President Muhammadu Buhari warmly felicitates with veteran journalist and author, Oloye Lekan Alabi, the Agba Akin Olubadan of Ibadanland, on his 70th birthday, October 27, 2020, joining friends and family to celebrate with the renowned writer, whose contributions continue to inspire.
The President salutes the foremost journalist, who served five governors with his astute communication skills as a Press Secretary, and continues to project the diversity of the country as a Cultural Ambassador of the National Museum, Ile-Ife, working variously as a consultant to private and public institutions.
As a journalist, with experience in both print and broadcast journalism, President Buhari commends Oloye Alabi for also extending his interest into development and educational issues, chairing many foundations that work for the improvement of the lives of Nigerians, like Adegoke Adelabu (Penkelemesi) and Yusufu Olatunji (Baba l’ Egba) Foundation.
The President congratulates Oloye on the launch of a biography to mark the milestone, believing that the material will go a long way in contributing to knowledge in the country.
President Buhari prays that the Almighty God will grant the Agba Akin Olubadan of Ibadanland longer life, good health and wisdom to keep serving the country.
In another development, the president had sent his heartfelt condolence to leading industrialist and business entrepreneur, Chief Eugene Nzom Ojukwu, on the loss of his wife, Fanny, aged 70.
The President urges the Chairman of E. Ekesons Group to take heart at the passage of his long-time companion, who kept the home front, while the husband toiled to build his business conglomerate, ensuring that the children were well nurtured into successful professionals that they are in different walks of life today.
President Buhari enjoins the Ojukwu family to find comfort in the fact that the departed lived a quality life, and positively touched all that came in contact with her.
He prays that God will accept the soul of Mrs Fanny Ojukwu, and give those she left behind fortitude to bear the loss.
After breaking his silence since the deadly Lekki Toll Gate shooting of unarmed peaceful young #EndSARS protesters, Nigeria’s President Muhammadu Buhari yesterday appealed to demonstrators demanding action to overhaul the nation’s Police to end their protests.
In his address, the president stressed that it had become necessary to address the youths after concluding a meeting with all the security chiefs and having heard from many concerned Nigerians.
The president however failed to address salient issues such as the mystery that now surrounds the Lekki Toll Gate shooting alleged to have been masterminded by men of the Nigerian army and videos going the rounds that suggests that men believed to be state agents were seen supervising thugs to lunch attack on unarmed protesters on the street of Abuja.
While he urged the #EndSARS protesters to bring to an end their demonstrations, President Buhari assured Nigerians that the government has heard their voice and was working to meet their demands on the excesses of some members of the now disbanded Special Anti-Robbery Squad (SARS) and others.
The President also urged the international community to verify facts before jumping into conclusion.
“To our neighbours in particular, and members of the international community, many of whom have expressed concern about the ongoing development in Nigeria, we thank you and urge you all to seek to know all the facts available before taking a position or rushing to judgment and making hasty pronouncements.
“In the circumstances, I would like to appeal to protesters to note and take advantage of the various well-thought-out initiatives of this administration designed to make their lives better and more meaningful, and resist the temptation of being used by some subversive elements to cause chaos with the aim of truncating our nascent democracy.
“For you to do otherwise will amount to undermining national security and the law and order situation. Under no circumstances will this be tolerated. I therefore call on our youths to discontinue the street protests and constructively engage government in finding solutions. Your voice has been heard loud and clear and we are responding”, he said.
President Buhari also sounded a note of warning to those who have hijacked and misdirected the initial, genuine and well-intended protest of some of the youths in parts of the country against deviant acts.
He said while he acknowledged the genuine concerns and agitations of members of the public regarding the excessive use of force by some members of F-SARS and acted decisively, the speed at it the squad was disbanded was misconstrued to be weakness on the part of government.
“The choice to demonstrate peacefully is a fundamental right of citizens as enshrined in Section 40 of our Constitution and other enactments; but this right to protest also imposes on the demonstrators the responsibility to respect the rights of other citizens, and the necessity to operate within the law.
“As democratic government, we listened to, and carefully evaluated the five-point demands of the protesters. And, having accepted them, we immediately scrapped SARS, and put measures in place to address the other demands of our youth. On approving the termination of SARS, I already made it clear that it was in line with our commitment to the implementation of extensive Police reforms.
“Sadly, the promptness with which we have acted seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.
“The result of this is clear to all observers: human lives have been lost; acts of sexual violence have been reported; two major correctional facilities were attacked and convicts freed; public and private properties completely destroyed or vandalised; the sanctity of the Palace of a Peace Maker, the Oba of Lagos has been violated. So-called protesters have invaded an International Airport and in the process disrupted the travel plans of fellow Nigerians and our visitors.
“All these executed in the name of the ENDSARS protests. I am indeed deeply pained that innocent lives have been lost. These tragedies are uncalled for and unnecessary. Certainly, there is no way whatsoever to connect these bad acts to legitimate expression of grievance of the youth of our country”.
President Buhari also commented on the rising spread of falsehood and misinformation, especially through the social media, describing it as insensitive to the pains and plight of Nigerians. He stated further that it was a deliberate ploy to mislead gullible citizens within and outside the country “into unfair judgement and disruptive behavior”.
He noted that against such falsehood, his administration, both in deeds and in words, has given enough attention “to the wellbeing and welfare of citizens, even with the steadily dwindling revenues, and the added responsibilities and restrictions due to the Coronavirus pandemic”.
He explained that government has put in place measures and initiatives principally targeted at youths, women and the most vulnerable groups in the society.
The president listed some of the measures to include the administration broad plan to lift 100million Nigerians out of poverty in the next 10 years, and the creation of N75billion National Youth Investment Fund to provide opportunities for the youths.
He also listed the Micro, Small and Medium Enterprises (MSME) Survival Fund, through which government is “paying three months salaries of the staff of 100,000 micro, small – and medium – enterprises, paying for the registration of 250,000 businesses at the Corporate Affairs Commission, giving a grant of N30,000 to 100,000 artisans, and guaranteeing market for the products of traders”.
These, he noted, are in addition to many other initiatives such Farmermoni, Tradermoni, Marketmoni, N-Power, N-Tech and N-Agro.
