Mr Buhari stated this while signing the 2018 budget into law.
In his budget signing speech, the
president said the projects added by the national assembly have not been
properly designed and will be difficult to execute.
“I am concerned about some of the changes that the National Assembly has made to the budget proposals that I presented,” he said.
“I am concerned about some of the changes that the National Assembly has made to the budget proposals that I presented,” he said.
President Muhammadu Buhari says members of the national assembly added 6,403 projects of their own to the 2018 budget proposal sent to them.
“The national assembly made cuts
amounting to N347 billion in the allocations to 4,700 projects submitted to
them for consideration and introduced 6,403 projects of their own amounting to
N578 billion.
“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.
Read the president’s full speech
below.
SPEECH 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 20, 2018
PROTOCOLS
I would like to thank the
leadership of the National Assembly, particularly the Senate President and the
Speaker of the House of Representatives, as well as all the Distinguished
Senators and Honourable Members, for passing the 2018 Appropriation Bill, after
seven months.
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.
The real enemies of Nigeria àre those in the National assembly, they need to go in 2019 insha Allah
ReplyDeleteYou only signed the budget so peace can reign between the executive and legislators. To pave way for 2019 election. In all these you don't see it necessary to look into the minimum wage. But NASS could increase their budgets you don't see anything wrong with it. Nigeria politicians are just after what benefits them. Mind you these civil workers are same people you going to meet out there to cast their vote for you come 2019. I know many are blindly brainwashed to swallow every carrota dangled at them. Shame on you all ( executive, legislator and judiciary).
ReplyDeleteNa wa o
ReplyDelete