President Muhammadu Buhari on Tuesday inwards Abuja presented nigh N8.612 trillion every bit the 2018 Appropriation neb to a articulation session of the National Assembly, maxim the projected expenditure would motion rapid economical recovery.
Below is his total speech:
2018 BUDGET SPEECH: BUDGET OF CONSOLIDATION
Delivered by:
His Excellency, President Muhammadu Buhari
President, Federal Republic of Nigeria
At the Joint Session of the National Assembly, Abuja
Tuesday, 7TH of Nov 2017
PROTOCOLS
1. I am hither to nowadays 2018 Budget Proposals. Before presenting the Budget, allow me give thank you lot all of you lot Distinguished too Honourable Members of the National Assembly, too indeed all Nigerians, for your back upwards too prayers for my total recovery spell I was on medical vacation.
2. I am real pleased to address this Joint Session of the National Assembly, on the revenue too expenditure estimates, too related matters, of the Federal Government of Nigeria for the 2018 financial year.
3. The 2018 Budget volition consolidate on the achievements of previous budgets too deliver on Nigeria’s Economic Recovery too Growth Plan (ERGP) 2018 – 2020.
OVERVIEW OF ECONOMIC DEVELOPMENTS IN 2017
4. 2017, too then far, has been a twelvemonth of dubiety on many fronts across the world. Whether it is Brexit, the crisis inwards the Korean Peninsular, or indeed, the political dubiety inwards substitution petroleum producing nations of the Middle East too South America, nosotros tin flame all take away hold that these developments stimulate got inwards i way or around other impacted Nigeria’s economical fortunes.
5. By all accounts, 2018 is expected to hold upwards a twelvemonth of ameliorate outcomes. The tepid economical recovery is expected to choice upwards stair too the global political terrain is expected to stabilize. The International Monetary Fund (IMF) is anticipating global gross domestic product growth of 3.7 pct inwards 2018. Emerging markets too developing economies are expected to Pb amongst gross domestic product growth of 4.9 percent, spell advanced economies are projected to grow at a slower charge per unit of measurement of 2 percent.
6. Nigeria’s journeying out of the recent recession was a revealing one. We heard many opinions from inside too exterior Nigeria on how best to address our economical woes. We listened carefully too studied these proposals diligently. Our belief has e'er been that the quickest too easiest solution may non necessarily hold upwards the best solution for a nation every bit various every bit ours. We took our fourth dimension to do a balanced too equitable response, keeping inwards take away heed that solely tailored Nigerian solutions tin flame laid Nigeria’s unique problems.
7. And from the recovery that nosotros are seeing today, it is clear that nosotros made the correct decisions. Distinguished too Honourable Members of the National Assembly, I am at in i lawsuit quest you lot to proceed to back upwards our economical policies inwards lodge to consolidate too sustain on the success achieved too then far. We exactly cannot move back.
8. In the non-oil sector, crop production has been i of the principal contributors to non-oil growth, which rose to 0.45 pct inwards the 2nd quarter of this year. This was primarily driven past times our ongoing financial, capacity edifice too infrastructure evolution programs.
9. The Ministry of Agriculture too Rural Development, working amongst evolution partners too the individual sector, stimulate got embarked on numerous capacity edifice projects. We stimulate got also completed over 33,000 Hectares of Irrigation Projects that stimulate got increased H2O availability inwards substitution nutrient producing states. We shall proceed to intensify our interventions through the Anchor Borrowers’ Programme too the Presidential Fertilizer Initiative to ensure that this momentum is sustained. We stimulate got also made provisions inwards the 2018 Budget to consummate ongoing Irrigation Projects at Ada, inwards Enugu State; Lower Anambra, inwards Anambra State; too Gari, inwards Jigawa State. In 2017, many factories too projects inwards the nutrient too agricultural sectors were commissioned inwards Kebbi, Nasarawa, Kaduna, Anambra, Edo, Jigawa, Rivers, Niger, Ogun too Ebonyi States, to cite a few. This is a clear contestation that our economical diversification too inclusive growth ambitions are coming to fruition.
10. Significant progress has also been made inwards the Solid Minerals evolution sector. In Ondo State, for instance, piece of work is ongoing to fully exploit the bitumen resources to consider the 600,000 MTs of asphalt imported per annum for roads too other construction projects. To consolidate on these efforts, nosotros stimulate got also established a xxx billion Naira Solid Minerals Development Fund to back upwards other minerals exploration activities across the country.
11. In the petroleum too gas sector, the relatively higher unsmooth petroleum prices supported our economical recovery. Our mutually beneficial engagement amongst petroleum producing communities inwards the Niger Delta contributed immensely to the recovery inwards petroleum production experienced inwards recent months. We would similar to give thank you lot the leadership too communities inwards the Niger-Delta for their continued back upwards too to also reiterate our assurances that this Administration volition proceed to accolade our commitments to them. We cannot afford to move dorsum to those night days of insecurity too vandalism. We all desire a province that is safe, stable too secure for our families too communities. This agency nosotros must all come upwards together to address whatever grievances through dialogue too peaceful engagement. Threats, intimidation or violence are never the answer.
