Tag: President Muhammadu Buhari

  • Curious figures

    Curious figures

    Some of the extravagances in the presidency’s budget are stunningly indefensible 

    Curiously enough, President Muhammadu Buhari’s first budget estimates after rising to power on a promise of change have familiar ingredients associated with the old discredited order. Details of the 2016 budget proposal reflect astonishing similarities with the immediate past, prompting questions about the meaning of change.

    To start with, the interest in acquiring a fleet of new high-end luxury cars for the Presidency bespeaks flawed prioritisation. A vote of N3.6b for BMW saloon cars for principal officers is certainly on the high side, considering that the cars are not essential for good governance. Furthermore, the number of the cars is unspecified, leaving room for possible corruption-related manipulation.

    Also, the mention of BMW saloon vehicles and their cost brings to mind the matter of a former Aviation Minister in the Goodluck Jonathan administration, Stella Oduah, who was involved in a questionable procurement of two bullet-proof BMW cars at $800,000 each during her tenure.  The Buhari government cannot afford such a stain at this time when it is trying to get the public to appreciate its claim that it met a vastly depleted treasury.

    The point is that it is a contradiction to say the country is in a mess economically, and yet go on to purchase expensive vehicles whose purpose could as well be served by less costly ones. While we appreciate the need for befitting vehicles for the Presidency, the reality is that BMW cars are not exactly realistic, given an economy struggling with the basics.

    Still on cars and associated items. The cost of tyres is put at N189.1m to cover the bulletproof and regular Mercedes Benz cars. In addition, the expenditure on tyres is to cover other brands of vehicles, including Toyota cars, trucks, Land Cruiser and Prado SUVs, Hilux pick-up vans, Peugeot 607 and 406 cars, ambulances and others broadly described as “utility and operational vehicles”.

    Other expenditures on the Presidency’s vehicles include N39.8m for the purchase of an unspecified number of 200 amps, 100 amps and 60 amps Mercedes Benz batteries for bulletproof vehicles. Also, N30m is to be expended on the purchase of tool boxes, car jacks, and diagnostic machines for the Presidency’s bulletproof cars. The purchase of C-Caution triangles, fire-extinguishers and cables is to cost N27m.

    It is unclear how the Presidency arrived at these figures, but they are unsettling reminders of the Jonathan presidential era when public expenditures seemed to be padded, and were actually inflated to enrich private pockets. We hope that is not the case in this new political dispensation.

    It would appear that public criticism of the high frequency of President Buhari’s international travels since he took office has not been effective enough to cause a review. As against the 2015 N24.4b allocation, which was used by Buhari and his predecessor, the Presidency voted N39b for local and international travels and transportation in the 2016 budget.  This suggests more foreign travels by Buhari when he is expected to fly less and stay on the ground to address the country’s failure to realise its potential.

    Equally odd is the N362m allocation for Wildlife Conservation in 2016, in place of the N24. 6m voted for the same category last year, including the purchase of exotic animals. Ironically, the difference in the figures makes Jonathan’s government look saintly, quite apart from the dubious category which this particular allocation is meant to serve.

    What is more, the allocation for acquisition of presidential canteen materials and kitchen equipment increased from N83.1m in 2015 to N89m in 2016. There is also a marginal increase in the N11m voted for supply of foodstuff and catering services in the Vice President’s office in 2015 to N16.6m.

    Other puzzling figures include: general renovation of the Guest House (N387m); complete furnishing of the Guest House (N45m); purchase of computers (N27.5m) and construction and provision of recreational facilities (N764m). It may be asked: What are the recreational facilities missing at the Presidency?

    Here and there in the budget are suspect figures that signal not only the possibility of inflation, but also the possibility of wastefulness.  While there is no indication of the number or condition of items procured by the Presidency in 2015, N114.4m is to be expended on the upgrade of internet infrastructure in the State House and N22.5m is to be spent on purchasing internet servers. What is described as “Active Devices for State House Network” is to cost N100m, and N35m is to be expended on the purchase of security appliances and licences, including computer anti-virus software.

