The two executive bills to increase government spending in the 2024 budget passed first and second reading same day on the floor of both chambers.
The Senate and House of Representatives have separately passed for first and second second reading, a bill to amend the 2024 budget to authorise the spending of an additional N6.2 trillion for the year ending on the 31st day of December.
This is as both legislative houses also amended the Finance Act, 2023, to impose and charge windfall tax on banks to help fund infrastructural projects in the country.
Windfall tax and infrastructure…
Presenting the bills on the floor of the Senate, majority leader, Sen. Opeyemi Bamidele (APC, Ekiti Central) informed that the passage of the executive bills will fund the renewed hope infrastructure project of the President Bola Tinubu administration as well as other critical infrastructure projects in the country.
He said: “The (2024 budget) bill seeks to amend the issue from the consolidated revenue fund of the federation the total sum of N3.2bn for capital expenditure and the sum of N3trn for recurrent expenditure for the year ending on the 31st day of December 2024 while the finance Act 2023 amendment bill seeks to amend the finance act 2023 to impose and charge windfall tax on banks and to provide for the administration of the tax generally in the country.
“The 2024 Appropriation Act amendment bill is needed to fund the renewed hope infrastructure project and other critical infrastructure projects to be undertaken across the country and to also meet recurrent expenditure requirements necessary for proper operations of the federal government expenditure, which is to be funded by expected revenue accruing to the federal government.
“Furthermore, the proposed amendments to the Finance Act 2023 are required to impose a one-time windfall tax on foreign gains realised by banks in their 2023 financial statements to fund capital infrastructure development, education, and healthcare access, as well as public welfare initiatives to give sound and solid footing to the renewed hope agenda of Mr. President and Commander-in-Chief.”
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Step down the bill…
There was however a word of caution from Senator Seriake Dickson (PDP, Bayelsa West) who recalled the backlash from the public over a bill that was previously passed in a hurry by the National Assembly and assented by the President. He called on the Senate to take caution on the issue of taxes imposed on citizens in order to avoid being ridiculed by the public.
He said: “I don’t think that these two bills should be considered together in the way and manner like that. So if I have my way, Mr. President, I would say that we should step down the second bill, which is about taxation of banks.
“We cannot run our economy by continually taxing our people so that we don’t end up like the National Assembly a few months ago when the National Assembly hurriedly passed a legislation that sought a tax to stop cyber terror activities and so on and even though the bill was signed and approved it was withdrawn.
Let it not be that without the experts and critical stakeholders participating in public hearing. I think that we should be very cautious when we are discussing taxation and even these banks we intend to generate N500 billion are all running around to meet recapitalisation. These are two critical bills. So i think that we should step down that legislation so that we can have a better state of expert opinion.”
Funding for minimum wage…
But support for the bills came from Senator Adamu Aliero (PDP, Kebbi Central) who urged his colleagues to consider their passage in order to provide funds for minimum wage. According to him, the funding to be unlocked will create opportunity to fund critical projects which were not captured in the 2024 budget that is in operation.
While commending Nigerians for their patience despite the delay in the increase or minimum wage, he said: “As you rightly know, if we don’t provide money for minimum wage protection now, at the end of this month, there will be public outcry for the workers who will definitely go astray. In fact, we have waited for too long and I commend them for their patience and i also commend Mr. President by sending this very important amendment to the National Assembly for passage.
“Secondly, Mr. President, there are legacy projects that are not adequately funded in the budget and these legacy projects, as you rightly know, are critical. Number one, the Lagos-Calabar coastal road and we also have the proposed Badagri-Sokoto road. There are also other important road projects in the country that are forwarded in this bill, in this amendment and if we don’t fund this amendment, it will be difficult to fund this critical project.”
House of Reps toe same line…
In the same vein, leading the debate in the House of Representatives, majority leader, Rep. Julius Ihonbvere (APC, Edo) said the bill to amend the 2024 budget seeks to authorise the issue from the Consolidated Revenue Fund of the federation the total sum of ₦3.2 billion for capital expenditure and ₦3 trillion for recurrent expenditure for the year ending on the 31st day of December, 2024.
The two bills were passed and subsequently referred to the House committees on finance and appropriation in both chambers. The committees are expected to commence consideration of the bills with immediate effect and report back in one week.
