President Muhammadu Buhari Tuesday proposed new adjustments to some line items in the 2016 budget to address financial urgencies. The president’s proposal was contained in a letter to the National Assembly in which he seeks a total N180.8 billion in virement for line items in both capital and recurrent expenditures. Virement is when money meant for a particular project in the budget is channeled to prosecute a different project considered as more exigent than the former.
Successive Nigerian governments have indulged in virement some without approval by the appropriating authority, the National Assembly.
President Buhari in his letter said the need for government to augment funds in its purse was caused by renewed militant activities in the Niger-Delta.
He said the destruction of oil installations had left his administration unable to pay overhead costs as the nation has no viable alternative means of revenue. This year alone, militants in the Niger Delta had destroyed oil facilities of major operators including Chevron, Shell, NNPC, among others.
“The most viable option now is the virement of appropriated funds from heads or sub heads …,” Mr. Buhari said in the letter addressed to Senate President Bukola Saraki and Speaker Yakubu Dogara.
Areas where the president said needed urgent injection of funds include security, intervention programs, education and services.
The president said there was no point allowing funds to lay idle in some agencies while activities are grounded in others due to financial shortfalls. Some agencies of government have been in the throes of financial crisis lately with many unable to meet their financial obligation to their workers.
