Senate Passes N819.5b Supplementary Budget As FG Moves To Borrow More

The Senate has passed the N819,536,937,813.00 2022 Supplementary Appropriation Bill transmitted by President Muhammadu Buhari last week.

 

The Senate on Wednesday passed the supplementary budget following the consideration and approval of the report of the Senate Committee on Appropriation.

The Chairman of the committee, Barau Jibrin explained that the amount raised by the president was meant to complete ongoing capital projects, including roads and dams destroyed by flooding.

He said the Federal Government would source the amount from additional domestic borrowings.

CityNews Nigeria recalls that President Buhari, in his letter transmitting the supplementary budget to the National Assembly last week submitted that “The country has witnessed the worst flood incident in recent history, which has caused massive destruction of farmlands at a point already close to harvest season.

“This may compound the situation of food security and nutrition in the country.

“The flood also devastated the road infrastructure across the 36 states and the FCT and affected several sections of major roads and bridges nationwide that are critical for the movement of goods and services.

“The water sector was equally affected by the flood and there is the need to complete some ongoing critical projects that have achieved about 85 per cent completion.

“The nine critical projects proposed in the sector cuts across water supply, dam and irrigation projects nationwide.

“I have, therefore, approved a Supplementary 2022 Appropriation of N819,536,937,813, all of which are capital expenditures.

“The supplementary budget will be financed through additional domestic borrowings.
“This will raise the budget deficit for 2022 to N8.17 trillion and deficit to GDP ratio to 4.43 per cent.”