    The Buhari administration must not give the false impression that another government did not exist before it. Does it mean that the Jonathan administration, with all its warts, left nothing useful, and everything has to be renewed to make the new government work as expected?

    As far as government is considered a continuum, it is expected that an administration which is out to correct mismanagement of public funds would not conduct itself in a way that suggests it may not be substantially different after all.

    If the budget proposal is faithfully passed by the National Assembly, the Buhari administration must, in its own interest, ensure strict accountability.

  • Church backs Buhari on anti-corruption war

    Church backs Buhari on anti-corruption war

    The United Evangelical Church has thrown its weight behind the ongoing anti-corruption campaign of the President Muhammadu Buhari led administration. Chairman of the Church, Rev. Chimaobi Emelogu, at a press conference after their 128th Annual Conference in Calabar, said corruption has been the bane of the country for too long.

    Emelogu who was in the company of the General Secretary, Rev Akpan Udoyen and the chairman of the Board of Trustees, Elder (Air Marshall) Nsikak Eduok (retd) among other clergies, said, “we support the stance of the Federal Government against corruption. We know that corruption is a cankerworm in the polity of our nation. The church very much supports all the anti-corruption drive that the government has embarked on.”

    The Church also called on the Federal Government to urgently do something about the deplorable state of roads especially in the South-South and Southeast parts of the country. His words: “We also say that some major roads in the country are impassable. Even for you to go to Uyo from Calabar, you know what you will pass through, or Uyo to Aba. The roads in the South-South and Southeast are terrible. We make a passionate appeal to the government to reconnect us with our brothers in other parts of the country by making our roads motorable for the safety of road users.”

    On politics, he said, “The Church does not take sides with particular politicians or parties. We support or condemn ideas or actions. If there is an idea that would not promote the nation, we come out openly and condemn such. If it is something good, we tell them to keep it up and improve on it. But to say we stand for any party, there is nothing like that.”

    He said the conference is meant to plan for the future of the church and commit everything to God for direction. The theme of this year’s conference is “Divine Increase”. Emelogu also said the church is fast spreading across the country but lamented that the insurgency in parts of the north is seriously affecting the numerical strength of the ministry.

  • Buhari holds media chat today

    President Muhammadu Buhari will host his first Presidential Media Chat today.

    A statement by the Special Adviser on Media and Publicity, Femi Adesina, said that the media chat will be broadcast live on the network services of the Nigerian Television Authority (NTA) and the Federal Radio Corporation of Nigeria (FRCN).

    President Buhari, in the course of the programme, will answer questions from a panel of journalists on a broad range of current national issues.

    The Presidential Media Chat will begin at 1900 hours.

    “Other television and radio stations in the country may hook-up to NTA and FRCN to relay the programme to their viewers and listeners.” It added.

  • Ijaw youths hail Buhari for reorganising Nigeria, NDDC

    Ijaw youths yesterday hailed President Muhammadu Buhari for reorganising Nigeria and restructuring the Niger Delta Development Commission (NDDC).

    They noted that President Buhari meant well for Niger Delta with the appointment of Ibim Seminetari as the agency’s acting managing director.

    The youth, under the aegis of the Ijaw Youth Council (IYC) Worldwide, hailed the appointment of the ex-Rivers State commissioner for Information.

    IYC President Udengs Eradiri, who spoke in Yenagoa, the Bayelsa State capital, said the biggest problem confronting the region was the diversion of money for NDDC’s projects into private pockets.

    The youth leader said the agency, which was founded to coordinate development in the region, had been turned into a conduit pipe to siphon money.

    He said the IYC believed that the President appointed Seminetari to purge the agency of alleged corruption and enhance its performance.

    Eradiri said President Buhari should not allow the NDDC to be used as an avenue for political battles.

