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  • Car theft worries National Assembly

    Car theft worries National Assembly

    Cases of car theft at the National Assembly car park are assuming a disturbing dimension.

    Security operatives attached to the park are having a tough time keeping thieves away.

    According to findings, an average of a car is stolen daily at the second car park of the Assembly complex. Due to the closure of access roads to the main complex by visitors and some categories of staff of the National Assembly, the two car parks have become grossly inadequate for the barrage of visitors that storm the complex everyday.

    Prior to the deployment of police to the second car park, staff and visitors that used the park.

    According to a security operative who pleaded anonymity, a new twist has been introduced to the crime. He said the new tactics employed by the rogues have made it difficult to stop the theft.

    “These days we have to practically go round the park looking for anyone that is staying back in the cars while the passengers have alighted. The new tactic employed by the thieves is to stay back in the car pretending that they are drivers waiting for their ogas to finish with the business they came here for. We, however, discovered that was not the case in some cases because some of these people have other motives. What they do is that they will stay back pretending to be waiting for their oga but after confirming that the owners of other parked cars have left and no one was looking, with the assistance of another accomplice, they will now begin to unlock their chosen vehicle and if successful, bolt away with it. As I am talking to you, we have caught many of them; in fact, last week, one was seen battling with a car door but before we got there, his accomplice gave him a sign and he escaped.”

    The operative however expressed concern over the inability of the security personnel attached to the park in arresting the situation, saying, most car owners are responsible for the helpless situation the security operatives found themselves in. “We have been trying to discourage people from staying back in the cars, we have to practically move round the park to tell them but some of them are always flexing muscles. They were always quick to tell us that they are the owners and not drivers and that when they finish with what they are doing, they will alight. But this is not right because it leaves us with no option than to leave them and watch from distance but how many cars are we going to attend to in that way with the size of the park”.

    While he appealed to car owners to assist the security operatives by not staying back in their vehicles, the officer pleaded with the Assembly management to consider paving the park. He also enlisted the cooperation of member sof the public.

    “The public has to help us, else cars will continue to miss, which will put a question mark on our presence here. I also want the management to think about making this park decent. With the way it is, it does not project a good image for this institution. Julius Berger is the main contractor here, they even have a yard right here; the management can ask the company to pave the park as part of its corporate social responsibility. It cannot be a big task for Julius Berger or the management. Better still, the management can award the contract. This park is just not decent. When it rains, both cars and their owners are always in trouble, and during the dry season, it’s dust all over everybody. I am sure, they can do it if they really want to assist,” he added.

  • Video: 2013 Budget presentation

    Video: 2013 Budget presentation

  • President Jonathan’s 2013 Budget Speech

    President Jonathan’s 2013 Budget Speech

    “Fiscal Consolidation with Inclusive Growth”

    Delivered by: His Excellency Goodluck Ebele Jonathan, GCFR President, Federal Republic of Nigeria

     

    Before: A Joint Session of the National Assembly, Abuja on Wednesday, 10th October 2012

    1. It is my pleasure and honour to present the 2013 Federal Budget

    Proposal before this esteemed Joint Session of the National Assembly.

    I am particularly delighted to present this Proposal to you earlier in

    the year, and soon after the commemoration of our national

    independence, to signal our commitment to evolving a new Nigeria. This

    Proposal is the product of extensive consultations with key

    stakeholders and would further translate the Government’s development

    plans into concrete actions.

     

    2. When I presented the 2012 Budget, you will recall, I emphasized the

    fact that it would be “a stepping-stone to the transformation of our

    economy and country in our walk to economic freedom …”. I am glad to

    report that we have made progress in this regard. Today, in the face

    of critical resource constraints, the defining moment of our work is

    in actualizing our promises to Nigerians. We need to create a

    structured economy where everybody plays by the same rules, and

    contributes their fair bit. That is the Nigeria our heroes past craved

    for; that is the Nigeria we believe in; and that is the Nigeria we are

    building together.

     

    GLOBAL ECONOMIC DEVELOPMENTS

    3. As we build this nation and walk the path of development, we must

    be mindful of the realities of our circumstances and those of the

    changing global economy. This Budget Proposal was therefore designed

    against the backdrop of global economic uncertainty. By the end of the

    second quarter of this year, the global economy was recovering but at

    a very slow pace. Growth in a number of major emerging market

    economies, has been lower than forecast. Overall, global growth is

    projected at 3.3% in 2012 and 3.6% in 2013.

     

    4. The uncertainty surrounding the global economy, which could have

    adverse effects on commodity prices, highlights the downside risks for

    our economy. The oil market is well known for its volatility. We

    recall the 2008 experience at the height of the global economic

    downturn when oil prices fell almost overnight from $147 per barrel to

    $38 per barrel. This threat of oil price volatility remains constant

    and underscores the need to rely on a robust and prudent methodology

    to estimate the benchmark price.

     

    5. The global economic slowdown can also have far-reaching

    implications for the demand for our export commodities, given that the

    Euro zone and the USA account for over 50% of the nation’s crude oil

    exports. These global developments are also being transmitted to our

    economy through a dampening effect on foreign capital inflows and

    remittances by Diaspora Nigerians. Fellow Nigerians, these are

    uncertain times in the world economy, and my Administration is taking

    necessary steps to mitigate possible adverse effects of the global

    economic slowdown on Nigeria. I assure you that we are going to build

    up the necessary savings to protect the economy against a possible

    global recession or a slow recovery.

    DEVELOPMENTS IN THE DOMESTIC ENVIRONMENT

    6. In spite of the foregoing, our economy has done relatively well.

    Over the past nine months, through a number of initiatives, we have

    created new jobs directly and supported many young entrepreneurs

    running SMEs to create jobs. Nigeria is looking to become more

    self-reliant again in food security, and we are increasing local

    content in our manufacturing processes and the oil and gas sector.