12. We are working hard on the Ogoni Clean-up Project. During the year, nosotros engaged 8 international too local companies proposing dissimilar technologies for the mandate. To enable us select the best too most suitable technology scientific discipline for the remediation work, nosotros asked each fellowship to acquit Demonstration Clean-up Exercises inwards the iv Local Government Areas of Ogoni Land. These Demonstrations were latterly concluded too the results are beingness studied past times the Governing Council of the Ogoni Clean-up Project. Although the Project volition hold upwards funded past times the International Oil Companies, nosotros stimulate got made provisions inwards the 2018 Budget for the costs of oversight too governance, to ensure effective implementation.
13. On the international front, I would similar to give thank you lot our friends too partners inwards the Joint OPEC / Non-OPEC Ministerial Monitoring Committee (JMMC) who graciously granted Nigeria an exemption from the output cuts imposed on OPEC Member Countries inwards Jan 2017. This exemption, which was extended inwards September 2017, significantly helped during our most challenging time. We shall proceed our positive engagement amongst other petroleum producing nations to ensure that the momentum generated is sustained.
14. Permit me, Mr. Senate President too Right Honourable Speaker, to province that despite the downturn inwards petroleum prices too our challenging economical circumstances, this Administration was able to invest an unprecedented amount of over 1.2 trillion Naira inwards majuscule projects through the 2016 Budget. This is the highest ever inwards the history of this country. This is a clear demonstration of our commitment to consolidate on our economical diversification reforms too lay a stronger foundation for futurity growth too development.
15. Our Sovereign Wealth Fund, which was established inwards 2011 amongst US$1 billion, did non have additional investment for iv years when petroleum prices were every bit high every bit US$120 per barrel. However, despite tape depression petroleum prices, this Administration was able to invest an additional US$500 1000000 into the Fund. This farther demonstrates that inwards our fighting to stimulate got a stable too secure nation today, nosotros stimulate got not, too volition not, lose sight of the demand to lay a solid foundation for the futurity prosperity of successive generations.
16. We stimulate got asked the Sovereign Wealth Fund to appear inward too invest locally. Some of the successes nosotros are seeing today inwards the agricultural sector are driven past times this novel investment approach past times the Nigeria Sovereign Investment Authority (NSIA). The NSIA also has a real strong pipeline of local investments that volition back upwards our inclusive too diversified economical growth plan.
17. Stability has been restored to the unusual substitution marketplace due to the interventions past times the Central Bank of Nigeria to improve access to liquidity, discourage currency speculation too increment cyberspace unusual substitution inflows. As at the 30th of October, 2017, our external reserves had increased to US$34bn. This stability has supported our efforts to furnish the enabling environs too interventions needed to empower Micro, Small too Medium-Sized enterprises, investors, manufacturers too exporters, to sustain too inwards around cases, grow their operations. Indeed, past times the 2nd quarter of 2017, exports significantly outpaced imports, resulting inwards a merchandise surplus of 506.5 billion Naira.
Ease of Doing Business Reforms
18. One of the targets nosotros laid for gauging our progress inwards creating an enabling environs for occupation concern was to accomplish a positive motion inwards the World Ease of Doing Business Index. You would squall upwards Nigeria experienced a decade-long turn down inwards this ranking. In 2008, Nigeria was ranked 120th. By 2015, our province of affairs had deteriorated to 169th of the 189 countries surveyed. Our real simple, logical too user-friendly reforms are reversing this trend. Influenza A virus subtype H5N1 latterly released World Bank occupation concern ranking study announced that Nigeria had moved 24 places to 145th seat inwards 2017. I am delighted that nosotros stimulate got met too fifty-fifty surpassed our target of moving at to the lowest degree twenty paces upwards this global ranking. The same World Bank study also stated that Nigeria is amid the top 10 reforming countries inwards the world.
19. To ensure these reforms are institutionalized, Executive Order Number #1 on the Promotion of Transparency too Efficiency inwards the Business Environment was issued inwards May 2017. The Order contained measures that ease the procedure of occupation concern registration, approving of permits, granting visas too streamlining port operations. We are committed to continuing too accelerating the Ease of Doing Business reforms, which are critical to attracting novel investments, growing the economic scheme too creating jobs for our people.
Improved Tax Administration
20. Although the economic scheme is diversified amongst non-oil Sector accounting for over ninety pct of total Nominal GDP, the Government’s revenues are non every bit diversified yet. Our Tax-to-GDP ratio of nigh 6% is i of the lowest inwards the world. This province of affairs is non consistent amongst our destination of having a diversified, sustainable too inclusive economy. Accordingly, nosotros are stepping upwards efforts to ensure all taxable Nigerians comply amongst the legal requirement to declare income from all sources too remit taxes due to the appropriate authorities.