Buhari said no Nigerian government in the past had methodically and seriously approached poverty-alleviation like the present has done.
On the welfare of police personnel, Buhari said the National Salaries, Income and Wages Commission has been directed to expedite action on the finalizing the new salary structure of members of the Nigeria Police Force, adding that the emoluments of other paramilitary services were also being reviewed upwards.
He continued: “In order to underscore the importance of education in preparing youths for the future, this administration has come up with a new salary structure and other incentives for our teachers.
“Let me at this point reaffirm the Federal Government’s commitment to preserving the unity of this country.
“We will continue to improve good governance and our democratic process, including through sustained engagement.
“We shall continue to ensure that liberty and freedom, as well as the fundamental rights of all citizens are protected.
“But remember that government also has the obligation to protect lives and properties, as well as the right of citizens to go about their daily businesses freely and protected from acts of violence”.
The president called on all Nigerians to go about their normal businesses, even as he enjoined security agencies to protect lives and properties of all law abiding citizens without doing harm to those they are meant to protect.
He also paid tribute to officers of the Nigeria Police Force who tragically lost their lives in the line of duty.
The president stated: “I would like to thank those state Governors, traditional and religious leaders who have appealed for calm and restraint. I also thank youth leaders who have restrained their followers from taking the law into their hands.
“This government respects and will continue to respect all the democratic rights and civil liberties of the people, but it will not allow anybody or groups to disrupt the peace of our nation. Thank you all. God bless the Federal Republic of Nigeria”.
President Muhammadu Buhari and former President Goodluck Jonathan Thursday met in Abuja over the political crisis in Mali.
Giving updates on the considerable improvement in the management of the crisis in Mali, Jonathan, who is the Special Envoy/Mediator to the West African country, said the mission given to him by the leaders of the Economic Community of West African States (ECOWAS) was almost fully done, as a transition government with a largely civilian face has been inaugurated in Mali.
He said: “The President has been sworn in, the Prime Minister, and Ministers too. The military has only four portfolios for serving officers, and the government has taken off.
According to him, “We can’t do hop, step and jump like other developed nations of the world, but one is delighted at the successes recorded.”
It would be recalled that after the intervention by the military in Mali, ECOWAS leaders had insisted on a transition government led by a civilian, and return to constitutional order within 12-18 months, among other demands.
The Federal Executive Council (FEC) presided over by President Muhammadu Buhari on Wednesday approved N1.6billion for the establishment of the e-Government Procurement Platform to address corrupt practices in the government’s procurement system.
The Director-General, Bureau of Public Enterprises, Mamman Ahmadu, said the new platform would help eliminate corruption as well as enhance the country’s procurement process.
President Buhari presides over Federal Executive Council (FEC) Meeting in State House on 14th Oct 2020. Photo: Femi Adesina
He said: “Today, BPP presented a memo on e-government procurement. E-government procurement has the potential of improving the procurement process, eliminate corruption, and reduce the leak time in the procurement process itself.
“There have been a lot of complaints about the long time it takes to go through the due process. With the establishment of this, we will reduce that time.
“It also removes subjectivity from the process. There have been lots of complaints about subjectivity in the approval process that will be dealt with squarely when it is eventually launched,” he said.
According to him, the step taken by the government is in line with the current global trend.
“E-government procurement is a global trend and from the research carried out by the World Bank, it had been established that countries that have taken off with e-government procurement have witnessed exponential economic growth and they have stimulated ICT in those countries.
“It will reduce corruption to the barest minimum because it will reduce the human interface within the process. The overall cost is about N1.6 billion,” he said.
The Minister of Power, Saleh Mamman, who also addressed the correspondents on the outcome of the meeting, said the Council approved Nigeria’s contribution of two million dollars for the West African Power Pool (WAPP)
He expressed the hope that the contribution would in turn generate income for Nigeria, to cushion the dwindling oil revenue.
According to him, the power pool being a common entity of countries in West Africa, plays a role of coordination and synergy among countries, as well as boosting electricity supply in the region.
Mamman also said the regional power pools would be of great assistance in case the national grid of any of the member states fails.
“The pool is about having synergy within the West African region. The decision has been taken by ECOWAS, it’s for the generation of electricity in the region, so as to have a more constant and steady power supply.
“It’s like the national grid in Nigeria, so we are going to have a regional grid. It means in case there is a failure in one country, another can supplement it. The $2 million is a contribution,” he said.
Also shedding more light on the electricity pool, the Minister of Information and Culture, Lai Mohammed said all ECOWAS countries had been contributing annually to the cost of transmission of electricity in the region, since the establishment of WAPP in 1999.
He said: “The West African power pool is made up of all west African countries because each member state contributes annually to the cost of power transmission across the pool. Because the consequence is that if there is a problem in one country it could inadvertently affect the other country.
“It’s a common pool and every country has its own section and our contribution for this year is $2 million.
“It’s not as if we are giving two million dollars to ECOWAS, we are simply paying our own contribution to the transmission from Nigeria to other West African countries and viz-visa”, the News Agency of Nigeria (NAN) reported.
President Muhammadu Buhari Monday in Abuja assured Nigeria’s former Minister of Finance and Economy, Dr Ngozi Okonjo-Iweala, that the country will explore every opportunity and deploy its entire energy to ensure that she becomes the Director-General of World Trade Organisation (WTO), presidency spokesman, Garba Shehu, said in a statement.
Dr Okonjo-Iweala is one of two candidates contesting for the top position of the multilateral institution.
President Buhari, who received the former Managing Director (Operations) of the World Bank at the Presidential Villa, said she deserved more support to get the top job because of her profile and diligence in serving the country, and the world.
President Buhari receives in audience Former Finance Minister Ngozi Okonjo-Iweala in State House on 12th Oct 2020
“I assure you that we will do all that we can to ensure that you emerge as the Director-General of WTO, not only because you are a Nigerian, but because you are a hardworking Nigerian. You deserve this,’’ he added.
The President assured Dr Okonjo-Iweala that he will make more phone calls, and send letters to some world leaders for more support.
“I did the same for Dr Akinwunmi Adesina for President of the African Development Bank. Both of you served the country under the Peoples Democratic Party (PDP). You are both highly qualified. We will continue to support you. I will immediately make those calls,’’ the President told Dr Okonjo-Iweala.
