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Tag: 2016 Budget

  • APC hails 2016 Budget

    APC hails 2016 Budget

    … Buhari will fulfill campaign promises – Party

    The All Progressives Congress (APC) has ‎assured Nigerians that President Muhammadu Buhari will fulfill his campaign promises to the Nigerians, beginning with the 2016 budget.

    Reacting to the 2016 budget presentation by the President, the APC National Chairman, Chief John Odigie- Oyegun said the present administration’s pro-people policies will be implemented full blast in 2016.

    He said: “In fulfillment of APC’s election promises to the Nigerian electorate, the party welcomes the proposed Social Welfare Programmes contained in the proposed 2016 National Budget submitted to the National Assembly. President Buhari has proposed N500 billion to pay unemployed Nigerian graduates (post-NYSC grant) and feed school children, amongst other social welfare programmes in 2016.

    “A phased Social Welfare Programme created to cater for a larger population of the poorest and most vulnerable Nigerians upon the evidence of children’s enrolment in school and evidence of immunization has also been proposed to the National Assembly.

    “President Buhari has also promised that 500,000 new teachers would be recruited. Compared to the last 16 years of locust, Nigerians are getting a much better deal from the seven-month old APC-led administration. On the strength of these proposals, the future holds more dividends of democracy for Nigerians.

    “It is reassuring that the federal government has recovered huge sums from looters of our common wealth, which will be injected into the 2016 National Budget.”

    While calling for the speedy passage of the budget, the APC said “as the National Assembly considers the proposed 2016 National Budget, the APC calls on members of the Senate and House of Representatives to rise above political, regional and ethnic sentiments and pass the proposed 2016 budget which is pro-people and in the overall best interest on Nigeria.

    ‎”The APC hails the very cordial working relationship between the 8th National Assembly and the executive arm of government, specifically the President.”

    Oyegun said by personally presenting the budget, President Buhari has demonstrated his commitment to Nigeria’s constitutional democracy and the dictate of the rule of law and also highlighted the importance of building a smooth working relationship with the National Assembly.

  • 2016 Budget a big fraud – PDP

    2016 Budget a big fraud – PDP

    The Peoples Democratic Party (PDP) has described the N6.8 trillion 2016 federal budget presented to the National Assembly by President Muhammadu Buhari as “a big fraud and executive conspiracy tailored towards mortgaging the future of the nation.”

    The party faulted the President’s decision to borrow N2 trillion, describing it as the height of recklessness and deceit from a government that trends on propaganda.

    In a statement issued on Tuesday by its National Publicity Secretary, Chief Olisa Metuh, the PDP accused the government of trying to use bogus welfare programme and phantom capital projects as cover and conduit to syphon the funds to satisfy partisan interests, particularly to settle huge campaign debts.

    The statement said, “It is obvious that this budget is an extension of the campaign promises of the APC government, presented as a manifesto filled with bogus promises which implementation will be inconclusive, thereby allowing the APC to once again deny their promises.

    “There has never been any known economy in the world where government deliberately mortgage the future of its nation by borrowing excessively to finance partisan interests while hiding under bogus welfare programmes.

    “This is moreso important as the APC in reeling out their bogus campaign promises, never informed Nigerians that they would mortgage their future through excessive borrowing.

    “We have it on good authority that this is the first in the series of APC borrowings which would leave the future generation of Nigerians under the burden of huge debts after four years.”

    The PDP said the budget clearly showed that after seven months in power, the administration cannot differentiate between governance and campaign propaganda.

    “By all standards, the 2016 budget, the first major economic policy outing of this government, is completely unrealistic and duplicitously embellished with impractical predications, a development that confirms fears by economy watchers and investors that this administration is obviously ill-equipped for governance.

    “We are indeed shocked that President Buhari and his minister of information have come up with two different reasons for the current fuel crisis in the country. While we appreciate the President’s apology, we think it is high time he called this minister to order as his excessive propaganda and blame game are ridiculing this administration and the image of the nation.

    “Furthermore, it is instructive to note the official endorsement of Mr. President to the devaluation of the naira as against his campaign promise of firming up the value of our currency even to the much vaunted one naira to one dollar.

    “Does it mean that Mr. President lied his way to power, or that he did not understand the complexities of governance when he was making his false promises to Nigerians?

    “In future, there is need to regulate campaign promises so that we will not end up with a government that promises to climb Mount Everest with bare hands and end up mortgaging our future with orchestrated borrowings.