    He said: “I want to commend President Buhari for beginning the process of reorganising the NDDC. One of our biggest problems in the Niger Delta is that the institutions run by Niger Deltans to empower the people and develop the region are conduit pipes for stealing money… We are our biggest problem.

    “The NDDC is becoming a problem for us in the region. The President has begun the process of reorganising Nigerians. The NDDC is key to restructuring the Niger Delta.”

    Eradiri proposed the decentralisation of the NDDC for efficiency and better management of resources.

    He said: “The NDDC should be decentralised to the states. This method of allowing everybody to come to the centre has destroyed the NDDC. The biggest should be according to the production quota of each state.”

    Eradiri, who visited some leaders in the region, called for the establishment of skill acquisition programmes for prison inmates.

    He added: “A prison, which is supposed to be a rehabilitation centre, is now a place where hardened criminals are bred. I went to the Okaka Prisons in Yenagoa. It was so disappointing that in less than five years, it has no sports facilities and no training facilities. The water is bad; there are no mattresses, no conducive environment for the inmates to live.

    “I feel that the NDDC, which is an interventionist agency, should build skill acquisition centres in the prisons. The IYC has contributed its quota. We are donating sports facilities, such as table tennis, football and others.”

  • Abiara: be patient with Buhari

    The General Evangelist Worldwide, Christ Apostolic Church (CAC),  Prophet Samuel Kayode Abiara, has urged Nigerians to be patient with President Muhammadu Buhari.

    Speaking ahead of his church’s annual programme, tagged: “God is our refuge and strength”, which holds tomorrow at the LTV  Blue Roof Ground, Alausa, Ikeja Lagos, Abiara said there was need to seek God’s intervention.

    “Those governing the country cannot fail because they have their reputation to protect.

    “The President has a reputation to protect, the Vice President has a reputation to protect and the ministers have their reputations to protect, so they cannot fail Nigerians.

    “Everyone has a reputation to protect. I believe that everything will be okay for Nigerians. I believe Nigerians should be patient and pray for those in government.”

    The 2015 edition of the programme, which is the 10th, will feature top gospel artistes, including Tope Alabi, Evangelist Bukola Akinade (Sewele Jesu), Evangelist Kehinde Amele.

  • Buhari is determined to diversify economy – Senator

    Buhari is determined to diversify economy – Senator

    Senator Abdullahi Adamu on Monday said President Muhammadu Buhari is determined to diversify the country’s economy.

    He spoke with News Agency of Nigeria in Abuja, noting that the present administration had said it on many occasions that Nigeria could no longer depend on oil and gas based economy.

    “Oil and gas have tended, over time, to spoil us; people have got used to easy money but now the wells are drying, even if they are not, the market is becoming very hostile.

    “The price has gone down and the demand for our oil is very low, even though previous administrations sang the idea of diversifying the economy, they did not do it.

    “Buhari has said that he would make deliberate efforts to diversify the economy and bring on board new attitude toward agricultural production.

    “He believes as much as we do that agriculture holds the greatest potential for job creation if we enhance,’’ he said.

    Adamu said that with agriculture, the nation would have excess food crops as well as industrial crops that would be exported to boost foreign exchange.

    Apart from agriculture, he observed that the country had solid minerals that could turn its economy around.

    “Buhari has assured Nigerians that he would also address the issue of solid minerals and he is taking a look at the entire policy, operations and the investments in that sector.

    “We have information that every one of the 774 local governments in Nigeria has one or more mineral deposits.

    “If we can mine, process and add some value to them, you can only imagine the kind of multiplier effects we will enjoy.

    “Once you can give agricultural and solid mineral sector a boost, sharpen the processes for revenue generation and block the leakages that we know, our economy will take a leap,’’ he said.

    NAN reports that Buhari, while presenting the 2016 Budget to the National Assembly, reaffirmed the commitment of his administration to job creation and economic diversification.