21. Already, nosotros stimulate got introduced the Voluntary Assets too Income Declaration Scheme (VAIDS) on the 1st of July, 2017. The Scheme provides non-compliant taxpayers amongst a nine-month window to regularise their taxation condition relating to historical periods. In return, overdue involvement too penalties volition hold upwards forgiven. In addition, no investigations or criminal charges volition hold upwards brought against participating taxpayers. We await that this Scheme volition widen the taxation cyberspace for both the Federal too State Governments. I am therefore, quest all Nigerians to seize this chance too do correct thing. Let us non shy away from our duty to build a ameliorate Nigeria.
Optimising Efficiency inwards Expenditure
22. In 2016 this Administration adopted a policy of allocating at to the lowest degree xxx pct of our annual budget to majuscule expenditure. This was entrenched inwards the ERGP to unlock farther growth inwards the economy. This tradition was maintained inwards the 2017 Budget too has been reflected inwards the proposal for 2018, inwards which 30.8 pct of total expenditure has been laid aside for the majuscule vote.
23. To back upwards these efforts, you lot would squall upwards that an Efficiency Unit was laid upwards nether the Federal Ministry of Finance to cut back wastage, plug leakages too foster greater financial transparency. We stimulate got intensified the implementation of the Integrated Payroll too Personnel Information System (IPPIS) across authorities MDAs to automate personnel records too salaries’ payment process, amongst the destination of eliminating ghost workers. 461 Federal MDAs stimulate got been captured on the system, too then far. Our target is to enroll all MDAs. I stimulate got directed the military machine too other safety agencies to ensure total compliance without farther delay.
Increased Investment inwards Infrastructure
24. Mr. Senate President, too the Right Honourable Speaker, nosotros shall proceed to develop our infrastructure across the country. Although a lot of progress has been made, the huge contractor liabilities nosotros inherited stimulate got adversely impacted our infrastructure evolution timetable. Indeed, contractors were owed trillions of Naira when this Administration came into office. In around areas, nosotros stimulate got made payments too then projects may hold upwards completed; spell inwards others, nosotros are reconciling the liabilities to seat too settle legitimate claims. As a responsible too accountable Administration, nosotros decided that clearing this backlog was an of import priority.
25. For instance, at the outset of this Administration inwards 2015, the Abuja Metro-Rail Project, which began inwards 2007 was solely 50% completed, later 8 years. Today, inwards exactly eighteen months, nosotros stimulate got pushed the projection to 98% completion. This was achieved every bit the Nigerian Government was diligently able to consider its counterpart funding obligations for the Chinese loans.
26. We stimulate got also continued piece of work on substitution strategic Roads. Over 766 kilometres of roads were constructed or rehabilitated across the province inwards 2017. For instance, piece of work is at various stages of completion on these strategic roads amongst immense socio-economic benefits:
a. Rehabilitation of Ilorin-Jebba-Mokwa-Birnin-Gwari-Kaduna Road;
b. Dualization of Oyo-Ogbomosho-Ilorin Road;
c. Rehabilitation of Gombe-Numan-Yola Road;
d. Dualization of Kano-Maiduguri Road;
e. Rehabilitation of Sokoto-Tambuwal-Jega Road too Kotangora-Makera Road that transverse Sokoto, Kebbi too Niger States;
f. Rehabilitation too Reconstruction of Enugu-Port-Harcourt Road;
g. Rehabilitation of Enugu-Onitsha Dual Carriageway Road;
h. Rehabilitation of Aleshi-Ugep Road too the Iyamoyun-Ugep Section inwards Cross River State;
i. Rehabilitation, Reconstruction too Expansion of Lagos-Ibadan Dual Carriageway Road;
j. Construction of Loko-Oweto Bridge over River Benue inwards Nasarawa too Benue States; and
k. Construction Gokanni Bridge along Tegina-Mokwa-Jebba Road inwards Niger State.
27. Under the Federal Roads Development Programme, nosotros latterly completed a Data Collection Exercise on the 7,000km Federal Road Network which was funded past times the World Bank. This information is enabling us to brand informed decisions regarding the planning, budgeting too management of the Federal Road Network. Going forward, nosotros volition hold upwards working based on facts rather than subjectivity.
28. Furthermore, nosotros stimulate got also invested a lot of fourth dimension too endeavour inwards identifying choice agency of funding novel projects. For example, the recent 100 billion Naira Sukuk Financing volition cater specifically for the evolution of 25 roads across the country. We also developed dissimilar structures that empower individual investors to contribute to the evolution of roads of pregnant national importance. Already, nosotros are seeing results. For example:
a. The Bonny-Bodo Road is beingness jointly funded past times the Federal Government too Nigeria LNG Limited. This projection was conceived decades agone but it was abandoned. This Administration restarted the projection too when completed, it volition enable route transportation access for substitution communities inwards the Niger- Delta region; and
b. The Apapa Wharf-Toll Gate Road inwards Lagos State is also beingness constructed past times individual sector investors inwards substitution for taxation credits.
