Upper Chamber on Thursday passed N299,526, 463, 156.12 budget proposal for Niger Delta Development Commission (NDDC) for the 2015 fiscal year.
The budget was made up of N271, 089, 998, 023 for project (development) expenditure; N16, 133, 377, 133.00 as personnel expenditure; N10,423,319,000.00 as overhead expenditure and N1,879,769,000.12 as capital expenditure.
According to the Senate Committee on Niger Delta, the budget will be financed from a projected revenue of N300. 1 billion drawn from N160 billion contribution from oil companies; N70 billion provision from the federal government; N40 billion ecological funds; N20 billion unpaid arrears by the federal government; N10 billion as revenue brought forward and N100 million internally generated revenue.
While presenting the budget for Senate approval yesterday, the committee chairman, Senator James Manager, said the committee considered the federal government proposals and observed that non-project expenditure which comprised personnel, overheads and the internal capital totalling N28.4 billion represent 9.5 per cent of the total proposed budget for the year as against 8.43 per cent proposed in 2014.
He also said the N271.089 billion approved as project development expenditure represents N90.5 per cent of the total proposed budget as against the 91.46 per cent proposed in 2014.
“It is pertinent to mention that due to the peculiar nature of the NDDC budget, the committee finds that it is necessary to separate the capital budget meant for use internally by the commission from capital budget meant for project development,” Manager said.
The committee which said the budget should be operative from January 1, 2015 to December 31, 2015, also advised the Senate to relentlessly pursue the proper calculation and release of 15 per cent statutory contribution of the federal government for the funding of NDDC.
Furthermore, the committee recommended the need for the Senate to assist in enforcing the payment of the statutory 50 per cent of monies meant for NDDC member states from the ecological fund with a view to enhancing the commission’s revenue base.