FEC Greenlights N2.1 Trillion 2023 Supplementary Budget

The Federal Executive Council (FEC) has given its nod to a supplementary budget of more than N2 trillion for the fiscal year 2023, marking the second such budget for the year. This significant decision was reached during the council’s weekly meeting, with President Bola Tinubu at the helm.

The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, made the announcement following the FEC meeting in Abuja while briefing State House Correspondents. This supplementary budget comes as the government had initially proposed a budget of N26 trillion for the year 2024, which is scheduled for presentation to the National Assembly before December 31.

Bagudu conveyed the council’s decision: “The council considered a request for supplementary appropriation which is the second for 2023. Graciously approved the sum of N2,176,791,286,033 as a supplementary budget. This supplementary budget is aimed at addressing urgent issues, including allocating N605 billion for national defense and security. These funds are vital to sustain the progress made in enhancing security and to expedite necessary measures, ensuring these resources are available to security agencies before the year concludes.”

Furthermore, Bagudu confirmed that the FEC has also given its approval for N300 billion to be allocated for the rehabilitation of Eko and Third Mainland bridges, in addition to funding the development, repair, and maintenance of roads across the nation in preparation for the upcoming rainy season.

Likewise, the council has approved N200 billion for the provision of seeds, agricultural inputs, supplies, agricultural implements, and infrastructure to bolster agricultural production. Bagudu added, “An allocation of N210 billion has been made for wage awards reached through negotiations with the Nigeria Labour Congress. The federal government has agreed to disburse N35,000 to approximately 1.5 million federal government employees for the months of September, October, November, and December. This amounts to about N210 billion. Additionally, N400 billion has been allocated for cash transfer payments.”

The minister further explained that N5.5 billion has been set aside to facilitate the takeover of the student loans board, and an additional N8 billion has been earmarked as the take-off grant for new ministries. Furthermore, the sum of N200 billion has been allocated for capital supplementation to address urgent requests received by President Bola Tinubu from various regions of the country.

With the national assembly’s approval of the supplementary budget, the total budget for the country is expected to increase to nearly N28 trillion.

**In-depth Analysis**

The approval of a supplementary budget of over N2 trillion by the Federal Executive Council (FEC) reflects the government’s recognition of the need to address urgent issues and allocate additional resources to key sectors. The decision to allocate a substantial portion of this supplementary budget to national defense and security is indicative of the government’s commitment to ensuring the safety and well-being of its citizens.

The allocation of N605 billion for national defense and security is a significant investment in maintaining and enhancing the security infrastructure of the country. It will help security agencies to continue their efforts in combating security threats and maintaining the gains made in this regard. This allocation is particularly crucial, given the ongoing security challenges faced by Nigeria. It demonstrates the government’s commitment to prioritizing the safety and security of its citizens.

In addition to the allocation for security, the approval of N300 billion for the rehabilitation of Eko and Third Mainland bridges and the maintenance of roads nationwide is a testament to the government’s commitment to infrastructure development. These investments are essential for maintaining and improving the country’s transportation infrastructure, which is critical for economic growth and development. The allocation of funds for road maintenance, especially in preparation for the rainy season, reflects the government’s focus on ensuring safe and efficient transportation for its citizens.

The allocation of N200 billion for agriculture is also a positive development. It demonstrates the government’s commitment to supporting the agricultural sector, which is a key driver of the country’s economy. This allocation will provide much-needed support to farmers by providing them with seeds, agricultural inputs, supplies, and infrastructure. It is a step in the right direction to boost agricultural production and food security in Nigeria.

The allocation of N210 billion for wage awards, as negotiated with the Nigeria Labour Congress, is a significant step in ensuring that federal government employees receive fair compensation for their work. The government’s commitment to disbursing N35,000 to approximately 1.5 million employees for four months is a commendable move towards supporting the workforce.

The allocation of N400 billion for cash transfer payments underscores the government’s efforts to provide financial assistance to vulnerable segments of the population. This allocation can have a positive impact on reducing poverty and improving the living conditions of those in need.

The allocation of N5.5 billion for the funding of the takeover of the student loans board is a noteworthy initiative that can ease the financial burden on students seeking higher education. This can make education more accessible and affordable for many young Nigerians.

The provision of N8 billion as a take-off grant for new ministries is essential for the smooth establishment and operation of these ministries. It will enable them to carry out their functions effectively and contribute to the government’s overall objectives.

Finally, the allocation of N200 billion as capital supplementation to address urgent requests from various parts of the country reflects the government’s responsiveness to the needs of different regions. This can help address specific challenges and development priorities at the local level.

In conclusion, the approval of the supplementary budget by the FEC demonstrates the government’s commitment to addressing pressing issues and prioritizing key sectors such as security, infrastructure, agriculture, and social welfare. These allocations reflect the government’s determination to ensure the well-being of its citizens and promote economic growth and development in Nigeria. The national assembly’s approval of the supplementary budget will be a critical step in implementing these allocations and advancing the country’s progress.