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2022 budget: BudgIT raises concerns, queries missing N198.7bn oil company payments to NDDC

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BudgIT Basis, a civic-tech group main the advocacy for transparency and accountability in public finance in Nigeria, has raised issues over vital points on the 2022 proposed funds.

BudgIT raised issues over the whole omission of the Niger Delta Improvement Fee, NDDC, capital funds from the general funds, the continual unrealistic income projections, hovering year-on-year debt burden and weak accountability construction, amongst others.

These issues have been raised by the group’s Chief Government Officer, Gabriel Okeowo, in a press release signed by the physique’s Communication Affiliate, Iyanu Fatoba.

In line with Fatoba, the omission of NDDC’s complete capital funds allocation from the proposed 2022 funds and public scrutiny is a supply of concern, particularly given the dimensions of alleged corruption and diversion of public funds that has troubled the federal company since its inception.

Fatoba mentioned: “NDDC receives a mean of N198.7 billion per yr from the working budgets of oil firms (between 2016 and 2018) along with the annual Statutory Transfers it receives from the federal authorities (the latter which is projected to be N98.7bn within the 2022 funds).

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“The listing of recent and ongoing tasks to be embarked upon by NDDC with this estimated N198.7bn within the yr 2022 is manifestly lacking from the two,168-page 2022 FG funds particulars doc and the 2022 Appropriations Invoice despatched to the Nationwide Meeting.”

The group additionally known as for cautious optimism, particularly because the proposed 2022 spending plan comes with a N6.26tn deficit, 80% of which might be borrowed.

That is significantly problematic, seeing that FG has recorded a big surge in its debt burden within the final six years whereas noting that debt servicing wiped off over 90% of FG’s whole income in latest instances.

Commenting on the scenario, Mr Okeowo mentioned, “The scale of FG’s new borrowing plans in 2022 is a critical trigger for concern, particularly because the FG spent over 90% of all its income in servicing outdated money owed between January 2020 and June 2021. Additionally, FG’s 2022 deficit of N6.26 trillion represents 3.39% of Nigeria’s GDP, which is above the three% threshold set in Part 12(1) of the 2007 Fiscal Duty Act (FRA).”

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