023 budget for each ministry was circulated for review and feedback, then presented at the Federal Executive Council (FEC) before it was submitted to NASS by President Muhammadu Buhari.

“It is noteworthy that the total amount of multilateral/bilateral loan-funded projects included in the 2023 budget is N1,771,404,182,322, involving a total of 14 implementing ministries.

“The aggregate projected multilateral/bilateral loan drawdown and expenditure of N1,771,404,182,322 is shown on Lines 271 and 301 of the MTEF/FSP approved by FEC and presented to NASS. It is also shown on Lines 182 – 195 on page 12 of the 2023 Appropriation Bill.

“So far, no issues have been raised in relation to the multilateral /bilateral loan-funded projects by the other ministries.

“It is evident that there are internal coordination issues between the PIUs in some MDAs and the CEOs/Accounting officers of the implementing ministries. We will be taking necessary actions to ensure that this is addressed going forward.

“Finally, let me state clearly that the allegation that the FMNBNP “padded” the budgets of the affected MDAs by inserting the projects in question makes absolutely no sense.

“If the projects are in the budgets of these MDAs, the FMBNP cannot procure them, as their procurement can only be handled by the concerned MDAs.

“Specifically, for multilateral/bilateral funded projects, the PIUs are domiciled in the designated implementing MDAs, and the lenders will not deal with any other agency, including FMBNP, on their procurements”.

Legislature

CNG Safety Under Scrutiny: NASS Questions Readiness as Explosions Raise Alarms

Published

2 days ago

January 17, 2025

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National Assembly Complex

The National Assembly has called for a comprehensive reassessment of Nigeria’s Compressed Natural Gas (CNG) initiative following alarming reports of vehicle explosions attributed to uncertified conversions. Lawmakers are urging the Federal Government to prioritize rigorous adaptability tests to ensure the safety and suitability of the technology in Nigeria’s unique environment.

During the 2025 budget defense session of the Joint Committee on Petroleum (Downstream), Petroleum (Upstream), and Gas, Senator Natasha Akpoti (PDP, Kogi Central) questioned the adequacy of research conducted before rolling out the CNG program.

“Nigeria’s bumpy roads and hot climate differ significantly from the smooth and cooler environments where this technology originated. Were these factors considered before introducing CNG?” Akpoti asked.

Her concerns come amid incidents of explosions in CNG-converted vehicles. The Minister of State for Gas, Hon. Ekperikpe Ekpo, attributed these accidents to uncertified conversions carried out by roadside technicians, emphasizing that certified centers adhere to strict safety standards.

Ekpo also assured lawmakers that the technology had been evaluated by a Presidential Committee on CNG and affirmed its long-term viability. “CNG has come to stay,” he stated.

The session also highlighted budgetary concerns, particularly the Ministry of Petroleum’s 2025 capital allocation of N903 million. Lawmakers criticized the sum as inadequate to address Nigeria’s pressing energy challenges.

“For a ministry driving Nigeria’s energy transition, this allocation raises concerns about commitment to infrastructure and innovation,” remarked Hon. Kafilat Ogbara.

As Nigeria seeks to diversify its energy mix, the National Assembly has stressed the need for enhanced safety measures, proper implementation, and increased funding to fully realize the potential of CNG while ensuring public safety and trust.

Legislature

Umahi expresses Frustration over Fixing Nigerian Roads

Published

2 days ago

January 17, 2025

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Dave Umahi

***Seeks Support for Loans as Budgetary Provisions Fall Short

The Minister of Works, Senator David Umahi, has voiced his deep frustration over the state of Nigeria’s road infrastructure, highlighting inadequate yearly budgetary allocations as a major barrier to progress.
Speaking during the 2025 budget defense session before the Senate Committee on Works in Abuja on Friday, Umahi described the financial constraints as overwhelming. “I’ve succeeded in most of my life’s engagements, but I feel frustrated fixing Nigerian roads with these meagre allocations,” he lamented.
Umahi disclosed that President Bola Tinubu inherited 2,064 road projects valued at N13 trillion, but rising costs have pushed the estimated expenditure to N18 trillion. He noted that the N827 billion allocated for road infrastructure in the 2025 budget is grossly insufficient to address the challenges.
“Roads are critical to economic growth and poverty reduction. They create jobs and drive economic activities. However, fixing these roads cannot be achieved with yearly budget provisions alone,” he explained.
The minister urged Nigerians to support the government’s borrowing initiatives, assuring that the funds would directly impact citizens’ lives by boosting economic activities and reducing hunger.
Senators on the committee, led by Senator Mpigi Barinaga, praised Umahi for his efficient management of scarce resources and supported his call for alternative funding mechanisms. They acknowledged the scale of the work required and admitted that the proposed budget falls far short of what is needed to resolve Nigeria’s road infrastructure crisis.
The session concluded with a shared resolve to explore additional funding options to tackle the nation’s road challenges effectively.

Legislature

In another rowdy session, Lawmakers Demand Accountability Amidst Budget Defense Chaos

Published

2 days ago

January 17, 2025

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Heineken Lokpobiri

***Minister Lokpobiri Assures of Reforms, Apologizes for Lapses

The 2025 budget defense session for the petroleum sector took a contentious turn on Friday as the Senate and House of Representatives Joint Committee on Petroleum (Upstream, Midstream, Downstream, and Gas) erupted into disorder. Tensions flared over delays in budget documentation, with lawmakers decrying the Ministry of Petroleum Resources’ perceived lack of preparedness and respect for legislative protocols.

The meeting, chaired by Senator Jarigbe Agom Jarigbe, was already fraught with logistical challenges. The cramped committee room, bursting with lawmakers and ministry officials, became the backdrop for a fiery exchange that highlighted the strained relationship between the legislative and executive branches. Calls to relocate the session to a more accommodating venue went unheeded, adding to the frustration.

Before the session could proceed, Hon. Kelechi Nwogu raised a procedural objection, pointing out the absence of vital budget documents. “We cannot engage in a meaningful discussion without the necessary materials. This undermines the integrity of the process,” Nwogu asserted.

The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, faced sharp criticism for the disorganization. Hon. Ado Doguwa, Co-Chairman of the Joint Committee, accused the Ministry of fostering an adversarial relationship with the legislature. “Minister, we see you only once a year, and even then, the lack of collaboration is glaring. This is unacceptable,” Doguwa said, his frustration evident.

Lokpobiri, in an attempt to salvage the situation, apologized for the lapses. “Distinguished Senators and Honourable Members, I deeply regret this oversight. It was not intentional. The budget documents are being distributed as we speak,” he said. He assured lawmakers that the Ministry remained committed to supporting legislative oversight and improving future engagements.

However, Lokpobiri’s lighthearted remark that the documents were being delivered in “Ghana Must Go” bags—containing no money—elicited mixed reactions. While some lawmakers chuckled, others viewed it as a diversion from the seriousness of the issue.

Doguwa, accepting the apology, stressed the need for strict adherence to legislative guidelines. “While we appreciate the apology, the late submission of documents is a breach of procedure. This cannot continue. We demand accountability and timely cooperation moving forward,” he said.

The session ultimately ended in stalemate, with lawmakers insisting on postponing the meeting until all necessary documents had been reviewed. The debacle underscores the persistent challenges of executive-legislative coordination in Nigeria’s budgetary process, particularly in critical sectors like petroleum.

As the Joint Committee prepares to reconvene, stakeholders will be watching closely to see if the Ministry of Petroleum Resources can rebuild trust and ensure a smoother process in the future.