The House of Representatives on Tuesday passed through Second Reading a bill seeking to ensure timely presentation of the annual budget estimates by the Executive to the Legislature with a view to enhancing fiscal transparency and timely submission of audited financial statements.
The bill also seeks to prescribe ratios for various budgetary heads for public expenditure, and provide for medium and long-term planning for infrastructure and human capital development at both the Federal and State levels and for related matters.
The private member bill was sponsored by the Deputy Speaker, Hon. Benjamin Kalu and four others, advocated for budgetary allocation of not less than 30 percent not less than 30 percent for infrastructure; not less than 20 percent foe Human Capital Development; not less than 15 percent for Personnel Cost; not less than 10 percent for Administrative Overheads; and not less than 25 percent for Debt obligations, respectively.
Leading debate on the general principle of the proposed bill, Hon. Nkemkanma Kama, who solicited for the support of other lawmakers in reshaping the future of Nigeria’s fiscal governance, explained that the proposed legislation ‘seeks to fundamentally strengthen the foundation of Nigeria’s fiscal governance.
‘It seeks to constitutionally reform the budgeting process, ensuring that our fiscal operations are timely, evidence-based, transparent, and directed towards genuine development outcomes.’
The lawmaker, however, expressed grave concern over the recurring challenges that plague the Nigerian budgeting system, ranging from budgets being presented late and passed deep into the fiscal year, to Appropriation Acts that bear little resemblance to audited performance, to fragmented and non-transparent fiscal reporting at both the federal and state levels.
‘These inefficiencies not only undermine economic growth but also erode the public’s trust in government’s ability to manage their resources responsibly. This Bill offers a structural remedy by embedding discipline, transparency, and long-term vision into the Constitution to guide budget process at all levels of governance.’
According to him, the proposed bill which comprises four Clauses seeks to amend Sections 81 and 121 of the Constitution to – provide a constitutional basis for the President to lay the budget estimates to a Joint session of the National Assembly not later than the last working day of September in each year (recall that the extant provisions of the Constitution allow the President to present budget estimates to each House of the National Assembly separately,
‘There is therefore no provision mandating the President to present the budget to a Joint Session of the National Assembly as it is currently done).’
The private member bill also seems to provide for the submission of audited financial statements for the preceding three years alongside each budget estimate, and provide basis for the organisation of each budget into five Expenditure Heads with prescribed minimum and maximum ratios to ensure balanced fiscal allocation (that is to say Infrastructure, not less than 30 percent; Human Capital Development, not less than 20 percent; Personnel Cost, not more than 15 percent; Administrative Overheads, not more than 10 percent; Debt obligations, not more than 25 percent
The bill also require preliminary expenditure accounts to accompany supplementary budgets; provide for the submission of five-year projections for Infrastructure and Human Capital Development; and apply for the application of the same principles to State Governments.
While noting that bill is a patriotic reform, he argued that the bill was ‘about ensuring that the nation’s budget works for Nigerians. By adopting this Bill, we will be laying a permanent constitutional foundation for fiscal discipline, development-oriented spending, and transparent governance at all levels.’