Kaduna State Governor, Nasir El-Rufai, has signed the 2016 Budget into law with a promise to fulfill all his campaign promises to the people of the state.
This comes as citizens of the state task the All Progressives Congress (APC) led government on ensuring that all the projects assigned and budgeted for in the 2016 Budget are completed.
The governor had on November 28, 2015, presented a budget of 171.7bn Naira to the State House of Assembly for approval, explaining that the budget was made up of 109.3b Naira capital and 62.4bn Naira recurrent expenditure.
The budget named, “Budget of Sacrifice, Restoration and Change” according to the Governor, is aimed at making Kaduna great again.
Speaking shortly after signing the appropriation bill into law, El-Rufai said the budget proposals restore the minimum of 60:40 ratio in favor of capital expenditure. He commended the State House of Assembly for the speedy passage of the budget and promised to implement it to the latter.
For some indigenes of the state, effective budget monitoring and implementation therefore, remains one sure route to the state’s economic and socio-infrastructural rejuvenation.
They pleaded with the government to revive the education, health and other critical sectors in the state, and also initiate programmes that would create more jobs for the teeming unemployed youths.
The people also urged the El-Rufai-led government to embark immediately on the diversification of the state’s economic framework by a way of strengthening its revenue base.
In the 2016 budget, Works, Housing and Transport got the largest share of 31,352,898,071.95 Naira with education coming behind with 27,548,679,874.2 Naira.
The Minister of Budget and National Planning, Mr Udoma Udo Udoma explained that the need to increase the investment on infrastructure as a way to revive the economy was highly considered in developing the 2016 budget.
“It’s an infrastructure and a job budget. We have also set aside money for social intervention as the President explained.
“We are going to recruit teachers, we are going to get loans for market women, various projects to stimulate the economy and create jobs.
“In terms of the money, we know it’s tough but we have to find the money and we believe that we have both domestic and foreign borrowing which we will be relying on,” he said.
He assured Nigerians that the implementation of the 2016 budget would be different as there is a new budget planning and implementation strategy designed to ensure constant monitoring on a monthly basis.
President Buhari had said that Nigeria remains committed to diversification of the economy with focus on the non-oil sector and the Minister of Solid Minerals, Dr. Kayode Fayemi, said that this had been expected.
“We are already diversified in terms of GDP. Oil only accounts for about 12% of the GDP but it accounts for the bulk of the revenue and that is where the challenge is.
“So we need to start driving the revenue in the direction of Agriculture, solid minerals, communications and other non-oil sectors so that we would have a much more realistic job creating, revenue generating economy,” he said.
The Minister of Agriculture, Audu Ogbe also had some cheering words for Nigerian farmers.
On the back of the President’s emphasis on diversification and the role expected of the Agricultural sector, Mr Ogbe promised “increased support in seed, training, extension services, post-harvest management and bigger overseas market for their produce.
“They will expect innovations in livestock, tree crops and the beautiful news is that the demand for Nigerian produce abroad has never been this high. That is what makes it marvellous.
“The private sector and Nigerians are also responding amazingly to the call for Agriculture but what excites me more about this budget are two things – the job issue for young people and the return of teacher training colleges in the local governments.
“That is probably the biggest change that this government has announced and Nigerians will see the difference.,” he promised.
With a promise that the 2016 budget would focus on addressing youth unemployment and cater for the vulnerable, Channels Television sought to know the plans of the Ministry of Labour and Productivity on the implementation of this key feature of the 2016 budget.
The Minister, Dr Chris Ngige, said, “What you should expect are jobs and more jobs. If you look at the budget it might not be clear to you what we have done. It’s an intervention budget for job creation.
“There are so many programmes that will run under them but all of them will end up being for job creation – giving employment.
“We will give employment that will be decent. For example, one of the programmes we are going to execute is the conversion of graduates into the teaching cadre. We’ll give them training after Youth Corps, 1-year post Youth Corps, 2-year post Youth Corps, that is the bar and we will start form there; get them into teaching.”
With a promise that the 2016 budget would focus on addressing youth unemployment and cater for the vulnerable, Channels Television sought to know the plans of the Ministry of Labour and Employment on the implementation of this key feature of the 2016 budget.