    “Finally, we want to request Mr. President to once again to involve experienced and well-tested hands in the management of the economy and budgeting processes.

    “This economy is not for Mr. President, neither is it for the APC. The progress of the economy is for all Nigerians and as such, due care should taken to save ourselves from unrealistic and deceptive programmes.”

  • Update: Buhari presents N6.08tr 2016 Budget

    Update: Buhari presents N6.08tr 2016 Budget

    President Muhammadu Buhari on Tuesday presented a budget of N6.08 trillion for the 2016 fiscal year to the joint session of the National Assembly.

    The President said the 2016 budget proposal, the first by his government, seeks to stimulate the economy, making it more competitive by focusing on infrastructural development, delivering inclusive growth, and prioritizing the welfare of Nigerians.

    Buhari said the budget, as outlined, is designed to ensure that “we revive our economy, deliver inclusive growth to Nigerians and create a significant number of jobs.”

    The President underscored the fact that the budget is modeled to lay the foundation for sustainable economic growth.

    He added that the budget proposal, while helping industry, commerce and investment to pick up, will as a matter of urgency, address the immediate problems of youth unemployment and the terrible living conditions of the extremely poor and vulnerable Nigerians.

    Still on job creation, the President said his government aims to ensure macroeconomic stability by achieving a real Gross Domestic Product growth rate of 4.37 per cent and managing inflation.

    To achieve this, he said they will ensure the aligning of fiscal, monetary, trade and industrial policies.

    He said, “As we focus on inclusive growth, we are conscious of the current rate of unemployment and underemployment.

    “This is a challenge we are determined to meet, and this budget is the platform for putting more Nigerians to work. I can assure you that this administration will have a job creation focus in every aspect of the execution of this budget.

    “Nigeria’s job creation drive will be private sector led. We will encourage this by a reduction in tax rates for smaller businesses as well as subsidized funding for priority sectors such as agriculture and solid minerals.

    “As an emergency measure, to address the chronic shortage of teachers in public schools across the country, we also will partner with state and local governments to recruit, train and deploy 500,000 unemployed graduates and NCE holders.

    “These graduate teachers will be deployed to primary schools, thereby, enhancing the provision of basic education especially in our rural areas.”

    The President said they also intend to partner with state and local governments to provide financial training and loans to market women, traders and artisans, through their cooperative societies.

    To this end, he said that they believe that “this segment of our society is not only critical to our plan for growing small businesses, but it is also an important platform to create jobs and provide opportunities for entrepreneurs.”

    Buhari noted that through the office of the Vice President, the government is working with various development partners to design an implementable and transparent conditional cash transfer program for the poorest and most vulnerable.

    “This program will be implemented in phases. Already, the compilation of registers of the poorest persons is ongoing. In the coming weeks, we will present the full programme, which will include our home-grown public primary school feeding and free education for science, technology and education students in our tertiary institutions. Indeed, this will mark a historic milestone for us as a nation,” he assured.

    Buhari noted that after reviewing the trends in the global oil industry, the government set a benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016.

    The government, he said, has focused on non-oil revenues by broadening the country’s tax base and improving the effectiveness of the revenue collecting agencies.

    He said that with the full implementation of the Treasury Single Account (TSA), “we expect significant improvements in the collection and remittance of independent revenues.”

    To further support the drive for increased remittances, the President said his government will ensure that all MDAs presented their budgets in advance, and remit their operating surpluses as required by section 22 of the Fiscal Responsibility Act.

    On the fight against corruption he said, “We have demonstrated a strong will to fight corruption. I am sure you will agree that the sheer scale of corruption and impunity of the past explains in part, the economic challenges we now face.

    “On these initiatives, and the many more to come, we shall not be deterred. We will pursue the recovery of everything that belongs to the people of Nigeria. No matter where it is hidden. No matter how long it will take.”

    Buhari said his government is determined to ensure that the country’s resources are managed prudently and utilized solely for the public good.

     

  • Al-Makura: 2016 budget is that of hope

    Al-Makura: 2016 budget is that of hope

    Nasarawa State Governor, Tanko Al-Makura, on Tuesday declared that the 2016 budget proposal presented by President Muhammadu Buhari to the National Assembly was a budget of hope that will reposition the country.

    He spoke with State House correspondents at the Presidential Villa, Abuja, after accompanying the President to make the presentation to the National Assembly.

    Stressing that Buhari’s government is purposeful and responsible, he was optimistic that all loopholes creating economic problem in the country will be plugged.