29. Distinguished Members of the National Assembly, our Power Sector Reforms all the same rest a piece of work inwards progress. Although nosotros stimulate got increased generation capacity significantly, nosotros all the same stimulate got challenges amongst the Transmission too Distribution Networks. That said, I am pleased to denote that since 2015, the Transmission Company of Nigeria (TCN) too Niger-Delta Power Holding Company (NDPHC) stimulate got added 1,950 MVA of 330-132kV transformer capacity at 10 Transmission stations, every bit good every bit 2,930 MVA of 132-33kV transformer capacity to 42 substations nationwide. With these additions, the Transmission Network today tin flame take away hold upwards to 7,000 Mega Watts (MW).
30. The substitution bottleneck at in i lawsuit is the Distribution Network where the substations cannot choose to a greater extent than than 5,000 MW. This is constraining might delivery to consumers. We are working amongst the privatized Distribution Companies to consider how to overcome this challenge. Nigerians should hold upwards ease assured that this Administration is doing all it tin flame to alleviate the embarrassing might province of affairs inwards this country.
31. Furthermore, to sustain the continued expansion of generation capacity too heighten evacuation, nosotros approved a Payment Assurance Guarantee Scheme which enabled the Nigerian Bulk Electricity Trader (NBET) to lift 701 billion Naira. This assures the Generation Companies of upwards to 80% payment on their invoices. This intervention has brought confidence dorsum into the sector too nosotros await additional investment to flow through, peculiarly inwards the gas production sector.
32. Distinguished Members of the National Assembly, this Administration is committed to the evolution of Green Alternative Energy Sources. To date, nosotros stimulate got signed Power Purchase Agreements (PPA) amongst xiv solar companies. We also approved:
a. The completion of the 10 MW Wind Farm inwards Katsina State, a projection that was abandoned since 2012; and
b. The concession of half dozen little hydro-electric might plants amongst a total capacity of 50 MW.
33. To enable the successful take-off of these, too futurity Green Projects, I am pleased to inform this Distinguished Assembly that the Federal Government volition hold upwards launching the commencement African Sovereign Green Bond inwards Dec 2017. The bond volition hold upwards used to finance renewable loose energy projects. We are real excited nigh this evolution every bit it volition move a long way inwards solving many of our loose energy challenges, especially inwards the hinterland.
34. On Rail, nosotros latterly received 2 additional locomotives too 10 measure gauge coaches for the Abuja-Kaduna Rail Line. These volition hold upwards deployed for the novel non-stop limited service betwixt the ii cities that volition solely choose i hr too 15 minutes. This novel service volition complement the existing service currently inwards place. We invention to committee this past times Dec 2017.
35. We stimulate got also kick-started the abandoned Itakpe-Ajaokuta-Warri Rail Line. This projection has been on for over 17 years. We had to choose around drastic measures but I am pleased to denote that piece of work is ongoing too nosotros await to committee this service past times September 2018. This service volition start amongst vii measure gauge coaches.
36. The province of affairs at the Apapa port complex is a top priority for this Administration. The delays due to congestion too their adverse impact on occupation concern operations too costs is a substitution concern to our Government. As I mentioned earlier, nosotros are partnering amongst the individual sector to laid the road. We shall do the correct thing considering. We volition non cutting corners.
37. In improver to the road, nosotros stimulate got also commenced the extension of the Lagos-Ibadan Standard Gauge Rail Line to connect Apapa too Tin Can Port Complexes. This projection volition significantly ease the congestion at the ports too heighten both export too import operations. This projection shall hold upwards completed past times Dec 2018. Already, working amongst the individual sector, nosotros stimulate got repaired the Apapa Port Narrow Gauge Line which is currently beingness used to evacuate goods from the port, thereby easing congestion.
38. As nosotros all know, sometimes doing the correct thing takes fourth dimension too requires sacrifices. I am thence appealing to all stakeholders to piece of work amongst us inwards ensuring nosotros deliver a solution that nosotros volition all hold upwards proud of.
39. Certainly, the infrastructure requirement to reposition Nigeria for the futurity is huge too our resources are limited. Government, therefore, volition pursue individual partnerships to maximise available majuscule too developmental impact. In the adjacent financial year, nosotros volition also constitute vii 3rd wellness institutions across the province through partnership amongst our Sovereign Wealth Fund too other individual sector investors.
Agricultural Development
40. The agricultural sector played a crucial operate inwards Nigeria’s larn out from recession. Today, it remains the largest employer of labour too holds pregnant potential to realise our vision of repositioning Nigeria every bit a nutrient secured nation.
