NNPC, NPA and Others Budget: Osinbajo Writes Senate Over ultimatum, Asks Agencies to comply

The acting president, Yemi Osinbajo, has issued an executive order outlining the timeline and procedure for government offices to submit their yearly budgets, less than two days after the Senate demanded offices comply with the relevant fiscal law within two weeks.

The Senate had on Wednesday asked Mr. Osinbajo to ensure the submission of the budgets of 31 government establishments, including the Nigerian National Petroleum Corporation and the Nigerian Ports Authority.

Section 21 of the Fiscal Responsibility Act demands that proposed revenue and expenditure of the mostly 31 revenue-generating and state-owned companies be submitted to their supervisory ministers not later than end of August of each financial year.

Lawmakers have for years accused powerful agencies like the state oil firm, NNPC, of non-compliance.

The Senate said the executive had breached the law “year in year out”, and issued a two-week ultimatum for compliance.

Mr. Osinbajo responded Friday with an executive order warning relevant offices of “appropriate sanctions” if they fail to comply henceforth.

According to the order, all agencies of government, including those not listed in the Fiscal Responsibility Act, are to prepare and submit their budgets for the next three years to the Minister of Finance and the Minister of Budget and National Planning on or before the end of May every year.

The agencies are then expected to submit their annual budgets derived from estimates of revenue and expenditure projected in the three-year schedule to the ministers, on or before end of July – a month earlier than provided for by the Act.

Afterwards, the budgets would be transmitted to the National Assembly for approval.

The acting president also directed government agencies to stop spending on any capital or recurrent expenditure, except personnel costs, pending approval of their budgets.