The Minister said, “What you should expect are jobs and more jobs. If you look at the budget it might not be clear to you what we have done. It’s an intervention budget for job creation.
“There are so many programmes that will run under them but all of them will end up being for job creation – giving employment.
“We will give employment that will be decent. For example, one of the programmes we are going to execute is the conversion of graduates into the teaching cadre. We’ll give them training after Youth Corps, 1-year post Youth Corps, 2-year post Youth Corps, that is the bar and we will start form there; get them into teaching.
“Whether you are an engineer or lawyer, we will convert you and use that as a transition job for the time being.
“We are also going to do skill acquisition. All our skill acquisition centre scattered all over the country are going to be raised into performing their roles.
“Our children should forget about white collar jobs for now. They should use their hands and learn how to lay tiles, make POP, do some carpentry work. These are jobs that are paying even in the western climes.
“Mr President has assured that Nigerians will smile. It’s a reflationary budget that you are seeing now.”
President Muhammadu Buhari has presented the 2016 national budget before a joint session of the National Assembly.
Buhari became the first Nigerian President to personally carry out this task in recent years.
This was acknowledged by the Senate President, Dr Bukola Saraki, in his opening speech.
Dr. Bukola Saraki also promised that the National Assembly is ready to swiftly pass 2016 Budget to quickly reflate the economy.
While stating that the 2016 budget would focus on addressing youth unemployment and cater for the vulnerable, President Buhari said that Nigeria remains committed to diversification to build and reflate the economy.
He stated that there would be changes in the way government conducts its business as all MDAs would be required to prepare and present their annual budgets on time. “We will align fiscal, monetary and investment policies,” said the President.
Another highlight of the President’s presentation was his announcement that petrol pump price would stay at 87 naira per litre “for now”.
President Muhammadu Buhari condemned the persistent long queues at filling stations across the country and promised to put in place urgent steps to alleviate the pains on Nigerians over the scarcity of the commodity
The 6.07 trillion Naira budget proposal for 2016 was predicated on $38 per barrel oil benchmark; 197 Naira exchange rate.
It is an increase of about 40 per cent from the previous budget of 4.357 trillion Naira which was presented to the National Assembly in 2014 by ex-president, Goodluck Jonathan’s administration.
The budget presentation by President Buhari is coming just as the National Assembly approved the Medium Term Expenditure Framework (MTEF).
The Federal Executive Council (FEC) had on December 7 approved the Medium Term Expenditure Framework which pegs the 2016 Budget at six trillion Naira.
Find below the full text of the President’s speech at the a joint session of the National Assembly.
I am honoured and privileged to present the 2016 Budget proposal. This is my first address before this joint session of the National Assembly. I have come here today, not only to address members of the National Assembly, but also to speak directly to the men and women who placed us here.
2. I know the state of our economy is a source of concern for many. This has been further worsened by the unbridled corruption and security challenges we have faced in the last few years. From those who have lost their jobs, to those young people who have never had a job, to the people in the North East whose families and businesses were destroyed by insurgents, this has been a difficult period in our nation’s history, lessons that we must not forget or ignore, as we plan for the future.
3. By June 2014, oil prices averaged $112 per barrel. But as at today, the price is under $39 per barrel. This huge decline is having a painful effect on our economy. Consumption has declined at all levels. In both the private and public sectors, employers have struggled to meet their salary and other employee related obligations. The small business owners and traders have been particularly hard hit by this state of affairs.
4. Fellow Nigerians, the confidence of many might be shaken. However, I stand before you today promising that we will secure our country, rebuild our economy, and make the Federal Republic of Nigeria stronger than it has ever been.
5. The answers to our problems are not beyond us. They exist on our farmlands; our corporations; in the universities in the hearts and minds of our entrepreneurs; through the gallantry of our Armed Forces; and the resolute spirit of Nigerians, especially the youth, who have refused to give up despite all the obstacles confronting them.
6. This Budget proposal, the first by our Government, seeks to stimulate the economy, making it more competitive by focusing on infrastructural development; delivering inclusive growth; and prioritizing the welfare of Nigerians. We believe that this budget, while helping industry, commerce and investment to pick up, will as a matter of urgency, address the immediate problems of youth unemployment and the terrible living conditions of the extremely poor and vulnerable Nigerians.