    7. As at the end of the second quarter, the economy recorded an

    impressive growth of 6.28% compared to 5.4% forecast for sub-Saharan

    Africa. It is gratifying to note that the non-oil sector remains the

    main driver of growth. There are also improvements in other

    macroeconomic indicators. Inflation has dropped from 12.9% in June

    2012 to 11.7% in August 2012, and our goal is to reduce it further.

    Our foreign reserves now stand at US$41.6 billion – the highest it has

    been in over 2 years. We intend to continue with our programme of

    fiscal discipline and prudent monetary policy in order to continue to

    improve our country’s macroeconomic environment.

     

    8. Furthermore, in addition to being upgraded last year by Fitch and

    S&P rating agencies, Nigeria has now been included in the JP Morgan

    Emerging Markets Bond Index, signifying increasing investor confidence

    in our economy. In addition, the World Economic Forum has upgraded our

    ranking from 127 to 115 in the global competitiveness index.

    9. Here in Nigeria, we do not join the debate on fiscal consolidation

    versus growth because we believe in the need to do both; hence, we are

    continuing our focus of fiscal consolidation with inclusive growth.

    The fiscal consolidation policy has helped to strengthen our finances

    with a programmed budget deficit of about 2.85% of GDP in 2012, now

    projected to drop to 2.17% in 2013. Moreover, the share of capital

    expenditure in the total budget is increasing as we gradually reduce

    recurrent expenditures and also develop non-oil revenue sources.

    REVIEW OF THE 2012 BUDGET IMPLEMENTATION

    10. Fellow Compatriots, the 2012 Budget was focused on achieving

    Fiscal Consolidation with Inclusive Growth using the budget balance as

    a fiscal anchor. In that respect, while investing in key priorities,

    the budget also ensured that the deficit followed a downward trend

    over the medium term. This is being done through a more aggressive

    revenue collection drive and prudent management of available

    resources.

     

    11. On the expenditure side, the implementation of the 2012 Budget is

    on track, having commenced effectively in April when it became law. We

    have so far released N711.6 billion to MDAs for the implementation of

    their capital budgets while further releases are to follow shortly for

    the fourth quarter. The continued implementation of the 2011 capital

    budget in the first quarter of 2012, clearly affected the

    implementation of the 2012 Budget.

     

    12. I have taken a personal interest in the budget implementation

    since May by chairing weekly sessions with Ministers and Heads of

    parastatals on their progress in this regard. We are determined to use

    the instrument of the budget to improve the welfare of Nigerians. You

    would recall my assurance to Nigerians that subsequent budgets will be

    presented earlier to the National Assembly. It is in this spirit that

    I lay this Proposal before this Assembly today, to give sufficient

    time for deliberation on the Proposal and approval of the budget, and

    to enable us commence implementation from January 1st 2013.

    13. Let me stress that Government remains focused on the tangible

    outcomes from the implementation of the Appropriation Acts, not just

    the amounts spent. In this respect, I have signed Performance

    Agreement Contracts with my Ministers with a view to ensuring delivery

    of projects and programmes in their respective budgets. The Ministers

    in turn, are signing similar agreements with their Permanent

    Secretaries, Heads of parastatals and Directors to cascade down the

    need for responsibility and accountability. Key government officials

    with responsibility for implementing different aspects of the budget

    will be appraised based on these performance agreements. My goal is to

    ensure optimal implementation of our annual budgets.

     

    14. Government is also determined to reduce the cost of governance. We

    are reviewing the recommendations aimed at rationalizing Agencies of

    the Federal Government with overlapping functions. This has been taken

    into account in the preparation of the 2013 Budget, and we expect some

    modest cost savings from this exercise in the course of the 2013

    fiscal year. However, more significant progress will be made in 2014,

    as we work with the Legislature to harmonise those Agencies that have

    enabling laws, but which also have duplicative mandates.

    Subsidy Reinvestments and Empowerment Programme (SURE-P)

    15. You will recall that we had assured Nigerians that the proceeds of

    the partial withdrawal of petroleum subsidies will be applied to

    implementing the Subsidy Reinvestment Programme (SURE-P). The

    implementation of this programme is continuing over the medium-term.

     

    16. In the 2012 fiscal year, we had voted N180 billion for the

    implementation of social safety net programmes, road and rail

    infrastructure projects. So far, N36.5 billion of this amount has been

    utilized to support maternal and child health programmes as well as

    mass transit, roads and rail projects and job creation through the

    Community Services and Public Works programme. The SURE-P Board under

    the able chairmanship of Dr. Christopher Kolade is presently working

    hard to ensure the successful oversight of the implementation of this

    programme. We are grateful to them for their hard work and patriotism.

     

    KEY ACHIEVEMENTS IN THE 2012 FISCAL YEAR

    17. In the 2012 Budget, Government outlined some projects and

    programmes that were to be implemented in key sectors of the economy

    in order to improve the livelihood of Nigerians. We have numerous

    activities in various sectors such as: Power, Health, Agriculture,

    Education, Housing, Transport, Aviation, etc. Let me highlight a few

    of these sectors.

     

    Power

    18. The Power Sector Reform is on course. Our efforts have begun to

    pay off as we have improved power supply to various parts of the

    country. Our gas-to-power and other initiatives are making this

    possible, but I acknowledge the fact that we still have a long way to

    go. As you may be aware, the ongoing privatisation of the generation

    and distribution companies has reached an advanced stage. In some

    cases, Preferred Bidders have already emerged. When completed, the

    programme will bring into the sector significant private investment,

    along with the requisite power output.

     

    19. We have accomplished a number of goals in the Power sector reform

    programme in line with the Roadmap, including:

    a. Completion of new units at our thermal power stations, to increase

    generation;

    b. Rehabilitation of existing power infrastructure, which has yielded

    up to 1,000 mega watts of additional electricity;

    c. Fast-Tracking 3 NIPP projects, which will bring an additional 1,055

    mega watts by the end of the year; and

    d. Facilitating a power and gas financing package, which includes

    Government Guarantees, proposed Infrastructure Bonds of about

    $1billion, and $150 million of external funding from the African

    Development Bank to support continued gas supply and the

    liberalization of the power sector.

