Nigerian Senate set to pass N895.84bn supplementary budget
The Nigerian Senate is expected to pass a supplementary 895.84 billion naira to the 2021 appropriation bill today, after the bill scaled a second reading on Monday. Also, the federal government has added South Africa to its red list of countries restricted for arriving passengers as part of efforts to curb the entrance of the delta variant in the country. Kayode Akindele, Partner at TIA Capital joins CNBC Africa for more.
Tue, 29 Jun 2021 11:58:10 GMT
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AI Generated Summary
- Approval of 895.84 billion dollar supplementary budget to prioritize vaccine procurement and security reforms
- Anticipation of Petroleum Industry Bill passage with potential impact on fiscal policies and revenue allocation
- Review of Nigeria's revenue sharing formula and measures to stabilize food prices to address economic challenges
The Nigerian Senate has approved a supplementary budget of 895.84 billion dollars to the 2021 appropriation bill, prioritizing the purchase of vaccine supplies, additional equipment for law enforcement agents, and addressing insecurity issues in the country. The bill, which passed its second reading on Monday, aims to tackle the challenges posed by the ongoing COVID-19 pandemic and the rising cases of the Delta variant in the country. Kayode Akindele, Partner at TIA Capital, discussed the implications of this budget and other significant developments with CNBC Africa.
A major portion of the supplementary budget is allocated to the military and security forces, focusing on reforms in the police force and providing essential equipment to combat the escalating insecurity in Nigeria. With the COVID-19 pandemic resurging in a third wave, the importance of funding vaccine procurement and distribution cannot be overstated. Akindele emphasized the significance of increasing vaccination rates to protect the population and mitigate the spread of the virus.
In addition to the budget approval, the Nigerian Senate anticipates passing the much-awaited Petroleum Industry Bill (PIB) today, after years of deliberation and stakeholder engagement. Akindele expressed optimism regarding the bill's passage, citing recent efforts to address concerns raised by various stakeholders, including the International Oil Companies (IOCs). The PIB is expected to bring significant changes to the country's fiscal policies and regulatory framework, potentially enhancing the efficiency and competitiveness of Nigeria's oil and gas sector.
However, the last-minute emergence of issues raised by the host communities regarding revenue allocation poses a potential obstacle to the bill's smooth passage. Akindele highlighted the importance of resolving these issues to ensure a consensus among all parties involved and facilitate the bill's enactment.
Moreover, the Revenue Mobilization Allocation and Fiscal Commission intends to review Nigeria's revenue sharing formula, a move that could impact the allocation of funds among the three tiers of government. The ongoing discussion about revenue distribution comes at a critical juncture as Nigeria grapples with increasing infrastructure costs and the need for fiscal restructuring to accommodate key priorities such as state police reforms.
As the nation faces challenges related to food security and rising inflation, the Central Bank of Nigeria (CBN) has initiated measures to stabilize essential food prices. By releasing 50,000 metric tons of corn and maize from the strategic grain reserve for the third time, the CBN aims to reduce the influence of middlemen and alleviate the burden of high food prices on consumers. Akindele underscored the importance of such interventions in mitigating the impact of global food price hikes and improving the availability of staple foods in the local market.
Additionally, the federal government has extended the deadline for the Submission of National Identification Number (NIN) linkage to July 26, 2021, following the earlier deadline in April. While some may view the shifting deadlines as a challenge, Akindele highlighted the ongoing progress in linking NINs to SIM cards as a positive step towards enhancing security and data integrity. The extension allows for more Nigerians to comply with the registration requirements and underscores the importance of biometric verification for various services, including financial transactions and telecommunications.
In conclusion, the approval of the supplementary budget and progress on key legislative initiatives demonstrate the government's commitment to addressing pressing issues facing the nation. As Nigeria navigates through the complexities of economic recovery, security challenges, and public health crises, strategic policy decisions and efficient resource allocation remain essential to fostering sustainable development and ensuring the well-being of the population.