41. We volition consolidate on existing policies too develop novel ones to ensure the numerous value chain challenges inwards the agricultural sector are addressed. As I mentioned earlier, several investors stimulate got deployed pregnant majuscule inwards the production too processing of rice, sugar, maize, soya, cassava, yams, tomato, petroleum palm, safe too poultry, to cite a few. We are also seeing increased investment inwards the agro-inputs manufacturing sector such every bit fertilisers.
42. We are determined to protect these investments too encourage more. Food Security is an of import aspect of this Administration’s National Security agenda. Any someone involved inwards smuggling of nutrient items is a threat to our National Security too volition thence hold upwards dealt amongst accordingly. Influenza A virus subtype H5N1 Committee chaired past times the Vice President is working on this matter. Influenza A virus subtype H5N1 substitution constituent of their piece of work volition hold upwards the reactivation of the Badagry Agreement signed betwixt Nigeria too the Republic of Republic of Benin inwards 2003. This agreement, which was abandoned past times previous Administrations, established a mutually beneficial framework for the ii neighbours too allies to partner inwards tackling smuggling too other cross edge crimes. I would similar to assure investors inwards the agricultural value chain that the menace of smuggling volition hold upwards handled decisively.
43. To farther back upwards investors too State Governments, nosotros volition accelerate the establishment of at to the lowest degree half dozen Staple Crop Processing Zones, inwards the commencement phase. This maiden volition develop infrastructure for the production, processing too storage of strategic commodities. The focus is on backward integration for grains, horticulture, livestock, fisheries too sugar; every bit good every bit exportable commodities such every bit cocoa, cassava too petroleum palms.
Health Sector Developments
44. During 2017, the province had a number of illness outbreaks such every bit Meningitis, Yellow Fever, Monkey Pox too Lassa Fever. I would similar to commend the Federal too State Ministries of Health for their selfless service too timely responses to incorporate these outbreaks. I would also similar to give thank you lot the World Health Organisation, the Global Fund too UNICEF, for their continued back upwards during these trying times. This collaboration was a substitution factor inwards the depression mortality rates experienced. To farther improve our response to such outbreaks, nosotros are working to upgrade our Integrated Disease Surveillance too Response System. This volition farther heighten the efficiency of our diagnostic too clinical management processes.
45. In this respect, I urge this Distinguished House to expedite the passage of the Bill for the Nigeria Centre for Disease Control to enable us consolidate on the successes recorded to date.
Implementing the Social Investment Program
46. I am pleased to inform you lot that nosotros stimulate got recorded tremendous success inwards the implementation of the Federal Government’s Social Investment Program. Specifically,
a. Over 4.5 1000000 Primary 1 to Primary 3 pupils inwards world schools are beingness fed nether the School Feeding programme;
b. Over 200,000 unemployed graduates stimulate got been employed nether the N-Power Scheme inwards education, wellness too agricultural sectors;
c. Over 250,000 enterprises stimulate got benefitted from the amount of 12.5 billion Naira, which has been disbursed to entrepreneurs to expand their businesses; and
d. Over 110,000 households are currently benefitting from the Conditional Cash Transfer programme across the country.
PERFORMANCE OF THE 2017 BUDGET
47. The 2017 Budget of Recovery too Growth was based on a benchmark petroleum toll of US$44.5 per barrel, petroleum production of 2.2 1000000 barrels per day, too a Naira-to-US Dollar Exchange Rate of 305. Based on these assumptions, total revenue of 5.084 trillion Naira was projected to fund aggregate expenditure of 7.441 trillion Naira. Influenza A virus subtype H5N1 projected financial deficit of 2.356 trillion Naira was to hold upwards financed mainly past times domestic too external borrowing.
48. On revenue performance, collections were xiv pct below target every bit of September 2017, mainly due to the shortfall inwards non-oil revenues.
49. Influenza A virus subtype H5N1 substitution revenue shortfall was from Independent Revenues; solely 155.14 billion Naira was remitted past times September 2017 every bit against the projected pro-rated amount of 605.87 billion Naira. This represents a 74 pct shortfall, which is real disappointing.
50. This recurring number of under-remittance of operating surpluses past times State Owned Entities is absolutely unacceptable. You volition all squall upwards that inwards September 2017, the Joint Admissions too Matriculation Board (JAMB) announced that they were ready to remit 7.8 billion Naira dorsum to the Government. The shocking regain was that inwards the terminal decades, JAMB solely remitted an aggregate of 51 1000000 Naira. This clearly illustrates the abuses that come about inwards State Owned Entities every bit good every bit their potential for increased Independent Revenues, if solely people would do the correct thing. We all demand to play our operate to ensure the correct thing is done. I would also similar to remind Nigerians that the Whistle Blower lines are all the same open.
51. Accordingly, I stimulate got directed the Economic Management Team (EMT) to review the financial profiles of these agencies, to ensure strict compliance amongst the applicable Executive Orders too Financial Regulations. There may hold upwards a demand to consider a review of the Fiscal Responsibility Act too the Executive volition hold upwards approaching the National Assembly on this number inwards due course.
