Nigeria's
President presents 2013 budget to joint session of National Assembly
IKENNA ASOMBA
with
House
News, Vanguard
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| President Goodluck Jonathan (L) presenting the 2013 Budget Proposal before the joint session of the National Assembly in Abuja on Wednesday (10/10/12). Sitting Upper are: Senate President, David Mark and the Speaker, House of Representatives, Hon. Aminu Tambuwal. Sitting Lower: Clerk of the National Assembly, Alhaji Salisu Maikasuwa |
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| President Goodluck Jonathan heading to lay the 2013 Budget Proposal before the joint session of the National Assembly |
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| President Goodluck Jonathan laying before the joint session of the National Assembly, the 2013 Budget Proposal |
Two
months to the end of 2012, President of the Federal Republic of
Nigeria, Dr. Goodluck Ebele Jonathan, Wednesday, October 11, between 11.00am and 11.33am,
addressed joint session of the nation's National Assembly on the 2013
budget, in Abuja.
The
presentation which took place on the floor of the red chamber, saw
members of the House of Senate and House of Representatives present.
According to
the budget proposal entitled: “Fiscal Consolidation with
Inclusive Growth,” a total expenditure of N4.92 trillion
has been earmarked for the 2013 fiscal year. Recurrent
expenditure was put at N2.41 trillion, while N1.54 trillion will be
spent on capital projects.
In
his remark, Sen. David Mark, president of the Senate (upper chamber)
recalled the many challenges that have being associated with the
process of presenting the Nation’s budget in years past. He
reiterated the National Assembly’s right to scrutinize the Nation’s
budget emphasizing that the National Assembly is not a mere
mechanical rubber stamp used to carry out the bidding of the
executive arm. He promised that the legislators will carry out over
sight duties to ensure the efficient utilization of the Nation's
finances. The Senate President suggested that more realistic projects
should be in place towards economic growth.
President
Jonathan (GCFR), while addressing the members of both chambers
expressed delight over his ability to present the budget on time and
just a few days after the Independence Day celebration. He considered
this a good thing and went further to discuss the executive’s plan
of creating a strong economy for Nigeria, while been mindful of the
changing global economy.
Jonathan
explained that the budget has been written with the global economy
recovery, as the oil sector is unpredictable with a history of
fluctuating barrel prices. He added that the global economic
meltdown has affected the nation’s exports and his administration
is conscious of this. He promised that he and his team will apply
their best to ensure that Nigeria does not slope into an economic
meltdown.
The
country's achievements
While
recounting some improvements in the country, he said: “Irrespective
of the negative economic trends globally, one of our achievement is
the country being ranked an emerging economy by JP Morgan, indicating
a renewed investor confidence in Nigeria.”
Explaining
that saving costs was also vital in the 2013 budget, the President
highlighted the executive’s focus on key issues like power
generation and putting in place the finances to achieve this, noting
that, “there have been some improvement on housing and transport
amongst other sectors.
He
also highlighted some of his administration's achievements such as
the successful ‘YouWin’ project targeted at entrepreneurs
and a similar project on ground for women business owners and
emerging entrepreneurs.
Presidential
sympathy
Before
laying the 2013 budget to the joint chambers, Jonathan, however,
sympathized with the families of the victims in the recent violent
killings plaguing the country.
Green
Chamber's appraisal/comments
Meanwhile,
the vote of thanks was given by Speaker, House of Representative,
Hon. Aminu Waziri Tambuwal where he commended President Jonathan for
meeting the time frame to lay the budget before both chambers.
Tambuwal
reiterated that Law Makers are closer to the citizens than Mr.
President and his vice, Architect Namadi Sambo, while adding that the
recent oversight report of 2012 budget implementation by honorable
members is unimpressive.
He,
however, said both houses will look at the budget and deliberate on
the best outcome for the Nation and its people. He reminded the
President that legislators want him to succeed as this will yield a
positive impact on the people.
