House of Representatives has vowed not to appropriate funds for the Nigerian Sovereign Investment Authority, NSIA for not presenting their 2022 budget before it.
The House also queried the Nigeria Bulk Electricity Trading, NBET for not utilizing funds to them from the 2021 budget, asking them stop awarding contracts for the fiscal year as it was already late to execute any projects within the remaining two months in the year.
This was as the Fiscal Responsibility Commission, FRC defended its 2022 budget before the House.
Chairman, House Committee on Finance, Hon. James Faleke who spoke at a budget defence sessions with some MDAs on Tuesday, November 2, 2021, was angry that NSIA had refused to present its budget before it.
He said: “This agency of government has refused consistently to present their budget before the national assembly. We have spoken to the MD and we advised him that it is against the Constitution. We have spoken with the minister of finance. It is against the Constitution and the minister of finance was never in support of that, that the agency must present their budget.
“Unfortunately, the agency is relying on its law, which says that its board shall approve its budget. I have told the agency that the law, whether made in error or rightly is not superior to the Constitution.
“We are using this opportunity to inform that agency if they fail to present their budget. There would be no appropriation for that agency in 2022. We will make it clear, and we have made it clear. The accountant general is here. We will write you. There will be no disbursement of funds from any of consolidated accounts to that agency. That is the opinion of the committee.
“There is no appropriation for them this year 2022. Very certain. There are no two ways about it. You can’t be spending our money and as a parliament, you expect us to keep quiet and look at you. That will it work. This is a warning to them and if they are in agreement with any foreign government, they must know that foreign governments obey laws, and here, they must obey laws”, he said.
Speaking with NBET during their session with the Committee, Faleke said that the agency might have to stop awarding contracts as it was not possible to execute them before the end of the year.
Falake said: “If you go through your budget and the releases, most of the releases, you have 100 percent releases and we are in November, with just two months to go and implementation has not started when your budget will end by December. It is likely that the funds will be mopped up and taken back to the system. I don’t see you awarding contracts now, followed by execution and payment within two month. This will be very difficult, except you perform magic.”
Responding, the Managing Director of NBET, Nnaemeka Ewelukwa said that the agency was sure to complete its procurement process.
“We are confident that we will be able to complete our procurement processes. We have done the EOI and for some projects, we have obtained the BPP no objection and we are going to the next stage of financial evaluation. We are at an advanced stage and we are confident. One thing we do at NBET is to meticulously follow the procurement process. While it has been a painstakingly process, we are sure that we have been able to do things the proper way,” he said.
Ewelukwa also gave highlights of power contracts and areas of service.
“NBET has in its portfolio about 25 power generation companies most of which are located in the South South and South West largely because of gas, with one in the South East and the hydros in Niger state. The issue of power evacuation is an issue of priority to the government. At the moment, the contracted generating capacity is about 14,000 megawatts. Of that, what is available in terms of what generation companies are producing is around 7600. But because of constraints from different corners either at transmission or distribution level, it is readily available.
“What is readily available is about 4000 to 5000. To address the gap of what is available and what the system can currently carry, there are a number of intervention projects the government is currently pursuing including the Presidential Power Initiative which is done in partnership with Simens. The CBN is currently funding interface projects between transmission and distribution companies. To increase generation, what we need is to increase the corridor for the power to move. There are a number of interface projects between TCN and distribution companies that are critical to enhanced power evacuation and CBN is currently providing funding to address those interface bottlenecks.
“NDPHC is also dealing with some transmission and distribution projects. As these interface projects are addressed, there will be enough room for more megawatts to move. NERC has also completed sector improvement plans with each of the distribution companies. There are intervention plans by the government to make power available to the people. While I cannot give a time frame, I can say that the President is committed to completing this within the life span of this administration and alot of work is being done in this regard to address the pains of Nigerians”, he said.
On why Nigeria sells power to countries in the West African subregion, the MD said “Nigeria is at the heart of the transaction and this has to do with daming of the river. We have dammed the rivers. If we don’t provide electricity to countries that are up stream, they can also build their own dams and that will be a major crisis to the country. So, there is a strategic reason why the government took the decision. If they are able to dam the river upstream, we are in big trouble.”
Meanwhile, the Fiscal Responsibility Commission, FRC also appeared to defend its 2022 budget totaling N806 million.
Victor Muruako, the director general of the Commission, made the presentation before the committee.
He asked for the support of the Committee to help the commission recruit to replace some staff who have exited the office for other official duties.
“I have tried to interface with Mr. Chairman and indeed, even the office of the Honorable Minister on the need, for the recruitment, of fiscal responsibility to strengthen and ensure that will fulfill our mandate,” Muruako added.
Source: Vanguard