In her remarks, Dr Okonjo-Iweala, a renowned development economist, thanked the President and his ministers, particularly the Ministers of Foreign Affairs, and Ministers of Industry, Trade and Investment for supporting her staunchly.
President Buhari receives in audience Former Finance Minister Ngozi Okonjo-Iweala in State House on 12th Oct 2020
“I feel very proud of Nigeria. I am getting so much support from you, Mr President, Chief of Staff, Ministers of Foreign Affairs and Ministers of Industry, Trade and Investments. The ministers have been working around the clock to ensure that I succeed,’’ she said.
The former Minister of Finance also appreciated ECOWAS leaders for their endorsement, mentioning in particular the outstanding contributions of President Mahamadou Issoufou of Niger Republic and immediate past Chairman of ECOWAS as well as President Alhassan Quattara of Cote d’Ivoire.
She asked the President to “make one final push within the week to beat the Koreans and bring this to Nigeria by sending a few letters and placing telephone calls to some world leaders, and also thank others for their support.’’
“Mr President, put a smile on my face,’’ she said, “I am very proud of the country.’’
President Muhammadu Buhari has rejoiced with the All Progressives Congress (APC) governorship candidate, Rotimi Akeredolu, on his re-election as Governor of Ondo State for another four-year term.
This was coming as the Peoples Democratic Party (PDP) said it would study the results of October 10 governorship election in Ondo State and take appropriate action.
The Independent National Electoral Commission (INEC) had Sunday announced Akeredolu as the winner of the Saturday guber poll, sweeping to victory by winning 15 of 18 local government areas of Ondo State.
The incumbent governor got 292,830 votes to massively defeat PDP governorship candidate, Eyitayo Jegede, and Agboola Ajayi of Zenith Labour Party (ZLP), who came second and third in the election with 195,791 and 69,127 votes respectively.
In his congratulatory message, Buhari, who lauded the resounding victory of Akeredolu, noted that the votes garnered “show that one good turn surely deserves another.”
He thanked the people of Ondo State for keeping faith with their hovernor and APC, adding that “the people know the person and party that truly serves them, and have spoken in clear voice and unmistakable terms.”
The President appreciated the electorate in Ondo State for comporting themselves decently and in orderly manner, and for exhibiting conduct that indicated that the country was making progress in its electoral behaviour.
He also gave kudos to INEC for organising credible, free and fair election, and to security agencies which ensured that orderliness was enthroned and maintained.
Buhari, in a statement by his Special Adviser on Media and Publicity, Femi Adesina, urged Akeredolu to be humble and magnanimous in victory, and endeavour to serve the people of Ondo State even better than how he did in the first term.
“When you serve with heart and might, the people respond in like manner, and we can easily get to where we are headed as a country,” the President said.
Meanwhile, PDP Publicity Secretary in Ondo State, Kennedy Peretei, has said his party would carefully study the election results in order to take appropriate action.
Speaking with journalists on the just concluded election at Jegede’s residence in Akure, Peretei urged PDP supporters to be optimistic.
He advised the party faithful not to be discouraged, noting that pockets of violence in Owo, Ese-Odo, among others would be critically analysed in the coming days.
Former Vice President and Peoples Democratic Party (PDP) presidential candidate in 2019 general elections, Atiku Abubakar, has berated President Muhammadu Buhari over his 2021 budget proposal recently presented to the National Assembly.
Atiku, in a statement on Saturday titled: “The 2021 Budget Proposal Contravenes The Fiscal Responsibility Act,” charged the President to be courageous enough to recall and recalibrate the 2021 budget proposal to reflect the provisions of the Fiscal Responsibility Act (FRA) of 2007 and the current economic realities in Nigeria.
According to him, “The budget deficit in the proposal is ₦5.21 trillion. This amount is just over 3.5 per cent of Nigeria’s 2019 GDP.
“This is contrary to the Fiscal Responsibility Act of 2007, which provides in Part II, Section 12, subsection 1 that: ‘Aggregate Expenditure and the Aggregate amount appropriated by the National Assembly for each financial year shall not be more than the estimated aggregate revenue plus a deficit, not exceeding three per cent of the estimated Gross Domestic Product or any sustainable percentage as may be determined by the national Assembly for each financial year.’”
He explained that the deficit of 2021 budget shows the precarious state of Nigeria’s finances, which have since been overburdened by excessive borrowing on the part of the Buhari administration.
Atiku, who stated that he could itemise several reasons why Buhari’s 2021 budget is not feasible and realisable, insisted that the President should be patriotic enough to recall the budget otherwise it would be catastrophic for Nigeria’s economy.
The statement reads in part: “Looking at the 2021 Budget Proposal placed before the National Assembly by President Muhammadu Buhari on Thursday, October 8, 2020, a number of issues, very grave and perhaps disturbing issues arise.
“I could bring up several of them, but for the sake of its direness and consequence to our economy, permit me to address one very important issue.
“The budget deficit in the proposal is ₦5.21 trillion. This amount is just over 3.5 per cent of Nigeria’s 2019 GDP. This is contrary to the Fiscal Responsibility Act of 2007, which provides in Part II, Section 12, subsection 1 that: ‘Aggregate Expenditure and the Aggregate amount appropriated by the National Assembly for each financial year shall not be more than the estimated aggregate revenue plus a deficit, not exceeding three per cent of the estimated Gross Domestic Product or any sustainable percentage as may be determined by the national Assembly for each financial year.’
“Nigeria had a GDP of approximately $447 billion in 2019. Three percent (three per cent) of this amount is $13.3 billion, which at the current official exchange rate of ₦379 to $1, gives you a figure of ₦5.07 trillion.
“So clearly, the budget deficit of ₦5.21 trillion, as announced by President Muhammadu, is above three per cent of our GDP and is therefore in contravention of the Fiscal Responsibility Act of 2007.
“Even more disturbing is the fact that our GDP has fallen sharply from its 2019 figures, and has been projected by the World Bank and other multilateral institutions at somewhere between $400 billion and $350 billion. Meaning that in actual sense, the ₦5.21 trillion budget deficit is actually far above the three per cent threshold stipulated by the FRA.