Some key allocations in the budget
proposal include:
Works – N183.5 billion;
Power – N74.26 billion;
Education – N426.53 billion;
Health – N279.23 billion;
Defence – N348.91 billion;
Police – N319.65 billion;
Agriculture & Rural Development –
N81.41 billion.
Full Text of budget speech (sic)
2013 Budget Speech: “Fiscal
Consolidation with Inclusive Growth”
PROTOCOL
1. It is my pleasure
and honour to present the 2013 Federal Budget Proposal before this
esteemed Joint Session of the National Assembly. I am particularly
delighted to present this Proposal to you earlier in the year, and
soon after the commemoration of our national independence, to signal
our commitment to evolving a new Nigeria. This Proposal is the
product of extensive consultations with key stakeholders and would
further translate the Government’s development plans into concrete
actions.
2. When I presented
the 2012 Budget, you will recall, I emphasized the fact that it would
be “a stepping-stone to the transformation of our economy and
country in our walk to economic freedom …”. I am glad to report
that we have made progress in this regard. Today, in the face of
critical resource constraints, the defining moment of our work is in
actualizing our promises to Nigerians. We need to create a structured
economy where everybody plays by the same rules, and contributes
their fair bit. That is the Nigeria our heroes past craved for; that
is the Nigeria we believe in; and that is the Nigeria we are building
together.
GLOBAL ECONOMIC DEVELOPMENTS
3.
As we build this nation and walk the path of development, we
must be mindful of the realities of our circumstances and those of
the changing global economy. This Budget Proposal was therefore
designed against the backdrop of global economic uncertainty. By the
end of the second quarter of this year, the global economy was
recovering but at a very slow pace. Growth in a number of major
emerging market economies, has been lower than forecast. Overall,
global growth is projected at 3.3% in 2012 and 3.6% in 2013.
President Jonathan, Senate President
David Mark and House Speaker Aminu Tambuwal during the budget
presentation, Wednesday, in Abuja. Photo: State House.
4. The uncertainty
surrounding the global economy, which could have adverse effects on
commodity prices, highlights the downside risks for our economy. The
oil market is well known for its volatility. We recall the 2008
experience at the height of the global economic downturn when oil
prices fell almost overnight from $147 per barrel to $38 per barrel.
This threat of oil price volatility remains constant and underscores
the need to rely on a robust and prudent methodology to estimate the
benchmark price.
5. The global
economic slowdown can also have far-reaching implications for the
demand for our export commodities, given that the Euro zone and the
USA account for over 50% of the nation’s crude oil exports. These
global developments are also being transmitted to our economy through
a dampening effect on foreign capital inflows and remittances by
Diaspora Nigerians. Fellow Nigerians, these are uncertain times in
the world economy, and my Administration is taking necessary steps to
mitigate possible adverse effects of the global economic slowdown on
Nigeria. I assure you that we are going to build up the necessary
savings to protect the economy against a possible global recession or
a slow recovery.
DEVELOPMENTS IN THE DOMESTIC
ENVIRONMENT
6. In spite of the foregoing,
our economy has done relatively well. Over the past nine months,
through a number of initiatives, we have created new jobs directly
and supported many young entrepreneurs running SMEs to create jobs.
Nigeria is looking to become more self-reliant again in food
security, and we are increasing local content in our manufacturing
processes and the oil and gas sector.
7. As at the end of
the second quarter, the economy recorded an impressive growth of
6.28% compared to 5.4% forecast for sub-Saharan Africa. It is
gratifying to note that the non-oil sector remains the main driver of
growth. There are also improvements in other macroeconomic
indicators. Inflation has dropped from 12.9% in June 2012 to 11.7% in
August 2012, and our goal is to reduce it further. Our foreign
reserves now stand at US$41.6 billion – the highest it has been in
over 2 years. We intend to continue with our programme of fiscal
discipline and prudent monetary policy in order to continue to
improve our country’s macroeconomic environment.