52. On the expenditure side, a total of 450 billion Naira of the majuscule vote had been released every bit at the terminate of Oct 2017. With your back upwards for our funding plan, our target is to release upwards to 50% of the majuscule vote for MDAs past times the year’s end. We stimulate got prioritised payments of our counterpart obligations on our concessionary loans, every bit good every bit funding of critical infrastructure too other projects amongst socio-economic benefits. Furthermore, MDAs stimulate got made provisions to carry over to the 2018 Budget, majuscule projects that are non probable to hold upwards fully funded past times year-end 2017, to ensure projection continuity.
53. Regrettably, the belatedly passage of the 2017 Budget has significantly constrained budget implementation. As you lot are aware, the 1999 Constitution authorized necessary Federal Government expenditures prior to the twelfth of June, 2017 when the 2017 Appropriation Act was signed into law. This year, nosotros stimulate got worked real hard to accomplish an before submission of the Medium-term Expenditure Framework too Fiscal Strategy Paper (MTEF/FSP), too the 2018 Appropriation Bill. Our efforts were to avail the National Assembly amongst sufficient fourth dimension to perform its of import duty of passing the Appropriation Bill into law, hopefully past times the 1st of January, 2018. It is inwards this spirit that I solicit the cooperation of the Legislature inwards our efforts to render to a to a greater extent than predictable budget cycle that runs from Jan to December.
PRIORITIES FOR THE 2018 BUDGET OF CONSOLIDATION
54. The 2018 Budget Proposals are for a Budget of Consolidation. Our principal objective volition hold upwards to reinforce too build on our recent accomplishments. Specifically, nosotros volition sustain the reflationary policies of our past times ii budgets. In this regard, the substitution parameters too assumptions for the 2018 Budget are every bit laid out inwards the 2018-2020 Medium Term Expenditure Framework (MTEF) too Fiscal Strategy Paper (FSP). These include:
a. Benchmark petroleum toll benchmark of US$45 per barrel;
b. Oil production approximate of 2.3 1000000 barrels per day, including condensates;
c. Exchange charge per unit of measurement of N305/US$ for 2018;
d. Real gross domestic product growth of 3.5 percent; and
e. Inflation Rate of 12.4 percent.
Federally-Collectible Revenue Estimates
55. Based on the inwards a higher house financial assumptions too parameters, total federally-collectible revenue is estimated at 11.983 trillion Naira inwards 2018. Thus, the iii tiers of Government shall have nigh 12 pct to a greater extent than revenues inwards 2018 than the 2017 estimate. Of the amount, the amount of 6.387 trillion Naira is expected to hold upwards realised from petroleum too gas sources. Total receipts from the non-oil sector are projected at 5.597 trillion Naira.
Federal Government Revenue Estimates
56. The Federal Government’s estimated total revenue is 6.607 trillion Naira inwards 2018, which is nigh xxx pct to a greater extent than than the 2017 target. As nosotros pursue our destination of revenue diversification, non-oil revenues volition larn a larger portion of total revenues. In 2018, nosotros projection petroleum revenues of 2.442 trillion Naira, too non-oil every bit good every bit other revenues of 4.165 trillion Naira.
57. Non-oil too other revenue sources of 4.165 trillion Naira, include several items including: Share of Companies Income Tax (CIT) of 794.7 billion Naira, portion of Value Added Tax (VAT) of 207.9 billion Naira, Customs & Excise Receipts of 324.9 billion Naira, FGN Independently Generated Revenues (IGR) of 847.9 billion Naira, FGN’s Share of Tax Amnesty Income of 87.8 billion Naira, too various recoveries of 512.4 billion Naira, 710 billion Naira every bit proceeds from the restructuring of government’s equity inwards Joint Ventures too other sundry incomes of 678.4 billion Naira.
Proposed Expenditure for 2018
58. Influenza A virus subtype H5N1 total expenditure of 8.612 trillion Naira is proposed for 2018. This is a nominal increment of sixteen pct inwards a higher house the 2017 Budget estimate. In keeping amongst our policy, 30.8 pct (or 2.652 trillion Naira) of aggregate expenditure (inclusive of majuscule inwards Statutory Transfers) has been allocated to the majuscule budget.
59. We await our financial operations to outcome inwards a deficit of 2.005 trillion Naira or 1.77 pct of GDP. This reduction is inwards delineate amongst our plans nether the ERGP to progressively cut back deficit too borrowings.
60. We invention to finance the deficit partly past times novel borrowings estimated at 1.699 trillion Naira. Fifty pct of this borrowing volition hold upwards sourced externally, whilst the residue volition hold upwards sourced domestically. The residue of the deficit of 306 billion Naira is to hold upwards financed from proceeds of privatisation of around non-oil assets past times the Bureau of Public Enterprises (BPE).