“That this escaped the notice of the Buhari administration shows a glaring lack of rigour in the formulation of the Budget. A very disturbing development.
“Furthermore, this deficit shows the precarious state of our national finances, which have since been overburdened by excessive borrowing on the part of the Buhari administration.
“It has not escaped my attention that the Fiscal Responsibility Act of 2007 makes provision for the National Assembly to raise the threshold of the budget deficit from three per cent to a higher figure. However, if this is done, they will be serving this administration’s interests, not Nigeria’s, because the Act says that such a threshold must be sustainable. Is it sustainable when our budget makes almost as much provision for debt servicing, as it does for capital expenditure?
“As such, I call on the President, to recall this budget, and recalibrate it to reflect the provisions of the Fiscal Responsibility Act of 2007, and the current economic realities of the nation. To do otherwise will not only be unpatriotic, it will also be catastrophic for our nation’s economy.”
2021 BUDGET SPEECH: Budget of Economic Recovery and Resilience Delivered By: His Excellency, President Muhammadu Buhari President, Federal Republic of Nigeria At the Joint Session of the National Assembly, Abuja
Thursday, 8th October 2020
PROTOCOLS
1. It is with pleasure that I present the 2021 Federal Budget Proposals to this Joint Session of the National Assembly.
2. Distinguished and Honourable Leaders, and Members of the National Assembly, at this juncture, I wish to commend your tremendous efforts in approving the revision of the 2020 – 2022 Medium-Term Expenditure Framework and Fiscal Strategy Paper, and passage of the 2020 Appropriation (Repeal and Amendment) Act, in response to the Coronavirus Pandemic.
3. Today marks an important occasion in our quest to accord the federal budget process the seriousness it deserves. In line with our commitment, we have worked extra hard to ensure early submission of the 2021 –2023 Medium-term Expenditure Framework and Fiscal Strategy Paper, as well as the 2021 Appropriation Bill. It is my sincere hope that the National Assembly will pass this Bill into law early enough to enable implementation by 1st January 2021, given the collaborative manner in which the budget was prepared.
4. In the course of this address, I will present the highlights of our budget proposals for the next fiscal year. The Honourable Minister of Finance, Budget and National Planning will, later, provide the full details of these proposals.
Recent Developments
1. The 2021 Budget was prepared amidst a challenging global and domestic environment due to the persistent headwinds from the Coronavirus Pandemic. The resulting global economic recession, low oil prices and heightened global economic uncertainty have had important implications for our economy.
2. The Nigerian economy is currently facing serious challenges, with the macroeconomic environment being significantly disrupted by the Coronavirus Pandemic. Real Gross Domestic Product (‘GDP’) growth declined by 6.1 percent in the second quarter of 2020. This ended the 3-year trend of positive, but modest, real GDP growth recorded since the second quarter of 2017. I am glad to note that, through our collective efforts, our economy performed relatively better than that of many other developed and emerging economies.
3. GDP growth is projected to be negative in the third quarter of this year. As such, our economy may lapse into the second recession in four years, with significant adverse consequences. However, we are working assiduously to ensure a rapid recovery in 2021. We remain committed to implementing programmes to lift 100 million Nigerians out of poverty over the next 10 years.
4. As skills’ deficits limit employment opportunities in the formal economy, various skills’ development programmes are being implemented simultaneously to address this problem frontally. For instance, the Government is implementing the Special Public Works programme to provide employment opportunities to 774,000 youths across the 774 local government areas of Nigeria. We have also recently introduced the N75 billion Nigeria Youth Investment Fund, of which N25 billion have been provided in 2021 Budget.
5. We thank all Nigerians, for your perseverance and continued support during these difficult times. We remain unwavering in our commitment to actualize our vision of a bright future for everyone.
President Muhammadu Buhari presents a ₦13.08 trillion budget before a joint session of the National Assembly on Thursday, Oct 8, 2020, in Abuja.
Performance of the 2020 Budget
6. Distinguished and Honourable Members of the National Assembly, you will recall that the 2020 ‘Budget of Sustaining Growth and Job Creation’ was amended in response to recent fiscal pressures. I am glad to report that these efforts enabled us to effectively respond to the public health challenge of Coronavirus outbreak and moderate economic impact.
7. Pursuant to our revised assumptions, the amended 2020 Budget was based on a benchmark oil price of 28 US Dollars per barrel; oil production of 1.80 million barrels per day; and exchange rate of N360 to the US Dollar.
8. Based on these budget parameters, aggregate revenue of N5.84 trillion was projected to fund N10.81 trillion in expenditure. The projected deficit of N4.98 trillion, or 3.57 percent of GDP, is expected to be financed mainly by borrowing.
9. In 2020, average daily oil production was 1.88 mbpd up to June, as against the revised estimate of 1.80 mbpd for the entire year. However, the market price of Bonny Light crude averaged 40.79 US Dollars per barrel, significantly higher than the revised benchmark price of 28 US Dollars.
10. As at July 2020, the Federal Government’s actual revenue available for the budget was N2.10 trillion. This revenue performance was only 68 percent of our pro-rated target in the revised 2020 budget. At N992.45 billion, oil revenue performed well above our budget target, by 168 percent. Non-oil tax revenues totalled N692.83 billion, which was 73 percent of the revised target.
11. To improve independent revenue performance, I have directed that the cost profiles of Government Owned Enterprises (‘GOEs’) should be scrutinized and limits imposed on their cost-to-revenue ratios. Supervising Ministers have also been directed to ensure closer monitoring of the revenue generating activities and expenditures of the Government Owned Enterprises.
12. On the expenditure side, as at end of July 2020, a total of N5.37 trillion had been spent as against the pro-rated expenditure of N5.82 trillion. Accordingly, the deficit was N3.27 trillion. This represents 66 percent of the revised budgeted deficit for the full year.
13. Despite these challenges, we met our debt service obligations. We are also up to date on the payment of statutory transfers and staff salaries, while overhead costs have been significantly covered.
14. For the first time in recent years, we commenced the implementation of this year’s capital budget in the first quarter. As at 15th September 2020 a total of about N1.2 trillion had been released for capital projects. Every Federal MDA has received at least 50 percent of its 2020 capital expenditure budget, in line with my earlier directives.