8. Furthermore, in
addition to being upgraded last year by Fitch and S&P rating
agencies, Nigeria has now been included in the JP Morgan Emerging
Markets Bond Index, signifying increasing investor confidence in our
economy. In addition, the World Economic Forum has upgraded our
ranking from 127 to 115 in the global competitiveness index.
9. Here in Nigeria,
we do not join the debate on fiscal consolidation versus growth
because we believe in the need to do both; hence, we are continuing
our focus of fiscal consolidation with inclusive growth. The fiscal
consolidation policy has helped to strengthen our finances with a
programmed budget deficit of about 2.85% of GDP in 2012, now
projected to drop to 2.17% in 2013. Moreover, the share of capital
expenditure in the total budget is increasing as we gradually reduce
recurrent expenditures and also develop non-oil revenue sources.
REVIEW OF THE 2012 BUDGET
IMPLEMENTATION
10. Fellow Compatriots, the
2012 Budget was focused on achieving Fiscal Consolidation with
Inclusive Growth using the budget balance as a fiscal anchor. In that
respect, while investing in key priorities, the budget also ensured
that the deficit followed a downward trend over the medium term. This
is being done through a more aggressive revenue collection drive and
prudent management of available resources.
11. On the
expenditure side, the implementation of the 2012 Budget is on track,
having commenced effectively in April when it became law. We have so
far released N711.6 billion to MDAs for the implementation of their
capital budgets while further releases are to follow shortly for the
fourth quarter. The continued implementation of the 2011 capital
budget in the first quarter of 2012, clearly affected the
implementation of the 2012 Budget.
12. I have taken a
personal interest in the budget implementation since May by chairing
weekly sessions with Ministers and Heads of parastatals on their
progress in this regard. We are determined to use the instrument of
the budget to improve the welfare of Nigerians. You would recall my
assurance to Nigerians that subsequent budgets will be presented
earlier to the National Assembly. It is in this spirit that I lay
this Proposal before this Assembly today, to give sufficient time for
deliberation on the Proposal and approval of the budget, and to
enable us commence implementation from January 1st 2013.
13. Let me stress
that Government remains focused on the tangible outcomes from the
implementation of the Appropriation Acts, not just the amounts spent.
In this respect, I have signed Performance Agreement Contracts with
my Ministers with a view to ensuring delivery of projects and
programmes in their respective budgets. The Ministers in turn, are
signing similar agreements with their Permanent Secretaries, Heads of
parastatals and Directors to cascade down the need for responsibility
and accountability. Key government officials with responsibility for
implementing different aspects of the budget will be appraised based
on these performance agreements. My goal is to ensure optimal
implementation of our annual budgets.
14. Government is
also determined to reduce the cost of governance. We are reviewing
the recommendations aimed at rationalizing Agencies of the Federal
Government with overlapping functions. This has been taken into
account in the preparation of the 2013 Budget, and we expect some
modest cost savings from this exercise in the course of the 2013
fiscal year. However, more significant progress will be made in 2014,
as we work with the Legislature to harmonise those Agencies that have
enabling laws, but which also have duplicative mandates.
SUBSIDY
REINVESTMENTS AND EMPOWERMENT PROGRAMME (SURE-P)
15.
You will recall that we had assured Nigerians that the proceeds
of the partial withdrawal of petroleum subsidies will be applied to
implementing the Subsidy Reinvestment Programme (SURE-P). The
implementation of this programme is continuing over the medium-term.
16. In the 2012
fiscal year, we had voted N180 billion for the implementation of
social safety net programmes, road and rail infrastructure projects.
So far, N36.5 billion of this amount has been utilized to support
maternal and child health programmes as well as mass transit, roads
and rail projects and job creation through the Community Services and
Public Works programme. The SURE-P Board under the able chairmanship
of Dr. Christopher Kolade is presently working hard to ensure the
successful oversight of the implementation of this programme. We are
grateful to them for their hard work and patriotism.