61. The proposed 8.612 trillion Naira of 2018 Aggregate Expenditure comprises:
a. Recurrent Costs of N3.494 trillion;
b. Debt Service of N2.014 trillion;
c. Statutory Transfers of nigh N456 billion;
d. Sinking Fund of N220 billion (to retire maturing bond to Local Contractors);
e. Capital Expenditure of N2.428 trillion (excluding the majuscule factor of Statutory Transfers).
Statutory Transfers
62. 456.46 billion Naira was provided inwards the 2018 Budget for Statutory Transfers. The v pct increment over terminal year’s provision is mainly due to increases inwards transfer to Niger Delta Development Commission (NDDC) too the Universal Basic Education Commission (UBEC), which are related direct to the size of petroleum revenue.
Debt Restructuring
63. We are closely monitoring our debt service to revenue ratio. We shall address this ratio through our non-oil revenue-generation motion too restructuring of the existing debt portfolio. Presently, domestic debt accounts for nigh 79 pct of the total debt. Our medium-term strategy is to cut back the proportion of our domestic debt to 60% past times the terminate of 2019 too increment external debt to xl percent. It is noteworthy that rebalancing our debt portfolio volition heighten individual sector access to domestic credit. In addition, annual debt service costs volition cut back every bit external debts are serviced at lower rates too repaid over a longer menses than domestic debt.
Recurrent Expenditure
64. Influenza A virus subtype H5N1 substantial constituent of the recurrent cost proposal for 2018 is for the payment of salaries too overheads inwards substitution Ministries providing critical world services such as:
a. N510.87 billion for Interior;
b. N435.01 billion for Education;
c. N422.43 billion for Defence; and
d. N269.34 billion for Health.
The resources allotment to these Ministries stand upwards for pregnant increases over votes inwards previous budgets.
Personnel Costs
65. Personnel costs is projected to rising past times 12 pct inwards 2018. Although nosotros stimulate got made substantial savings past times registering MDAs on the Integrated Personnel Payroll Information System (IPPIS) platform, the increment is mainly due to provision for staff advertisement arrears, too recruitments past times the Military, Police Force too para-military agencies. Furthermore, I stimulate got directed agencies are non to embark on whatever fresh recruitment unless they stimulate got obtained all the requisite approvals. Any breach of this directive volition hold upwards severely sanctioned.
Overhead Costs
66. Overhead costs is projected to rising past times 26 billion Naira inwards 2018, a pocket-sized increment of nigh 12 pct reflecting inflationary adjustments. MDAs are required to adhere to authorities regulations regarding cost control.
Capital Expenditure
67. To consolidate on the momentum of the 2017 Budget’s implementation, many ongoing majuscule projects stimulate got been provided for inwards the 2018 Budget. This is inwards delineate amongst our commitment to appropriately fund ongoing majuscule projects to completion. By allocating 30.8 pct of the 2018 Budget to majuscule expenditure, the Federal Government is also demonstrating its strong commitment to investing inwards critical infrastructure capable of spurring growth too creating jobs inwards the Nigerian economy.
68. Key majuscule spending allocations inwards the 2018 Budget include:
a. Power, Works too Housing: N555.88 billion;
b. Transportation: N263.10 billion;
c. Special Intervention Programmes: N150.00 billion;
d. Defence: N145.00 billion;
e. Agriculture too Rural Development N118.98 billion;
f. Water Resources: N95.11 billion;
g. Industry, Trade too Investment: N82.92 billion;
h. Interior: N63.26 billion;
i. Education N61.73 billion;
j. Universal Basic Education Commission: N109.06 billion;
k. Health: N71.11 billion;
l. Federal Capital Territory: N40.30 billion;
m. Zonal Intervention Projects N100.00 billion;
n. North East Intervention Fund N45.00 billion;
o. Niger Delta Ministry: N53.89 billion; and
p. Niger Delta Development Commission: N71.20 billion.
69. As I had previously indicated, nosotros aim to consolidate on our achievements inwards 2017. We shall consider our counterpart funding obligations. We shall consummate all ongoing projects. And nosotros shall carry frontward all strategic projects that were budgeted for but which nosotros were unable to boot start due to liquidity challenges, belatedly passage of the budget, prolonged contractual negotiations, too other matters.
70. Specifically, I would similar to convey your attending to the next substitution projects too programmes that nosotros are determined to implement inwards 2018:
a. N9.8 billion for the Mambilla hydro might project, including N8.5 billion every bit counterpart funding;
b. N12 billion counterpart funding for earmarked transmission lines too substations;
c. N35.41 billion for the National Housing Programme;
d. N10.00 billion for the 2nd Niger Bridge; and
e. About N300 billion for the construction too rehabilitation of the strategic roads mentioned earlier.
