Uncertainty for N100bn Mambilla power project as minister confirms omission in 2021 budget

There is a wave of uncertainty surrounding the N100 billion Mambilla hydropower project as the Minister of Finance, Budget, and National Planning, Zainab Ahmed confirmed that the project has been omitted in the 2021 budget.

The Mambilla hydropower project is a 3.05GW hydroelectric facility being developed in Taraba State that is expected to be the largest power-generating installation in the country, and one of the largest hydroelectric power stations in Africa when completed.

The Senate had berated the Federal Ministry of Power over the non-provision of budgetary allocation in the 2021 budget for the execution of the Mambilla power project when the Minister of Power, Mamman Sale, appeared before its Committee on Power for budget defence.

This was confirmed a week later by the Finance Minister while answering questions from the James Faleke led-House of Representatives Committee on Finance when she also appeared for the budget defence at the National Assembly Complex for Abuja.

Ahmed said the reason the Mambilla Power project was not captured in the 2021 budget is because it was not prioritised by the Ministry of Power.

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She told the lawmakers that: “the Ministry of Finance, Budget and National Planning based on the MTEF that you have passed put in the cost cycler the budget ceiling for every Ministry.

“They are now expected to make their budget within that ceiling. The Ministry of Power didn’t have Mambilla in their submission. We do not provide programmes that go into budget for Ministries, Departments and Agencies.

“The Ministries know what their priorities are, they are the ones to indicate. So if the Ministry of Power did not have Mambilla in their submission, it is because they did not provide it that’s their responsibility”.

Responding to questions on plans to diversify the economy from oil, the Finance Minister said the Federal Government has made a request to the Parliament for approval of $1.2 billion loans from the Brazilian Government to address issues in the agriculture value chain as the country moves towards other sources of revenue.

She explained that the government is making some provisions to acquire 100,000 hectares of land per state for food production, adding that roads would be built in such locations to provide access for farmers to move their farm produce to markets to reduce post-harvest losses.

On Police reforms, Ahmed said: “We are hoping that the review will be completed quickly enough so that while the appropriation process is going on the revised salaries are included in the 2021 budget. If it’s not completed we will contemplate doing amendment or supplementary budget”.

She insisted that the Federal Government was still bent on the use of
Integrated Payroll and Personnel Information System (IPPIS) for the payment of Academic Staff Union of Universities (ASUU) members while their developed University Accountability and Transparency Solution (UTAS) undergoes verification by experts.

While presenting her Ministry’s budget for the 2021 financial year, the Minister said N1.647 billion is proposed for personnel cost, N1.370 billion is for overhead and N4.005 billion is allocated to capital expenditure.

Giving updates on the 2020 budget implementation (January-September) Ahmed stated that: “As at end of Q3 2020, FGN’s revenue available for budget funding (excluding GOES) was N2.83 trillion, 70% of target. FGN share of oil revenues was N1.203 trillion (representing 158% performance, over and above the prorated sum in the revised 2020 budget) while non-oil tax revenues totaled N927.47 billion (76% of revised target).

“Companies Income Tax (CIT) and Value Added Tax (VAT) collections were N486.68 billion and N137.03 billion, representing 79% and 64% respectively of the prorata revised targets for the period.Customs collections was N303.76 billion (78% of revised target).
Other revenues amounted to N69 7.75 billion, of which Independent revenues was N390.50 billion”.

To enhance Independent Revenue generation and collection, the Minister said, “Government will aim to optimize the potentials, operational and collection efficiency of GOES with a view to generating significantly higher revenues required to fund the FGN budget from this source.

“Current sub-optimal revenue performance of most GOES will be addressed through the effective implementation of the enhanced Performance Management Framework.

“The key elements of the reform initiative include Performance Contracts for Chief Executive Officers (CEOS) and key management staff, which will set financial indicators and targets for each
GOE.

“The cost-to-revenue ratio of GOES has by a Presidential directive been limited to a maximum of 60%-70%, while regular monitoring and reporting of revenue and expenditure performance of GOES will be undertaken by both the Budget Office of the Federation and the Office of the Accountant General of the Federation”.