KEY ACHIEVEMENTS IN THE 2012 FISCAL
YEAR
17. In the 2012 Budget, Government
outlined some projects and programmes that were to be implemented in
key sectors of the economy in order to improve the livelihood of
Nigerians. We have numerous activities in various sectors such as:
Power, Health, Agriculture, Education, Housing, Transport, Aviation,
etc. Let me highlight a few of these sectors.
Power
18. The
Power Sector Reform is on course. Our efforts have begun to pay off
as we have improved power supply to various parts of the country. Our
gas-to-power and other initiatives are making this possible, but I
acknowledge the fact that we still have a long way to go. As you may
be aware, the ongoing privatisation of the generation and
distribution companies has reached an advanced stage. In some cases,
Preferred Bidders have already emerged. When completed, the
programme will bring into the sector significant private investment,
along with the requisite power output.
19. We have accomplished
a number of goals in the Power sector reform programme in line with
the Roadmap, including:
a. Completion of new
units at our thermal power stations, to increase generation;
b.
Rehabilitation of existing power infrastructure, which has
yielded up to 1,000 mega watts of additional electricity;
c.
Fast-Tracking 3 NIPP projects, which will bring an additional
1,055 mega watts by the end of the year; and
d.
Facilitating a power and gas financing package, which includes
Government Guarantees, proposed Infrastructure Bonds of about
$1billion, and $150 million of external funding from the African
Development Bank to support continued gas supply and the
liberalization of the power sector.
Agriculture
20.
My Administration has instituted key policy reforms to
establish staple crop processing zones aimed at attracting the
private sector into areas of high production, reducing post-harvest
losses, and adding value to locally produced commodities. So far we
have succeeded in attracting $7.8 billion investment commitments to
the agricultural sector. These investments and the value chain
approach being used to transform the sector have the capacity to
create 3.5 million additional jobs in the medium term by 2015.
• You will recall
that Government provided incentives to support cassava value chains,
including zero duty on machinery and equipment to process high
quality cassava flour. Cassava bread is increasingly commercially
available with 20% cassava flour content. In addition, a total of one
million metric tonnes of dried cassava chips, are being exported to
China this year.
• Achieving
self-sufficiency in rice production in 2015 remains our target. In
response to our new fiscal measures, 13 new private sector rice mills
with a capacity of about 240,000 metric tonnes have been established.
These mills buy and process local paddy and create employment for
Nigerians.
Housing
21.
Fellow Nigerians, the provision of affordable housing is one of
the Administration’s strategic imperatives for guaranteeing our
citizens’ productivity and well-being. We are creating an enabling
environment for the private sector to produce much needed housing,
whilst creating jobs in the process. To facilitate this, I will be
holding a presidential retreat on Housing in early November, to
discuss policy and modalities for dealing with land titling issues,
developing an affordable mortgage finance system and reducing the
high cost of housing construction.
22. In the meantime,
under various social housing programmes, close to 2,000 housing units
have been completed, while over 24,000 housing units are at various
stages of completion. This is outside housing being constructed for
the use of the Armed Forces and Paramilitary services. The Federal
Government has entered into Partnership Agreements with several
States for the provision of 6,000 housing units. Another 600 housing
units have already been completed under the direct construction
scheme of the Federal Housing Authority in these States. Gradually,
we are ensuring that more Nigerians enjoy the benefits of having
their own homes.
Transport
23.
You are already familiar with the improvement in the
functioning of our ports, the details of which I provided in my 52nd
Independence Anniversary Speech. With regard to Rail transport, in
our continuing effort to boost infrastructure development in the
country, work is ongoing to rehabilitate the rail system across the
country. These include the Lagos-Kano line as well as the Port
Harcourt-Maiduguri line. Our people have started enjoying rail
service again.
