•Creates Debt Recovery Unit in Ministry of Finance •To borrow N269.2b from multilateral institutions
The federal government is set to create a debt recovery unit next year to help it recover debts amounting to N5.2 trillion.
According to the details of the 2022 Budget, the debt recovery unit will be domiciled in the Federal Ministry of Finance from where it will “consolidate on the current efforts to recover government debts owed through its MDAs”.
To breathe life into the unit, the federal government has earmarked the sum of N63 million in the 2022 budget.
The Nation learnt that the unit will work with Project Lighthouse, another entity domiciled in the Ministry of Finance.
Project Lighthouse boasts on its website that “the debt recovery capability of Lighthouse provides the government with up-to-date records into its credit status by harmonising debt records across all MDAs within the country, give debtors access to a platform to view and offset debt in a seamless and secured manner as well as strengthen the institutional framework for enforcement and management of the Federal Debt Recovery plan”.
Efforts made by our correspondent yesterday to get ministry officials to identify the debtors hit a brick wall as some of the officials approached kept sealed lips while one said “disclosing the debtors now will ruffle feathers”.
Finance minister, Mrs Zainab Ahmed, had revealed recently that the federal government had “been able to aggregate N5.2 trillion worth of debts owed to Government by third parties, of which N49.7 billion of this amount has been recovered”.
Also contained in the 2022 budget details is the fact that the federal government has set aside the sum of N115 billion for Operation Lafia Dole and other military operations of the armed forces. This amount is different from the N2.4 trillion for defence and security matters in 2022.
Under the Service Wide Vote heading of the budget, government has earmarked N24,733,742,477 for group life assurance for all MDAs including DSS/Insurance of sensitive assets/corpers plus administration and monitoring.
Next year, the Ministry of Finance Incorporated (MOFI) will be recapitalised to the tune of N20 billion.
Government also plans to spend N100 billion on Zonal Intervention Projects, and refund N17,899,000,000 to a Special Account.
Under the Service Wide Vote, provision has been made for N25 billion to pay off the debts owed local contractors.
N300 billion will be spent on recurrent expenditure for the National Poverty Reduction with Growth Strategy (NPRGS). On the capital side for the NPRGS, N100 billion has been budgeted for “FGN Commitment, including NSIP upscaling”.
If passed by the National Assembly, N10 billion will be spent to restructure/recapitalize NIPOST while another N50 billion has been budgeted for Health Workers Hazard Allowance.
The Federal Ministry of Finance Budget and National Planning has an expenditure envelope of N282,548,005,655. From this amount, N82,030,000,000 will be spent to purchase a power generator, N261,500,000 for the purchase of motor vehicles, N36,710,002 for annual budget expenses and administration and N210,000,000 on Human Capital Development.
The Ministry of Finance will in 2022 engage in the draw down of N269,866,395,500 from several multilateral/bilateral projects-tied loans. The budget details shows that N82,030,000,000 will be drawn from the multilateral/bilateral projects-tied loans for Power Sector Recovery Project (PSRP).
Another multilateral/bilateral projects-tied loans for Family Homes Fund Housing Project, the federal ministry of finance will access a loan of N4,101,500,000. The ministry of finance will also draw down N15,573,395,500 from the Multilateral/Bilateral projects-tied loans for Fiscal Governance and Institutions Project.
Other multilateral/bilateral loans that the government through the federal ministry of finance will access in 2022 include N4,101,500,000 from the Multilateral/Bilateral projects-tied loans for States Fiscal Transparency, Accountability and Sustainability Programme for results (SFTAS), N20,507,500,000 from the multilateral/bilateral projects-tied loans for Development Bank of Nigeria (DBN) and another N143,552,500,000 from the multilateral/bilateral projects-tied loans for COVID-19 Action Recovery and Economic Stimulus Programme (NCARES).
To automate the Enterprise Resource Planning (ERP) of Federation Account Allocation Committee (FAAC) operations ‘for process optimization and efficiency, improve forecasting capabilities, enhance transparency, better operations and capacity development”, the Federal Ministry of Finance is asking the National Assembly to approve N200,000,000.
The Budget Office of the Federation on its part wants N17 million to redesign and revamp the Budget Office Web Portal.
The Nigerian Bulk Electricity Trading Plc (NBET) wants to spend N150 billion on the Power Reform Programme and another N73,993,531 for Financial Advisory Consultancy Services.
(The Nation)
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