NASS approves Tinubu’s N6.2trn budget injection, increases 2024 budget to N33.7trn

The two chambers of the National Assembly, on Wednesday, gave accelerated consideration and approval to President Bola Tinubu’s request for fresh injection of N6.2 trillion into the N27.5 trillion 2024 budget.

Tinubu made the request to raise the budget via a letter read on the floor of the senate by Senate President Godswill Akpabio during plenary on Wednesday.

The same letter was read on the floor of the House of Representatives.

Tinubu specifically sought the withdrawal of N3.2 trillion from the Consolidated Revenue Fund, for capital expenditure.

The president, also in the letter, sought the withdrawal of another N3 trillion from the Consolidated Revenue Fund for additional recurrent expenditure for the year ending December 31, 2024.

Tinubu equally sought the National Assembly’s nod to amend the Finance Act, 2023, to impose and charge windfall tax on banks and to provide for the administration of the tax and matters related thereto.

If the requested N6.2 trillion is injected into the N27.5 trillion 2024 budget, the 2024 budget size would increase to N33.7 trillion.

The letter was titled, “Transmission of Appropriation Amendment Bill 2024 And Finance Act Amendment Bill 2024 for Consideration.”

It read, “Pursuant to Section 58(2) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), I forward, herewith, the above-named bills for consideration and passage by the Senate

“The Appropriation Act (Amendment) Bill 2024 seeks to amend the Principal Act to provide the sum of N3,200,000,000,000 for Renewed Hope Infrastructure Projects and other critical infrastructure projects to be undertaken across the country and N3,000,000,000 000 00 (Three Trillion Naira) to meet recurrent expenditure requirements necessary for the proper operation of the federal government, expenditure which is to be funded by expected revenues accruing to the federal government.

“Furthermore the proposed amendments to the Finance Act 2023 are required to impose a one-time windfall tax on the foreign exchange gains realised by banks in the 2023 financial statements to fund capital infrastructure development, education and healthcare access as well as public welfare initiatives all of which are essential components of the Renewed Hope Agenda

“While appreciating the Senate’s expeditious consideration of this submission, please accept, Distinguished Senate President, the assurances of my highest regard.”

The senate consequently adjusted its rules to enable the red chamber to consider the bill for second reading.

The request for its presentation for second reading was presented by Senate Leader, Opeyemi Bamidele.

Bamidele, having moved for suspension of Senate Rules 78 to allow for the process of second reading, said the bills were first read on July 17, following transmission of the bills to the Senate by President Bola Tinubu.

He said the 2024 Appropriation Act Amendment bill sought to amend the authorisation of issuance from the Consolidated Fund Sum of N3.2 trillion for capital expenditure and N3 trillion for recurrent expenditure.

He stated that the amendments sought in the Finance Act 2023 were to impose a one-time windfall tax on the banks on foreign exchange gains realised in their 2023 financial statements.

Bamidele said the amendment to the Finance Act was also designed to further provide for general tax administration in the country. He said the 2024 Appropriation Amendment bill was needed to fund “Renewed Hope” infrastructure projects and other critical infrastructure projects to be undertaken across the country.

The senate leader said the bills were also needed to meet other recurrent expenditure requirements necessary for proper operation of federal government expenditure.

According to him, the expenditure would be funded by expected revenue accruing to the federal government.

He said that would help fund capital infrastructure development, education, health care access, and public welfare initiatives.

According to him, all the projects are essential components of the renewed hope agenda of the administration. He said all the projects embarked on were laudable and would enhance the provision of critical needs of Nigerians.

He informed his colleagues that the sum of N3.2 trillion would be for capital expenditure, while N3 trillion would go for recurrent expenditure, while both would be spent before the end of 2024.

Bamidele added, “The bill was read for the first time in this chamber today, Wednesday, 17th July 2024, (the 2024 Appropriation Act (Amendment) bill seeks to Amend the Appropriation Act, 2024 to authorise the issue from the Consolidated Revenue Fund of the Federation the total sum of N3,200,000,000,000.00 (Three Trillion Two Hundred Billion Naira) only is for Capital Expenditure and the sum of 33,000,000,000,000.01 (Three Trillion Naira) only is for recurrent expenditure for the year ending on the 31st day of December, 2024.

“The Finance Act 2023 (Amendment) bill seeks to amend the Finance Act, 2023 to impose and charge windfall tax on banks and to provide for the administration of the tax generally in the country.

“Mr. President, my highly respected colleagues, you will recall that the President C in-C through a communication to the President of the Senate forwarded both Bill to the Senate today Wednesday, 17th July, 2024.

“The 2024 Appropriation Act (Amendment Bill is needed to fund the Renewed Hope infrastructure projects and other critical infrastructure projects to be undertaken across the country and to also meet recurrent expenditure requirements necessary for proper operations of the federal government expenditure, which is to be funded by expected revenue accruing to the federal government.

“Furthermore the proposed amendments to the Finance Act, 2023 are required to impose a one -time windfall tax on foreign gains realised by banks in their 2023 financial statements to fund capital infrastructure development, education and healthcare access as well as public welfare initiatives to give sound and solid footing to the Renewed Hope Agenda of Mr. President C-in -C.

“Finally, I believe that all the proposals in this bills are laudable and will enhance the critical needs of the citizens of this country.”

Senator Adamu Aliero (PDP, Kebbi), who seconded the motion, said it was necessary to support the bill because of the expected minimum wage for workers.

He urged the lawmakers to pass the amendment, as the bill was required to source the required fund for minimum wage payment and infrastructure projects construction.

Aliero stated, “Because there is no money in 2024 budget, if we don’t provide money for the minimum wage this month, there will be public outcry, Nigerians have been patient and have waited.”

Aliero commended Tinubu for the bills, saying their passage would also help in completion of legacy projects.

Senator Seriake Dickson (PDP, Bayelsa) suggested that the bill on the amendment of the Finance Act should be stood down. Dickson advised on the need to seek experts’ views on the proposed imposition of taxes on banks.

He also said details of the documents were not yet before the federal lawmakers.

He recalled the backlash from the public over a bill he said was previously passed in a hurry, stating that legislators should avoid public ridicule in the handling of legislative activities.

Dickson also disagreed with suggestions that the amendment to the Appropriation Act and the amendment to the Finance Act, 2023 should be lumped together.

Other senators, who supported the bills, included Garuba Maidoki (APC, Kebbi), Adetokunbo Abiru (APC, Lagos), and Adams Oshiomhole (APC, Edo).

Chairman, Senate Committee on Finance, Senator Sani Musa, stated that banks earned enormous profit, which could be inferred from their end of year reports.

Musa stated, “I think banks should be well taxed because they make this profit out of the pronouncement made by this government. The reason for removing oil subsidy, the reason for abridging the gap is for the good of this country.”

Deputy President of the Senate, Senator Jibrin Barau (APC, Kano), after the bills passed second reading, referred them separately to Senate Committees on Appropriations and Finance for further legislative input.

Barau informed his colleagues that part of the additional funds sought would be used to finance the minimum wage, which was expected to arrive in the National Assembly before the end of July.