24. Our railway
modernisation programme is progressing with the Abuja-Kaduna line now
at 46% completion, while work on the Lagos-Ibadan line is to commence
soon. We also expect to complete the Itakpe-Ajaokuta-Warri line in
2013. In the same vein, we are fast-tracking the implementation of
the mass transit Abuja Light Rail system. When completed, it will
improve transportation for all residents in the FCT, especially
workers living in the satellite towns.
25. Inland Waterways:
Our inland waterways programme is on track to boost commerce in the
surrounding communities, and I had the pleasure of commissioning the
Onitsha Inland Port on 30th August 2012.
Aviation
26. We
are working hard to improve the regulatory regime and safety of the
Aviation sector and will continue to look for ways to support its
development. This Administration identifies this sector as a key part
of the Transformation Agenda. As such, we have embarked on a
comprehensive programme to transform our airports to world-class
standards and improve air travel safety standards across the
country.
27. For instance, the remodelling of
airport terminals and the upgrading of airport runways are presently
at advanced stages of implementation across virtually all our
airports. In addition, we have just concluded arrangements to
commence the construction of five brand new terminals in Kano, Port
Harcourt, Lagos, Abuja and Enugu, and six perishable cargo terminals,
early next year. In line with international best practice, these new
terminals will be private sector-managed.
28. Roads: We know
that Nigerians are disturbed about the state of our major highways.
We are addressing this issue frontally. With the rains receding, the
Ministry of Works will intensify the construction and rehabilitation
of major roads in the country, for example, the dualization of the
Abuja-Lokoja road, the Benin-Ore-Shagamu road, and the Kano-Maiduguri
road. Also, the Enugu-Port-Harcourt road rehabilitation has been
awarded to four contractors in order to fast-track its completion. It
is gratifying to note that resources from the Petroleum Subsidy
Reinvestment Programme are being used to supplement the regular
budget for these projects.
The Petroleum Sector
29.
The petroleum sector continues to play a crucial role in our
economy, even as we seek diversification. In this regard, we are
taking steps to modernise the sector. A robust Petroleum Industry
Bill (PIB) has been delivered as promised to the National Assembly
for consideration. When passed into law, the Bill will provide the
new legal framework that will govern Nigeria’s Oil and Gas
industry. This Bill, which encompasses major reforms, will
encourage additional investments in the sector, create accountability
and transparency, and ensure that the management of our petroleum
sector is commercially driven.
30. Our gas to power
initiatives are moving firmly ahead, with the 12-month gas supply
emergency plan already yielding more than the targeted volumes of gas
for power generation.
31. With respect to
the Petroleum Subsidy Programme, Government is succeeding in
substantially cleaning up the management of the petroleum subsidy
regime. We are tightening up the payment regime, to weed out
corruption while working hard to recover monies fraudulently obtained
from the subsidy regime. The EFCC is prosecuting those found wanting
and the efforts to crack down on corruption in this sector will
continue.
32. On Frontier
Exploration, the Government’s drive to build up the nation’s oil
reserves through exploration of new frontiers for oil and gas
production is beginning to yield results with news of the discovery
of crude oil in some inland sedimentary basins in the country. These
include the Chad Basin, Benue Trough, Yola Basin and Anambra Basin
amongst others. We are determined to further develop on these
findings and expand the scope of such explorations. To support this,
we have raised the provision for frontier exploration services from
N12 billion in 2012 to N16 billion in 2013.
Job Creation
33.
Fellow Compatriots, in spite of the economic growth noted
earlier, it is clear that as a nation, we still face economic
disparities across the country. This constitutes an obstacle to
sustainable development as it limits improvement in living standards,
output and social cohesion which are key factors for achieving
inclusive growth. Our challenge therefore, transcends how to achieve
growth. Our objective is to achieve inclusive growth by identifying
and developing job creation opportunities. We have mentioned the 3.5
million jobs we aim to create in agriculture and more jobs in the
housing and construction sectors, solid minerals sector, aviation and
the creative industry.
