PROPOSALS for a new federal revenue sharing formula giving the Federal Government 53.69% are now before the Senate.
Under the proposals, states are to receive 31.10% while local governments will get 15.21%.
The current formula is: 52.68% for the Federal Government; 26.72% for States and 20.60% for Local Governments; 13% is for derivation fund for oil-producing states.
Meanwhile, the Senate vowed yesterday, following a disorderly session over the 2008 budget proposals for the Federal Capital Territory, to stop what it called illegalities by the presidency.
Consequently, the Senate is expected to deliberate, today, on a proposal scrapping the Excess Crude Account which it described as one of the major illegalities being operated by the administration.
Proposal for new revenue formula was tabled before the Senate by President Umaru Yar�Adua following the recommendations of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC).
Of the Federal Government�s share, 47.19% is for the exclusive use of the Federal Government while the balance of 6.5% to be referred as the National Priority Services Fund is to be allocated along the following lines: General Ecology Fund 1.5%; Solid Mineral Development Fund 1.75%; National Agricultural Development Fund 1.75%; while a National Reserve Fund would get the balance of 1.5%.
Senate vows to stop illegalities by presidency
And following a disorderly session over the 2008 budget proposals for the Federal Capital Territory, the Senate yesterday vowed to arrest what it claimed were illegalities by the presidency.
The Senate in that regard is expected to today deliberate on a proposal scrapping the excess crude account which it, yesterday, described as one of the major illegalities now in operation by the administration.
The proposal is championed by Senator Iyabo Obasanjo-Bello (PDP, Ogun Central).
The Senate rejectrd of the report on the N69.4 billion 2008 budgetary proposals for the FCT prepared by the Senator Iyiola Omisore-led Committee on Appropriation. It was the second time the report of the Committee would be rejected.
The rejection of the FCT budget was premised on misgivings by several Senators that the report presented by Senator Omisore did not provide details of the expenditure proposed in the report. Among the ambiguities were a N3 billion proposal for the office of the Minister and another N400 million proposed for the Office of the Administrator.
The outburst against the report first came from Senator Ike Ekweremadu, Deputy President of the Senate, who in his remarks said: �We can�t continue to do this kind of budget.�
�Last time, we said if we need to do a budget, we need to see the details, it won�t take us anything to see the details. We need to know those projects we are appropriating for,� he submitted.
Following the remark, the President of the Senate, Chief David Mark, who presided, sought from Senator Omisore and Senator Abubakar Sodangi, chairman of the Senate Committee on FCT on how long it would take to get the details.
Several Senators among them Senators Lee Maeba (PDP, Rivers South-East), Bassey Ewa-Henshaw (PDP, Cross River South), Nimi Barigha-Amange (PDP, Bayelsa East) and Anyim Ude (PDP, Ebonyi) among others faulted the submission of the report without details.
�We have been passing budgets here, the details of the budget are not for mere eye sighting, they ought to be part of the process,� Senator Ewa-Henshaw said upon order 86(1)(2) of the Senate�s standing rules.
While agreeing with him, Senator Mark, however, ruled him out of order.
Repeated points of order by other Senators to point out the need for the details were repeatedly ruled out of order by the Senate President causing disorder in the chambers.
Senator Mark, nevertheless agreed, with all that the details of the budget should be submitted for further consideration.
Following the unanimous approval of the Senate to suspend consideration of the FCT budget until the submission of the details, some Senators led by Senator Maeba, however, differed with the interpretation of the ruling by the Senate President. Senator Mark in his ruling had affirmed the adoption of some portions of the budget, a point Maeba and some other Senators disagreed on, pointing out that the adoption was done in error before the observation of the lack of details.
Senator Mark, again ruled him out of order.
Following the session, the Senate spokesman, Senator Ayogu Eze, said the Senate�s focus on the budget was reflective of the Senate�s seriousness to ensure the reign of law and order.