     

    Agriculture

    20. My Administration has instituted key policy reforms to establish

    staple crop processing zones aimed at attracting the private sector

    into areas of high production, reducing post-harvest losses, and

    adding value to locally produced commodities. So far we have succeeded

    in attracting $7.8 billion investment commitments to the agricultural

    sector. These investments and the value chain approach being used to

    transform the sector have the capacity to create 3.5 million

    additional jobs in the medium term by 2015.

     

    • You will recall that Government provided incentives to support

    cassava value chains, including zero duty on machinery and equipment

    to process high quality cassava flour. Cassava bread is increasingly

    commercially available with 20% cassava flour content. In addition, a

    total of one million metric tonnes of dried cassava chips, are being

    exported to China this year.

     

    • Achieving self-sufficiency in rice production in 2015 remains our

    target. In response to our new fiscal measures, 13 new private sector

    rice mills with a capacity of about 240,000 metric tonnes have been

    established. These mills buy and process local paddy and create

    employment for Nigerians.

     

    Housing

    21. Fellow Nigerians, the provision of affordable housing is one of

    the Administration’s strategic imperatives for guaranteeing our

    citizens’ productivity and well-being. We are creating an enabling

    environment for the private sector to produce much needed housing,

    whilst creating jobs in the process. To facilitate this, I will be

    holding a presidential retreat on Housing in early November, to

    discuss policy and modalities for dealing with land titling issues,

    developing an affordable mortgage finance system and reducing the high

    cost of housing construction.

     

    22. In the meantime, under various social housing programmes, close to

    2,000 housing units have been completed, while over 24,000 housing

    units are at various stages of completion. This is outside housing

    being constructed for the use of the Armed Forces and Paramilitary

    services. The Federal Government has entered into Partnership

    Agreements with several States for the provision of 6,000 housing

    units. Another 600 housing units have already been completed under the

    direct construction scheme of the Federal Housing Authority in these

    States. Gradually, we are ensuring that more Nigerians enjoy the

    benefits of having their own homes.

     

    Transport

    23. You are already familiar with the improvement in the functioning

    of our ports, the details of which I provided in my 52nd Independence

    Anniversary Speech. With regard to Rail transport, in our continuing

    effort to boost infrastructure development in the country, work is

    ongoing to rehabilitate the rail system across the country. These

    include the Lagos-Kano line as well as the Port Harcourt-Maiduguri

    line. Our people have started enjoying rail service again.

     

    24. Our railway modernisation programme is progressing with the

    Abuja-Kaduna line now at 46% completion, while work on the

    Lagos-Ibadan line is to commence soon. We also expect to complete the

    Itakpe-Ajaokuta-Warri line in 2013. In the same vein, we are

    fast-tracking the implementation of the mass transit Abuja Light Rail

    system. When completed, it will improve transportation for all

    residents in the FCT, especially workers living in the satellite

    towns.

     

    25. Inland Waterways: Our inland waterways programme is on track to

    boost commerce in the surrounding communities, and I had the pleasure

    of commissioning the Onitsha Inland Port on 30th August 2012.

     

    Aviation

    26. We are working hard to improve the regulatory regime and safety of

    the Aviation sector and will continue to look for ways to support its

    development. This Administration identifies this sector as a key part

    of the Transformation Agenda. As such, we have embarked on a

    comprehensive programme to transform our airports to world-class

    standards and improve air travel safety standards across the country.

    27. For instance, the remodelling of airport terminals and the

    upgrading of airport runways are presently at advanced stages of

    implementation across virtually all our airports. In addition, we have

    just concluded arrangements to commence the construction of five brand

    new terminals in Kano, Port Harcourt, Lagos, Abuja and Enugu, and six

    perishable cargo terminals, early next year. In line with

    international best practice, these new terminals will be private

    sector-managed.

     

    28. Roads: We know that Nigerians are disturbed about the state of our

    major highways. We are addressing this issue frontally. With the rains

    receding, the Ministry of Works will intensify the construction and

    rehabilitation of major roads in the country, for example, the

    dualization of the Abuja-Lokoja road, the Benin-Ore-Shagamu road, and

    the Kano-Maiduguri road. Also, the Enugu-Port-Harcourt road

    rehabilitation has been awarded to four contractors in order to

    fast-track its completion. It is gratifying to note that resources

    from the Petroleum Subsidy Reinvestment Programme are being used to

    supplement the regular budget for these projects.

     

    The Petroleum Sector

    29. The petroleum sector continues to play a crucial role in our

    economy, even as we seek diversification. In this regard, we are

    taking steps to modernise the sector. A robust Petroleum Industry Bill

    (PIB) has been delivered as promised to the National Assembly for

    consideration. When passed into law, the Bill will provide the new

    legal framework that will govern Nigeria’s Oil and Gas industry. This

    Bill, which encompasses major reforms, will encourage additional

    investments in the sector, create accountability and transparency, and

    ensure that the management of our petroleum sector is commercially

    driven.

     

    30. Our gas to power initiatives are moving firmly ahead, with the

    12-month gas supply emergency plan already yielding more than the

    targeted volumes of gas for power generation.

     

    31. With respect to the Petroleum Subsidy Programme, Government is

    succeeding in substantially cleaning up the management of the

    petroleum subsidy regime. We are tightening up the payment regime, to

    weed out corruption while working hard to recover monies fraudulently

    obtained from the subsidy regime. The EFCC is prosecuting those found

    wanting and the efforts to crack down on corruption in this sector

    will continue.

     

    32. On Frontier Exploration, the Government’s drive to build up the

    nation’s oil reserves through exploration of new frontiers for oil and

    gas production is beginning to yield results with news of the

    discovery of crude oil in some inland sedimentary basins in the

    country. These include the Chad Basin, Benue Trough, Yola Basin and

    Anambra Basin amongst others. We are determined to further develop on

    these findings and expand the scope of such explorations. To support

    this, we have raised the provision for frontier exploration services

    from N12 billion in 2012 to N16 billion in 2013.

