From Ndubuisi Orji and Adesuwa Tsan, Abuja
Senate President, Godswill Akpabio, yesterday, commended the performance of the 2024 budget, describing it as impressive.
Akpabio, who led members of the National Assembly in a solidarity chant that affirmed their support for the Bola Tinubu presidency, said the lifespan of the 2024 budget would be extended beyond December 31.
“We have noted the 2024 budget performances of 50 percent for capital expenditure and 48 percent for recurrent expenditure respectively. Given these great achievements, we have deemed it necessary to extend the life of the 2024 budget to June 30, 2025.
“The enabling law for this extension has already been put in place by this patriotic Assembly as a testament to our appreciation for the great performance of the budget, ensuring we build upon your momentum.
“We commend your steadfast commitment to collaborate, cooperate and work with the National Assembly to achieve your grand vision for Nigeria.”
Chairman of the Senate Committee on Capital Markets and Institutions, Osita Izunaso (APC, Imo West), said the late submission of the budget proposals would not make the January to December national budget cycle possible.
This is as he confirmed that the National Assembly would extend the 2024 budget till next year.
“The budget is coming late. Today is December 18, so we will lose that culture of beginning a new year with a new budget. Nevertheless, the budget has a lifespan of 12 months.
“So, whenever we pass it, it will have a lifespan of 12 months. Even after 12 months, we still have the liberty to extend it. In fact, we are extending the 2024 budget today.
“But, that culture of starting on January 1, we have lost it. The executive ought to have brought this budget way before now. But, I believe that maybe they are putting things together.
“They wouldn’t want to delay deliberately bringing the budget to the National Assembly. So, I am saying that that is not a problem, but we have lost that culture.”
Ahead of the budget defence sessions, Akpabio has tasked heads of MDAs on prompt response to the National Assembly’s invitation.
He said it was important for ministers and heads of extra-ministerial departments to respond promptly to requests by the national assembly for them to come and defend their sectoral allocations.
“Let me take this opportunity to stress the importance of ministers and heads of extra-ministerial departments to be prepared to respond promptly to requests for them to come and defend their sectoral allocations.
“This is in the exercise of our legislative oversight.
“We have observed behaviours from some ministers and heads of extra-ministerial departments, who sometimes neglect their duties to promptly submit to legislative oversight, sometimes even disregarding invitations from relevant committees of the legislature.
“It is imperative they understand that we will not condone such breaches of the constitution, going forward.”
Akpabio commended Tinubu’s initiatives at strengthening Nigeria’s security framework.
“Your (Tinubu’s) initiatives to strengthen our security framework stand as a testament to your resolve in tackling the pressing challenges of our time.
“We commend your tireless efforts, along with those of our brave men and women in uniform, for liberating our lands from the grip of terrors.
“Today, no community is under the threat of terrorism, a monumental achievement we celebrate together. The reduction in kidnapping incidents and the neutralisation of over 11,000 terrorists and insurgents is a testament to their patriotism, strength and determination.”
According to him, Tinubu’s dedication to fostering international relations paves the way for fruitful partnerships that will propel the country forward.
“We are witnessing a resurgence in foreign direct investments, made possible by your visionary directives that ease the visa processes for Nigerians travelling to other countries.
“At the same time, we welcome investors and tourists alike to our country.
“Your innovative approaches in our embassies and the ministry of foreign affairs have opened new doors for Nigeria and its people,” he said.
Akpabio further stated that the introduction of social welfare programmes by the Tinubu-led administration had embodied an unwavering belief in uplifting the living standards of the citizens.
“We commend your steadfast commitment to collaborating, cooperating and working with the national assembly to achieve your grand vision for Nigeria,” he said.
Similarly, Speaker of the House of Representatives, Tajudeen Abbas, said Nigeria’s low tax revenue remains a major constraint to national growth.
According to him, Nigeria’s tax-to-GDP ratio, currently at approximately 10.9 percent for 2024, is among the lowest in Africa, significantly below the continental average of 15.6 percent.
He said Nigeria’s VAT collection efficiency at approximately 20 percent was below the near 70 percent efficiency achieved by South Africa, Equatorial Guinea, and Zambia.
“In comparison, South Africa’s tax-to-GDP ratio stands at 25.4 percent, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1 percent and 14.1 percent, respectively.”
He said Nigeria’s fiscal realities warranted critical reflection, adding that in spite of being Africa’s most populous nation with over 220 million people, the 2024 national budget of $36.7 billion remained modest compared to other countries.
This, he said, included South Africa, with a budget of $160 billion for its 60 million citizens; Egypt, with $110 billion for 110 million people; Algeria, with $60 billion for 45 million people.
Others included Morocco, which allocated $50 billion for its 37 million residents.
Abbas said addressing these challenges required urgent and comprehensive tax reforms to broaden our tax base, improve compliance, streamline administration, and reduce reliance on borrowing.
He said the lawmakers would continue to work with the Tinubu administration to ensure that such reforms were equitable, effective, and considerate of the needs of vulnerable populations.
He said the National Assembly had engaged stakeholders to address concerns raised on the tax reform bills, fostering trust and cooperation.
“I have personally led numerous high-level meetings and consultations with state governors and other key stakeholders on this issue, achieving positive outcomes.”
He said that Tinubu’s 2025 budget represented a crucial step toward economic recovery and sustainable development.
The speaker expressed confidence that the President’s reforms would soon deliver tangible benefits for all Nigerians, while commending him for his visionary leadership and unwavering commitment to Nigeria’s progress.
He commended the profound sacrifices made by Nigerians over the past year, stating that the removal of fuel subsidies, rising inflation, and adjustments to economic policies had created challenges.
According to him, these sacrifices were necessary for building a stronger, self-reliant, and prosperous nation.
“I urge all Nigerians to remain resilient and united in our collective pursuit of a brighter and better Nigeria.”
He assured the President of the lawmakers’ commitment to support the successful implementation of the 2025 budget.
“This is not merely your budget; it is a national project requiring collaboration across all arms of government.
“We will work to ensure its timely passage, provide legislative support for critical reforms, and conduct robust oversight to guarantee transparency and efficiency in its execution.”
He said there was the need to approach 2025 by embracing the realities with determination.
This, according to him, is by establishing prices, boosting agricultural productivity, expanding infrastructure, and investing in education, healthcare, and security, which remain paramount priorities.
He said that to strengthen national unity and build trust, it was essential for the government to communicate its achievements effectively to Nigerians.