Budget blow for Nigeria's leader

The president's plan to trim the budget is illegal, opponents say

The Nigerian Senate has rejected plans by President Olusegun Obasanjo to curb budget spending increases for 2005.

An alliance of senators said government plans to unilaterally cut Nigeria's 1.8 trillion naira ($13.6bn; £7.1bn) budget was "illegal and unconstitutional".

President Obasanjo signed a bill into law last month sanctioning a 38% jump in spending, compared with 2004.

But earlier this week the president said his government would not implement the 2005 budget in full.

'Unacceptable' decision

Members of Nigeria's Upper House voted unanimously to reject President Obasanjo's plans to scale budget spending back to 1.7 trillion naira.

"We would adjudge any review unacceptable to the National Assembly and the Nigerian people," said Tawa Wada, chairman of the Senate committee of information.

"If he (the president) has to slash the budget, the law has to be amended," said Senator Mukhtar Aruwa. "It is not for him to sit there and unilaterally slash the budget without the law being amended."

Nigeria has come under international pressure over its spending plans for the current year.

Bribery allegations

In a report published this week, the International Monetary Fund described Nigeria's budget as "the greatest risk to macroeconomic stability".

Nigeria's oil-rich economy is sub-Saharan Africa's second biggest after South Africa.

President Obasanjo originally submitted a budget proposal for 2005 of 1.685 trillion naira.

However, that figure was inflated to 1.8 trillion naira following six months of political wrangling between Nigeria's National Assembly and the government.

During this time, the president sacked his education minister for allegedly bribing politicians to increase his budget. The scandal eventually led to the resignation of the Senate president.