The Bill to amend the Appropriation Act, 2024 to authorise the issue from the Consolidated Revenue Fund of the Federation the total sum of N3.2trillion for capital expenditure, and the sum of N3trillion for recurrent expenditure for the year ending on the 31st day of December 2024, has scaled second reading in the Senate.
Similarly, the Red Chamber has also passed the Bill for an Act to amend the Finance Act, 2023 to impose and charge windfall tax on banks and Provide for the administration of the tax for second reading.
The two bills were considered during plenary on Wednesday following their presentation by the Senate Leader, Senator Opeyemi Bamidele (APC Ekiti Central).
Senator Bamidele explained that the bill, especially the first one became necessary because of the new minimum wage for workers and the Renewed Hope legacy projects of President Bola Tinubu which were not contained in the 2024 budget.
Supporting the bill, Senator Adamu Aliero (PDP Kebbi Central), said approving the piece of legislation would help the President to address the issue of minimum wage and start the implementation of some critical projects like the Lagos -Calabar Coaster and the Badagry Sokoto road projects.
In his own, Senator Seriake Dickson (PDP Bayelsa West), argued that the two bills are not the same and should therefore be treated separately.
According to him, the first one is an amendment to the 2024 Appropriation Act while the second is on taxation and growing of the nation’s economy, adding however, that “we should be very cautious while imposing taxes on the people who are facing depressed economy.”
President Tinubu had through a letter requested the Senate to amend the 2024 Appropriation Act and the 2023 Finance Act by increasing the budget by N6.2trillion.
Tinubu, in the letter addressed to the Senate President, Senator Godswill Akpabio, and read at the beginning of plenary, said the move was pursuant to section 58, sub-section two of the Constitution of the Federal Republic of Nigeria 1999 as amended.
The letter reads in part: “I forward herewith the above bills for consideration and passage by the Senate.
“The Appropriation Act Amendment Bill 2024 seeks to amend the principal act to provide the sum of N3.2trillion for renewed hope infrastructure projects and other critical infrastructure projects to be undertaken across the country.
“And the sum of N3 trillion to meet further recurrent expenditure requirements, necessary for the proper operation by the Federal Government expenditure, which are to be funded by expected revenue accruing to the Federal Government of Nigeria.”
According to the President, the proposed amendment to the Finance Act 2023, were required to impose a one-time windfall tax on the foreign exchange gains realised by banks in their 2023 financial statements.
He explained that this was to fund capital infrastructure development, education, healthcare access, and public welfare initiatives, adding that “all of the projects are essential components of the renewed hope agenda of the administration.”