President Muhammadu Buhari on
Wednesday presented the 2019 budget proposal to a joint session of the National
Assembly, NASS.
Buhari was accompanied to the
National Assembly by Vice President Yemi Osinbajo and members of the Federal
Executive Council, FEC, on Wednesday.
Loud ovation and encomiums
heralded Buhari’s arrival to the joint session with shouts of “Sai Baba’’ as he
waved to the crowd.
Senate President, Bukola Saraki
and Speaker of House of Representatives, Yakubu Dogara jointly presided over
the joint session, with Saraki introducing the ceremony
Saraki’s full speech is as below:
”Mr. President, on behalf of my
colleagues, Distinguished Senators of the Federal Republic of Nigeria and
Honourable Members of the House of Representatives, I welcome you and members
of your Executive team to the fourth joint session of the National Assembly on
the presentation of the Budget proposals.
” I commend Mr. President and the
Economic Management Team for putting together this all-important fiscal policy
document, which is expected to give life to economic and social programmes that
are pivotal to our national development as we go into a crucial year in our
national life.
” Without doubt, the last
three-and-a-half years have been eventful ones at the global level and in our
domestic economy. From dips in oil prices to major shifts in the economic
landscape, crude oil production shut-ins and security challenges, the economy
and Nigerians have been directly impacted by these events. Many businesses
closed down and many people lost their jobs during the recent recession. In the
same period, we lost innocent citizens to insurgency in parts of the North East,
thousands were displaced, and many lives also lost due to clashes between
farmers and herders, in addition to the general hardship unleashed by unstable
economic winds.
”These are some of the security
challenges we have faced. We must take them head-on; it is a battle we must win
as a country. It must be admitted that we are not there presently. For one,
these security challenges now pose a threat to the viability of the
agricultural sector. This is clear in the marked reduction in agricultural output
observable since the first quarter of 2018. There is the need for more efforts
by all. We here are prepared to give all necessary support to the Executive. We
stand ready and committed to assist in every way we can, in order to ensure
food security and the protection of lives and property.
”The recovery from the recession
is still fragile. The fundamentals underlying the recovery remain weak, and if
unchecked, can lead to dire consequences. The economy still runs on oil and
very little progress has been made in terms of diversification. As a result,
the expansionary budget policy in effect since 2016, which was aimed at raising
spending and stimulating growth in the economy, was not matched by achievable
revenue targets. The corollary is higher and rising deficit as well asa
considerable debt burden, all due to an unsustainable fiscal stance.
” The under-performance of
independent revenues is straining government’s ability to meet its expenditure,
especially investments in critical infrastructure. This further exposes
government to higher deficit levels which have been largely financed by
borrowing.
”To be clear, two scenarios will
play out if we do not deal decisively with challenges to revenue. These would
be to: i. accommodate higher debt with higher repayment costs, which is not
sustainable; ii. reduce the capital budget, which would mean a slow-down in
government investment in critical infrastructure. This, again, does not aid
growth or economy development.
” Mr. President, it is for these
reasons that the National Assembly required that the 2018 Budget proposal and
future ones be accompanied by a Finance Bill, which would give credence to the
financial proposals of government. It is one way of establishing credibility in
projected revenues. It is imperative, therefore, that a 2019 Finance Bill is
submitted to the National Assembly for consideration and approval.
” Mr. President, Distinguished
colleagues and Honourable members of the National Assembly, as you will be
aware, I have always stressed the importance of setting realistic revenue
targets, because we cannot afford to rely on borrowing to finance recurrent
expenditure. It is critical we shift focus to generating as much money as
required for spending, at least for recurrent needs, so loans can be used
solely to fund capital projects.
”. Another challenge we must
address urgently is the huge cost deductions by the Nigerian National Petroleum
Corporation (NNPC). Net oil inflow into the Federation Account is significantly
lower than projected on account of these deductions by way of unappropriated
petroleum subsidy. I have on many occasions stressed that it might be better to
capture petroleum subsidy as a line item in the Budget if government must
continue to finance it.
” We cannot shy away from this
issue. The current system is opaque at best, fraught with inefficiencies and is
a sure pathway to corruption. Estimated deductions for petroleum subsidy claims
by NNPC year-to-date can neither be explained by the higher PMS landing cost
nor the increased supply of petroleum to the domestic market. We can better
manage these by returning to a more transparent practice of capturing the items
as against the erroneous and illegal approach of cost recovery for payment for
importation of petroleum products.
”I should also say that we will
not get things right if we do not match budget credibility with predictability.
It is in this regard that the National Assembly passed several constitution
alteration bills including Sections 82 and 122 of the Constitution of the
Federal Republic of Nigeria. The amendments to these sections are intended to
engender timeliness in the formulation and approval of annual budgets as well
as restore the country to a January to December fiscal year.
”. May I use this opportunity to
request Mr. President to prioritise the assent of this important Bill. That
way, delays in the submission and passage of the Budget will be a thing of the
past. Also, the private sector, including local and foreign investors doing
business in Nigeria, can plan their investment activities along predictable
timelines.
”Mr. President will recall that
in response to the economic recession, the National Assembly enacted a batch of
laws to assist the Executive mobilise investment across the country, in order
to stimulate economic activities. These bills are the product of far reaching
engagements with the Executive. It is instructive to note that two of these-
the Secure Transactions in Movable Assets Bill and the Credit Reporting Bill –
are credited with helping to improve our country’s position in the World Bank
Ease of Doing Business Ranking.
” Let me make clear that the
National Assembly appreciates Your Excellency’s assent of some of these bills.
This is tempered by the fact that some in this stack of priority bills, such as
the Petroleum Industry Governance Bill, National Transport Commission Bill and
Federal Road Authority Bill, to mention a few, have not been signed into law,
contrary to the expectations of many. We recognize the prerogative of the
president to sign or not to sign these bills. However, we believe that some of
the issues cited for withholding of assent may be better addressed through
further technical engagements, since the bills are, in the main, aligned to government
policy direction.
” Certainly, we as the
legislature are of the view that, unless we strengthen our laws to create the
right structures that enable the private sector power the economy, we will not
be able to create enough jobs and opportunity for our people to thrive and
prosper. Through collaborative efforts and engagements with all stakeholders,
we have passed bills designed to help government create jobs, open the entire
market to private sector investment and modernise the economy.
”17. Let me use this opportunity
to also commend Your Excellency on the Social Investment Programme initiative
of your Administration. However, as laudable as this initiative has been, it is
pertinent to note that the current approach is unlikely to have a sustainable,
measurable impact that is free of corruption and abuse. You will agree with me
that such a programme should carry no whiff of politicisation. Our role as
leaders must always be to ensure that we deliver governance results that do not
discriminate; and which ensure that all Nigerians irrespective of ethnicity,
religion and political stripe have access and are seen to be treated equally.
”The National Assembly is willing
and ready to work with Your Excellency on the people-oriented programmes of
your Administration, to ensure success.
” At this juncture, let me assure
Mr. President that the National Assembly shall continue to work with your team
to ensure that whatever is required through legislation and oversight to plug
revenue leakages and ramp up revenues is given priority.
”With these remarks, I hereby
invite Your Excellency to address this joint session and lay the 2019 Budget
proposal for the consideration of the National Assembly in accordance with
Section 81 of the 1999 Constitution of the Federal Republic of Nigeria as
amended. Thank you for your attention.
Click to signup for FREE news updates, latest information and hottest gists everyday
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com