    He said: “I’m very impressed. I have not gone through the budget in details to know all the details regarding the allocations and programmes. But from the presentation you can see that there is direction in this country, there is hope in this country.

    “When people are crying about dwindling situation and lack of resources in the country, you find that the budget has gone far beyond the expectation of a lot of people. This showed the fact that we have a purposeful government, we have a responsible government, a government that will ensure that it plugs all the holes of creating economic problems in the country.

    “A government that will look into the actual problems of the people and solve them with accountability, sense of responsibility and prudence. And this indicates to me that next year will be a year that will turn around a lot of things that we had thought was going haywire, given the direction, purposefulness and forthrightness of Mr. President.

    On whether the over N6 trillion budget is implementable, he said: “God willing, we will implement this budget because you have to be optimistic. All the potentials are there for effective utilization of resources.”

    He noted that the problems in the past had to do with misapplication and outright maladministration of resources accruing to the country.

  • Buhari to Nigerians: I feel your pains

    Buhari to Nigerians: I feel your pains

    President Muhammadu Buhari has assured Nigerians that his administration is fully aware of the current hardship experienced in the country due to economy challenges.

    The President said this on Tuesday while presenting the 2016 budget at a joint session of the National Assembly in Abuja.

    In his speech, President Buhari said: “I know the state of our economy is a source of concern for many. This has been further worsened by the unbridled corruption and security challenges we have faced in the last few years.

    “From those who have lost their jobs, to those young people who have never had a job, to the people in the North East whose families and businesses were destroyed by insurgents, this has been a difficult period in our nation’s history, lessons that we must not forget or ignore, as we plan for the future.

    “Fellow Nigerians, the confidence of many might be shaken. However, I stand before you today promising that we will secure our country, rebuild our economy, and make the Federal Republic of Nigeria stronger than it has ever been.”

    He further noted that the answers to Nigeria’s problems are not beyond us, saying: “They exist on our farmlands; our corporations; in the universities in the hearts and minds of our entrepreneurs; through the gallantry of our Armed Forces; and the resolute spirit of Nigerians, especially the youth, who have refused to give up despite all the obstacles confronting them.

    “This Budget proposal, the first by our Government, seeks to stimulate the economy, making it more competitive by focusing on infrastructural development; delivering inclusive growth; and prioritizing the welfare of Nigerians.

    “We believe that this budget, while helping industry, commerce and investment to pick up, will as a matter of urgency, address the immediate problems of youth unemployment and the terrible living conditions of the extremely poor and vulnerable Nigerians.

    “In the medium to longer term, we remain committed to economic diversification through import substitution and export promotion. This will build resilience in our economy.

    “It will guarantee that the problems we have today, will not confront our children and their children. This shall be our legacy for generations to come.

    “We have, and will continue to implement strategies that will maintain macroeconomic stability and manage the oil price shocks we are experiencing.

    “On the economy, we injected new leadership at the helm of our revenue generating agencies including the Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Corporation (NNPC), Nigerian Communications Commission (NCC), and the Nigerian Customs Service (NCS). We implemented the Treasury Single Account (TSA) which, so far, has provided greater visibility of Government revenues and cash flows.

    “We intervened to support States to navigate their fiscal challenges by restructuring their commercial bank loans and by providing facilities to enable them to pay salary arrears.

    “We have demonstrated a strong will to fight corruption. I am sure you will agree that the sheer scale of corruption and impunity of the past explains in part, the economic challenges we now face.

    “On these initiatives, and the many more to come, we shall not be deterred. We will pursue the recovery of everything that belongs to the people of Nigeria. No matter where it is hidden. No matter how long it will take.”

    The projected revenue was N3.45 trillion, with an outlay of N4.49 trillion, implying a deficit of N1.04 trillion, due largely to under-provisioning by the previous administration for fuel subsidy and the costs required, to support the military operations in the North East.

    Tthe Government had to obtain National Assembly’s approval for a supplementary budget of N575.5 billion.

    “I take this opportunity to thank all members of the National Assembly for the prompt passage of that Bill,” Buhari summed.

  • 2016 Budget: President Buhari’s Full Speech

    2016 Budget: President Buhari’s Full Speech

    PROTOCOLS

    I am honoured and privileged to present the 2016 Budget proposal. This is my first address before this joint session of the National Assembly. I have come here today, not only to address members of the National Assembly, but also to speak directly to the men and women who placed us here.