    He specifically laid emphasis on developing the agriculture and solid mineral sectors with increased funding, investment in agriculture and solid minerals, among others.

    He said that his administration would ensure increased capital expenditure with significant resources to critical sectors of the economy.

     

  • Buhari directs immediate payment of December salaries

    Buhari directs immediate payment of December salaries

    President Muhammadu Buhari has ordered the immediate payment of December salaries to Federal Government workers.

    The Minister of Finance, Mrs Kemi Adeosun, who spoke yesterday in Abuja at the end of the monthly Federation Account Allocation Committee (FAAC) meeting, said salaries were already being paid in response to the Presidential directive.

    She said salaries were being paid, and that people have already started getting alerts. “We are very conscious of the need that people are paid in time for the festive season,” she stated.

    Mrs. Adeosun said the balance in the Excess Crude Account (ECA), was $2.258 billion as at December 22, adding that the amount remained unchanged from what it was in November. She said $150 million dividend from the Nigeria Liquefied Natural Gas (NLNG) was also shared at the meeting.

    While giving the breakdown of what was shared for  November among the three tiers of government, Mrs Adeosun lamented that there was revenue decline of N103.95 billion, indicating the difference of the N473.83billion for October and the N369.88 billion shared in November.

    Yesterday, the three tiers shared a statutory revenue of N297.45 billion, Value Added Tax (VAT)-N61.18 billion, exchange gain-N4.92 billion and refund made by the Nigeria National Petroleum Corporation (NNPC) for debt owed the Federation Account-N6.33 billion.

    From the statutory revenue of N297.45billion, the Federal Government after deducting the cost of collection to the Nigerian Customs Service (NCS) and the Federal Inland Revenue Service (FIRS) received  N139.5 billion; states N70.76 billion; and local government areas- N54.55 billion.

    Also, N25.6 billion was allocated to the oil producing states as the 13 per cent derivation fund. For VAT revenue of N61.18 billion, the Federal Government, after deducting cost of collection of  FIRS got  N8.8 billion, while states pocketed N29.36 billion and local governments got N20.55 billion.

    The finance minister attributed the decline in allocation to reduction in revenue which was caused by shutdown and shut-in of production at various terminals during the period.

    She however painted an optimistic picture when she said: “Even though the revenues were currently down, non oil revenue is beginning to make up for the shortfall in oil revenue. Ongoing maintenance and the shutdown and shut-in of production for repairs at different terminals during the month continued to impact crude oil and gas revenue negatively.

    “We don’t have to rely on oil with its price going down and very unstable. We are focusing on revenue from non-oil and you can see impressive N369.882 billion compliance with tax.”

    Apart from repairs and maintenance, members of the FAAC were told that there was also a revenue loss of $19.43 million as a result of reduction in export even though the average price of crude oil increased from $46.96 in September to $49.58 in October while non oil revenue also decreased by N114.2billion in November in comparison to the previous month of October.

  • Full text of Saraki’s Speech at 2016 budget presentation

    Full text of Saraki’s Speech at 2016 budget presentation

    ADDRESS BY THE PRESIDENT OF THE SENATE AND CHAIRMAN OF THE NATIONAL ASSEMBLY, HIS EXCELLENCY, SENATOR (DR.) ABUBAKAR BUKOLA SARAKI TO THE JOINT SESSION OF THE NATIONAL ASSEMBLY ON THE PRESENTATION OF THE 2016 DRAFT APPROPRIATION BILL BY HIS EXCELLENCY, PRESIDENT MOHAMMADU BUHARI, PRESIDENT AND COMMANDER-IN-CHIEF OF THE ARMED FORCES OF THE FEDERAL REPUBLIC OF NIGERIA.

    Protocol:
    It is my pleasure on behalf of my Distinguished and Honourable colleagues to warmly welcome you and your entourage to this joint session of the National Assembly.

