FG’s N2.17trn supplementary budget to fund Tinubu’s yacht, presidential fleet, renovate Lagos, Abuja quarters

Nigerians have reacted to emerging reports that the Federal Government plans to spend a whopping N13 billion on sundry projects including a presidential yacht, upgrade of the presidential air fleet, renovations for President Bola Tinubu’s Lagos and Abuja official quarters, as well as, that of the Vice President, Kashim Shettima, among others, as part of the N2.17 trillion supplementary budget proposal approved by the Federal Executive Council (FEC), Tuesday.

The N2.17 trillion proposal is expected to raise the already approved budget of N21.83 trillion for 2023 Appropriations Bill signed into law on January 3, 2023, by immediate past President Muhammadu Buhari by 9.16 per cent.

The FEC had, Tuesday, approved the sum of N2.17 trillion as supplementary budget for the year 2023.

Minister of Budget and Economic Planning, Atiku Bagudu, who disclosed this while briefing State House Correspondents at the end of Monday’s cabinet meeting chaired by President Bola Ahmed Tinubu, said the main items on the supplementary budget are issues of security and the payment of wage awards to workers in the public sector.

“Today, the council considered a request for supplementary appropriation, which is the second for 2023 and graciously approved the sum of N2, 176, 791, 286. 33 as a supplementary budget and this is to fund urgent issues including N605 billion for national defence and security to sustain the gains made in security, as these are funds needed by the military and other security agencies for the year 2023.

“Equally, the sum of N300 billion was provided to repair bridges including Eko and 3rd Mainland bridges as well as construction, rehabilitation and maintenance of many roads nationwide before the return of the rainy season. Equally, the sum of N200 billion was provided for seed and agricultural input supplies as well as agricultural implements and infrastructure to support the expansion of food production.

“The sum of N210 billion is also provided for in the supplementary budget for the payment of wage awards to workers. While negotiating with the Nigeria Labour Congress, the Nigerian government agreed to pay N35,000 each to about 1.5 million employees and that amount for September, October, November and December 2023 is what has been captured in the supplementary budget.”

Giving clarification on the wage award, the Minister said the component of the wage award for the year 2024 has also been captured in the 2024 budget.

The minister further disclosed that N400 has also been provided for in the auxiliary budget for cash transfer payment.

“You may recall that the Nigerian government secured a $800 million loan from the World Bank to pay cash transfers of N25, 000 each to 15 million households. The $800 million is for two months of October and November, 2023 and the President has graciously approved that an additional month be funded by the government and that is what this N400 billion is for,” he explained.

Bagudu revealed that N100 billion was provided for in the extra budget as support to the Federal Capital Territory in order to enable the territory to execute urgent or immediate capital expenditure works.

He added that N5.5 billion was also okayed for the take-off of the Students Loan Board adding that newly established Ministries also got eight billion for their own take-off, adding also that N18 billion has been provided for the nation’s Independent National Electoral Commission (INEC) for the smooth conduct of the off-season elections in Kogi, Bayelsa and Imo States on November 11.

The supplementary budget is expected to be forwarded to the National Assembly without delay, for speedy approval, in order to address the urgent needs of government, especially the payment of wage awards, which workers have since been anticipating.

However, one of the significant highlights of the proposed budget is the allocation of N5.095 billion for the purchase of a presidential yacht.

Other items tucked into the N2.17 trillion supplementary budget include:  N50bn – Construction of 40,000 units of ‘Renewed Hope’ mini-estates across the federation; N400bn – ‘Cash transfer’; N10bn – Construction of Court of Appeal; N15bn – Recruitment of 10,000 Police Constables; N5.9bn – Police Command for upcoming Gubernatorial elections in Imo, Bayelsa, and Kogi.

Others are: N12bn – Presidential Air Fleet; N15bn – Rehabilitation of Third Mainland Bridge; and the N11bn – Balance payment for Eko Bridge.

The development comes amid a request by the Tinubu government to the senate to approve its plans to borrow $7.8billion and €100 million as part of the 2022 – 2024 borrowing plan of the Federal Government.

The president requested in a letter read by the Senate President Godswill Akpabio during plenary session.

Tinubu said the Federal Executive Council under former President Muhammadu Buhari had approved the loan facility on May 15, 2023, to finance infrastructure, health, education, agriculture, insecurity and other sectors.