7. In the medium to longer term, we remain committed to economic diversification through import substitution and export promotion. This will build resilience in our economy. It will guarantee that the problems we have today, will not confront our children and their children. This shall be our legacy for generations to come.
2015: A Year of Global and Domestic Challenges
8. Today, it is widely acknowledged that the global economy has slowed down. This is particularly the case with emerging markets such as Nigeria. However, despite the weak emerging market growth rates, our domestic security challenges, declining oil prices, and the attendant difficulties in providing foreign exchange to meet market demands, the Nigerian economy grew by 2.84% in the third quarter of 2015.
9. We have, and will continue to implement strategies that will maintain macroeconomic stability and manage the oil price shocks we are experiencing.
10. Upon the inauguration of this administration on 29th May 2015, we engaged key stakeholders from various sectors of our economy and interfaced with the heads of Ministries, Departments and Agencies (MDAs) in order to understand the true state of our nation. What we found prompted us to take certain strategic decisions.
11. On the economy, we injected new leadership at the helm of our revenue generating agencies including the Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Corporation (NNPC), Nigerian Communications Commission (NCC), and the Nigerian Customs Service (NCS). We implemented the Treasury Single Account (TSA) which, so far, has provided greater visibility of Government revenues and cash flows. We intervened to support States to navigate their fiscal challenges by restructuring their commercial bank loans and by providing facilities to enable them to pay salary arrears.
12. We have demonstrated a strong will to fight corruption. I am sure you will agree that the sheer scale of corruption and impunity of the past explains in part, the economic challenges we now face. On these initiatives, and the many more to come, we shall not be deterred. We will pursue the recovery of everything that belongs to the people of Nigeria. No matter where it is hidden. No matter how long it will take.
2015 Budget Performance
13. Distinguished and honourable members of the National Assembly, I now present a review of the 2015 Budget. That Budget was based on a benchmark oil price of $53 per barrel, oil production of 2.28 million barrels per day and an exchange rate of N190 to the US$.
14. The projected revenue was N3.45 trillion, with an outlay of N4.49 trillion, implying a deficit of N1.04 trillion. Due largely to under-provisioning by the previous administration for fuel subsidy and the costs required to support the military operations in the North East, the Government had to obtain National Assembly’s approval for a supplementary budget of N575.5 billion. I take this opportunity to thank all members of the National Assembly for the prompt passage of that Bill.
2016: Budget Assumptions
15. After reviewing the trends in the global oil industry, we have set a benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016. We have focused on non-oil revenues by broadening our tax base and improving the effectiveness of our revenue collecting agencies.
16. Also, with the full implementation of the Treasury Single Account, we expect significant improvements in the collection and remittance of independent revenues. To further support the drive for increased remittances, we will ensure that all MDAs present their budgets in advance, and remit their operating surpluses as required by section 22 of the Fiscal Responsibility Act.
17. We are determined to ensure that our resources are managed prudently and utilized solely for the public good. To set the proper tone, one of our early decisions was the adoption of a zero based budgeting approach, which ensures that resources are aligned with Government’s priorities and allocated efficiently. This budgeting method, a clear departure from previous budgeting activities, will optimize the impact of public expenditure.
18. In addition to the proper linkage of budgeting to strategic planning, we are enhancing the utilization of the Government Integrated Financial Management Information Systems (GIFMIS) to improve financial management. The recently established Efficiency Unit is working across MDAs to identify and eliminate wasteful spending, duplication and other inefficiencies. We engaged costing experts to scrutinize the 2016 budget proposals. They have already identified certain cost areas that can be centralized for economies to be made.
19. We have directed the extension of the Integrated Personnel Payroll Information System (IPPIS) to all MDAs to reap its full benefits. We will also strengthen the controls over our personnel and pension costs with the imminent introduction of the Continuous Audit Process (CAP). These initiatives will ensure personnel costs are reduced. Our commitment to a lean and cost effective government remains a priority, and the initiatives we are introducing will signal a fundamental change in how Government spends public revenue.
2016: Laying the Foundation for Sustainable Growth
20. The 2016 budget, as outlined, is designed to ensure that we revive our economy, deliver inclusive growth to Nigerians and create a significant number of jobs.
