By Bassey Udo
Amid concerns about the country’s rising debt profile under the President Muhammadu Buhari administration in the last seven and a half years, the Senate on Wednesday approved the 2022 Supplementary Appropriation Bill, which contained the request for additional N819.5 billion borrowing.
With the approval, the country’s debt stock would balloon to N44.88 trillion. On December 9, 2022, the Debt Management Office (DMO) announced that the country’s total public debt stock, comprising total domestic debt (N26.92 trillion), and external debt stock (N17.15 trilion) of the Federal and State government as well as the Federal Capital Territory (FCT), Abuja stood at about N44.06 trillion.
Prior to his assumption of office in May 29, 2015, President Muhammadu Buhari inherited a total debt stock of $63.51 billion, or N12.06 trillion, consisting external debt of N10.372 trillion and domestic debt N1.69 trillion. With the latest debt figure, indications are that the present administration has, within the last seven and a half years, accumulated over N32 trillion debts.
Meanwhile, the country’s total debt figure may be adjusted to about N68.58 trillion and total accumulated by the administration in the last seven years to N55.7 trillion when the Senate reconvenes from Christmas break on January 17, 2023.
This is because the Senate, during the executive session on Wednesday, decided to suspend consideration of a request by President Buhari for the approval of about N23.7 trillion advance to the Federal Government through Ways & Means, which has already been spent.
Ways and Means are advances (or funds) from the Central Bank of Nigeria (CBN) to enable the federal government undertake emergency funding of projects and programmes pending the receipt of delayed fiscal deficit appropriations.
When the matter was tabled for consideration, the debate became heated, as passion flared among members who were questioning the constitutionality of approving funds that have already been spent the government.
Consequently, the resolved to suspend further consideration until a committee has been constituted to engage the relevant Ministries, Departments and Agencies (MDAs) on the details of the expenditures.
In his letter to the Senate last week, President Buhari asked the lawmakers to approve the N23.7 trillion Ways and Means advances.
The president said the request was a funding option to the federal government to cater for short-term or emergency finance government activities pending cash receipt of physical deficit.
With Ways and Means balances at about N22.7 trillion as of December 19, 2022, the President said he had approved its securitization of N23.7 trillion over 40 years tenure, with a Moratorium on principal repayment of three years at nine percent interest rate.
The approval of the supplementary budget followed a report presented to the Senate Joint Committee on the 2022 Supplementary Appropriation Bill on Wednesday in Abuja.
Presenting the report, the Chairman of the joint committee, Jibrin Barau, said the 2022 Supplementary Appropriation Bill of over N819.54 billion was presented on December 21 and was referred to the Appropriation Committee in conjunction with Committees on Agriculture and Rural Development; Works and Housing; and Water Resources for consideration in respect of some Capital Expenditure in the 2023 Federal Budget.
Barau said the bill was sought to, among other things, make available additional funds to cushion the effects of the 2022 flooding on road infrastructure, agriculture, water infrastructure, and completion of some ongoing critical projects that had achieved about 85 percent completion.
The supplementary bill, he said, would be financed through additional domestic borrowings, which would raise the 2022 budget to N8.17 trillion only, and Deficit/GDP to 4.43 percent.
He said that the committee noted that the effects of the 2022 flooding across the country and its attendant consequences on roads, bridges, farmlands, and the water sector necessitated the supplementary bill request.
“Ministries, Departments and Agencies (MDAs) involved in the Supplementary Appropriation Bill requests include: Federal Ministry of Agriculture and Rural Development, Federal Ministry of Works and Housing, and Federal Ministry of water Resources”.
The Chairman of the Committee said the committee recommended that N69.25 billion would go to the Ministry of Agriculture and Rural Development; Ministry of Works and Housing N704.79 billion, while Federal Capital Territory (FCT) would get N30 billion, and Federal Ministry of Water Resources N15.5 billion.