     

    Job Creation

    33. Fellow Compatriots, in spite of the economic growth noted earlier,

    it is clear that as a nation, we still face economic disparities

    across the country. This constitutes an obstacle to sustainable

    development as it limits improvement in living standards, output and

    social cohesion which are key factors for achieving inclusive growth.

    Our challenge therefore, transcends how to achieve growth. Our

    objective is to achieve inclusive growth by identifying and developing

    job creation opportunities. We have mentioned the 3.5 million jobs we

    aim to create in agriculture and more jobs in the housing and

    construction sectors, solid minerals sector, aviation and the creative

    industry.

     

    34. In my Independence Day Speech, I spoke of the 80,000-110,000 jobs

    we are supporting young entrepreneurs to create through the YouWin

    programme. We have received numerous testimonies from young men and

    women who have been able to expand their businesses through the

    programme. We have just launched a second round of the competition

    targeting only women entrepreneurs. Across the country, our youth are

    developing new ideas and enterprises, and we must support them.

     

    35. I launched the Community Service, Women and Youth Empowerment

    Programme (CSWYEP) under the SURE-P in February 2012. This is now

    working in pilot phase in 14 states, and to be replicated in other

    states in 2 weeks. We also have the Graduate Internship Programme, in

    which participating private companies provide one-year internships to

    50,000 graduates, paid by the Federal Government. So far, 700 firms,

    and 20,000 young graduates have applied to participate in this scheme.

     

    36. Fellow Nigerians, even as we review our achievements in 2012, we

    are also conscious of the unprecedented floods, which have ravaged

    many parts of our country, displacing tens of thousands of fellow

    Nigerians, and causing massive destruction of property, farmlands, and

    infrastructure across the country. My heartfelt sympathy goes to the

    affected families and communities.

     

    37. Yesterday, I made a broadcast on the Federal Government’s actions

    to deal with the situation. I authorized the disbursement of N17.6

    billion to States and MDAs to help bring succour to our fellow

    citizens affected by the floods. This will complement ongoing efforts

    by Federal and State agencies, and private initiatives.

     

    38. A Presidential Technical Committee to properly assess the extent

    of the impact, and propose a rehabilitation strategy, has submitted an

    Interim Report and is continuing to visit all the affected

    communities. I have also set up a National Committee on Flood Relief

    and Rehabilitation to assist the Federal Government to raise funds to

    mitigate the pains and ensure effective post-impact rehabilitation of

    victims.

     

    39. I have also directed that the Ministry of Agriculture and Rural

    Development put in place a flood recovery food production plan. This

    will include the provision of early maturing varieties of maize, which

    mature in 60 days, to several flood affected areas. In addition,

    flood-tolerant rice varieties are being procured for flooded rice

    growing areas. We will also accelerate dry season production of major

    food crops.

     

    Security

    40. Fellow Compatriots, we are conscious of the fact that without

    security, no meaningful development can take place in our land; and

    our collective efforts at building the nation would only amount to

    little. This is why we channelled a great deal of resources to

    security in the 2012 Budget. We remain conscious of the impact of

    security challenges facing the country and are determined to bring the

    situation under control.

     

    41. I commiserate with all our citizens who lost loved ones in the

    recent Mubi killings and all the other acts of senseless destruction

    of lives and properties in the country. We have already made arrests

    in the Mubi case, and I want to assure Nigerians that all the culprits

    will be made to face the full weight of the law. I want to thank our

    brave men and women of the security services for their commitment. I

    also want to acknowledge and thank the various state Governors for

    their cooperation and untiring effort to ensure peace in their

    domains. The unity of Nigeria is not negotiable

     

    THEME OF THE 2013 BUDGET

    Theme

    42. Distinguished Ladies and Gentlemen, you will recall that in

    furtherance of my Administration’s efforts to transform our economy,

    the 2012 Budget was established on four main pillars – Macroeconomic

    stability; Structural reforms; Governance & institutions; and

    Investing in priority sectors. The 2013 Budget promotes continuity of

    these pillars and is designed with the theme: fiscal consolidation

    with inclusive growth. We will remain prudent with our fiscal

    resources but also ensure that the Nigerian economy keeps growing and

    creating jobs. To this end, the government will continue with the

    medium-term theme and interventions that are consistent with the

    objectives of the Transformation Agenda.

     

    Macroeconomic Stability

    43. One key plank upon which our economic transformation is based is

    the achievement of macroeconomic stability. My Administration has made

    significant progress in putting the finances of the nation on a sound

    footing and laying the foundation for rapid and sustainable growth. We

    will stay focused on maintaining macroeconomic stability in Nigeria.

     

    Budget Structure

    44. Now let me turn to the structure of the 2013 Budget. In recent

    years, recurrent expenditure has tended to crowd out capital

    expenditure in the national budget. Over the 2013-2015 medium-term, my

    Administration will continue to implement measures aimed at correcting

    this imbalance in the budget structure in a viable and sustainable

    manner.

     

    45. In the 2012 Budget speech, I noted that Government was going to

    focus on cutting recurrent expenditure to sustainable levels through

    reduction of waste, corruption and duplication in the functions of

    government agencies. In this respect, the biometric verification of

    employees is being extended to all agencies of Government, while the

    process for rationalizing public agencies and reducing duplication of

    mandates among different government agencies has begun, following the

    Report of the Oronsaye Committee.

     

    46. I am therefore pleased to announce that the share of recurrent

    spending in aggregate expenditure is set to further reduce from 71.47%

    in 2012 to 68.7% in the 2013 Budget, while capital expenditure as a

    share of aggregate spending is set to increase from 28.53% in 2012 to

    31.3% in 2013.