    1. I know the state of our economy is a source of concern for many. This has been further worsened by the unbridled corruption and security challenges we have faced in the last few years. From those who have lost their jobs, to those young people who have never had a job, to the people in the North East whose families and businesses were destroyed by insurgents, this has been a difficult period in our nation’s history, lessons that we must not forget or ignore, as we plan for the future.
    2. By June 2014, oil prices averaged $112 per barrel. But as at today, the price is under $39 per barrel. This huge decline is having a painful effect on our economy. Consumption has declined at all levels. In both the private and public sectors, employers have struggled to meet their salary and other employee related obligations. The small business owners and traders have been particularly hard hit by this state of affairs.
    3. Fellow Nigerians, the confidence of many might be shaken. However, I stand before you today promising that we will secure our country, rebuild our economy, and make the Federal Republic of Nigeria stronger than it has ever been.
    4. The answers to our problems are not beyond us. They exist on our farmlands; our corporations; in the universities in the hearts and minds of our entrepreneurs; through the gallantry of our Armed Forces; and the resolute spirit of Nigerians, especially the youth, who have refused to give up despite all the obstacles confronting them.
    5. This Budget proposal, the first by our Government, seeks to stimulate the economy, making it more competitive by focusing on infrastructural development; delivering inclusive growth; and prioritizing the welfare of Nigerians. We believe that this budget, while helping industry, commerce and investment to pick up, will as a matter of urgency, address the immediate problems of youth unemployment and the terrible living conditions of the extremely poor and vulnerable Nigerians.
    6. In the medium to longer term, we remain committed to economic diversification through import substitution and export promotion. This will build resilience in our economy. It will guarantee that the problems we have today, will not confront our children and their children. This shall be our legacy for generations to come.

     

    2015: A Year of Global and Domestic Challenges

    1. Today, it is widely acknowledged that the global economy has slowed down. This is particularly the case with emerging markets such as Nigeria. However, despite the weak emerging market growth rates, our domestic security challenges, declining oil prices, and the attendant difficulties in providing foreign exchange to meet market demands, the Nigerian economy grew by 2.84% in the third quarter of 2015.
    2. We have, and will continue to implement strategies that will maintain macroeconomic stability and manage the oil price shocks we are experiencing.
    3. Upon the inauguration of this administration on 29thMay 2015, we engaged key stakeholders from various sectors of our economy and interfaced with the heads of Ministries, Departments and Agencies (MDAs) in order to understand the true state of our nation. What we found prompted us to take certain strategic decisions.
    4. On the economy, we injected new leadership at the helm of our revenue generating agencies including the Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Corporation (NNPC), Nigerian Communications Commission (NCC), and the Nigerian Customs Service (NCS). We implemented the Treasury Single Account (TSA) which, so far, has provided greater visibility of Government revenues and cash flows. We intervened to support States to navigate their fiscal challenges by restructuring their commercial bank loans and by providing facilities to enable them to pay salary arrears.
    5. We have demonstrated a strong will to fight corruption. I am sure you will agree that the sheer scale of corruption and impunity of the past explains in part, the economic challenges we now face. On these initiatives, and the many more to come, we shall not be deterred. We will pursue the recovery of everything that belongs to the people of Nigeria. No matter where it is hidden. No matter how long it will take.

     

    2015 Budget Performance

    1. Distinguished and honourable members of the National Assembly, I now present a review of the 2015 Budget. That Budget was based on a benchmark oil price of $53 per barrel, oil production of 2.28 million barrels per day and an exchange rate of N190 to the US$.
    2. The projected revenue was N3.45 trillion, with an outlay of N4.49 trillion, implying a deficit of N1.04 trillion. Due largely to under-provisioning by the previous administration for fuel subsidy and the costs required to support the military operations in the North East, the Government had to obtain National Assembly’s approval for a supplementary budget of N575.5 billion. I take this opportunity to thank all members of the National Assembly for the prompt passage of that Bill.

