- ADDRESS BY HIS EXCELLENCY, MUHAMMADU BUHARI, PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA, AT THE SIGNING INTO LAW, THE 2018 APPROPRIATION BILL, PRESIDENTIAL VILLA, ABUJA, WEDNESDAY, JUNE 20TH 2018.
2. When I submitted the 2018 Budget proposals to the National
Assembly on 7th November 2017, I had hoped that the usual
legislative review process would be quick, so as to move Nigeria towards a
predictable January-December financial year. The importance of this
predictability cannot be overemphasized.
3. While the Federal Government’s budget represents less than 10%
of aggregate yearly expenditures in the economy, it has a very significant
accelerator effect on the financial plans of other tiers of government, and
even more importantly, the private sector, which mostly operates on a
January-December financial year.
4. Notwithstanding the delay this year, I am determined to
continue to work with the National Assembly towards improving the budgeting
process and restoring our country to the January-December fiscal cycle.
5. I note, with pleasure, that the National Assembly is working on
the enactment of an Organic Budget Law, so as to improve the efficiency of the
nation’s budgetary process.
6. As I mentioned during the presentation of the 2018
Appropriation Bill, we intend to use the 2018 Budget to consolidate the
achievements of previous budgets and deliver on Nigeria’s Economic Recovery and
Growth Plan (ERGP) 2017-2020.
7. It is in this regard that I am concerned about some of the changes
that the National Assembly has made to the budget proposals that I
presented. The logic behind the Constitutional direction that budgets
should be proposed by the Executive is that, it is the Executive that knows and
defines its policies and projects.
8. Unfortunately, that has not been given much regard in what has
been sent to me. The National Assembly made cuts amounting to 347 billion
Naira in the allocations to 4,700 projects submitted to them for consideration
and introduced 6,403 projects of their own amounting to 578 billion Naira.
9. Many of the projects cut are critical and may be difficult, if
not impossible, to implement with the reduced allocation. Some of the new
projects inserted by the National Assembly have not been properly conceptualized,
designed and costed and will therefore be difficult to execute.
10. Furthermore, many of these new projects introduced by the
National Assembly have been added to the budgets of most MDAs with no
consideration for institutional capacity to execute them or the incremental
recurrent expenditure that may be required.
11. As it is, some of these projects relate to matters that are
the responsibility of the States and Local Governments, and for which the
Federal Government should therefore not be unduly burdened.
12. Such examples of projects from which cuts were made are as
follows:
· a. The provisions for some nationally/regionally
strategic infrastructure projects such as Counter-part funding for the Mambilla
Power Plant, Second Niger Bridge/ancillary roads, the East-West Road,
Bonny-Bodo Road, Lagos-Ibadan Expressway and Itakpe-Ajaokuta Rail Project were
cut by an aggregate of 11.5 billion Naira.
· b. Similarly, provisions for some ongoing
critical infrastructure projects in the FCT, Abuja especially major arterial
roads and the mass transit rail project, were cut by a total of 7.5 billion
Naira.
· c. The provision for Rehabilitation and
Additional Security Measures for the United Nations Building by the FCT, Abuja
was cut by 3.9 billion Naira from 4 billion Naira to 100 million Naira; this
will make it impossible for the Federal Government of Nigeria to fulfill its
commitment to the United Nations on this project.
· d. The provisions for various Strategic
Interventions in the health sector such as the upgrade of some tertiary health
institutions, transport and storage of vaccines through the cold chain supply
system, provision of anti-retroviral drugs for persons on treatment,
establishment of chemotherapy centres and procurement of dialysis consumables
were cut by an aggregate amount of 7.45 billion Naira.
· e. The provision for security infrastructure in
the 104 Unity Schools across the country were cut by 3 billion Naira at a time
when securing our students against acts of terrorism ought to be a major
concern of government.
· f. The provision for the Federal Government’s
National Housing Programme was cut by 8.7 billion Naira.
· g. At a time when we are working with Labour to
address compensation-related issues, a total of 5 billion Naira was cut from
the provisions for Pension Redemption Fund and Public Service Wage Adjustment.
· h. The provisions for Export Expansion Grant
(EEG) and Special Economic Zones/Industrial Parks, which are key
industrialization initiatives of this Administration, were cut by a total of
14.5 billion Naira.
· i. The provision for Construction of the
Terminal Building at Enugu Airport was cut from 2 billion Naira to 500 million
Naira which will further delay the completion of this critical project.
· j. The Take-off Grant for the Maritime
University in Delta State, a key strategic initiative of the Federal
Government, was cut from 5 billion Naira to 3.4 billion Naira.
· k. About seventy (70) new road projects have
been inserted into the budget of the Federal Ministry of Power, Works and
Housing. In doing so, the National Assembly applied some of the
additional funds expected from the upward review of the oil price benchmark to
the Ministry’s vote. Regrettably, however, in order to make provision for
some of the new roads, the amounts allocated to some strategic major roads have
been cut by the National Assembly.
13. Another area of concern is the increase by the National
Assembly of the provisions for Statutory Transfers by an aggregate of 73.96
billion Naira. Most of these increases are for recurrent expenditure at a
time we are trying to keep down the cost of governance.
14. An example of this increase is the budget of the National
Assembly itself which has increased by 14.5 billion Naira, from 125 billion
Naira to 139.5 billion Naira without any discussion with the Executive.
15. Notwithstanding the above stated observations, I have decided
to sign the 2018 Budget in order not to further slowdown the pace of recovery
of our economy, which has doubtlessly been affected by the delay in passing the
budget.
16. However, it is my intention to seek to remedy some of
the most critical of these issues through a supplementary and/or amendment
budget which I hope the National Assembly will be able to expeditiously
consider.
17. I am pleased with the success recorded in the implementation
of the 2017 Budget. A total sum of 1.5 trillion Naira has been released
for the implementation of capital projects during the 2017 fiscal year.
In response to this and other policy measures implemented, we have observed
significant improvement in the performance of the Nigerian economy.
18. To achieve the laudable objectives of the 2018 Budget, we will
work very hard to generate the revenues required to finance our projects and
programmes. The positive global oil market outlook, as well as continuing
improvement in non-oil revenues, make us optimistic about our ability to
finance the budget.
19. However, being a deficit budget, the Borrowing Plan will be
forwarded to the National Assembly shortly. I crave the indulgence of the
National Assembly for a speedy consideration and approval of the Plan.
20. The 2018 Budget I have just signed into law provides for
aggregate expenditures of 9.12 trillion Naira, which is 22.6% higher than the
2017 Appropriation. Further details of the approved budget will be provided
by the Minister of Budget and National Planning.
21. I thank the Ministers of Budget and National Planning, the
Budget Office of the Federation, and everyone who worked tirelessly and
sacrificed so much to bring us to this day. However, the job is only
partly done.
22. I am sure you will remain committed to advancing our Change
Agenda, not only in the preparation of the national budget, but also in
ensuring its effective implementation.
I thank you and may God bless Nigeria.
*PMB during the signing of 2018 Appropriation bill into law
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