Abuja — Federal government yesterday approved a budgetary proposal of N4.56 trillion for the 2011 fiscal year.  The figure which is about 10 per cent less than that of 2010 appropriation, is however, part of the 2011-2013 Medium Term Fiscal Frame. The decision was the main highlight of the federal executive council (FEC) meeting yesterday and presided over by Vice President Namadi Sambo, in the absence of President Goodluck Jonathan who was reportedly busy with other state matters.
With this approval, government may have began the implementation  of the 2011-2013 Medium Term Fiscal Framework (MTFF) and Fiscal Strategy Pare (FSP), which is the revenue and expenditure frameworks of the government as agreed to by FEC.

The government also yesterday granted approval for the enactment of an Act for the establishment of the Federal University of Petroleum Resources, Effurun (FUPRE) in Delta State. Minister of Information and Communications, Prof. Dora Akunyili who briefed State House correspondents in the company of the Finance Minister, Dr. Olusegun Aganga, the Minister of State, Information and Communications, Mr. Labaran Maku, said: The 2011-2013 FSP and MTFF, which is the document of the federal government's fiscal policy over three years horizon, is updated annually.
It includes the Medium-term Revenue and Expenditure Frameworks, both of which are principal components of the government's public expenditure management plan. The aim is to ensure that planned spending is set at prudent and sustainable levels and is consistent with the government's overall medium-term fiscal objectives.

After deliberation, council approved the 2011-2013 MTFF, and the key assumptions and targets underlying them; the 2011-2013 FSP of the federal government; the aggregate expenditure limit of N4.56 trillion proposed for 2011; major heads of expenditure, namely statutory transfer of N175.78 billion; the ceiling expenditure of Ministries Departments and Agencies (MDAs) for 2011; and the issuance of the 2011 Budget Call Circular to all MDAs, Akunyili said.
Aganga said in the three years of MTFF, the federal government will peg the price of crude oil at a conservatory rate of $58, 60 and 62 United States (US) dollars per barrel, but noted that this benchmark is not static.
Akunyili further said: The Minister of Education had presented a memo to council to seek approval for the enactment of an Act for the establishment of the Federal University of Petroleum Resources, Effurun (FUPRE), and Related Matters.
She recalled that the FUPRE was established on March 14, 2007, by a decision of the council, adding that it was a government initiative to build a specialized university to produce unique high-level manpower and relevant expertise for the oil and gas sector in Nigeria and worldwide.
The university has recorded some achievements in the areas of academic programmes, but currently lacks legal backing. The government, she said envisaged that the establishment of the university would meet the yearnings of the immediate community.
Because of the desire of the government to provide and further expand access to education at all levels, council approved proposal for a draft bill for the enactment of an Act to establish FUPRE, she said.

Another memo that also scaled through yesterday's FEC was that of the Minister of Foreign Affairs which sought approval for the award of contract for the implementation of the second phase of the Ministry of Foreign Affairs Global Communication Network (GCN) project interconnecting the ministry's new Headquarters building in Abuja and selected 50 Nigerian missions abroad and between missions.
Council, according to her, had at its meeting of September 17, 2009 approved an abridged scope of work for the first phase of the project involving 16 missions, to the tune of N930 million; saying that the 16 missions have been completed.
She added that given the need to continue with implementation of the GCN project, the sum of N2 billion was appropriated in the 2010 budget.

In consideration of the sensitive nature of the GCN, also in order to attain Nigeria's foreign policy objectives, council approved the award of contract for the implementation of the second phase, involving the interconnection of additional 50 selected Nigerian missions with the Ministry of Foreign Affairs headquarters in the sum of N1.761 billion, in addition to a coordination fees of N176.374 million; which will be completed in 12 months, she said.