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Dino Melaye, a disgrace to the Senate - Tinubu

Vanguard Newspaper 14 July 2016

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Vanguard, THURDAY, JULY 14 2016—39<br />

Nigeria's earnings down by 40%, says SGF<br />

•Says ‘comments on implementation of constituency projects, my personal opinion'<br />

By Henry Umoru &<br />

Joseph Erunke<br />

ABUJA—SECRETARY <strong>to</strong><br />

<strong>the</strong> Government of <strong>the</strong><br />

Federation, Babachir Lawal,<br />

yesterday, disclosed that<br />

Nigeria’s projected earnings in<br />

<strong>the</strong> 2016 budget has dropped<br />

by 40 per cent as he <strong>to</strong>ld political<br />

office holders <strong>to</strong> adjust<br />

<strong>the</strong>mselves <strong>to</strong> <strong>the</strong> reality.<br />

This was even as he said <strong>the</strong><br />

country’s oil production capacity<br />

had risen <strong>to</strong> 1.7 million barrels<br />

per day from its initial 800,000<br />

barrels.<br />

Appearing before<br />

<strong>Senate</strong> Ethics C'ttee<br />

Mr Lawal spoke when he<br />

appeared before <strong>the</strong> joint <strong>Senate</strong><br />

Committee on Ethics, Privileges<br />

and Public Petitions, Finance<br />

and Appropriation, <strong>to</strong> defend <strong>the</strong><br />

statement credited <strong>to</strong> him <strong>to</strong> <strong>the</strong><br />