     2016: Budget Assumptions

    1. After reviewing the trends in the global oil industry, we have set a benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016. We have focused on non-oil revenues by broadening our tax base and improving the effectiveness of our revenue collecting agencies.
    2. Also, with the full implementation of the Treasury Single Account, we expect significant improvements in the collection and remittance of independent revenues. To further support the drive for increased remittances, we will ensure that all MDAs present their budgets in advance, and remit their operating surpluses as required by section 22 of the Fiscal Responsibility Act.
    3. We are determined to ensure that our resources are managed prudently and utilized solely for the public good. To set the proper tone, one of our early decisions was the adoption of a zero based budgeting approach, which ensures that resources are aligned with Government’s priorities and allocated efficiently. This budgeting method, a clear departure from previous budgeting activities, will optimize the impact of public expenditure.
    4. In addition to the proper linkage of budgeting to strategic planning, we are enhancing the utilization of the Government Integrated Financial Management Information Systems(GIFMIS) to improve financial management. The recently established Efficiency Unit is working across MDAs to identify and eliminate wasteful spending, duplication and other inefficiencies. We engaged costing experts to scrutinize the 2016 budget proposals. They have already identified certain cost areas that can be centralized for economies to be made.
    5. We have directed the extension of the Integrated Personnel Payroll Information System(IPPIS) to all MDAs to reap its full benefits. We will also strengthen the controls over our personnel and pension costs with the imminent introduction of the Continuous Audit Process (CAP). These initiatives will ensure personnel costs are reduced. Our commitment to a lean and cost effective government remains a priority, and the initiatives we are introducing will signal a fundamental change in how Government spends public revenue.

    2016: Laying the Foundation for Sustainable Growth

    1. The 2016 budget, as outlined, is designed to ensure that we revive our economy, deliver inclusive growth to Nigerians and create a significant number of jobs.
    2. We aim to ensure macroeconomic stability by achieving a real GDP growth rate of 4.37% and managing inflation. To achieve this, we will ensure the aligning of fiscal, monetary, trade and industrial policies.
    3. As we focus on inclusive growth, we are conscious of the current rate of unemployment and underemployment. This is a challenge we are determined to meet; and this budget is the platform for putting more Nigerians to work. I can assure you that this administration will have a job creation focus in every aspect of the execution of this budget. Nigeria’s job creation drive will be private sector led. We will encourage this by a reduction in tax rates for smaller businesses as well as subsidized funding for priority sectors such as agriculture and solid minerals.
    4. As an emergency measure, to address the chronic shortage of teachers in public schools across the country, we also will partner with State and Local Governments to recruit, train and deploy 500,000 unemployed graduates and NCE holders. These graduate teachers will be deployed to primary schools, thereby, enhancing the provision of basic education especially in our rural areas.
    5. We also intend to partner with State and Local Governments to provide financial training and loans to market women, traders and artisans, through their cooperative societies. We believe that this segment of our society is not only critical to our plan for growing small businesses, but it is also an important platform to create jobs and provide opportunities for entrepreneurs.
    6. Furthermore, through the office of the Vice President, we are working with various development partners to design an implementable and transparent conditional cash transfer program for the poorest and most vulnerable. This program will be implemented in phases. Already, the compilation of registers of the poorest persons is ongoing. In the coming weeks, we will present the full programme, which will include our home-grown public primary school feeding and free education for science, technology and education students in our tertiary institutions. Indeed, this will mark a historic milestone for us as a nation.