15. Let me emphasise that revenue generation remains our major challenge. Nevertheless, Government is determined to tackle the persisting problems with domestic resource mobilization, as there is a limit to deficit financing through borrowing. The time has come for us to maintain a healthy balance between meeting our growing expenditure commitments and our long-term public financial health.
Key Achievements in the 2020 Fiscal Year
34. Over the last year, this Administration has implemented several priority projects. I am happy to report that much progress has been made on several fronts and our Government has delivered on key policies, programmes and projects in these priority areas.
16. In agriculture, we have recorded appreciable success in rice and other crops mainly through the Anchor Borrowers Programme and the Presidential Fertilizer Initiative, anchored by the Central Bank of Nigeria and the Nigeria Sovereign Investment Authority, respectively. We are also accelerating the construction of 337 rural roads around key agricultural corridors to enhance access to market and reduce post-harvest losses. These efforts have reduced the adverse impact of Coronavirus on our food availability, prices and security.
17. We have made progress on the railway projects connecting different parts of the country. The Lagos-Ibadan Line will soon be operational. The Abuja-Kaduna Line is running efficiently. The Itakpe-Ajaokuta Line was finally completed after over 30 years since it was initiated and commissioned in September 2020.
18. Arrangements are underway to complete the Ibadan-Kano Line. Also, work will soon commence on the Port Harcourt-Maiduguri Line and Calabar-Lagos Coastal Line, which will connect the Southern and Eastern States to the North, and the South-South as well as South-East to the North, and South-West, respectively.
19. The Second Niger Bridge is at about 46 percent completion. We hope to commission the project before the end of our tenure in 2023. We have awarded several contracts to rehabilitate, reconstruct and construct major arterial roads, in order to reduce the hardship to commuters and increase economic activity.
20. To bridge the infrastructure deficit, we are also implementing innovative financing strategies to pull-in private sector investment. The Infrastructure Company, which I recently approved, will become a world-class infrastructure development vehicle, wholly focused on making critical infrastructural investments in Nigeria. This Infrastructure Company will raise funding from the Central Bank of Nigeria, the Nigeria Sovereign Investment Authority, the Africa Finance Corporation, pension funds as well as local and foreign private sector development financiers.
21. Under the Road Infrastructure Tax Credit Scheme, we are undertaking the construction and rehabilitation of over 780km of roads and bridges, nationwide, to be financed by the grant of tax credits to investing business. Ongoing projects under this scheme include:
a. Construction and Rehabilitation of Lokoja-Obajana-Kabba-Ilorin Road Section II (Obajana-Kabba) in Kogi and Kwara States;
b. Construction of Apapa-Oworonshoki-Ojota Expressway in Lagos State; and
c. Construction of Bodo-Bonny road with a Bridge across the Opobo Channel in Rivers State.
22. To enhance good governance, we strengthened our anti-corruption agencies to ensure they work independently and jointly, while respecting the rule of law. We have also worked to address emergent cases of insecurity and insurgency, nationwide, with innovative approaches. Our security operations in the Niger Delta, North Central and North West are yielding desired results. We are determined to get rid of bandits, kidnappers and criminal behaviour from our midst.
Theme & Priorities of the 2021 Budget
23. Distinguished Senators; Honourable Members; let me now turn to the 2021 Appropriation Bill, which is designed to further deliver on the goals of our Economic Sustainability Plan. This Plan provides a clear road map for our post- Coronavirus economic recovery as a transitional plan to take us from the Economic Recovery and Growth Plan (2017 – 2020) to the successor Medium-Term National Development Plan (2021 – 2025).
24. In view of the many challenges confronting us, we must accelerate our economic recovery process, promote social inclusion and strengthen the resilience of the economy. The 2021 Appropriation has, therefore, been themed the ‘Budget of Economic Recovery and Resilience’. It is expected to accelerate the pace of our economic recovery, promote economic diversification, enhance competitiveness and ensure social inclusion.
Parameters & Fiscal Assumptions Underpinning the 2021 Appropriation
25. Distinguished Members of the National Assembly, the 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper set out the parameters for the 2021 Budget, which include:
a. Benchmark oil price of 40 US Dollars per barrel;
b. Daily oil production estimate of 1.86 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day);
c. Exchange rate of N379 per US Dollar; and
d. GDP growth projected at 3.0 percent and inflation closing at 11.95 percent.
Finance Bill 2020
26. Distinguished and Honourable Members; I have directed the Minister of Finance, Budget and National Planning to finalise the Finance Bill 2020, which will be forwarded for your kind consideration and passage into law, shortly after today’s 2021 Budget presentation. The Finance Bill is to support the realization of our 2021 revenue projections, adopt appropriate counter-cyclical fiscal policies and enhance the efficiency of fiscal incentives.
Tax Expenditure Statement
27. In compliance with the Fiscal Responsibility Act of 2007, we will prepare and publish, a Tax Expenditures Statement for 2019. The 2019 Statement will be the first of these annual Statements, setting out the estimated cost of tax exemptions, incentives and rebates provided under Nigeria’s revenue and other laws. The 2019 Statement is expected to contribute to public discussion on the use of our tax policies and system to achieve socio-economic development.
Federal Government Revenue Estimates
28. Based on the foregoing fiscal assumptions and parameters, total federally distributable revenue is estimated at N8.433 trillion in 2021. Total revenue available to fund the 2021 Federal Budget is estimated at N7.886 trillion. This includes Grants and Aid of N354.85 billion as well as the revenues of 60 Government-Owned Enterprises.
29. Oil revenue is projected at N2.01 trillion. Non-oil revenue is estimated at N1.49 trillion. As you will observe, the format of the 2021 Appropriation Bill has been modified to include budgeted revenues, no matter how small, for each MDA, to focus on internal revenue generation. Accordingly, I implore you to pay as much attention to the revenue side as you do to the expenditure side.