Consolidating on the Social Intervention Programme
71. This Administration remains committed to pursuing a gender-sensitive, pro-poor too inclusive growth. We are keenly interested inwards catering for the most vulnerable. Accordingly, nosotros stimulate got retained the 500 billion Naira resources allotment to the Social Intervention Programme. Under the programme, 100 billion Naira has been laid aside for the Social Housing Programme.
72. Government volition also proceed to implement the Conditional Cash Transfer (CCT) programme, every bit good every bit the National Home-Grown School Feeding programme inwards 2018. These initiatives are already creating jobs too economical chance for local farmers too cooks, providing funding to artisans, traders too youths, every bit good every bit supporting little businesses amongst occupation concern instruction too mentoring.
Regional Spending Priorities for Peace, Security too Development
73. To maintain peace too safety inwards the Niger Delta for economical too social activities to thrive, the provision of 65 billion Naira for the Presidential Amnesty Programme has been retained inwards the 2018 Budget. In addition, the majuscule provision for the Ministry of Niger Delta has been increased to 53.89 billion Naira from the 34.20 billion Naira provided inwards 2017. This is to farther back upwards the evolution inwards the region. We volition consummate all critical projects, including the East-West Road, which has a provision of nigh 17.32 billion Naira inwards 2018.
74. Across the nation, too peculiarly inwards the North East region, our commitment to the safety of life too belongings remains absolute. We volition ensure that our gallant men too women inwards arms are properly equipped too well-motivated. The outcome of our efforts is evident inwards the gradual render to normalcy inwards the North East. It is inwards this spirit that I latterly assented to the North-East Development Commission Bill that was passed past times this Distinguished House. We await that this evolution volition consolidate on our ongoing efforts to combat insurgency, reintegrate Internally Displaced Persons too rebuild communities inwards the North East Region, which stimulate got been adversely affected past times the insurgency.
75. Similar attending is beingness given to efforts to cut back vehement law-breaking across the country. The Nigerian Army was latterly deployed to combat the growing scourges of cattle rustling too banditry that stimulate got plagued our communities inwards Kaduna, Niger, Kebbi, Katsina too Zamfara States. We volition also proceed to arrest the incidence of Armed Robbery, Kidnapping too other Violent Crimes across our nation.
76. We stimulate got also increased our focus on cyber-crimes too the abuse of technology scientific discipline through abhor speech communication too other divisive textile that is beingness propagated on social media. Whilst nosotros uphold the Constitutional rights of our people to liberty of aspect too association, where the purported exercise of these rights infringes on the liberties of other citizens or threatens to undermine our National Security, nosotros volition choose occupation solid too decisive action.
77. In this regard, I reiterate my telephone telephone for Nigerians to exercise restraint, tolerance too usual honor inwards airing whatever grievances too frustrations. Whilst the ongoing national discourse on various political issues is good for you lot too welcome, nosotros must non forget the lessons of our past. I trust that the vast bulk of our people would rather tread the path of peace too prosperity, every bit nosotros proceed to uphold too cherish our Unity inwards Diversity.
CONCLUSION
78. Distinguished too Honourable Members of the National Assembly, you lot volition squall upwards that inwards my 2017 Budget Speech, I promised a novel era for Nigeria too an terminate to the old ways of overdependence on petroleum revenues. The statistics too initiatives I mentioned clearly exhibit that this novel era has come upwards too the old Nigeria is sure disappearing. We must, therefore, all piece of work together to protect too sustain this CHANGE to do a novel Nigeria:
a. Influenza A virus subtype H5N1 Nigeria that feeds itself;
b. Influenza A virus subtype H5N1 Nigeria that optimally utilizes its resources;
c. Influenza A virus subtype H5N1 Nigeria amongst a diversified, sustainable too inclusive economy.
79. Mr. Senate President, Mr. Speaker, Distinguished too Honourable Members of the National Assembly, this speech communication would hold upwards incomplete without commending the immense, patriotic too collaborative back upwards of the National Assembly inwards the endeavour to displace our bully nation forward. I wishing to assure you lot of the strong commitment of the Executive branch to deepen the human relationship amongst the Legislature.
80. Nigeria is currently emerging from a real hard economical period. If nosotros all cooperate, too back upwards i another, nosotros tin flame consolidate on our larn out from the recession too firmly seat Nigeria for economical prosperity. All the projects presented inside this Budget stimulate got been carefully selected too subjected to extensive consultations too stakeholder engagements. As a Government, nosotros are determined to convey succour to our people, improve their lives, too deliver on our promises to them. 2018 is a crucial twelvemonth every bit nosotros strive to ensure that nosotros consolidate our successes too institutionalize the policies too practices that drove this turnaround.
81. I appeal to you lot to swiftly consider too top the 2018 Appropriation Bill.
82. It is thence amongst bully pleasance too a deep feel of responsibility, that I lay before this Distinguished Joint Session of the National Assembly, the 2018 Budget Proposals of the Federal Government of Nigeria.
83. I give thank you lot you most sincerely for your attention.
84. May God bless the Federal Republic of Nigeria.