“The Senate is invited to note that following the removal of fuel subsidy and its impact on the economy in the country, African Development Bank (AFDB) and the World Bank Group (WBG) have indicated interest in assisting the country in mitigating the economic shocks and recent reforms with a sum of $1 billion and $2 billion respectively in addition to the Federal Executive Council approved 2022-2024 external borrowing plan.

“Consequently, the required approval is in the sum of $7,864,508,559 and in terms of euro, €100 million euros.”

President Tinubu further explained that the foreign loan has become necessary to bridge the financial gap and return the economic activities of the country to normalcy.

Also, Tinubu, Wednesday, wrote to the House of Representatives, seeking approval for he same purpose of taking a loan of $7.86 billion and €100 million under the Federal Government 2022-2024 external borrowing plan.

The President’s request was contained in a letter addressed to the Speaker of the House of Representatives, Abbas Tajudeen who read it at plenary on Wednesday.

He said that if the loan request is granted, the funds will be used to develop infrastructure, agriculture, health, education, water supply, security and employment as well as financial management reforms.

He said in the letter that the Federal Executive Council under the Muhammadu Buhari administration approved the loan on May 15 to finance infrastructure, health, education, agriculture, insecurity and other sectors.

“The House is invited to note that following the removal of fuel subsidy and its impact on the economy in the country, the African Development Bank (AFDB) and the World Bank Group (WBG) have indicated interest in assisting the country in mitigating the economic shores and recent reforms with a sum of $1 billion and $2 billion respectively in addition to the Federal Executive Council approved 2022-2024 external borrowing plan.

“Consequently, the required approval is of $7,864,508,559 dollars and in terms of euro, €100 million euros.

“The project cuts across all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, security and employment as well as financial management reforms, among others.

“The total facility of the projects and programmes under the borrowing plan is $7,864,508,559 dollars and then in Euro, 100 million euros respectively,” the letter read.

The House subsequently referred the letter to the House Committee on Aids, Loans and Debt Management for further legislative action.

However, further details from the N2.17 supplemental budget indicate that Tinubu plans to spend over N4 billion on renovation of his official quarters in Abuja and about N2.5 billion on renovations for the Vice President Kashim Shettima’s official residence.

In a similar vein, the president plans to renovate his official residence in Lagos, the Dodan Barracks, for approximately N4 billion. And the renovation for the official residence of the VP in Lagos is expected to gulp about N4 billion.

Reacting, Nigerians took to the social media space, Wednesday to berate the decision of the Tinubu administration to embark on what they called ‘mindless’ spending amid the economic hardship occasioned  by the removal of the subsidy on petroleum products by the government on May 29.

Main opposition, Peoples Democratic Party (PDP) chieftain, and former senator representing Kaduna Central at the National Assembly, Malam Shehu Sani  urged Tinubu to ‘cancel the purchase of that N5Billion Presidential Yacht.’

Senator Sani posting via his X handle (@ShehuSani), Wednesday, wrote:

“The President should without delay cancel the purchase of that N5Billion Presidential Yacht. The poor can’t be struggling for survival in a canoe while their leader is yachting.”

Also, staunch supporter of Tinubu and the All Progressives Congress (APC), comedian Seyi Law posted via his X handle (@seyilaw1) expressing his disapproval of the plans.

“I am absolutely not in support of the procurement of the presidential yacht. It is quite insensitive to the plight of Nigerians at this moment to even rationalise it. I call on the president, @officialABAT, to once again prove to Nigerians that he listens. Thank you, your Excellency.”

Other reactions as captured by Oracle Today newspaper follow below:

Nsukka First Son  (@_Victorsmog) wrote:

There’s nothing bad in procuring Yatch. It’s for all. After all, we can hire it anywhere we’re going

Senior Man (@Seyi__) wrote:

Lmfaooo dont worry, they said those who voted Tinubu can use the yacht.

DAMZY (@Segun_Odunayo) wrote:

Nigeria is too broke to pay for fuel subsidies but we’re not too broke to buy presidential yatch worth 5 billion naira.

The citizens must learn to manage hard times but the leadership are buying exotic cars.

Ok nah

BUCOS (@TENIBEGILOJU202) wrote:

WITH WHAT WE KNEW AND EXPERIENCED IN LAGOS, I HOPE THE YACHT WON’T BE PERSONAL PROPERTY IN FUTURE! They will buy with Nigerian money and later fine-tune d papers to be theirs. Nigerians didn’t bargain for dis mess, Yakubu Mahmood imposed it on us.