He said: �The message that reverberated from the floor today (yesterday) is that the Nigerian Senate is alive to its responsibility and will do its job as it knows best. The debate on the FCT budget is an indication that our people will not take anything that is not properly in the interest of our people.
�Everything must be explained, every naira, every kobo must be traced so that they can be accounted for and the idea is avoid the kind of situation where the budget will get to the executive and then there are issues that are raised.
�I believe also that this is also a dress rehearsal for what will come in the consideration of the 2009 Appropriation bill, that we are not going to take any half measures. Everything must be done in the overall interest of our people and as you are aware also, the Senate is making sure that some of the illegalities that are practiced in the executive are redressed,� he said.
Giving the determination of the Senate to scrap the excess crude account, Senator Eze said: �For instance, the bill on excess crude and oil related account� it is extra-constitutional and, therefore, illegal, because section 162 of the Nigeria Constitution provides that all revenues of the Government must be pooled and put in the CRF, the Consolidated Revenue Fund and shared.
�It didn�t make provision for any extra-receptacle for keeping Government revenue outside what is prescribed in section 162 of the Constitution. What this bill is also seeking to do is to make sure that we give the executive legal backing so that their action will not amount to a violation of our law.
I believe that the constitutional amendment when it comes on stream will also attempt to address that issue because any country that wants to develop must make provision for a provident fund or some kind of savings for the rainy day and also a saving for regenerating growth in other sectors.
�There must be special effort by this country and we are all committed to that, to ensure that we devote a fund for infrastructure development, a fund for energy, for certain aspects of our social infrastructure had hindered growth and I believe that that is what that bill seeks to do,� he said.
Constitution Review: Senate blames Reps
Also yesterday, the Senate exonerated itself from the continuing delay in the review of the 1999 Constitution just as it absolved itself from allegations of impeding the progress of the Vision 2020 programme of the administration.
Senate spokesman, Senator Ayogu Eze, however, said the National Assembly would only amend salient portions of the Constitution instead of the large-scale amendment attempted by the immediate past National Assembly.
�The Senate is ready with its members, we are waiting for the House and you know that it is a joint effort and I believe that as they return from recess that may be one of the issues that the House may also look at so that the Committee can be inaugurated and can go into action,�
Senator Eze said in response to a question on the continuing delay in the commencement of work by the Joint National Assembly Committee on the Review of the 1999 Constitution.
The Senate named its 37-man delegation to the National Assembly Joint Committee on the Review of the 1999 Constitution on May 8, 2008.
�We can determine our own speed when we start the process because the attitude this time is not that we are going to rewrite the Constitution, we are going to look at the salient areas because no Constitution ever gets amended in the kind of wholesome manner in which they attempted to amend the Constitution in the past..
�So this time around, we are going to distill very key issues that we are going to address so that we are able to accommodate everything within the life of this National Assembly,,� Senator Eze said.
However, the leader of the House of Representatives, Mr Tunde Akogun, in a session with correspondents on Monday said the House was ready with its list and would be made known immediately the House resumed from its current break.
Responding to a newspaper report that the National Assembly was impeding the work of the Vision 2020 Committee through its failure to make budgetary provisions for the Committee, Senator Eze said:
�I read it and said what does this man mean,� in respect of the allegation articulated by Mr. Bunmi Ajayi, the President of the Association of Professional Bodies in Nigeria.
�Vision 2020, like any rolling plan, is the baby of the executive and unless the executive provides oxygen, the baby will not breathe and you cannot expect a man whose wife is pregnant with a baby to be accused of not supplying the needs of the child while it is in the womb.
�That child will become the responsibility of the father and the mother when it leaves the womb, but while it is in the womb everything it can take is through the mother. So, right now that Vision 2020 is in the womb of the executive and until it comes out, the National Assembly cannot be accused of either killing or of providing Cerelac.
�So, I think is a misplaced aggression. I thought that maybe the man said, okay, we need to tell the executive that they are not rising up, but since we cannot talk to the executive directly let�s hit the people we can easily hit and then they hit us,� he said.