    Mr. President, your coming to this hallowed chamber in person today to present the 2016 draft Appropriation Bill, bears eloquent testimony to your profound respect and commitment to the ideals of our constitutional democracy and the dictate of the rule of law.

    This is the first time in a few years that the President of Nigeria has personally performed this constitutional task. It highlights the importance you have attached to building a smooth working relationship with the National Assembly. This is a positive gesture that is not lost on all of us.

    Mr. President, the National Assembly is acutely aware of the challenges we face today as a nation both in terms of the economy and security. In addition to this, the price of oil is at a 7 year low and the dwindling government revenue consequently.

    This notwithstanding, in order to meet with the aspirations of Nigerians across all works of life, we expect that the budget must de-emphasis recurrent expenditure and prioritize the upgrade of infrastructure in order to achieve economic recovery and generate employment for our teeming population.

    The 2016 budget must also be bold and pragmatic in providing transparent incentives and conducive environment that will prime private sector-led development, encourage local production and promote made-in Nigeria goods.

    Mr. President, the National Assembly is conscious of the yearning of Nigerians for quick delivery of democracy dividends. The National Assembly has a critical role to play and we recognize this role. On the budget we are willing and ready to provide the scrutiny necessary to pass only a budget that can be implemented comprehensively to the letter. We are ready to move swiftly and speedily to pass the 2016 Appropriation Bill.

    The swift passage of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper already points to our commitment and resolve towards this. I would like to use this opportunity to thank all my colleagues in the Senate and the House for their steadfastness and patriotism in this area. We will apply same but in the light of the great importance of this document we will not short-circuit scrutiny on the altar of expediency.

    I acknowledge that the task of implementing the budget is primarily that of the Executive. But our recent experience has shown that even with the best of intentions, too much discretionary powers over budget matters are inimical to accountability. It is also true that impunity and corruption thrive best when the democratic safeguards for checks and balances collapse and accountability institutions abdicate their responsibilities. In this regard, the 8th National Assembly intends to discharge our oversight responsibilities fully.

    I therefore, want to implore Your Excellency to support us in this important task by ensuring that members of your government promptly respond to invitations for clarifications when they are required to do so by the National Assembly. Mr. President, if only half of the unfolding allegations regarding financial misappropriation under the previous administration are true, they would already be sufficient evidence of the dangers that we face when public officials treat accountability institutions with disdain and oversight activities with irritation.

    I am confident that your avowed commitment to the rule of law and accountability would have no accommodation for such behavior. On our own side, we want to assure you that we shall only pursue that which is provided for by the laws and strictly within the ambits of the law.

    Mr. President, I wish you to assure you that both chambers of the National Assembly are united in our support for your administration. We both recognize that even as we seek to maintain the integrity and independence of our respective Chambers, that autonomy must be embedded within the overriding responsibility we all have, to improve the quality of lives of our people and make them proud once again to be Nigerians. We recognize that a harmonious National Assembly is essential not only to Legislative progress, but also for the Executive to function effectively.

    I therefore invite Mr. President to take advantage of this relationship, which we have not had for a couple of years, to push through some of the necessary reforms that would promote our economy. It is in this light that the National Assembly is also prioritizing the passage of laws that further enhances our business environment and promotes accountability in governance.

    Let me assure you Mr. President, that with the 8th National Assembly you have got a partner. An ally to help you steer the ship of State in the right direction for growth, transparency, accountability, equal opportunities, inclusion and fairness. We will stand by you and work with you to see Nigeria become the pride of all Nigerians home and abroad and earn the respect it deserves in the global arena.

    With these few words, I hereby invite Your Excellency to deliver your speech and lay the 2016 budget proposals for the consideration of the National Assembly in accordance with Section 81 of the 1999 Constitution of the Federal Republic of Nigeria as amended.

    I thank you and extend the season’s greetings to everyone.

    PRESIDENT OF THE SENATE

    Dr. Bukola Saraki

  • 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.