Planned 2021 Expenditure
30. An aggregate expenditure of N13.08 trillion is proposed for the Federal Government in 2021. This includes N1.35 trillion spending by Government-Owned Enterprises and Grants and Aid funded expenditures of N354.85 billion. For 2021, the proposed N13.08 trillion expenditure comprises:
a. Non-debt Recurrent Costs of N5.65 trillion;
b. Personnel Costs of N3.76 trillion;
c. Pensions, Gratuities and Retirees’ Benefits of N501.19 billion;
d. Overheads of N625.50 billion;
e. Debt Service of N3.124 trillion;
f. Statutory Transfers of N484.49 billion; and
g. Sinking Fund of N220 billion (to retire certain maturing bonds).
Fiscal Balance
1. The 2021 Budget deficit (inclusive of Government Owned Enterprises and project-tied loans), is projected at N5.20 trillion. This represents 3.64 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act, 2007. It is, however, to be noted that we still face the existential challenge of Coronavirus Pandemic and its aftermath; I believe that this provides a justification to exceed the threshold as provided for by this law.
31. The deficit will be financed mainly by new borrowings totalling N4.28 trillion, N205.15 billion from Privatization Proceeds and N709.69 billion in drawdowns on multilateral and bilateral loans secured for specific projects and programmes.
Statutory Transfers
32. The sum of N484.49 billion provided for Statutory Transfers in the 2021 Budget represents an increase of N56.46 billion (or 13 percent) over the revised 2020 provision. The Statutory Transfer provisions are:
a. Niger Delta Development Commission – N63.51 billion;
b. North East Development Commission – N29.70 billion;
c. National Judicial Council – N110.00 billion;
d. Universal Basic Education Commission – N70.05 billion;
e. Independent National Electoral Commission – N40.00 billion;
f. National Assembly – N128.00 billion;
g. Public Complaints Commission – N5.20 billion;
h. Human Rights Commission – N3.00 billion; and
i. Basic Health Care Provision Fund – N35.03 billion.
33. In compliance with the Fiscal Responsibility Act 2007, all beneficiaries of Statutory Transfers will be required to provide the Budget Office of the Federation with periodic reports on the allocation and expenditure of funds for inclusion in the quarterly Budget Implementation Report.
Recurrent Expenditure
34. In our efforts to enhance national security and human capital development, a major part of the 2021 recurrent cost estimate is allocated to paying salaries and overheads in MDAs providing these critical public services. These include:
a. N227.02 billion for the Ministry of Interior;
b. N441.39 billion for the Ministry of Police Affairs;
c. N545.10 billion for Ministry of Education;
d. N840.56 billion for Ministry of Defence; and
e. N380.21 billion for Ministry of Health.
Personnel Costs
35. Personnel cost is still our largest single item of expenditure. In the 7 months to 31st July 2020, it accounted for 34 percent of total Federal Government spending and is projected at 33 percent of 2021 expenditure.
36. To check the incidence of payments to non-existent personnel and unauthorised allowances, only Federal staff that have been captured on the Integrated Personnel Payroll Information System (‘IPPIS’) platform will receive salaries.
37. All agencies have been directed to ensure that they obtain all necessary approvals before embarking on any fresh recruitment. Any breach of these directives will be severely sanctioned.
Debt Service
38. We remain committed to meeting our debt service obligations. Hence, we have provisioned N3.12 trillion for this in 2021, representing an increase of N445.57 billion from N2.68 trillion in 2020. A total of N2.183 trillion has been set aside to service domestic debts while N940.89 billion has been provided for foreign debt service. N220 billion is provided for transfers to the Sinking Fund to pay off maturing bonds issued to local contractors and creditors.
Overhead Costs
39. Total overhead costs of MDAs and Government Owned Enterprises are projected to rise to N625.50 billion in 2021, mainly due to the inclusion of the overheads of an additional 50 Government Owned Enterprises. Overhead provisions have also been made for newly created agencies. To keep a tab on running costs, MDAs must adhere to extant expenditure controls.
Capital Expenditure
40. An aggregate sum of N3.85 trillion is expected to be available for capital projects in 2021, as summarised below:
a. N1.80 trillion for MDAs’ capital expenditure;
b. N745 billion for Capital Supplementation;
c. N355 billion for Grants and Aid-funded projects;
d. N20 billion for the Family Homes Fund;
e. N25 billion for the Nigeria Youth Investment fund;
f. N336 billion for 60 Government Owned Enterprises;
g. N247 billion for capital component of Statutory Transfers; and
h. N710 billion for projects funded by Multi-lateral and Bi-lateral loans.
41. The 2021 capital budget is N1.15 trillion higher than the 2020 provision of N2.69 trillion. At 29 percent of aggregate expenditure, the provision moves closer to this Administration’s policy target of 30 percent.
42. Capital expenditure in 2021 remains focused on the completion of as many ongoing projects as possible, rather than the commencement of new ones. We have also made efforts to ensure equity in the distribution of projects and programmes in the proposed budget. I will be providing the National Assembly a list of some of the most critical projects which we must work collectively to ensure they receive adequate funding. Until projects reach completion, they do not deliver the dividends of democracy that Nigerians rightly deserve.
Highlights of the 2021 Capital Projects
43. Key capital spending allocations in the 2021 Budget include:
a. Power: N198 billion (inclusive of N150 billion for the Power Sector Recovery Plan);
b. Works and Housing: N404 billion;
c. Transportation: N256 billion;
d. Defence: N121 billion;
e. Agriculture and Rural Development: N110 billion;
f. Water Resources: N153 billion;
g. Industry, Trade and Investment: N51 billion;
h. Education: N127 billion;
i. Universal Basic Education Commission: N70 billion;
j. Health: N132 billion;
k. Zonal Intervention Projects: N100 billion; and
l. Niger Delta Development Commission: N64 billion.
44. The Ministry of Agriculture and Rural Development will facilitate the integrated development of its sector by promoting crops’ value chains; as well as providing rural roads, water and sanitation, veterinary and pest controls, grazing, food and strategic reserves, and access to inputs and extension services.
45. The 157 percent increase in the capital allocation to the health sector is to enhance the capacity to deliver healthcare services through the procurement of equipment, vaccines and other facilities. Two centres of excellence, as well as one Accident and Emergency Centre, will be equipped in Federal Teaching Hospitals in each geopolitical zone.