21. We aim to ensure macroeconomic stability by achieving a real GDP growth rate of 4.37% and managing inflation. To achieve this, we will ensure the aligning of fiscal, monetary, trade and industrial policies.
22. As we focus on inclusive growth, we are conscious of the current rate of unemployment and underemployment. This is a challenge we are determined to meet; and this budget is the platform for putting more Nigerians to work. I can assure you that this administration will have a job creation focus in every aspect of the execution of this budget. Nigeria’s job creation drive will be private sector led. We will encourage this by a reduction in tax rates for smaller businesses as well as subsidized funding for priority sectors such as agriculture and solid minerals.
23. As an emergency measure, to address the chronic shortage of teachers in public schools across the country, we also will partner with State and Local Governments to recruit, train and deploy 500,000 unemployed graduates and NCE holders. These graduate teachers will be deployed to primary schools, thereby, enhancing the provision of basic education especially in our rural areas.
24. We also intend to partner with State and Local Governments to provide financial training and loans to market women, traders and artisans, through their cooperative societies. We believe that this segment of our society is not only critical to our plan for growing small businesses, but it is also an important platform to create jobs and provide opportunities for entrepreneurs.
25. Furthermore, through the office of the Vice President, we are working with various development partners to design an implementable and transparent conditional cash transfer program for the poorest and most vulnerable. This program will be implemented in phases. Already, the compilation of registers of the poorest persons is ongoing. In the coming weeks, we will present the full programme, which will include our home-grown public primary school feeding and free education for science, technology and education students in our tertiary institutions. Indeed, this will mark a historic milestone for us as a nation.
The 2016 Budget
26. Distinguished members of the National Assembly, I now present, the 2016 Budget proposals of the Federal Government. Based on the assumptions I presented earlier, we have proposed a budget of N6.08 trillion with a revenue projection of N3.86 trillion resulting in a deficit of N2.22 trillion.
27. The deficit, which is equivalent to 2.16% of Nigeria’s GDP, will take our overall debt profile to 14% of our GDP. This remains well within acceptable fiscal limits. Our deficit will be financed by a combination of domestic borrowing of N984 billion, and foreign borrowing of N900 billion totaling N1.84 trillion. Over the medium term, we expect to increase revenues and reduce overheads, to bring the fiscal deficit down to 1.3% of GDP by 2018.
28. In 2016, oil related revenues are expected to contribute N820 billion. Non-oil revenues, comprising Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise duties, and Federation Account levies, will contribute N1.45 trillion. Finally, by enforcing strict compliance with the Fiscal Responsibility Act, 2007 and public expenditure reforms in all MDAs, we have projected up to N1.51 trillion from independent revenues.
29. Although we are working to diversify our economy, we will not lose sight of the need to restructure the oil and gas sector which has been marred by corruption and plagued with inefficiencies. Accordingly, I have directed the Petroleum Products Pricing Regulatory Agency (PPPRA) to adjust its pricing template to reflect competitive and market driven components. We believe this can lower input costs and attain efficiency savings that will enable PPPRA to keep the selling price for all marketers of petrol at N87 per liter for now.
30. The current fuel scarcity with long queues at petrol stations all over the country causing social dislocation is very unfortunate. Government profoundly apologizes to Nigerians for this prolonged hardship and misery. It is as a result of market speculators and resistance to change by some stakeholders. Government is working very hard to end these shortages and bring fuel to the pumps all over the country.
31. I have also directed the NNPC to explore alternate funding models that will enable us to honour our obligations in Joint Ventures (JVs) and deep offshore fields. We are confident that these measures can be achieved and will lower the burden that the traditional cash calls have imposed on our budget and cash flows as well as contribute towards shoring up our national reserves.
32. To deliver our development objectives, we have increased the capital expenditure portion of the budget from N557 billion in the 2015 budget to N1.8 trillion, in the 2016 budget. Distinguished and honourable members of the National Assembly, for the first time in many years, capital expenditure will represent 30% of our total budget. In future years we intend to raise the percentage allocation for capital expenditure.
