Adedayo Akinwale in Abuja
The House of Representatives on Tuesday passed for second reading a Bill to ensure timely presentation of the annual budget estimates by the president to the legislature for second reading
During the administration of late President Muhammadu Buhari, the January to December budget cycle was strictly adhered to throughout his tenure.
But, since President Bola Tinubu assumed office, the January to December budget cycle has not been agreed to. In 2023, four different budgets were running concurrently by the government.
Similarly, the Federal Government ought to have submitted MTEF to the National Assembly since July, but up till now, the legislature is still expecting it.
To cure this anomaly, the Deputy Speaker of the House, Hon. Ben Kalu, sponsored the Bill to enforce fiscal discipline in governance.
The Bill is titled ‘A Bill for an Act to Alter the Constitution of the Federal Republic of Nigeria, 1999, to ensure timely presentation of the annual budget estimates by the Executive to the Legislature; to Enhance Fiscal Transparency by ensuring timely submission of audited financial statements to the legislature; to classify public expenditure under defined heads with prescribed ratios; and to provide for Medium and Long-Term Planning for Infrastructure and Human Capital Development at Both the Federal and State Levels; and for Related Matters.’
Leading the debate on the Bill at the resumed plenary, Hon. Nkemkanma Kama decried the recurring challenges that plagued the Nigerian budgeting system.
He said the Bill seeks to fundamentally strengthen the foundation of Nigeria’s fiscal governance.
The lawmaker stressed that the Bill also seeks to constitutionally reform the budgeting process, ensuring that the fiscal operations are timely, evidence-based, transparent and directed towards genuine development outcomes.
Kama added that these inefficiencies not only undermine economic growth but also erode the public’s trust in the government’s ability to manage their resources responsibly.
He explained that the Bill offers a structural remedy by embedding discipline, transparency and long-term vision into the constitution to guide the budget process at all levels of governance.
Kama stressed that the 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”.
The lawmaker recalled that the extant provisions of the constitution allow the president to present budget estimates to each House of the National Assembly separately.
He explained that there is no provision mandating the president to present the budget to a Joint Session of the National Assembly as it is currently done.
Kama said the constitution provides for the submission of audited financial statements for the preceding three years alongside each budget estimate.
He noted that the Bill “provides 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 per cent; human capital development, not less than 20 per cent; personnel cost, not more than 15 per cent; administrative overheads, not more than 10 per cent; debt obligations, not more than 25 per cent)”.
The Bill provides that the required preliminary expenditure accounts to accompany supplementary budgets; and also provides 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.
Kama maintained that the Bill is about ensuring that the nation’s budget works for Nigerians, saying by adopting the Bill, the House would be laying a permanent constitutional foundation for fiscal discipline, development oriented spending and transparent governance at all levels.