effect that <strong>the</strong> administration<br />

would not be able <strong>to</strong> implement<br />

constituency projects captured<br />

in <strong>the</strong> 2016 budget.<br />

But he <strong>to</strong>ld <strong>the</strong> Sena<strong>to</strong>r<br />

Samuel Anyanwu-led joint<br />

committee that <strong>the</strong> statement<br />

was his opinion and not <strong>the</strong><br />

position of <strong>the</strong> Federal<br />

Government.<br />

To this end, <strong>the</strong> <strong>Senate</strong><br />

fumed, warning that nonimplementation<br />

of constituency<br />

projects was a violation of <strong>the</strong><br />

Appropriation Act that required<br />

necessary sanctions.<br />

Members of <strong>the</strong> Committee<br />

insisted that <strong>the</strong> projects, which<br />

only constituted 0.3 per cent of<br />

<strong>the</strong> money in <strong>the</strong> 2016 budget,<br />

must be fully implemented<br />

without any part unattended <strong>to</strong>.<br />

The SGF, who owned up <strong>to</strong><br />

<strong>the</strong> statement, said he was not<br />

emphatic on his statement,<br />

saying it was based on <strong>the</strong><br />

dwindling resources available<br />

<strong>to</strong> <strong>the</strong> government.<br />

Revenue profile<br />

“This morning, for example,<br />

<strong>the</strong> Minister of Budget said<br />

basically <strong>the</strong> revenue profile of<br />

<strong>the</strong> country is that we are now<br />

earning between 50 <strong>to</strong> 60 per<br />

cent of our projected earnings,<br />

meaning that <strong>the</strong>re might be a<br />

loss of 40 per cent of <strong>the</strong> money<br />

appropriated for in <strong>the</strong> budget.<br />

‘“Forty per cent is quite a<br />

significant amount, not only<br />

oil,” which he said would affect<br />

all branches of government,<br />

including <strong>the</strong> National<br />

Assembly.<br />

“Oil export has fallen<br />

drastically but thank God for<br />

little mercies that <strong>the</strong> price has<br />

risen a bit. But it has started<br />

coming down again."<br />

Drop in revenue<br />

Noting that drop in revenue<br />

was bound <strong>to</strong> affect<br />

government’s projected<br />

expenditure, he said: “When<br />

constituency projects are<br />

appropriated along with o<strong>the</strong>r<br />

projects, it’s <strong>the</strong> duty of <strong>the</strong><br />

executive <strong>to</strong> implement. As my<br />

statement quoted, <strong>the</strong>re is one<br />

key word in a statement which<br />

is ‘might.’<br />

"In <strong>the</strong> statement made by me<br />

<strong>to</strong> this effect, I said, of course, if<br />

<strong>the</strong> revenue profile of <strong>the</strong><br />

government improves, we will<br />

implement all projects in <strong>the</strong><br />

Appropriation Act. I want <strong>to</strong> be<br />

truthful on this.<br />

“We are all aware that you as<br />

legisla<strong>to</strong>rs predicated <strong>the</strong><br />

revenue of <strong>the</strong> government, for<br />

example, at 2.2 million barrels<br />

per day.<br />

“I’m sure that all of you here<br />

are aware that at one time, oil<br />

production had dwindled <strong>to</strong> almost<br />

800,000 barrels per day. The<br />

consequence of this, of course, is<br />

dwindling revenue base of <strong>the</strong><br />

government, subsequent upon<br />

which <strong>the</strong>re will be <strong>the</strong> inability <strong>to</strong><br />

finance projects appropriated for<br />

by <strong>the</strong> executive.<br />

“Now, it is important for<br />

government and <strong>the</strong> politicians <strong>to</strong><br />

prepare <strong>the</strong> minds of <strong>the</strong> elec<strong>to</strong>rate<br />

that <strong>the</strong>re are challenges ahead,<br />

prepare <strong>the</strong>ir minds that <strong>the</strong>re<br />

might be some challenges ahead<br />

in implementing <strong>the</strong> budget.<br />

“You are aware that <strong>the</strong><br />

government based its budget on<br />

<strong>the</strong> principle of zero budgeting this<br />

year. That is <strong>to</strong> say that we will<br />

budget for only capital projects that<br />

are key <strong>to</strong> <strong>the</strong> mandate of <strong>the</strong><br />

government, that <strong>the</strong> government<br />

considers very important. First of<br />

all, res<strong>to</strong>ring security in <strong>the</strong> land,<br />

second, providing employment <strong>to</strong><br />

Nigerians and possibly<br />

diversifying <strong>to</strong> o<strong>the</strong>r non-oil<br />

sec<strong>to</strong>rs of <strong>the</strong> economy.<br />

“For <strong>the</strong> executive arm of<br />

government, this was <strong>the</strong> focus<br />

and, <strong>the</strong>refore, all <strong>the</strong> MDAs were<br />

ordered <strong>to</strong> comply with this<br />

principle. Any project that<br />

government did not feel was key<br />

was not included in that budget.<br />

When <strong>the</strong> budget was concluded,<br />

<strong>the</strong> Minister of Budget and<br />

Planning issued circulars <strong>to</strong> MDAs<br />

<strong>to</strong> submit a list of projects that are<br />

considered key <strong>to</strong> <strong>the</strong>ir mandate,<br />

in view of <strong>the</strong> dwindling<br />

resources.”<br />

He explained that unlike in <strong>the</strong><br />

past when funds were being<br />

released for execution of capital<br />

projects on a quarterly basis, <strong>the</strong><br />

trend had changed in <strong>the</strong> new<br />

dispensation.<br />

‘’Hi<strong>the</strong>r<strong>to</strong>, <strong>the</strong> practice had been<br />

that government would release<br />

funds <strong>to</strong> MDAs on quarterly basis.<br />

This time, government’s position<br />

is that funds would be released <strong>to</strong><br />

key projects prioritized according<br />

<strong>to</strong> <strong>the</strong> level of importance and<br />

significance, in line with <strong>the</strong> key<br />

mandate of <strong>the</strong> government.<br />

“Let me illustrate why<br />

implementation of some projects<br />

would be very difficult in <strong>the</strong> light<br />

of <strong>the</strong> dwindling resources.<br />

“Government has a duty <strong>to</strong><br />

communicate <strong>to</strong> <strong>the</strong> citizens,<br />

whe<strong>the</strong>r or not that information is<br />

going <strong>to</strong> be palatable <strong>to</strong> <strong>the</strong><br />

legislature or even <strong>the</strong> elec<strong>to</strong>rate.<br />

“So, Distinguished Sena<strong>to</strong>rs, yes,<br />

I made <strong>the</strong> statement.’”<br />

He <strong>to</strong>ld <strong>the</strong> sena<strong>to</strong>rs not <strong>to</strong> claim<br />

a right <strong>to</strong> constituency projects, a<br />

development that made all <strong>the</strong> 20<br />

sena<strong>to</strong>rs at <strong>the</strong> session charged at<br />

him with fury.

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