33. This is a fulfillment of our promise to align expenditure to our long-term objectives, and a sign of government’s commitment to sustainable development. This increased capital expenditure commits significant resources to critical sectors such as Works, Power and Housing – N433.4 billion; Transport – N202.0 billion; Special Intervention Programs – N200.0 billion; Defence – N134.6 billion; and Interior – N53.1 billion. These investments in infrastructure and security are meant to support our reforms in the Agriculture, Solid Minerals and other core job creating sectors of our economy.
34. We will invest to safeguard lives and property.
35. We will invest in equipping our farmers with the right tools, technology and techniques.
36. We will invest in empowering and enabling our miners to operate in a safe, secure and humane environment.
37. We will invest in training our youths, through the revival of our technical and vocational institutions, to ensure they are competent enough to seize the opportunities that will arise from this economic revival.
38. Indeed, the future looks bright. And I ask that we all work together to make this vision a reality. The 223% year on year growth in capital expenditure demonstrates our desire to make Nigeria more competitive, and start the journey to deliver sustainable development in our country.
39. In fulfillment of our promise to run a lean government, we have proposed a 9% reduction in non-debt recurrent expenditure, from N2.59 trillion in the 2015 Budget to N2.35 trillion in 2016. Furthermore, we have budgeted N300 billion for Special Intervention Programs, which takes the total amount for non-debt recurrent expenditure to N2.65 trillion.
39. As I mentioned earlier, the Efficiency Unit set up by this Administration together with effective implementation of GIFMIS and IPPIS will drive a reduction of overheads by at least 7%, personnel costs by 8% and other service wide votes by 19%. Distinguished and honourable members, this budget will be executed to provide optimum value by ensuring every Naira spent by this Government, counts.
40. We will devote a significant portion of our recurrent expenditure to institutions that provide critical government services. We will spend N369.6 billion in Education; N294.5 billion in Defence; N221.7 billion in Health and N145.3 billion in the Ministry of Interior. This will ensure our teachers, armed forces personnel, doctors, nurses, police men, fire fighters, prison service officers and many more critical service providers are paid competitively and on time.
41. Distinguished and honourable members of the National Assembly, our 2016 borrowings will be principally directed to fund our capital projects. Furthermore, the sum of N113 billion will be set aside for a Sinking Fund towards the retirement of maturing loans; while N1.36 trillion has been provided for foreign and domestic debt service. This calls for prudent management on our part, both of the debt portfolio and the deployment of our hard earned foreign exchange earnings.
42. I am aware of the problems many Nigerians currently have in accessing foreign exchange for their various purposes – from our traders and business operators, who rely on imported inputs; to manufacturers needing to import sophisticated equipment and spare parts; to our airlines operators who need foreign exchange to meet their international regulatory obligations; to the financial services sector and capital markets who are key actors in the global arena.
43. These are clearly due to the current inadequacies in the supply of foreign exchange to Nigerians who need it. I am however assured by the Governor of Central Bank that the Bank is currently fine-tuning its foreign exchange management to introduce some flexibility and encourage additional inflow of foreign currency to help ease the pressure.
44. We are carefully assessing our exchange rate regime keeping in mind our willingness to attract foreign investors but at the same time, managing and controlling inflation to level that will not harm the average Nigerians. Nigeria is open for business. But the interest of all Nigerians must be protected. Indeed, tough decisions will have to be made. But this does not necessarily mean increasing the level of pain already being experienced by most Nigerians.
45. So to the investors, business owners and industrialists, we are aware of your pains. To the farmers, traders and entrepreneurs, we also hear you. The status quo cannot continue. The rent seeking will stop. The artificial current demand will end. Our monetary, fiscal and social development policies are aligned.
46. Mr. Senate President, Mr. Speaker, distinguished members of the National Assembly, in spite of the global economic uncertainties; we must remain steadfast in our commitment to steer this country back to greatness.
47. The Nigerian economy needs to move away from dependency on oil. Our growth must be inclusive. Nigerians must be part of the growth story. As a Government, we shall deliver security, jobs and infrastructure. This is the right of all Nigerians.
48. I know many people will say “I have heard this before”. Indeed, trust in Government, due to the abuse and negligence of the past, is at an all-time low. This means we must go back to basics. Our actions will speak for us. My team of dedicated, committed and patriotic Nigerians is well aware of the task ahead and I can assure you that we are taking on the challenge.