    The 2016 Budget

    1. Distinguished members of the National Assembly, I now present, the 2016 Budget proposals of the Federal Government. Based on the assumptions I presented earlier, we have proposed a budget of N6.08 trillion with a revenue projection of N3.86 trillion resulting in a deficit of N2.22 trillion.
    2. The deficit, which is equivalent to 2.16% of Nigeria’s GDP, will take our overall debt profile to 14% of our GDP. This remains well within acceptable fiscal limits. Our deficit will be financed by a combination of domestic borrowing of N984 billion, and foreign borrowing of N900 billion totaling N1.84 trillion. Over the medium term, we expect to increase revenues and reduce overheads, to bring the fiscal deficit down to 1.3% of GDP by 2018.
    3. In 2016, oil related revenues are expected to contribute N820 billion. Non-oil revenues, comprising Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise duties, and Federation Account levies, will contribute N1.45 trillion. Finally, by enforcing strict compliance with theFiscal Responsibility Act, 2007and public expenditure reforms in all MDAs, we have projected up to N1.51 trillion from independent revenues.
    4. Although we are working to diversify our economy, we will not lose sight of the need to restructure the oil and gas sector which has been marred by corruption and plagued with inefficiencies. Accordingly, I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) to adjust its pricing template to reflect competitive and market driven components. We believe this can lower input costs and attain efficiency savings that will enable PPPRA to keep the selling price for all marketers of petrol at N87 per liter for now.
    5. The current fuel scarcity with long queues at petrol stations all over the country causing social dislocation is very unfortunate. Government profoundly apologizes to Nigerians for this prolonged hardship and misery. It is as a result of market speculators and resistance to change by some stakeholders. Government is working very hard to end these shortages and bring fuel to the pumps all over the country.
    6. I have also directed the NNPC to explore alternate funding models that will enable us to honour our obligations in Joint Ventures (JVs) and deep offshore fields. We are confident that these measures can be achieved and will lower the burden that the traditional cash calls have imposed on our budget and cash flows as well as contribute towards shoring up our national reserves.
    7. To deliver our development objectives, we have increased the capital expenditure portion of the budget from N557 billion in the 2015 budget to N1.8 trillion, in the 2016 budget. Distinguished and honourable members of the National Assembly, for the first time in many years, capital expenditure will represent 30% of our total budget. In future years we intend to raise the percentage allocation for capital expenditure.
    8. This is a fulfillment of our promise to align expenditure to our long-term objectives, and a sign of government’s commitment to sustainable development. This increased capital expenditure commits significant resources to critical sectors such as Works, Power and Housing – N433.4 billion; Transport – N202.0 billion; Special Intervention Programs – N200.0 billion; Defence – N134.6 billion; and Interior – N53.1 billion. These investments in infrastructure and security are meant to support our reforms in the Agriculture, Solid Minerals and other core job creating sectors of our economy.
    9. We will invest to safeguard lives and property.
    10. We will invest in equipping our farmers with the right tools, technology and techniques.
    11. We will invest in empowering and enabling our miners to operate in a safe, secure and humane environment.
    12. We will invest in training our youths, through the revival of our technical and vocational institutions, to ensure they are competent enough to seize the opportunities that will arise from this economic revival.
    13. Indeed, the future looks bright. And I ask that we all work together to make this vision a reality. The 223% year on year growth in capital expenditure demonstrates our desire to make Nigeria more competitive, and start the journey to deliver sustainable development in our country.
    14. In fulfillment of our promise to run a lean government, we have proposed a 9% reduction in non-debt recurrent expenditure, from N2.59 trillion in the 2015 Budget to N2.35 trillion in 2016. Furthermore, we have budgeted N300 billion for Special Intervention Programs, which takes the total amount for non-debt recurrent expenditure to N2.65 trillion.
    15. As I mentioned earlier, the Efficiency Unit set up by this Administration together with effective implementation of GIFMIS and IPPIS will drive a reduction of overheads by at least 7%, personnel costs by 8% and other service wide votes by 19%. Distinguished and honourable members, this budget will be executed to provide optimum value by ensuring every naira spent by this Government, counts.
    16. We will devote a significant portion of our recurrent expenditure to institutions that provide critical government services. We will spend N369.6 billion in Education; N294.5 billion in Defence; N221.7 billion in Health and N145.3 billion in the Ministry of Interior.  This will ensure our teachers, armed forces personnel, doctors, nurses, police men, fire fighters, prison service officers and many more critical service providers are paid competitively and on time.
    17. Distinguished and honourable members of the National Assembly, our 2016 borrowings will be principally directed to fund our capital projects. Furthermore, the sum of N113 billion will be set aside for a Sinking Fund towards the retirement of maturing loans; while N1.36 trillion has been provided for foreign and domestic debt service. This calls for prudent management on our part, both of the debt portfolio and the deployment of our hard earned foreign exchange earnings.
    18. I am aware of the problems many Nigerians currently have in accessing foreign exchange for their various purposes – from our traders and business operators who rely on imported inputs; to manufacturers needing to import sophisticated equipment and spare parts; to our airlines operators who need foreign exchange to meet their international regulatory obligations; to the financial services sector and capital markets who are key actors in the global arena.
    19. These are clearly due to the current inadequacies in the supply of foreign exchange to Nigerians who need it. I am however assured by the Governor of Central Bank that the Bank is currently fine-tuning its foreign exchange management to introduce some flexibility and encourage additional inflow of foreign currency to help ease the pressure.
    20. We are carefully assessing our exchange rate regime keeping in mind our willingness to attract foreign investors but at the same time, managing and controlling inflation to level that will not harm the average Nigerians. Nigeria is open for business. But the interest of all Nigerians must be protected. Indeed, tough decisions will have to be made. But this does not necessarily mean increasing the level of pain already being experienced by most Nigerians.
    21. So to the investors, business owners and industrialists, we are aware of your pains. To the farmers, traders and entrepreneurs, we also hear you. The status quo cannot continue. The rent seeking will stop. The artificial current demand will end. Our monetary, fiscal and social development policies are aligned.