     

    Public Debt Management

     

    47. Government will continue to exercise fiscal prudence and limit its

    borrowing requirements in compliance with the Fiscal Responsibility

    Act, 2007. Consequently, we have developed a responsible domestic debt

    management strategy that, for the first time, seeks to start paying

    off our domestic debt rather than rolling it over. In this respect, a

    sinking fund of N100 billion is being established in the 2013 fiscal

    year to be used for repaying Government’s maturing debt obligations

    and to curb the rising domestic debt profile. We have further reduced

    our annual domestic borrowing from N852 billion in 2011, N744 billion

    in 2012, and to N727 billion in 2013.

     

    THE 2013 BUDGET

    48. The 2013 Budget is underpinned by the following parameters which

    reflect Government’s prudent economic policies in an uncertain global

    economic environment:

     

    • Oil production of 2.53 million barrels per day, up from 2.48 million

    barrels per day for 2012.

    • Benchmark oil price of US$75/barrel, a modest increase from the

    US$72/barrel approved in the 2012 Budget. This benchmark price is

    based on a well established econometric methodology of estimating oil

    price moving averages.

    • Projected GDP growth rate which is now estimated at 6.5% compared to

    6.85% in the Fiscal Strategy Paper. The revision is underpinned by the

    fact that the severe floods experienced over large parts of the

    country are expected to impact on economic activity in 2013,

    especially agriculture. However, the growth prospects may improve with

    the plan to boost dry season farming.

     

    Revenue

     

    49. Based on these assumptions, the gross federally collectible

    revenue is projected at N10.84 trillion, of which the total revenue

    available for the Federal Government’s Budget is forecast at N3.89

    trillion, representing an increase of about 9% over the estimate for

    2012. Non-oil revenue is projected to continue to grow in 2013 as the

    ongoing reforms in our revenue collecting agencies, and the

    implementation of initiatives to further develop the non-oil sector

    continue to yield results.

     

    Expenditure Proposals

    50. An aggregate expenditure of N4.92 trillion is proposed for the

    main budget of the 2013 fiscal year, representing a modest increase of

    about 5% over the N4.7 trillion appropriated for 2012. This is made up

    of N380.02 billion for Statutory Transfers, N591.76 billion for Debt

    Service, N2.41 trillion for Recurrent (Non-Debt) Expenditure and N1.54

    trillion for Capital Expenditure.

     

    51. Based on the above, the fiscal deficit is projected to improve to

    about 2.17% of GDP in the 2013 Budget compared to 2.85% in 2012. This

    is well within the threshold stipulated in the Fiscal Responsibility

    Act, 2007 and clearly highlights our commitment to fiscal prudence. We

    are determined to further rein in domestic borrowing, and this way,

    ensure that our debt stock remains at a sustainable level.

     

    52. Our focus on critical economic and social sectors continues. Some

    of these sectors are largely driven by private sector activity, while

    others require a great deal of public sector support. Some key

    allocations are as follows: Works – N183.5 billion; Power – N74.26

    billion; Education – N426.53 billion; Health – N279.23 billion;

    Defence – N348.91 billion; Police – N319.65 billion; and Agriculture &

    Rural Development – N81.41 billion.

     

    53. The power and gas sectors require a lot of investments to sustain

    our supply improvements. We shall therefore complement available

    resources with a proposed Infrastructure Euro Bond of about $1 billion

    in order to complete gas pipelines and other infrastructure

    investments. We have also programmed other grants and soft credits

    critical to infrastructure and other sectors in our medium term

    external borrowing plan.

     

    54. The SURE-P will continue with the expected resources of N180

    billion in 2013 augmented by the projected 2012 unspent balances

    bringing the total to about N273.5 billion. We hope to make further

    progress in the programme, providing additional infrastructure

    investments and social safety net schemes for Nigerians. I am pleased

    to also lay before this esteemed Assembly, the 2013 Budget for the

    SURE-P.

     

    Fiscal Policy

    55. To promote Nigerian agriculture and industry, we will continue to

    implement supportive fiscal measures for some priority areas. You will

    recall that in my 2012 Budget speech, I announced fiscal measures on

    rice, cassava, wheat, and machinery for the agriculture and power

    sectors. In this regard, I am pleased to announce the following

    additional measures which will be effective from 1st January 2013:

     

    a. Sugar: Machinery and spare parts imported for local sugar

    manufacturing industries will now attract 0% duty; there will also be

    a 5-year tax holiday for “sugarcane to sugar” value chain investors.

    Furthermore, import duty and levy on raw sugar will be 10% and 50%

    respectively, while refined sugar will attract 20% duty and 60% levy;

     

    b. Rice: A 10% import duty and 100% levy will be applied to both brown

    and polished rice;

     

    c. Aircraft: All commercial aircraft and aircraft spare parts imported

    for use in Nigeria will now attract 0% duty and 0% VAT. This will

    appreciably improve safety in our skies as newer fleet and less

    onerous maintenance will prevail;

     

    d. Solid Minerals: Machinery and equipment imported for use in the

    solid minerals sector will now attract 0% import duty and 0% VAT; and

     

    e. Public Mass Transit: In order to encourage the production of mass

    transit vehicles in Nigeria, duty on Completely Knocked Down

    components (CKD) for mass transit buses of at least 40-seater

    capacity, will now be 0%, down from 5%. Government is desirous of

    supporting green growth and, in this regard, will explore options for

    providing incentives for energy efficient vehicles from the 2014

    fiscal year.

     

     

    Gender Empowerment

    56. This administration is gender friendly and has worked to improve

    the position of women in society and empower them economically.

    Nevertheless, to further integrate women in the various sectors, we

    have developed an innovative approach to mainstreaming gender issues

    starting with 5 pilot ministries – Agriculture, Health, Communication

    Technology, Water Resources and Works. These ministries are signing

    MOUs with the Ministry of Women Affairs to deliver on specific

    services for women.

     

    a. The Ministry of Agriculture, for example, will work with the

    Ministry of Communication Technology to ensure that 5 million women

    farmers and agricultural entrepreneurs receive mobile phones to be

    able to access information on agro-inputs through an e-wallet scheme.

