http://d19lga30codh7.cloudfront.net/wp-content/uploads/2016/06/Kemi-Adeosun.png …Budget to be adjusted after virement —Udoma
…11% revenue expected from recovered looted funds
…N-Delta ex-militants get N76.7bn
By Emma Ujah, Abuja Bureau Chief
ABUJA — The Federal Government will soon release the first capital budget allocation of N 350 billion, Minister of Finance, Mrs. Kemi Adeosun, has disclosed.
Speaking at the 2017 Budget Breakdown in Abuja, yesterday, she said the Cash Management Committee, CMC, was to meet to put finishing touches to the list of Ministries, Departments and Agencies, MDAs, to receive the first allocations.
Giving details of the budget, Minister of Budget and National Planning, Sen. Udoma Udo Udoma, said: “2017 Budget envisages a total FGN revenue of N5.08 trillion, exceeding executive proposal by 2.9 per cent and 2016 projection by 31.9 per cent. The projected revenue receipt from oil is N2.122 trillion and non-oil is N2.96 trillion.”
He said the contribution of oil revenues would be 41.7 per cent, compared to 19 per cent in 2016, driven mainly by Joint Venture cost reduction, higher production and price, exchange rate and additional oil-related revenues, while 11 per cent of projected revenue would be expected from recoveries of looted/misappropriated funds and fines.
Budget adjustment after virement
On the capital project funding, where allocations were altered by the National Assembly, the minister said the budget would be adjusted after virement applications were sent and approved by the legislature.
He said: “We have agreed with the National Assembly that virement application for them to restore those projects be forwarded to the legislature. Some of these projects include the railway, health and FCT projects.
“Until that is done, the budget and the appropriation must reflect exactly what is passed at the National Assembly and this is what the law is, What was passed at the National Assembly is what was signed into law.”
2017 Budget to run till June 2018
On the lifespan of the 2017 Budget, Udoma said it would run until June 2018 but that with the determination of the current administration to return the nation to a January-December Fiscal Year, it could be overtaken by 2018 budget if passed and signed into law before it runs a full cycle.
His words: “Whenever a new Appropriation Bill comes into law, it overtakes any previous appropriation law, which means that the 2018 Budget will overtake the other one which seizes to be valid.”
The minister said the capital budget would focus more on infrastructure development, especially rails, roads, electricity and water projects for both electricity generation and irrigation.
Major roads and bridges
The minister said over 65 road and bridge construction and rehabilitation projects across the six geo-political zones of the country would be undertaken in the budget.
The details include: N10 bn for the rehabilitation/reconstruction and expansion of Lagos-Sagamu-Ibadan dual carriageway sections I & II in Lagos and Oyo states; N13.19bn dualization of Kano-Maiduguri Road, Sections I-V ; N10.63 billion rehabilitation of Enugu-Port Harcourt dual carriageway, Sections I-IV; and N7 billion for the construction of 2nd Niger Bridge, including access roads phases 2A & 2B.
Similarly, N7.12 billion has been earmarked for the dualization of Abuja-Abaji-Lokoja Road; N9.25 billion for the dualization of Obajana Junction to Benin Road Phase 2 Sections I-IV ; N7.5 billion for rehabilitation of Onitsha-Enugu dual carriageway; N7 billion for the construction of Bodo-Bonny Road with a bridge across Opobo Channel ; N3.3 billion for rehabilitation of Ilorin-Jebba-Mokwa-Bokani road; and N3.5 billion for dualization of Odukpani-Itu-(Spur Ididep- Itam) – Ikot Ekpene Federal Highway Lot 1: Odukpani-Itu bridgehead.
Other major projects under the Ministry of Works are: dualization of Kano-Katsina Road Phase 1 at the cost of N1.5 billion; N2.24 billion for dualization of Suleja-Minna Road, Sections I & II; N2.3 billion for Gombe-Numan-Yola Phase II (Gombe – Kaltungo); and N2.7 billion for construction of Kano Western Bypass.
In addition to the above, N6.55 billion was earmarked for the dualization of East-West Road (Sections 1 to 5 covering Warri-Kiama-Ahoada-Port Harcourt-Eket- Oron-Calabar) and another N3 billion counterpart fund contribution for East-West road.
Rail Modernization Programme
The sum of N148bn was earmarked mostly for counterpart funds on projects to be financed by China for various railway projects (Lagos-Kano, Calabar-Lagos, Kano- Kaduna, Ajaokuta-Itakpe-Warri, Kaduna-Idu) and other rail projects
The sum of N9 billion was allocated for joint venture investments in tertiary health institutions with Nigeria Sovereign Investment Authority in order to reverse outbound medical tourism to which the nation loses huge sums of foreign exchange, annually.
The sum of N9.5 billion was set aside for rural electrification projects in federal universities; N10 billion for the construction of 3,050mw Mambilla hydropower project; and N10.02 billion for the completion of power evacuation facility for 400mw Kashimbila hydropower plant
Settlement of MDAs electricity bills
The Federal Government also set aside N40 billion service-wide provision to settle reconciled outstanding electricity bills of Federal Government institutions as part of the strategy to revamp the ailing power sector.
Udoma disclosed that N76.7 billion would be spent on the reintegration of transformed ex-militants of the Niger Delta under the Presidential Amnesty Programme; while N45 billion was also set aside for the North-East intervention fund.