     

    Conclusion

    1. Mr. Senate President, Mr. Speaker, distinguished members of the National Assembly, in spite of the global economic uncertainties; we must remain steadfast in our commitment to steer this country back to greatness.
    2. The Nigerian economy needs to move away from dependency on oil. Our growth must be inclusive. Nigerians must be part of the growth story. As a Government, we shall deliver security, jobs and infrastructure. This is the right of all Nigerians.
    3. I know many people will say “I have heard this before”. Indeed, trust in Government, due to the abuse and negligence of the past, is at an all-time low. This means we must go back to basics. Our actions will speak for us. My team of dedicated, committed and patriotic Nigerians is well aware of the task ahead and I can assure you that we are taking on the challenge.
    4. We will not betray the trust reposed in us.
    5. We will welcome and be responsive to your feedback and criticisms.
    6. We are here to serve. And indeed, Nigerians will get the service they have longed for and which they rightly deserve.
    7. We as a Government cannot do it alone. We will require the support of all civil servants, the organized labour, industry groups, the press and of course, our religious and traditional institutions. This is a call for all of us to stand and serve our country.

     

    1. This Budget represents a major step in delivering a new opportunity for Nigeria. It demonstrates our confident optimism that despite the challenging times, we have the will, resourcefulness and commitment to deliver prosperity to our people. And by the Grace of Almighty God and the sheer will and determination of the Nigerian people, we will come out stronger and more united than ever.
    2. Thank you and God bless the Federal Republic of Nigeria.
  • Ajimobi presents 2016 budget

    Ajimobi presents 2016 budget

    Oyo State Governor Abiola Ajimobi will today present the 2016 budget to the House of Assembly.

    The programme, which begins at noon, is expected to be attended by lawmakers, eminent personalities, members of the All Progressives Congress (APC), traditional rulers, members of professional groups, traders as well as ordinary folks from across the state.

    The budget is expected to define the policy directions, expenditure patterns and expected sources and stream of revenues to fund government projects and services in the coming year.

     

  • 2016 budget is not late – Sen. Adamu

    2016 budget is not late – Sen. Adamu

    Sen. Abdulahi Adamu (APC Nasarawa West) says the presentation of the 2016 Budget to the joint session of the National Assembly on Tuesday as proposed is not late.

    Adamu made the observation in an interview with the News Agency of Nigeria (NAN) in Abuja on Monday.

    He said that the date of presentation would still be within the time allowed by the constitution.

    Adamu was reacting to media reports that the budget and indeed the Medium-Term Expenditure Framework (MTEF) upon which the budget would be predicated was late.

    The Senator said that President constitutionally had until Dec. 31 to present the budget to the National Assembly.

    “In terms of the budget calendar, one may be right in saying that the presentation at this time of the year is late.

    “But it is not late because most of the time, budgets are presented between the months of November and December and the constitutional provisions are very clear.

    “Section 80(1) stipulated that Mr. President is at liberty to present his budget proposal to National Assembly and the latest date allowed him is Dec. 31 of the preceding financial year.

    “So the executive is still within the time frame provided by the constitution,” he said.

    Adamu cautioned Nigerians not to be quick in passing judgement, but should consider all issues.
    He explained that the perceived delay was due to some factors beyond the control of the President.

    The Senator said that he partly blamed the last administration of the Peoples Democratic Party (PDP) for not having a comprehensive handover note ready for the incoming administration.

    “The out gone government, for reasons best known to the operators then, did not prepare the handover notes and did not give the necessary information needed for transition.

    “When you do not have a well articulated hand over note to give you the status of the government that is going out, it is difficult for the new government to plan.

    “There is also the issue of the dwindling fortunes of the economy; it is all about what we are expecting and what we are going to do with the money that we are expecting.

    “Somehow, the projection for revenue accruable to government has been very unstable to say the least.

    “The price of oil, which is the main stay of the economy, has dipped to the lowest in the last 15 to 20 years; it will not be easy to make a projection and still budget.

    “Subsequent upon this, it wasn’t easy for the incoming administration to say this is the draft budget for the National Assembly to work on,” he said.

    The Senator commended the current administration for wanting to propose a budget of over N6 trillion with emphasis on capital projects in spite of the economic situation.

    He declined comments on the possible sources of funding the budget, stressing that President Buhari, being a man of integrity, would harness all accruable revenue to fund the budget.

    “I do not want to preempt the government on how to source the budget, but am sure that he will do it.