     

    b. The Ministry of Health, in addition to scaling up its ongoing “Save

    a Million Lives” initiative, plans to give back health and hope to

    one-third of the pool of young girls and women who have been waiting a

    long time for V.V.F repairs through surgery and economic

    rehabilitation. In addition, we are up-scaling routine immunization.

     

    c. For 2013, the Ministry of Works plans to increase the number of

    women that are employed in public works programmes as contractors,

    workers and project evaluators, setting itself a target of 35% for

    women in FERMA rehabilitation work. In every geopolitical zone, at

    least 3 roads leading to areas where women’s socio-economic activities

    are concentrated, will be prioritised and completed.

     

    57. To support these activities, we have set aside the sum of N3

    billion to be disbursed to participating MDAs as incentives for them

    to deliver on these targets. Our focus on empowering women is part of

    our agenda for improving the country’s human development indicators.

    In this regard, we shall not relent in our efforts to improve access

    and quality in our health and education sectors.

     

    Sports

    58. The performance of our sportsmen and women continues to strike an

    important chord for all Nigerians across the country. We want to take

    our sports to great heights again. We all recall our disappointment

    with our performance in the recent Summer Olympics games in London. At

    the same time, we were very delighted with the success of our

    Paralympics athletes.

     

     

    59. My Administration is committed to addressing the challenges faced

    by our sports men and women. Later this month, I will be hosting a

    Presidential retreat on sports in order to strategise on ways to

    support our sports sector to achieve greater heights.

     

    CONCLUSION

    60. Mr. Senate President, Mr. Speaker, Distinguished and Honourable

    Members of this esteemed Assembly, Fellow Nigerians, the Budget

    Proposal I lay before you today represents our continued drive for

    real and sustainable growth for the wellbeing of Nigerians.

     

    61. It is a budget that gives priority to our concerns for security,

    infrastructure, food security and human development sectors. It is a

    Budget that introduces a series of innovative features. This Budget is

    a push in the right direction borne out of our well thought-out and

    articulated developmental policies.

     

    62. This is a budget for every Nigerian. It belongs to the farmer, the

    investor, the entrepreneur, the youth and the elderly. Yes, we have

    challenges, but also incredible opportunities. Ours is the task of

    transforming these opportunities into real, tangible outcomes which

    all our people can experience and call their own. We need the

    cooperation of everyone to make it work, to grow the economy, and to

    create jobs for our people. I continue to call on all Nigerians to

    act. Making Nigeria work begins with you and me.

     

    63. Finally, I must restate my appreciation of the contributions and

    cooperation of the Legislature in discharging our collective

    responsibility to build the nation of our dreams.

     

    64. I look forward to an expeditious consideration and passage of this

    Proposal, as we strive to guarantee positive socio-economic

    transformation for the benefit of our people.

     

    65. May God bless the Federal Republic of Nigeria.

     

    66. I thank you.

  • ‘Use budgetary allocation judiciously’

    ‘Use budgetary allocation judiciously’

    House of Representatives Communications Committee has called for appropriate use of budgetary allocations to government agencies, ministries and departments, stressing that such a step could address issues like unemployment.

    The Chairman of the committee, Oyetunde Ojo, who led other members to the Lagos Campus of Digital Bridge Institute (DBI), Oshodi, during the inspection of on-going projects of the Nigerian Commuincations Commission (NCC), yesterday, said as representatives of the people, it is appropriate that members see what the funds appropriated in the budget are used for.

    He said: “The National Assembly appropriates the funds. We must see what the appropriated funds are been used for, because at the end of the day, Nigerians will hold us accountable.

  • Presidency deplores impeachment threats against Jonathan

    Presidency deplores impeachment threats against Jonathan

    The Presidency yesterday deplored what it called the threats of impeachment being dangled before President Goodluck Jonathan by members of the National Assembly at every given opportunity. It said the lawmakers should put the nation’s interest above any other consideration.

    Addressing reporters in Abuja yesterday, the Senior Special Assistant to the President on Public Affairs, Dr. Doyin Okupe, enjoined the legislators and other members of the public to give due respect to the office of the President, irrespective of their political affiliations.

    Okupe described conflicts between the legislative and the executive arms as normal in a democracy as, according to him, such conflicts tend to strengthen the principle of checks and balances.

    According to him, members of the National Assembly remained the best the nation has produced since the return of democratic rule in 1999. The legislature has always demonstrated its readiness to work harmoniously with the executive for the good of the people, Okupe said.

    He went on: “There are bound to be conflicts and disagreements but moderation must be the order of the day. Even in the face of conflicts and disagreements, the interest of the over 160 million Nigerians must be paramount.

    “The legislative arm of government has the constitutional right to impeach the President. But that impeachment should be the last option. It’s not that any time there is one form of disagreement or the other, the legislature will be threatening the President with impeachment.

    “There is always room for dialogue. Our democracy is new and we have to build it and allow it to grow. The legislature will be passing good laws while the executive will be executing the good laws for the development of the country”, Okupe added.

    The President’s aide said his boss decided to stop action on the proposed N5000 banknote by the Central Bank of Nigeria (CBN) based on protests by the public.

    Okupe explained that the President’s intervention was to allow the CBN enough time to educate the public.

  • Landmines in the legislative chambers

    Landmines in the legislative chambers

    As federal lawmakers resumed this week after their two months annual leave, Sam Egburonu examines the issues poised to heat up debate at the hallowed chamber and reports that they are also likely to shape the polity in the next few months

    Even before members of the National Assembly proceeded on their two months annual recess, which ended early in the week, most of the issues have generated intense debate and bad blood within and outside the hallowed chambers.

    So, as the lawmakers resumed on Tuesday, September 18, 2012, the issues have expectedly resonated across the length and breadth of Nigeria, literarily punctuating the pulse of the country’s polity. According to informed observers, most of the issues under contention are of special interest to majority of Nigerians because they are both delicately explosive and likely to determine the path of the country’s future political direction.

    Will Mr. President be impeached?