46. In addition, numerous Primary Health Care Centres will be equipped and upgraded across the six geopolitical zones. Furthermore, funds have been allocated for the expansion of Midwives Service Scheme in the six geopolitical zones. To enhance occupational safety, funds have been provided for the provision of Personal Protective Equipment for health workers.
47. The Ministry of Education’s capital allocation has been increased by 65 percent to improve the education of our children. Funds have been provided for the provision of scholarship awards to Nigerian students at home and abroad.
48. We have provided funds for the upgrade of security and other infrastructural facilities in our Unity Colleges nationwide. To improve access to education, we have made provision for the establishment of five new Federal Science and Technical Colleges. We have also provided for the payment of allowances to 5,000 teachers under the Federal Teachers Scheme.
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49. In line with our commitment to invest in Transportation Infrastructure, capital allocation to the Works and Housing sector is to facilitate the completion of several critical projects in 2021. I have directed the Minister of Finance, Budget and National Planning to provide a detailed breakdown of key infrastructural projects in her subsequent Press Briefing.
50. Key projects for implementation in the Power sector include several Rural Electrification Projects in the 36 States and Abuja, Rural Electrification Access Programme in Federal Universities, the Kaduna LPFO Gas Fired power Plant, the Mambilla Hydro Power Project and the Zungeru Hydropower Project.
51. Provisions have been made for legacy debts owed to local contractors compensation and resettlement of project-affected communities, the Renewable Energy Micro Utility (Solar) project, and the construction of transmission lines and substations nationwide. These project’s implementation is expected to have positive impact on electricity supply nationwide, as well as boost productivity and employment.
52. Projects to be implemented by the Ministry of Water Resources in 2021 include provision of potable water in the North East, construction of irrigation and dams across the country, and the provision of Water, Sanitation and Hygiene facilities.
53. The Ministry of Transportation has earmarked funds for projects such as the Lagos-Ibadan-Kano Line, Abuja-Kaduna Line, Port-Harcourt-Maiduguri Line and Itakpe-Ajaokuta-Warri Line. These projects, when completed, will minimize the cost of transporting people and goods around the country.
54. To maintain the peace in the Niger Delta region for economic and social activities to thrive, the provision of N65 billion for the Presidential Amnesty Programme has been retained in the 2021 Budget. In addition, the sum of N63.51 billion has been appropriated for the Niger Delta Development Commission and N24.27 billion has been provided for the capital projects of the Ministry of Niger Delta Affairs. These allocations should further support the development of the region by facilitating the completion of important ongoing projects, such as the East-West Road.
Government Fiscal Strategy in 2021
55. The government is already implementing several measures to overcome our fiscal constraints. In addition to the Strategic Revenue Growth Initiatives, we are leveraging technology and automation, as well as more effective monitoring of Independently Generated Revenues. Our efforts are aimed at addressing revenue leakages and redirecting scarce resources to the poor and vulnerable. These efforts include:
a. Deregulation of the price of petroleum products;
b. Ongoing verification exercise with IPPIS; and
c. Implementation of service-based electricity tariffs.
56. The new petrol pricing regime has freed up resources that was allocated to subsidise petroleum products. Similarly, the ongoing IPPIS verification exercise has closed gaps that encourage ghost workers or pensioners. The service reflective electricity tariffs will help resolve liquidity crisis in the power sector and make the sector attractive to foreign investment. These reforms have released trillions of Naira for allocation to other priority areas.
57. Distinguished Senators, Honourable Members, permit me to reiterate that the main thrust of our capital spending programme in 2021 is the completion of as many ongoing projects as possible across the country. Accordingly, we have prioritized projects that can be rapidly completed to benefit our people.
58. Distinguished Senators and Honourable Members, I note, with satisfaction, your determination to promptly consider and pass the Petroleum Industry Bill into law. The enactment of this Bill will boost confidence and attract further investments into our oil and gas sector, as well as increase revenues.
59. I fully understand the difficulties many of our people are going through with the implementation of our reform agenda. However, the measures we are implementing are necessary for sustainable public finance, better allocation of our scarce resources and improved public service delivery. As we implement these reforms, social safety nets will be implemented to cushion the effect of the most vulnerable of our citizens as well as business owners.
60. In furtherance of our inclusiveness agenda, the sum of N420 billion has been provided to sustain the Social Investment Programme. N20 billion has also been set aside for the Family Homes Fund, our Social Housing Programme. We have expanded our National Social Register, to include an additional one million Nigerians following the onset of Coronavirus. We recently introduced the N75 billion Survival Fund Programme to support and protect businesses from potential vulnerabilities. Furthermore, the Central Bank of Nigeria is reducing the interest rate on its intervention facilities from 9% to 5% with a 1-year moratorium till 31st March 2021, to provide concessional lending of:
. N100 billion to households and small businesses;
a. N100 billion to the healthcare and pharmaceutical industry; and
b. N1 trillion to large agricultural and manufacturing businesses.
61. We urge Nigerian businesses and individuals to make the most of these concessional credit facilities and other such opportunities.
Conclusion
62. Mr. Senate President, Mr. Speaker, Distinguished and Honourable Members of the 9th National Assembly; let me use this opportunity to, again, commend your firm commitment towards ensuring a very harmonious and productive relationship with the Executive. It is important to further deepen this relationship in the interest of our people.
63. As you review the 2021 Budget estimates, we believe the legislative process will be expedited to ensure its prompt passage to sustain the restoration of a predictable January – December fiscal year. In this regard, I have directed all Ministers and Heads of Agencies to be personally available for budget defence.
64. Let me re-emphasize that Nigerians expect that the 2021 Budget will contain only implementable and critical projects, which when completed, will significantly address current structural challenges of the economy, improve the business environment and accelerate economic recovery.
65. May I conclude my remarks by commending the National Assembly for its support in steering our economy during these very challenging times. We remain committed to sustaining this partnership. We believe that as we work together, we will jointly deliver on our joint mandate to our people.
Nigeria’s President, Muhammadu Buhari on Thursday presented before a joint session of the National Assembly a ₦13.08 trillion 2021 budget estimates for approval.
The President in his presentation of the budget estimates, which he tagged: “Budget of economic recovery and resilience,” explained that the main thrust of the document was to complete as many ongoing projects as possible.