    “So, the budget is coming within the constitutionally admissible time and I can see clearly that the President is going to make Nigerians proud in spite of the low revenue.

    “The President is going to come up with a budget that emphasises capital projects, not just recurrent; it is a very positive innovation in our budgeting exercises,” he said.

    Adamu said that the time for the diversification of the economy was now as the demand and price for oil had gone very low.

  • 2016 budget: Reps adopt $38 oil price bench mark

    • Reject e-collection platform for TSA

    • Approve N197/$1 exchange rate

    The House of Reprsentatives yesterday approved a benchmark of $38 per barrel of crude oil for the 2016 budget.

    The lawmakers also approved daily crude oil production of 2,200 million barrels per day (mbpd) as proposed by the Executive for the budget.

    While the House also approved an exchange rate of N197/$1, it  however rejected the recommendation “that the implementation of the Treasury Single Account (TSA) with e-collection platform be sustained.”

    The position of the House was sequel to the consideration and adoption of the report of the joint committees of Finance, Appropriation, and Aids, Loans and Debt Management on the  2016-2018 Medium Term Expenditure Framework ( MTEF) and Fiscal Strategy Paper ( FSP) of the Federal Government.

     

    It also adopted other recommendations which included: “That the Central Bank of Nigeria should initiate measures that will close the gap between the parallel market and the official exchange rate;

    “That government should sustain the current tempo towards increasing Federal Government independent revenue and diversification of the economy.

    “That the Federal Government should establish a data base and possibly a single salary account for all its employees in order to streamline and reduce its personnel cost.

    “An increase in tax collection to a level closer to to the accepted tax/ GDP ratio of our economy.

    “That the relevant committees of the National Assembly should  closely and constantly conduct oversight of the Ministries, Departments and Agencies (MDAs) responsible for implementing special intervention programmes  to ensure that the targeted populace benefit and in order to avoid abuse.”

    The House also approved the recommendations “ that the diversification of the economy should be accompanied with economic modernisation such that the economy can be more competitive and productive;

    “That the finding of the infrastructural development stated in the MTEF should be clearly captured in the details of the 2016 Appropriation bill; and

    “That the National Assembly,in close collaboration with the Executive arm of government should, as a matter of urgency, consider an accelerated passage of the Petroleum Industry Bill (PIB) particularly those sections with implication on Joint Venture funding by Federal Government ( JV cash calls).

    However, the lawmakers rejected two recommendations which are: “ that the implementation of the Treasury Single Account ( TSA) with e-collection platform be sustained,” and,

    “And that the areas of 2015 fuel subsidy for domestic consumption as proposed in the MTEF be sustained.

    The Speaker, Hon. Yakubu Dogara also set up a conference committee to harmonize positions with the Senate, in order to allow members adopt the harmonized version on Tuesday next week before the presentation of the 2016 budget by the President.

     

  • Ebonyi Assembly passes 2016 budget into law

    Ebonyi Assembly passes 2016 budget into law

    Ebonyi State House of Assembly Thursday passed into law the 2016 appropriation bill of one hundred and one billion, one hundred and fifty four million, six hundred and forty six thousand thirty naira (N101.1 billion) only for 2016 fiscal year.

    The passage followed the presentation of the House’s Committee on Finance and Appropriation’s report on the bill.

    After dissolving into a Committee of the whole house and considering the committee’s report, the house unanimously passed the bill into law.

    Tagged Budget of Divine Actualisation, the law set aside N62, 396,750,000.00 for capital expenditure representing 61.68 % of the budget outlay while N38, 757,896,030.00 was set aside for recurrent expenditure being 38 % of the total estimate.

    The total estimate of about N101.1b is slightly above that of 2015 which was N96.52bn.

    The economic sector got N36.890 billion the largest chunk, being 59 % of the estimate of which the governor said was with the basic aim of tackling challenges in the roads, water, electricity, agriculture, education, commerce and industrial sectors.

    The Ministry of Works got the highest allocation within the economic sector with N25 billion, representing 67.8 %, Ministry of Water Resources, N3billion, Commerce and Industry, N2billion while other Ministries shared N6.89 billion being 18.7% of the budget for the sector.

    The social sector got a total of N10.304 billion representing 16.5 % of the capital budget with education having allocation of N5.909 billion, health N2.445 billion and others N1.95 billion.

    Judiciary and regional (capital city, Abakaliki and environs) received N1.117 billion and N0.203 billion respectively.