    The first of these issues is the controversy trailing alleged poor implementation of the 2012 budget, which made members of the House of Representatives to issue threats to commence impeachment moves against President Goodluck Jonathan. The angry lawmakers had in July 19, 2012, before going on recess, sworn that if by the time they resume this September, Jonathan has not ensured 100 per cent implementation of the budget, they will immediately put in motion impeachment proceedings against Mr. President. They have resumed and reports show that Jonathan-led federal government has not achieved the set target of 100 percent implementation.

    The controversy over budget implementation began after the last oversight functions of lawmakers, when most committees of the House of Representatives scored virtually all the ministries, departments and agencies (MDAs) very low.

    Insiders told The Nation that Presidency and leadership of the ruling Peoples Democratic Party (PDP) were particularly worried when they received reports that most House members, including PDP lawmakers had passionately and openly blamed the poor performance of the federal government primarily on poor budget implementation and therefore urged the federal government to empower the MDAs for greater effectiveness before September or the House would be compelled to commence impeachment proceedings.

    Hon. Femi Gbajabiamila, representing Surulere, Lagos State, gave teeth to the feelings of co-sponsors of the impeachment threat when he said: “The President had come to the floor of the House with a budget which he called transformation budget but it is a budget of abracadabra and voodoo…The president is not doing anybody any favour as constituency projects are done all over the world… so come September, if the budget is not 100 per cent implemented, we will start to throw articles of impeachment at the president.”

    The temper of lawmakers at the lower chamber peaked when, in his contribution to the debate, Hon. John Enoh (PDP, Cross River), the chairman of Appropriation Committee, revealed that the total release for capital projects of N400 billion was effected in the first quarter, admitting gravely that out of this, the cash backing was only N200 billion, which generally translates to abysmal 35 percent.

    At first, some top government officials and presidential aides dismissed it as a blank threat from empty vessels. But it did not take long before the Presidency, realising the interest of other Nigerians and likely danger, responded and began aggressive, though largely behind-the-scene mobilisation of support aimed at frustrating all impeachment plans.

    Given the current temper however, it seems clear that majority of the lawmakers are utterly dissatisfied with the level of budget implementation so far, and are therefore still bent on carrying out the threat.

    So, today, even at the senate, the term impeachment is no longer totally strange. The Nation gathered that many senators are also openly showing dissatisfaction over budget implementation and other matters. One of them is Senator Uche Chukwumerije, who, while contributing to the debate on a Bill for an Act to Amend the Public Enterprises (Privatisation and Commercialisation) Act Cap (2004) sponsored by Senator Ifeanyi Okowa, also threatened to move motion for impeachment.

    At the House, another major issue that will certainly generate red-hot controversy is that of committee chairmanship positions and the long awaited shake-up in the House.

    During the recess, members and top leaders in the House were involved in intense lobby over this matter, as secret meetings were held in different parts of the country, where the issue of House committees and the interest of various stakeholders were discussed. A source said in one of the meetings, held in Governor Babangida Aliyu’s domain, it was agreed that the area must not lose out in upcoming committee shake up.

    Also, a source at the National Assembly, who described this matter as “extremely sensitive,” and would therefore not want to be named, said during the week that the recently reported plot to impeach Speaker Aminu Tambuwal or to make the leadership of the House uncomfortable, is more because of this matter than any other. “The Speaker and other top leaders in the House are aware of the sentiment of members and other political interests over this matter and are therefore careful to handle it diligently. You know what happened and how some of these positions became vacant. Everybody is interested,” the source said.

    Before the resumption from the long recess, observers, noting the moves from the executive to water down the temper of lawmakers on the impeachment threat and other issues, had postulated that the threat will die a natural death. But signals that the impeachment matter is still on the top burner was confirmed when a Federal High Court, sitting in Abuja, declined to stop the House of Representatives from commencing impeachment proceedings against Mr. President.

    It remains to be seen how the matter would be finally treated. But even as the lobbying continues in Abuja, Nigerians are expressing diverse opinions.

    According to Dr. Godswill Ufort, “The call may be explained but I think it is not necessary at this point of our national life to distract the president with threats of impeachment. I agree that the current government will need to brace up to the challenges of our time and let Nigerians enjoy dividends of democracy. That being the case, I will prefer that Jonathan take the current outbursts as a signal that he will need to do more. Impeachment of the president at this time will however distabilise Nigeria and so I urge our lawmakers not to think in that direction.”

    But for Udochukwu Madubueze, a lawyer and public notary, “The grounds on which these threats are being made are germane, so if the current leadership of the federal government cannot do better than it is doing now, it is the responsibility of the National Assembly to consider impeachment.”

    Other issues that will expectedly heat up debate at the legislative arm of the federal government and outside, as the lawmakers resume, include: the N700 billion pension scam, the N1.7trillion oil subsidy controversy, the Petroleum Industry Bill (PIB), and the 2013 budget.

    So, the senate also promises to be hot. In fact, when the Senate Committee on Banking first asked the Central Bank of Nigeria (CBN) to put on hold, the proposed introduction of N5, 000 note and conversion of N20, N10 and N5 into coins, it became obvious, even to the Presidency that lawmakers were this time around ready to fight against the policy.

    Although President Goodluck Jonathan saw through the mood and stopped the proposed CBN policy, thereby denying the lawmakers a fertile opportunity of gaining public acclaim, the seeming decision of lawmakers to redeem their battered image before Nigerians was however demonstrated few days after resumption when they quickly launched some fresh probes at the upper chamber, like that of sales of some Navy assets.

    Also, The Nation gathered that for senators, intense lobby commenced long before resumption over the screening of new ministerial nominees for Defence and Power. These plum positions, it would be recalled, became vacant following the sack of the former Minister and past Acting National Chairman of the Peoples Democratic Party (PDP), Dr. Haliru Bello Mohammed and the resignation of Prof. Barth Nnaji, the former minister of power.

    Another major issue of general interest is the proposed amendment of the 1999 Constitution. Already, the entire polity is abuzz with sensitive issues like state creation and state police which are expected to be tackled by the lawmakers.