34. In my
Independence Day Speech, I spoke of the 80,000-110,000 jobs we are
supporting young entrepreneurs to create through the YouWin
programme. We have received numerous testimonies from young men and
women who have been able to expand their businesses through the
programme. We have just launched a second round of the competition
targeting only women entrepreneurs. Across the country, our youth are
developing new ideas and enterprises, and we must support them.
35. I launched the
Community Service, Women and Youth Empowerment Programme (CSWYEP)
under the SURE-P in February 2012. This is now working in pilot phase
in 14 states, and to be replicated in other states in 2 weeks. We
also have the Graduate Internship Programme, in which participating
private companies provide one-year internships to 50,000 graduates,
paid by the Federal Government. So far, 700 firms, and 20,000 young
graduates have applied to participate in this scheme.
36. Fellow Nigerians,
even as we review our achievements in 2012, we are also conscious of
the unprecedented floods, which have ravaged many parts of our
country, displacing tens of thousands of fellow Nigerians, and
causing massive destruction of property, farmlands, and
infrastructure across the country. My heartfelt sympathy goes to the
affected families and communities.
37. Yesterday, I made
a broadcast on the Federal Government’s actions to deal with the
situation. I authorized the disbursement of N17.6 billion to States
and MDAs to help bring succour to our fellow citizens affected by the
floods. This will complement ongoing efforts by Federal and State
agencies, and private initiatives.
38. A Presidential
Technical Committee to properly assess the extent of the impact, and
propose a rehabilitation strategy, has submitted an Interim Report
and is continuing to visit all the affected communities. I have also
set up a National Committee on Flood Relief and Rehabilitation to
assist the Federal Government to raise funds to mitigate the pains
and ensure effective post-impact rehabilitation of victims.
39. I have also
directed that the Ministry of Agriculture and Rural Development put
in place a flood recovery food production plan. This will include the
provision of early maturing varieties of maize, which mature in 60
days, to several flood affected areas. In addition,
flood-tolerant rice varieties are being procured for flooded rice
growing areas. We will also accelerate dry season production of major
food crops.
Security
40.
Fellow Compatriots, we are conscious of the fact that without
security, no meaningful development can take place in our land; and
our collective efforts at building the nation would only amount to
little. This is why we channelled a great deal of resources to
security in the 2012 Budget. We remain conscious of the impact of
security challenges facing the country and are determined to bring
the situation under control.
41. I commiserate
with all our citizens who lost loved ones in the recent Mubi killings
and all the other acts of senseless destruction of lives and
properties in the country. We have already made arrests in the Mubi
case, and I want to assure Nigerians that all the culprits will be
made to face the full weight of the law. I want to thank our brave
men and women of the security services for their commitment. I also
want to acknowledge and thank the various state Governors for their
cooperation and untiring effort to ensure peace in their domains. The
unity of Nigeria is not negotiable.
THEME OF THE 2013 BUDGET
Theme
42.
Distinguished Ladies and Gentlemen, you will recall that in
furtherance of my Administration’s efforts to transform our
economy, the 2012 Budget was established on four main pillars –
Macroeconomic stability; Structural reforms; Governance &
institutions; and Investing in priority sectors. The 2013 Budget
promotes continuity of these pillars and is designed with the theme:
fiscal consolidation with inclusive growth. We will remain prudent
with our fiscal resources but also ensure that the Nigerian economy
keeps growing and creating jobs. To this end, the government will
continue with the medium-term theme and interventions that are
consistent with the objectives of the Transformation Agenda.
Macroeconomic Stability
43.
One key plank upon which our economic transformation is based
is the achievement of macroeconomic stability. My Administration has
made significant progress in putting the finances of the nation on a
sound footing and laying the foundation for rapid and sustainable
growth. We will stay focused on maintaining macroeconomic stability
in Nigeria.
