…FG to further borrow N722bn for  procurement of security equipment, capital projects

 

By Deborah Hassan

365Daily – The Senate has passed the 2021 Supplementary Budget with the sum of N982.729 billion.

The sum is N86.9 billion higher than the N895.842 billion that President Muhamadu Buhari sought the National Assembly to approve.

Recall that 365Daily had reported earlier that the supplementary budget report would be considered today.

The Senate had, prior to its passage, considered the report laid by the Committee on Appropriation during plenary.

A breakdown of the money bill shows of the total sum of N982,729,695,343 billion passed, N123,332,174,164 billion is for Recurrent (Non-Debt) Expenditure; and N859,397,521,179 billion as contribution to the Development Fund for Capital Expenditure. 

In his remarks, the Chairman of the Senate Appropriations Committee, Senator Barau Jibrin, said the sum of N45.63 billion required for COVID-19 vaccine Programme would be sourced through existing World Bank Loan and other grants.

He added that the balance of N37.93 billion would be sourced from Special Reserve/Levy Accounts comprising: TSA (Foreign currency component) – N25 billion; MOFI CHQ optional – N5 billion; and Foreign Revenue E-Collection – N30 billion; 65 percent Wheat Floor Levy – N15 billion; 5.15 percent Wheat Grain Levy – N15 billion; and Rolled-Over Capital (unspent) – N5 billion.

The lawmaker further stated that the balance of N722.40 billion, which is for capital expenditure on procurement of additional equipment for the security and capital supplementation, would be sourced from fresh borrowing.

Barau explained that the Committee, in line with the harmonised version of the House of Representatives, recommended an upward review of the funding of some Security Agencies that were grossly underfunded or not captured in the supplementary Appropriation Bill.

He said such agencies include the Nigerian Navy, Ministry of Police Affairs, Defence Intelligence Agency, Department of State Security Services (DSS) and Economic and Financial Crimes Commission (EFCC).

A breakdown of Capital Expenditure for Ministries, Departments and Agencies of Government in the supplementary budget shows that N8,500,000,000 was approved for the Ministry of Police Affairs; N22,586,121,511 for Police Formations and Command; N33,673,461,231 for the Defence Headquarter; N207,543,863,993 for the Nigerian Army; N157,780,421,836 – Nigerian Navy; N239,477,882,473 – Nigerian Air Force; N43,326,943,687 – Defence Space Administration; and N16,887,229,426 – Defence Intelligence Agency.

Others include: Nigeria Security and Civil Defence Corps – N14,822,575,648; Office of the National Security Adviser – N17,000,000,000; Department of State Services – N17,500,000,000; National Intelligence Agency – N4,870,350,000; Economic and Financial Crimes Commission (EFCC) – N3,500,000,000; and National Agency For the Control of AIDS (NACA) – N1,685,000,000.

Under the Federal Ministry of Health, the sum of N2,800,000,00 was approved for the procurement of Molecular Laboratory Equipments to Hospitals (N300m), National Orthopedic Hospital, Igbobi (N300m), National Eye Centre, Kaduna (N300m), National Fistula Centre, Abakaliki (N300m), National Fistula Hospital, Sokoto (N300m), Federal Neuro-Psychiatric Hospital, Calabar (N300m), University of Nigeria Teaching Hospital (N300m), Federal Medical Centre Asaba Annex Aniocha (N300m) and FMC Nguru (N400m).

In addition, the sum of N6,715,338,874 was approved for the Procurement and Installation of New Oxygen Plants Nationwide and Repairs of Oxygen Plants in FCT Hospitals; and N60,728,332,500 for Vaccines Procurement Cost (Federal Government of Nigeria Funding – $298,500,000 for 29.85 million Johnson & Johnson Vaccines.