Ben Agande, Inalegwu Shaibu & Luka Binniyat
19 November 2008
The House of Representatives, yesterday, affirmed that the President, Umaru Musa Yar'Adua will next week, during a joint sitting of the two chambers of the National Assembly, present the 2009 Appropriation Bill.
In a letter addressed to the Speaker of the House of Representatives, Dimeji Bankole signed personally by President Yar'Adua himself, he pleaded that members kindly accept that the 2009 Budget proposal be presented at 12 Noon today.
The highlights of the 2008 Appropriation Act will only be made public after the President's presentation
However, it is predicated on a benchmark of $45 dollars per barrel of crude oil, considering the dropping price of international crude.
The Federal Executive Council have already approved a final copy of the Appropriation Bill, after the Minister of Finance has harmonised all presentations by various ministers and government bodies.
Only a few weeks back the House of Representatives Committee Chairman on Finance, Hon. John Eno, declared that the nation may run a deficit of N1. 2 trillion in the 2009 budget if the global economic crises persist.
Nigeria's economy is monoculture and heavily dependent of crude oil export averaging 1.9 million per day with prices hitting an all time high of about $148 per barrel in August this year. But, last it started a steady, sharp decline about a month ago averaging around $57 dollars this week.
He however said, "at a meeting with the Minister of Finance and other members of the Joint Committees on Appropriation and Finance", he had said "the Executive and the Legislature have looked at economic indices and variables that can determine surplus and deficit in the 2009 budget as well and have taken measures to forestall shortcomings".
The 2008 budget as amended and recently passed by the National Assembly was predicated at $65 a barrel. But, the House of Reps have condemned the performance of the budget as below 35% implementation and had called for early presentation of next year's Appropriation Bill.
$45 benchmark
After a comprehensive briefing from the governor of the Central Bank of Nigeria as well as the president's Economic Team, governors of the thirty six states of the federation yesterday agreed with the $45 per barrel benchmark proposed by the Federal Government for the 2009 budget estimates.
Chairman of the Governors' Forum and governor of Kwara State, Bukola Saraki told State House correspondents after a meeting of the National Economic Council that the governors were satisfied with the explanation given by the government's economic team.
The Governors' Forum had risen from their meeting in Abuja last week rejecting the $45 per barrel benchmark being proposed for next year's budget arguing that it was too low bearing in mind the price of crude oil in the international market.
But after yesterday's NEC meeting which was called to address the issue as well as the global economic meltdown and its impact on Nigeria, the government's economic team impress the governors on the need to maintain the benchmark as it is.
Governor of the Central Bank of Nigeria, Chukwuma Soludo who accompanied the governor of Kwara State to the briefing said the unpredictable nature of the price of crude oil in the international market makes it imperative for the bench mark to be left at $45 per barrel.
HYPADEC Bill
Meanwhile the Senate yesterday passed the Hydro-electric Power Producing Areas Development Commission bill seeking to protect Nigerians against the adverse ecological hazards caused by hydroelectric dams.
The bill sponsored by Senator Awaisu Kuta (PDP, Niger) aims to provide a fund for the protection of areas hosting hydroelectric dams from 30% of the revenue generated by the Power Holding Company of Nigeria (PHCN) from the operating dams in the country.
Presenting the report of the Senate Committee on Power which deliberated on the bill yesterday, the Committee chairman Senator Nicholas Ugbane said the existence of hydro-electric dams in the four states of Kebbi, Kogi, Kwara and Niger has become a major concern for the communities where they are located.
He said environmental problems in the areas were compounded by the loss of lives and farm lands.
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