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The Senate and the
House of Representatives yesterday received official request from the
president, Goodluck Jonathan, who has urged for a downward review of
the 2010 budget in the face of dwindling government revenue.

Key members
confirmed last week that lawmakers had assured Mr. Jonathan of a speedy
approval for the budget review that will slash federal expenditure and
reduce the oil price benchmark by at least $10, immediately a formal
request was made.

In a letter to both
chambers, dated May 29, 2010 and read to the lawmakers yesterday, Mr.
Jonathan affirmed his earlier position last week, that the N4.6086
billion budget, which he signed into law in April 2010, was no longer
tenable with current economic realities of the nation.

“Recent revenue
developments indicate significant shortfalls in both oil and non-oil
revenue, which may well continue for the rest of the fiscal year, with
adverse implications for the financing of the budget,” he said. “Given
the recent drop in international oil prices from the over $80 per
barrel to under $70 per barrel, it is prudent to revise the oil
benchmark price to a more realistic level.”

Part of the
president’s recommendation to the lawmakers, Ita Enang, a House member
said, is the reduction of the oil benchmark price, initially moved by
the lawmakers to $67, back to its original $57 per barrel. With the
falling international oil price, the government fears allowing the perk
at $67 per barrel will imperil federal savings and affect spending
negatively.

In his letter, Mr.
Jonathan stayed off naming his preferred figures for either the oil
price or the total reduction, although he is said to have also called
for a total budget reduction of 40%. The president also requested for
fresh appropriation for “critical expenditure heads that were either
inadvertently omitted or under provisioned for.”

Such expenditures
will cover funds for the newly negotiated civil service wages increase,
the arrears of monetization for the staff of the Power Holding Company
of Nigeria and the celebration of Nigeria’s 50th anniversary.

“It is my hope that
the National Assembly will kindly consider and approve these request
expeditiously to resolve these challenges,” the president said.
Lawmakers are expected to commence consideration of fiscal submissions
tomorrow.

Supplementary bill

Accompanying the
2010 budget review proposal is an additional supplementary budget
proposal to authorize the executive access to N639.8 billion from the
Consolidate Revenue Fund. The bulk of the supplementary budget, about
N507 billion is for recurrent expenditure while the balance N132.6
billion is for contribution to the Development Fund for additional
capital expenditure.

A large chunk of
the N507 billion set aside for the recurrent expenditure will be shared
amongst the office of the secretary general of the federation, foreign
affairs ministry, information and communication ministry and the
ministry of women affairs to be used for Nigeria at 50 celebration in
October.

The balance of N287
billion in the recurrent expenditure will be applied to the public
service wage adjustment cut across payment of 2 months arrears to
members of the Academic Staff Union of Universities (ASUU), wage
increase for core civil servants, universities, colleges of educations,
and medical professionals.

The balance will also apply to feeding allowances and stipends to
ex-militants of the phase II amnesty and reintegration program and the
rest, to arrears of monetization for Power Holding Corporation of
Nigeria.