49. We will not betray the trust reposed in us.
50. We will welcome and be responsive to your feedback and criticisms.
51. We are here to serve. And indeed, Nigerians will get the service they have longed for and which they rightly deserve.
52. We as a Government cannot do it alone. We will require the support of all civil servants, the organized labour, industry groups, the press and of course, our religious and traditional institutions. This is a call for all of us to stand and serve our country.
53. This Budget represents a major step in delivering a new opportunity for Nigeria. It demonstrates our confident optimism that despite the challenging times, we have the will, resourcefulness and commitment to deliver prosperity to our people. And by the Grace of Almighty God and the sheer will and determination of the Nigerian people, we will come out stronger and more united than ever.
54. Thank you and God bless the Federal Republic of Nigeria.
The Federal Executive Council (FEC) has approved the Medium Term Expenditure Framework which pegs the 2016 Budget at six trillion Naira.
This is the outcome of the emergency Federal Executive Council meeting presided over by President Muhammadu Buhari.
Briefing State House correspondents after the meeting, the Minister of National Planning, Udo Udoma, who joined the Minister of Information, Lai Mohammed, said that the crude oil price would be $38, because of the uncertainties in the price of oil.
According to him the Federal Executive Council is optimistic that Nigeria will be capable of producing at least 2.2 million barrels of oil per day.
The FEC called it an expansionist budget which would be one trillion Naira more than that of 2015 and the Minister explained that the increase in the 2016 budget would be spent on capital projects because there is a need to address the infrastructure problems facing the nation.
Kaduna State Governor, Nasir El-Rufai, has presented the budget of the state for 2016.
El-Rufai presented the budget during a town hall meeting with indigenes of the state. The budget is 166 billion Naira.
According to the Governor, the aim of the meeting was to subject the budget to public scrutiny, whereby the people would make their inputs before the bill is finally presented to the House of Assembly for consideration in December.
The budget, which has 104 billion Naira for capital expenditure and 62 billion Naira recurrent, was presented to the stakeholders drawn from the three senatorial zones of the state.
Addressing the gathering, Governor El-Rufai decried a situation where huge annual budgets were approved in the past without being implemented, leaving a legacy of abandoned projects.
The Governor, while promising to put the citizens first in all his actions, said that the present administration remained determined to make the state great again by initiating projects and policies that would impact positively on their lives.
Governor El-Rufai said that the proposed budget would give special attention to programmes that would in turn create more jobs for the citizens, improve social infrastructure and ensure adequate security in the state.
Some of the programmes include; interventions in school feeding, planting of economic trees and waste collection, which are expected to create no fewer than 200,000 jobs.
The Governor also maintained that 2016 will have a significant shift from spending much resources on government officials, to providing infrastructure and services to citizens.
Consequently, he explained that the budget would restore the 60:40 ratio in favour of capital expenditure, as against the former system whereby recurrent expenditure got the higher allocation.
The Governor of Cross River State, Ben Ayade, has proposed a budget of 350 billion Naira for the 2016 fiscal year.
Christened “Budget of Deep Vision”, the 2016 budget, which is Ayade’s first budget as Governor, represents 273.7 per cent increase over the 2015 appropriation bill of the immediate past administration.
According to Governor Ayade, the increment was as a result of expected funds from Foreign Direct Investments and support for his signature projects by the Federal Government.
According to the Governor, the economic sector is to be allocated 179.7 billion Naira, representing 51.41 per cent, Social Services 53.01 billion Naira, representing 15.21 per cent. Regional Development will also take 53.4 billion Naira, representing 15.31 per cent while General Administration will gulp 63.2 billion Naira, representing 18.1 per cent.
The budget was presented to the State House of Assembly in Calabar, the Cross River State capital, on Monday.
While presenting the budget, Governor Ayade disclosed that, on the direct benefit of the budget to the citizenry, his administration was committed to intensifying effort to meet its recurrent obligation by exploring the available vast potentials for Internally Generated Revenue (IGR).
The Governor added that in a quest to develop the state, his administration had tried to ensure that the public expenditure structure that prioritises a higher capital budget over recurrent would be maintained.
He explained that the 2016 budget was structured on deliberate principle of capital/recurrent budget ratio of 84 per cent to 16 per cent in order to meet the demands.