President Muhammadu Buhari presents a ₦13.08 trillion budget before a joint session of the National Assembly on Thursday, Oct 8, 2020, in Abuja.
Buhari emphasised that priority is giving to projects that directly affect the lives of Nigerians.
Further in his presentation, the President stated that the 2021 budget would drive the MDAs to generate revenue, no matter how little.
He appealed to the legislature to pay attention to the revenue as much as they did to the expenditure, saying the 2021 budget was the roadmap for post-coronavirus economy and was aimed at accelerating the economic recovery process.
On crude oil projection, Buhari put the figure at $40bpd. He also projected the exchange rate at N379 to $1, GDP at three percent and inflation rate at 11.95 per cent.
He disclosed that for consideration and passage, he had directed the Minister of Finance to finalise the Finance Bill and transmit accordingly.
Allocation of funds as contained in the budget Include a ₦128 billion to the National Assembly, and a ₦380.21 billion to the health ministry.
The President noted that the 2021 budget has the following as critical areas: Multiple Rural Electrification Projects, Mambilla Hydro Power Project, Zungeru Hydro Power Project, among others.
For the Social Investment Programmes, ₦420 billion has been earmarked, while the Social Housing Programmes been allocated ₦20 billion.
Trafficking in Nuclear Materials Potential Threat to International Peace- President Buhari Warns
President Muhammadu Buhari Friday called for the total elimination of nuclear weapons, warning that trafficking in nuclear materials remains a potential threat to international peace and security.
In his video-message to the UN High-level meeting to commemorate and promote the International Day for the Total Elimination of Nuclear Weapons, President Buhari restated Nigeria’s commitment to the peaceful uses of nuclear energy.
He, however, expressed concern about the ‘‘slow pace’’ of States possessing nuclear weapons in disarming and decommissioning their existing nuclear facilities.
”We are concerned about the slow pace of progress by nuclear-weapon States to accomplish the total elimination of their nuclear arsenals, in accordance with their legal obligations and undertakings under Article VI of the Non-Proliferation Treaty (NPT),” President Buhari said.
Reiterating the need for the United Nations to continue engaging Nuclear Weapon States to speed up their efforts in disarming and decommissioning their existing nuclear facilities, the Nigerian leader said:
”The best approach to avoid damage associated with nuclear materials such as humanitarian crisis, accidents, disasters and criminality is the total elimination of nuclear weapons.”
President Buhari told world leaders at the virtual summit that the universalization of the NPT was dependent upon strict compliance with its three pillars namely, disarmament, non-proliferation and peaceful uses of nuclear energy.
He, therefore, enjoined other Member States to ratify the Treaty, noting that Nigeria had played a major role in negotiations leading to the coming into force of the African Nuclear-Weapon-Free-Zone Treaty (Pelindaba Treaty).
”We will continue to galvanize other African States to abide by the tenets of the Pelindaba Treaty. This is to ensure that the entire continent remains nuclear-free.
”While there are no easy solutions when we confront one of the gravest existential threats to the survival of the human race, we must remain undeterred and committed to a world of safety and security, one without the volatility posed by Nuclear Weapons,” he said.
The Nigerian President said it was noteworthy that this year marks the 75th Anniversary of the use of the atomic bomb on Hiroshima and Nagasaki in Japan that terminated the lives of thousands of people with severe long-term damages to the environment.
”The Anniversary is a forceful reminder of the catastrophic humanitarian consequences of nuclear weapons which undermine global, national and human security.
”Hence, there is need for all states to comply with applicable international laws and conventions to ensure a world free of nuclear weapons.
”We must, therefore, redouble our efforts to implement the provisions of the Nuclear NPT being the basis of Non-Proliferation Regime.
”This is to enable us achieve our desire for total elimination of nuclear weapons,’’ he said.
President Buhari used the occasion to highlight how Nigeria had demonstrated support for multilateral efforts towards the total elimination of nuclear weapons.
The President recounted that as one of the countries in the vanguard of the campaign for the total elimination of nuclear weapons, Nigeria signed the Treaty on the Prohibition of Nuclear Weapons on 20th September 2017 and recently ratified it on 6th August, 2020.
He noted that Nigeria joined like-minded states to sponsor the resolution titled “Taking Forward Multilateral Nuclear Disarmament Negotiations” which led to the legally binding Treaty on the Prohibition of Nuclear Weapons.
”Nigeria has been involved in the promotion of peaceful application of nuclear science and technology at national and international levels.
”Accordingly, Nigeria ratified several international treaties and conventions in the area of nuclear safety and security.
”We have also expressed political commitment to the IAEA Code of Conduct on safety and security of radioactive sources.
”More so, we have developed and approved the first International Atomic Energy Agency (IAEA) Integrated Nuclear Security Plan for the period 2010-2012 with further review to cover 2019-2021 period.
”In this connection, Nigeria commends the continued efforts of the IAEA, particularly its role in monitoring and inspecting nuclear facilities. We urge States to ensure compliance with IAEA safeguards and standards at all times as well as nuclear verification disarmament measures,” he said.
The President added that in order to facilitate the development and peaceful deployment of nuclear technology, Nigeria regulates and implements its energy aspiration through the relevant agencies.
”In addition, we are reforming the National Nuclear Security Sector to make it robust and reliable.
”These reforms involve the domestication of The International Convention for the Suppression of Acts of Nuclear Terrorism; Review of Nuclear Safety and Radiation Protection Act; and Review of Nigeria Nuclear Regulatory Authority Act.
”To further demonstrate our commitment to nuclear security, Nigeria successfully converted the Nigeria Research Reactor (NIRR-1), a 31 kilowatts miniature neutron source reactor from highly enriched uranium to low enriched uranium fuel.
”Also in 2019, the administration set up Nigeria’s Nuclear Security Support Centre and developed a Nuclear Security Detection Architecture to serve as a sustainable safeguard for maintaining nuclear security and detection of radioactive materials out of regulatory control,’’ he said.
President Buhari also reminded the Summit that the 1996 Advisory Opinion of the International Court of Justice affirms that the threat or use of nuclear weapons constitute a crime against humanity and a violation of international law, including international humanitarian law.
Femi Adesina
Special Adviser to the President
(Media & Publicity)
October 2, 2020
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