    Close to the contentious issue of constitutional amendment, in terms of wide interest, is the question as to what the lawmakers will do to the reports by Senators Uzodinma, Abe, Etok-led committees and others, which are supposed to be tabled before the Senators for discussions.

    Dr. Ufort summarized what he described as the expectation of Nigerians, when he said, “Nigerians are happy that the lawmakers are back to do the business of lawmaking, for which we elected them. We want results, not more scandals from them. I think what the current federal lawmakers make of all the burning issues beside them will determine our future political fate.”

  • Politics of First Lady’s sickness

    The Presidency relapsed to the late Umaru Musa Yar’Adua era last week when the news of the sickness and treatment of the First Lady, Dame Patience Jonathan  in a Germany hospital broke.

    She had left the country unannounced and her media managers never felt it was necessary to tell the people about her whereabout after all, she was not the elected president of the country, hence the need to keep it top secret.

    It was the same situation the country found itself in the Yar’Adua era when those around him felt the issue of his sickness be treated as top secret and that explained why he was smuggled back into the country in the dead of the night. Just like the issue of Yar’Adua’s illness, the media was awash with the First Lady’s secret trip with different ailments named for her sudden disappearance from the Presidential Villa. Though her media aide has denied all the speculation, saying she went for a well deserved rest after so much work in the last one month or so.

    At the time of compiling the activities that shaped the Presidency last week, the return date of the First Lady was yet to be ascertained.

    However, while the constroversy lasted, the Presidency was a beehive of activities. Right from the first working day of the week with President Goodluck Jonathan launching the second phase of YouWin which focused on women. The focus on women, Jonathan noted, was because of their ability to create a multiplier effect of funds besides the fact that it was in line with the United Nations charter.

    He also revealed that since the commencement of the programme last July, about 933 of the 1200 beneficiaries of the first batch of YouWin award winners have received the first tranche of about N1.03 billion from  the funds, with an assurance that the few yet to receive will do so by the end of next week.

    Ogoni leaders meet Jonathan, say no to secession
    The Ogoni people, in the course of the week, were at the presidency. They distanced themselves from recent cession declaration by members of a faction of the Movement for the Survival of Ogoni People pledging to the unity of the country. The people also used the opportunity to make their position known to the presidency on the issue of  the $1 million recommended by United Nations Environmental Programme (UNEP) as start-up point for the Ogoni clean-up. They insisted that it must be wholly spent on Ogoni alone.

    The insistence, according to Ogoni people, followed Federal Government decision to expand the scope of work of the Ogoni Environment Restoration Agency specifically recommended by UNEP for the Ogoni to include other areas experiencing hydro-carbon pollution.

    They were able to extract some assurances from the President who told the Ogoni people that the report will not be diluted when its time to implement it.

    The President also assured that government was yet to authorise any firm to take over from Shell the oil wells in Ogoniland, adding that it is not done in consultation of the story.

    Military capability and Boko Haram
    At a time when many thought that the country’s military would have been overstreched by the activities of the terrorist group, Boko Haram and other sectorial crisis, the Presidency said it was not so. It assured that the involvement of the military in checking social unrest including the Boko Haram insurgency has not in anyway reduced the effectiveness of the Armed Forces in defending the territorial  integrity of the nation.

    Minister of State, Defence, Erelu Olusola Obada, who took her turn to brief the President on the performance of the ministry viz-a-viz the 2012 budget implementation, disclosed the readiness of the Armed Forces in meeting up with it’s primary responsibility.

    The minister who was responding to concerns raised about the high level of involvement of military personnel in handling the scourge of terrorism in the country, said that all arms of the military still had enough troops to be deployed in the case of any eventuality.

    N5000 note and the people
    The Federal Government may have decided to go ahead with the introduction of the N5000 denomination  despite the huge criticism that greeted the idea.

    The proposal got the endorsement of the  National Economic Management Team (NEMT)- a conclave of some senior government officials and prominent businessmen after the governor of the Central Bank of Nigeria (CBN)’ Sanusi Lamido Sanusi cleared all grey areas sorounding proposal which already has the blessing of the President.
    The new higher denomination  will be introduced along with the new coins of N5, N10 and N20. The policy is expected to take effect in 2013.

    Meanwhile, the National Asembly has asked the CBN to apply brakes on the proposal for now.

    But NEMT argued that it was the primary responsibility of the CBN to effect changes in the nation’s currency with the approval of the President. The economic team also allayed the fear that the introduction of the note will lead to high rate of inflation, saying that there is no link between inflation and currency denomination.

    Besides, the group argued that the introduction of the higher currency will help shore up the value of naira as most people who store money in hard currency would now embrace the high denomination.

    Presidency also voted the sum of N65.223billion  for the Benin-Sagamu road at the Wednesday weekly Federal Executive Council meeting presided over by President Jonathan. Nigerians have been calling for the repair of the road whichn has becme dead traps for motorist plying the route.

    Jonathan engages civil society groups on constitution
    The presidency also did the unexpected within  week in review as it gathered together who is who in the country’s civil society organisatons. It was the first Presidential Retreat for Civil Society, Organisations and Professional Association. It was also part of the 52nd Independence Anniversary of the country.The main issue was the Constitutional amendment.
    Jonathan in his remark promised to deliver a people oriented constitution that would ensure development of the country.

    In this regard, the president also  assured that the contribution of the people will be considered in the amendment processes.

    He argued that a constitution must originate from the people and bear clear imprint of their contributions.
    Jonathan also explained why government was  engaging the civil society in the constitution review process, saying that government want to tap onto their vast knowledge of constitutional review borne out of many years of consistent effort to craft a people’s constitution for the country.

    President Jonathan also assured that the report of the  former Chief Justice of Nigeria , Justice  Alfa Belgore Committee which harness all areas of consensus in past constitutional conference will soon be forwarded to National Assembly alongside the proposed bills.

    meanwhile, the National Assembly has set a deadline of second quarter of 2013 to conclude work on the amendment of the 1999 constitution. The set date was to ensure that the process does not rolling into electioneering period.