Senators yesterday picked holes in President Jonathan's N4.7 trillion budget for 2012 fiscal year, insisting that the proposed N921 billion for security was too high.

Most Senators who spoke during the debate yesterday on the general principles of the budget however warned that the National Assembly as an institution would no longer accept any excuse from the executive for non implementation of the budget.



The lawmakers who described the N1.3 trillion (28 per cent) for capital project as too poor however stressed the need to closely monitor the handling of the proposed N921 billion for security. The lawmakers also noted that the proposed N3 trillion for recurrent was a negation to the government resolve to cut down the cost of governance.

President Goodluck Jonathan had on Tuesday presented a budget of N4.7 trillion for the 2012 fiscal year. About 28 per cent of the estimate was earmarked for capital project while the reaming 78 percent was for recurrent expenditure.

But Senators at the debate yesterday faulted what they called jumbo allocation to security. Most of them feared that such funds may not be accounted for in the same manner with security votes to governors and president.

Senate Leader, Victor Ndoma Egba in his lead debate said the budget proposal is a stepping stone to the transformation of the nation's economy and its walk to economic freedom.

Jonathan in his presentation asked the National Assembly to authorize the issue from the Consolidated Revenue of the federation of the sum of over N4.750 trillion out of which N397, 929,101,917 billion is for statutory transfer, N559.58 billion is set aside to service the nation's debt.

Others include, N2.471 trillion meant to service Recurrent (Non-Debt) Expenditure, while the balance of N1.320 trillion is for contribution to the development Fund for Capital Expenditure for the year ending on the 31st December, 2012.

Egba said the budget is predicated on Oil Production of 2.48 million barrels per day, up from 2.3mbpd for 2011, Bench mark oil price of US$70 per barrel, a cautious revision from the US$70\Barrel approved in the 2011 Amendment Budget.

He listed others to include exchange rate of N155 per US, projected GDP growth rate of 7.2 percent and projected inflation rate of 9.5.

The budget being the first budget to be presented to the seventh session, Ndoma Egba said is hinged on four pillars that will help in achieving its objectives to include macro-economic stability, structural reforms, governance and institutions and investing in priority sectors.



In the budget, Security has the crunch of the total budget with N931.91 billion, Power, N161.42, Works, N180.8 billion, Education excluding UBE, PTDF and ETF, N400.15 billion, Agric N78.98, Health, N282.77, Water resources, N59.66, Aviation, N49.23.

Others are Transport N54.83, Land and Housing, N26.49, Science and Technology, N18.31.

Deputy senate president senator Ike Ekweremadu appealed to the government for consultations while preparing the budget, saying, there should be openness in the preparation of such issues that has direct effect on Nigerians.

He solicited for reform in the procurement process in Ministries, Departments and Agencies MDAs to make them more effective.

The deputy Minority Leader, Senator Ganiyu Solomon said though the budget is supposed to promote growth and employment, but, with the set aside of 28 percent only to the capital expenditure, it cannot promote growth and employment as against the 72 percent recurrent, noting that there is the need to reduce the nation's debt profile.

Bernabas Gemade in his own contribution said he was encouraged by the drive for renewal of non oil sector revenue generation, but puzzled at the allocation to the Agricultural sector which he said is supposed to be a major employment generator.

Senator Olubunmi Adetunmbi faulted the allocation to the security sector which he said was four times what is given to health.

"What is going into the security is six times what we are spending for power. The prioritization of out spending is not reflective of what is happening in our economy, if we spend more on agriculture, which can provide jobs, we won't worry about security.

"Virtually all the key to the economic sector do not have a road map apart from agriculture, of what is to be achieved with these funds, in the MTFF paper there were talks of a social safety net to cushion the effect of these policies, but the budget is totally silent about this.

"The budget of 2012 raises issues of defining the roles of the following and the budget was silent on how the federal government would work with states as states are the drivers of wealth creation, the recurrent expenditure is not being put to good use.

Abdul Ningi in his own contribution called for vigilance on how the security allocation is being spent and preferably with what they are doing with the money.



"How much is going to the office of the national security adviser viz a viz what is given to the Police, Navy and other agencies, government should be commended for the tax waivers, Niger delta is another issue, what happened to the funds budgeted for amnesty, nobody knows how much money as been given to militants and where they are", he queried.

Ifeanyi Okowa in his own contribution disagreed with the allocation to the agricultural sector, saying it was lower, but however expressed optimisms that the federal government would collaborate with the state, as he said there is the need to look more at performance monitoring of the budget, "We should not only focus at the monies spent, but on the value added".

Probe N700bn pension fund

COSMAS EKPUNOBI (ASSIST. POL. EDITOR)

Heads may roll in the National Pension Commission (NPC) and other approved pension offices as Senate yesterday commenced full investigation into the alleged irregularities in the handling of over N700 billion pension fund in the last seven years. The probe was alleged to have unsettled some key actors in the handling of the pension fund as it is likely to step on toes.

Senate is expected to extend its search light to the Military pension and handling of such funds at local government levels.

Senate joint committee on Establishment, States and local government at a press conference yesterday vowed to expose the alleged actors in the over N700 billion pension fraud.

The committee lamented the poor management of the pension scheme across the land saying that Senate was determined to end the fraud in the handling of the pension funds.

The committee is expected to unravel how much 'funds have been released for payment of pension annually in the last seven years to the various pension offices and system and how were the funds utilized'.

Chairman of the committee Aloysious Etok at the briefing said several billions of pension fund are still trapped in some unauthorized places adding that the committee would expose those behind the fraud.

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He said the committee will extend its search on the handling of military pension fund saying that the whole essence of the exercise was to ensure that those who had served the country meritoriously are not subjected to un-necessary hardship.

Senator Etok said the committee would at the end of the exercise come up with answers to ' how many pensioners exist in Nigeria under the various pension offices and system and what are the monthly pension amount or entitlement of pensioners in the various pension offices and system'.

The probe follows a recent resolution of the Senate mandating the two committees to conduct comprehensive investigation into the management and administration of pension funds and the payment of pensioners in Nigerians.

Chairman of the Senate committee on states and local government, Gaya in a remark yesterday however said the exercise is to get things right and not to witch hunt any body

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