Both chambers of the National Assembly have approved the second reading of bills for amending the 2024 Appropriation Act and the 2023 Finance Act. This legislative move represents a significant step in adjusting the country’s financial and budgetary policies for the upcoming fiscal year.
In the House of Representatives, the proposed legislation, presented by House Leader Julius Ihonvbere, passed its second reading without any debate. This proposal includes N3.2 trillion allocated for capital expenditure and N3 trillion for recurrent expenditure. This is part of a broader budgetary framework that was previously passed on December 31, 2024, amounting to a total budget of N27.5 trillion for the 2024 fiscal year. The breakdown of this budget included N1,742,786,788,150 for statutory transfers, N8,270,960,606,831 for debt servicing, N8,768,513,380,852 for recurrent (non-debt) expenditure, and N9,995,143,298,028 as a contribution to the development fund for capital expenditure.
Two weeks ago, the House extended the implementation period for the capital component of the 2023 Appropriation Act and the 2023 Supplementary Appropriation Act from June 30, 2023, to December 31, 2024. This extension, however, sparked diverse reactions among lawmakers, with some expressing opposition to the move.
Before the passage of the 2024 Appropriation Act Amendment Bill, the House conducted an executive session that lasted about an hour. Upon resumption, Speaker Tajudeen Abbas explained that the executive session was held to allow members to discuss issues related to the security and welfare of Nigerians.
Simultaneously, the Senate also passed the bill. Senate Leader Opeyemi Bamidele (APC-Ekiti) presented the general principles of the bills at plenary, after moving for the suspension of Senate rules to allow for the second reading. Bamidele noted that the bills were first read on July 17, following their transmission to the Senate by President Bola Tinubu.
Bamidele explained that the 2024 Appropriation Act amendment bill aims to amend the authorization of issuance from the consolidated fund, allocating N3.2 trillion for capital expenditure and N3 trillion for recurrent expenditure. Additionally, the amendments sought in the Finance Act 2023 aim to impose a one-time windfall tax on banks based on the foreign exchange gains realized in their 2023 financial statements. This amendment is also designed to improve general tax administration in the country.
Bamidele emphasized that the 2024 appropriation amendment bill is necessary to fund infrastructure projects and other critical developments across the country. These expenditures will be funded by expected revenue accruing to the Federal Government of Nigeria, and will support capital infrastructure development, education, healthcare access, and public welfare initiatives. These projects are essential components of the administration’s renewed hope agenda and will enhance the provision of critical needs for Nigerians.
Adamu Alero (PDP-Kebbi), who seconded the motion, highlighted the necessity of supporting the bill due to the anticipated minimum wage increase for workers. He urged lawmakers to pass the amendment to secure the required funds for minimum wage payments and infrastructure projects. “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.” Alero commended President Bola Tinubu for the bills, stating that their passage would also help in the completion of legacy projects.
Deputy Senate President Jibrin Barau, who presided over the plenary, explained that the amendment sought in the 2024 Appropriation Act is designed to provide additional revenue to the 2024 budget revenue profile. However, not all senators were in complete agreement. Seriake Dickson (PDP-Bayelsa) suggested that the bill should be paused to seek expert opinions on the proposed imposition of taxes on banks. Despite this suggestion, other senators supported the bills, including Garuba Maidoki (APC-Kebbi), Adetukunbo Abiru (APC-Lagos), Adams Oshomole (APC-Edo), and Sani Musa (APC-Niger).
Ultimately, Jibrin referred the bills separately to the Senate Committees on Appropriations and Finance for further legislative input. These committees are expected to report back to the plenary within one week, ensuring that the legislative process continues efficiently and that all necessary considerations are addressed.
In summary, the National Assembly’s approval of the second reading of the amendment bills marks a critical step in adjusting Nigeria’s financial and budgetary policies. These amendments aim to address the funding needs for essential infrastructure projects, minimum wage payments, and other recurrent expenditures, while also improving the overall tax administration in the country. The legislative process will continue with further input from relevant committees, ensuring that the proposed amendments are thoroughly reviewed and appropriately implemented.
