Reps OKay C’ttee’s Report On 2013-2015 Expenditure

The House of Representatives has approved the Conference Committee’s report on the 2013-2015 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

It would be recalled that the Senate and the House on October 9 and October 19, respectively, set up a conference committee to reconcile differences in the recommendations from the two chambers.

This approval followed the report presented by the Conference Committee of the House.

Presenting the report, Rep. John Enoh (PDP-Cross River), the Chairman of the House Committee on Appropriation, urged the House to approve the report as the Senate would also approve the same report.

He said that a lot of consultation took place to ensure that an agreement was reached.

Enoh said further that after an extensive deliberation and consultation by the Conference Committee, the benchmark price of $79 per barrel was recommended.

He said that additional funds arising from the $4 increase would be used to reduce domestic borrowing and deficit, as well as funding critical infrastructure.

The lawmaker said that the Conference Committee cautioned government on foreign borrowing after a thorough scrutiny of the two versions of recommendations.

The Committee recommended 30 per cent and five per cent for Corporate Tax and Value Added Tax (VAT) rates for 2013-2015 respectively.

It recommended the transfer of Comprehensive Import Supervision Scheme (CISS) Account to Nigerian Customs Service.

The committee rejected the structures being set-up in states, senatorial zones and local governments in respect of the Federal Government’s Subsidy Re-investment (SURE-P) intervention programmes.

It recommended that the details of SURE-P to be executed under the programme be attached as an addendum to the Annual Appropriation for scrutiny and approval by the National Assembly.

It further recommended that the crude oil production levels should be retained as 2.526 mbpd for 2013, 2.611 mbpd in 2014 and 2.648 mbpd in 2015.

According to the committee, the revenue target of the Nigeria Customs Service (NCS) for 2013 should be increased.

It urged government to take urgent steps to review all laws that allow its agencies to expand their revenue with little or no operating surpluses.

The committee also called for increased funding for frontier exploration services to increase the nation’s crude oil resources, and said that government and its agencies must comply fully with the Fiscal Responsibility Act, 2007.

It recommended that priority attention and prominence should be given to the sustenance of people in the Niger Delta in order to guarantee production of crude oil.