The Federal Government has forwarded a request letter to the National Assembly, seeking a fresh review of the 2020 Appropriation Act.
Minister of Finance, Budget and National Planning, Zainab Ahmed strictly requests for an extension of the expiration date of the capital component of the 2020 budget.
The Majority Leader, Alhassan Ado-Doguwa, read the Minister’s letter at the plenary on Tuesday.
The National Assembly had reviewed the 2020 budget due to the pandemic and the unpalatable crash in the global prices of crude oil.
The Nigerian government now wants execution of capital projects in the Act, which have been delayed due to COVID-19 lockdown, to be extended beyond the end of the current fiscal year on 31st December.
The National Assembly had reinstated the country to a January-December budget cycle, making the 2020 budget to expire on 31st December. The 2021 Appropriation Bill, currently undergoing legislative scrutiny, is planned to take effect from 1st January.
The Minister stressed on the challenges involved in getting Certificates of No Objection from the Bureau for Public Procurement and the delay in the execution of capital projects by agencies, departments and ministries.
According to her, the extension of the expiration date of the capital component of the budget would enable government to carry on with the implementation of the capital components of the budget beyond December 31, 2020.
The Majority Leader, Doguwa said if the date was not extended, the government would have to mop up all the funds meant for capital projects in the 2020 budget and return same to government treasury, warning that such would not be in the best interest of Nigerians.
Doguwa asserted that the major benefit of the extension was that implementation of capital projects would revive the economy and facilitate recovery from the current temporary economic decline.
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