Budget Structure
44.
Now let me turn to the structure of the 2013 Budget. In recent
years, recurrent expenditure has tended to crowd out capital
expenditure in the national budget. Over the 2013-2015 medium-term,
my Administration will continue to implement measures aimed at
correcting this imbalance in the budget structure in a viable and
sustainable manner.
45. In the 2012
Budget speech, I noted that Government was going to focus on cutting
recurrent expenditure to sustainable levels through reduction of
waste, corruption and duplication in the functions of government
agencies. In this respect, the biometric verification of employees is
being extended to all agencies of Government, while the process for
rationalizing public agencies and reducing duplication of mandates
among different government agencies has begun, following the Report
of the Oronsaye Committee.
46. I am therefore
pleased to announce that the share of recurrent spending in aggregate
expenditure is set to further reduce from 71.47% in 2012 to 68.7% in
the 2013 Budget, while capital expenditure as a share of aggregate
spending is set to increase from 28.53% in 2012 to 31.3% in 2013.
Public Debt Management
47. Government will
continue to exercise fiscal prudence and limit its borrowing
requirements in compliance with the Fiscal Responsibility Act, 2007.
Consequently, we have developed a responsible domestic debt
management strategy that, for the first time, seeks to start paying
off our domestic debt rather than rolling it over. In this respect, a
sinking fund of N100 billion is being established in the 2013 fiscal
year to be used for repaying Government’s maturing debt obligations
and to curb the rising domestic debt profile. We have further reduced
our annual domestic borrowing from N852 billion in 2011, N744 billion
in 2012, and to N727 billion in 2013.
THE 2013 BUDGET
48.
The 2013 Budget is underpinned by the following parameters
which reflect Government’s prudent economic policies in an
uncertain global economic environment:
• Oil production of
2.53 million barrels per day, up from 2.48 million barrels per day
for 2012.
• Benchmark oil price of
US$75/barrel, a modest increase from the US$72/barrel approved in the
2012 Budget. This benchmark price is based on a well established
econometric methodology of estimating oil price moving averages.
•
Projected GDP growth rate which is now estimated at 6.5%
compared to 6.85% in the Fiscal Strategy Paper. The revision is
underpinned by the fact that the severe floods experienced over large
parts of the country are expected to impact on economic activity in
2013, especially agriculture. However, the growth prospects may
improve with the plan to boost dry season farming.
Revenue
49. Based on these
assumptions, the gross federally collectible revenue is projected at
N10.84 trillion, of which the total revenue available for the Federal
Government’s Budget is forecast at N3.89 trillion, representing an
increase of about 9% over the estimate for 2012. Non-oil revenue is
projected to continue to grow in 2013 as the ongoing reforms in our
revenue collecting agencies, and the implementation of initiatives to
further develop the non-oil sector continue to yield results.
Expenditure Proposals
50.
An aggregate expenditure of N4.92 trillion is proposed for the
main budget of the 2013 fiscal year, representing a modest increase
of about 5% over the N4.7 trillion appropriated for 2012. This is
made up of N380.02 billion for Statutory Transfers, N591.76 billion
for Debt Service, N2.41 trillion for Recurrent (Non-Debt) Expenditure
and N1.54 trillion for Capital Expenditure.
51. Based on the
above, the fiscal deficit is projected to improve to about 2.17% of
GDP in the 2013 Budget compared to 2.85% in 2012. This is well within
the threshold stipulated in the Fiscal Responsibility Act, 2007 and
clearly highlights our commitment to fiscal prudence. We are
determined to further rein in domestic borrowing, and this way,
ensure that our debt stock remains at a sustainable level.
52. Our focus on
critical economic and social sectors continues. Some of these sectors
are largely driven by private sector activity, while others require a
great deal of public sector support. Some key allocations are as
follows: Works – N183.5 billion; Power – N74.26 billion;
Education – N426.53 billion; Health – N279.23 billion; Defence –
N348.91 billion; Police – N319.65 billion; and Agriculture &
Rural Development – N81.41 billion.
