Communiques

Being a Communique Issued at the end of a 3-day Consultative Forum on Budget Law Initiative Organised by Women Advocate's Research and Documentation Centre (WARDC) In collaboration with Joint House Committees On Appropriations and Finance
Held at the Nicon Hilton Hotel, Abuja From 31ST August to 2ND September 2004

The meeting held at the Nicon Hilton hotel in Abuja was honoured with the presence of the Honourable Speaker of the House of Representatives, Alhaji Aminu Belo Masari, Dallatun Katsina, who was ably represented by the Chief Whip of the House, Hon. Bawa Buhari; Chairmen and members of the House Committees on Appropriation and finance; legislative staff; Hon. Wandera Ogalo from the East African Parliament; Women Advocate Research and Documentation Center and other members of the Budget Law Initiative. Also present were civil society organizations, legal practitioners and the academia as well as donor agencies like the Open Society Initiative for West Africa (OSIWA) and National Democratic Institute (NDI) that have actively been supporting efforts to have a budget enforcement law.
After the exhaustive consultations and deliberations the following recommendations were adopted.

THE RECOMMENDATIONS

A. Budget Law
1. That there should be a budget law providing for a prior determination of certain aggregates particularly

a. Determination by the National Assembly on the recommendation of the President, and not latter than three months before the presentation of a budget the aggregate proposed and permissible government expenditure and core revenue estimates in accordance with National plans.

b. Determination by the National Assembly on the recommendation of the president not less than three months before the presentation of the budget to the National Assembly of sectoral percentage allocations and priority scale for the year in accordance with National plans
2. That the budget law should provide a framework for civil participation in the preparation of the budget by providing access to the budget office of the Federation and ministry of finance for civil society groups to make and defend submissions on the determination of aggregate proposed and permissible expenditures and estimates and sectoral percentage allocations.

3. That the budget law should compel government to fulfill the social and economic goals provided for in chapter II of the 1999 constitution with the underlining principle that the security and welfare of the people shall be the primary purpose of government.

4. That the budget law should provide for every ministry and government agency to produce annually its objectives, action plan and targets before budget estimates are made with respect to the particular goods or services they provide.

5. That the budget law should provide a framework that allows maximum participation of civil society in the preparation, implementation, monitoring and evaluation of the budget.

6. That the budget law should provide for the strengthening of the budget office of the federation and the creation of an independent legislative budget office in the National Assembly.

7. That the new budget law should strengthen and make completely independent the office of the Auditor-General making its funding a direct charge on the consolidated revenue of the federal government.

8. That the new budget law should provide for special consideration of gender and minority concerns.

9. That the new budget law should provide for the preparation and executive council approval of the budget to be commenced and concluded on or before 1st July in every year and submitted to Mr. President not later than the end of August every year.

10. That the new budget law should provide for the legislature to consider, pass the budget and forward same to the President for assent on or before 31st December every year.

11. That the new budget law should provide a time frame for the Accountant-General to submit his/her financial report/statement to the Auditor General for the previous year and such a period should not be later than the end of February in the new year
12. That the new budget law should provide for the Auditor-Generals report to include results of a detailed value for money audit.
13. That the budget law should provide time limits for releases, cash backing and payments.

14. That the budget law should provide for quarterly implementation reports to be submitted to the National Assembly by every ministry and government agency detailing the expected contents of these reports.

15. That the budget law should provide for benchmarks and indicators for measurement and evaluation

16. That the budget law should provide for prior approval of the legislature before any government (local, state or federal) obtains international loans.

17. That this budget law should in no uncertain terms out-law retroactive appropriation in what ever form or shape.

18. That this law should compel all public officials having authority to waive, and or vary taxes and levies to submit quarterly reports to the National Assembly containing all waivers sought, granted or refused, reasons for granting or refusing them and the loss of revenue to the government resulting from the waivers or variations.

19. That quarterly the Minister of finance and heads of all government agencies should submit to the National Assembly detailed report of all grants and donations of money and materials to government or its agencies and any conditions for such grants and donations.

20. That the budget law should impose a duty on all ministries and government agencies to periodically publish in an easily accessible and acceptable manner to the public their annual goals, objectives and action plans including all subventions, revenue receipts, expenditure profiles and actual details of expenditures made.

21. That the budget law should provide for detailed sanctions for all infractions of its provisions and or financial regulations.

22. The Budget Reform Law should have a provision defining consolidated Revenue Fund of the Federation as distinct from the Consolidated Revenue Fund of the Federal Government of Nigeria. There has been confusion in the use of the two to mean the same.

23. The Budget Law must make provision for a Revenue Bill or Money Bill to separately be submitted to the National Assembly by Mr. President when submitting the Appropriation Bill.

24. The Budget Law must make a provision for the defraying the cost of Revenue generation to be borne by the stakeholders beneficiaries in the proportion they share from the Federation Account.

25. The Budget Law should make a provision holding a person in a Political or Public Office, who directs or concurs in the use of any Public Funds contrary to the existing instructions shall be accountable for any loss arising from that use and shall be required to make good the lose even after the person has left or ceased to hold office.

B. Loans and Grants
That in relation to loans and grants, the budget law should require that before the 15th of June of each Financial Year, the President submits to the National Assembly information relating to the indebtedness of the country in that financial year showing the following:

i. The total principal and sources of loans and debts.
ii. The accumulated interest on each loan and debt
iii. The provision made for servicing or repayment of each loan
iv. The balance on payment under (iii)
v. The utilization and performance of each loan or debt including the extent of the achievements of the objective targets of each loan.

The same should apply to grants with the necessary modifications such as a requirement for a statement on accumulated interest. The president should also be required to present to National Assembly information relating to guarantees of loans or grants to individuals or statutory corporations.

C. Supplementary Expenditure
That the budget law should provide for a limit of 3% of the total approved budget that government could spend over and above what was appropriated by the legislature. Any sum above that must have legislative approval before expenditure.

D. Domestic Debt
No government department, a self-accounting institution or commission should be allowed to take any credit form any local company or foreign institutions without legislative approval.

We sincerely hope that much sooner than later all these ideals of good budgeting will become law and be put into practice for the benefit of all Nigerians, be they the governors or the governed. We call for your maximum support as we embark on this endeavour.

Thank you.

1. Hon. Gabriel T. Suswam
......for Chairmen, House Committee on
......Appropriations and Finance

2. Mrs. Abiola Akiyode-Afolabi
....Executive Director, WARDC