The Federal Ministry of Finance on Tuesday appealed to the House of Representatives to increase their funding in the 2025 budget. This is just as the Fiscal Responsibility Commission (FRC), also requested for an upward review of its allocation.
The Minister of State for Finance, Doris Uzoka-Anite and the Executive Secretary of the Fiscal Responsibility Commission (FRC), Victor Muruako made this appeal to the House Committee on Finance led by James Faleke at the 2025 budget defence at the National Assembly.
Presenting the 2025 budget before the House Committee on Finance, the Minister of State for Finance, Doris Uzoka- Anite reported a 100% performance in personnel and overhead costs for 2024, but only 22% in capital expenditure. For 2025, the ministry proposed a total budget of N13.511 trillion.
The Permanent Secretary, Mrs Lydia Jafiya, who presented details of the budget on behalf of the ministry said they were faced with various challenges necessitating the request.
She said the challenges “Include the issue of exchange rate depression. We go on our mandates, and we attend on behalf of the country, and international organisations, but we need additional funding.
“Our offices look good from the outside but the inside needs a lot of rehabilitation. We hope that you can improve our capital allocation as well as the overhead.
“And we think that with the Senate Committee on Finance approving additional funds of N25 billion, we can improve our capital allocation and our overhead. Five billion goes to overhead. So that was what the minister of state was presenting.
“The minister of state gave a figure of N38 billion as a total for 2025 and on behalf of the Coordinating Minister and the Minister of State, honourable chair and members of this committee, I would also like to plead with you, just as we call the support of the Senate Committee on Finance, please, honourable chair, help us to improve our envelope for 2025.
She said “In 2024, we had N2,413,790,305. Overhead, we had N1,809,809,393. The total budget for 2024 for the Federal Ministry of Finance was N8,106,450,530. Our performance is based on 2024, the per cent 100%, the overhead 100%, and the capital 22%.
“The total budget is N2,495,300,769 (Personnel), N3,565,556,897 (Overhead) and N7,450,800,902 for capital for 2025. That brings the total to N13,511,607,568.
On his part, the Chairman of the Fiscal Responsibility Commission, Victor Muruakor, appealed for increased funding, citing insufficient allocations for personnel and capital projects. The commission reported a 38.18% capital release for 2024 and sought improved funding for 2025.
He said “In 2025, we have a total sum of N255,753,579 as our overhead with a total of N515,152,803 as our capital costs. Bringing a total cost of N1,415,357,014bn.
“Our capital releases as of 31st December 2024 is a total sum of N246,481,918.79. This represents 38.18% of the total appropriation for the year. The recurrent appropriation was fully released as of 31st December 2024.
“Our personnel costs totalling N255,753,579 were released and expended by the Commission via IPPIS representing 100% of the total appropriation of personnel for the year.
“We make a case here to add that our personnel appropriation is exhausted as of October. We had to ask for augmentation to enable our staff to be paid from October, November, and December. This delayed our staff payment for the period, sometimes up to three weeks”.
The Chairman of RMAFC, Muhammad Shehu, highlighted challenges, including inadequate funding, exchange rate fluctuations, and tariff shortfalls. They appealed to the National Assembly for increased allocations and support to enable them to deliver on their mandates.
He said “The total personnel cost was $2,318,200. $2,318,000,000 which was 100% done and the overhead cost of $744,000,000, which was also 100% done. The capital for 2024 was $206,000, which was also 100% executed.
Responding, chairman of the House Committee on Finance, James Faleke asked the ministry and FRC to convince the parliament on why their budgetary allocations should be increased. He assured that the lawmakers would do everything within their powers to assist the ministry and its agencies to succeed.
Faleke, however, harped on the judicious utilization of resources adding that the House would not be part of frivolities but is always ready to promote excellence and adherence to finance rules and regulations.