53. The power and gas
sectors require a lot of investments to sustain our supply
improvements. We shall therefore complement available resources with
a proposed Infrastructure Euro Bond of about $1 billion in order to
complete gas pipelines and other infrastructure investments. We
have also programmed other grants and soft credits critical to
infrastructure and other sectors in our medium term external
borrowing plan.
54. The SURE-P will
continue with the expected resources of N180 billion in 2013
augmented by the projected 2012 unspent balances bringing the total
to about N273.5 billion. We hope to make further progress in the
programme, providing additional infrastructure investments and social
safety net schemes for Nigerians. I am pleased to also lay before
this esteemed Assembly, the 2013 Budget for the SURE-P.
Fiscal Policy
55.
To promote Nigerian agriculture and industry, we will continue
to implement supportive fiscal measures for some priority areas. You
will recall that in my 2012 Budget speech, I announced fiscal
measures on rice, cassava, wheat, and machinery for the agriculture
and power sectors. In this regard, I am pleased to announce the
following additional measures which will be effective from 1st
January 2013:
a. Sugar: Machinery
and spare parts imported for local sugar manufacturing industries
will now attract 0% duty; there will also be a 5-year tax holiday for
“sugarcane to sugar” value chain investors. Furthermore, import
duty and levy on raw sugar will be 10% and 50% respectively, while
refined sugar will attract 20% duty and 60% levy;
b. Rice: A 10% import
duty and 100% levy will be applied to both brown and polished rice;
c. Aircraft: All
commercial aircraft and aircraft spare parts imported for use in
Nigeria will now attract 0% duty and 0% VAT. This will appreciably
improve safety in our skies as newer fleet and less onerous
maintenance will prevail;
d. Solid Minerals:
Machinery and equipment imported for use in the solid minerals sector
will now attract 0% import duty and 0% VAT; and
e. Public Mass
Transit: In order to encourage the production of mass transit
vehicles in Nigeria, duty on Completely Knocked Down components (CKD)
for mass transit buses of at least 40-seater capacity, will now be
0%, down from 5%. Government is desirous of supporting green growth
and, in this regard, will explore options for providing incentives
for energy efficient vehicles from the 2014 fiscal year.
Gender Empowerment
56.
This administration is gender friendly and has worked to
improve the position of women in society and empower them
economically. Nevertheless, to further integrate women in the various
sectors, we have developed an innovative approach to mainstreaming
gender issues starting with 5 pilot ministries – Agriculture,
Health, Communication Technology, Water Resources and Works. These
ministries are signing MOUs with the Ministry of Women Affairs to
deliver on specific services for women.
a. The Ministry of
Agriculture, for example, will work with the Ministry of
Communication Technology to ensure that 5 million women farmers and
agricultural entrepreneurs receive mobile phones to be able to access
information on agro-inputs through an e-wallet scheme.
b. The Ministry of
Health, in addition to scaling up its ongoing “Save a Million
Lives” initiative, plans to give back health and hope to one-third
of the pool of young girls and women who have been waiting a long
time for V.V.F repairs through surgery and economic rehabilitation.
In addition, we are up-scaling routine immunization.
c. For 2013, the
Ministry of Works plans to increase the number of women that are
employed in public works programmes as contractors, workers and
project evaluators, setting itself a target of 35% for women in FERMA
rehabilitation work. In every geopolitical zone, at least 3 roads
leading to areas where women’s socio-economic activities are
concentrated, will be prioritised and completed.
57. To support these
activities, we have set aside the sum of N3 billion to be disbursed
to participating MDAs as incentives for them to deliver on these
targets. Our focus on empowering women is part of our agenda for
improving the country’s human development indicators. In this
regard, we shall not relent in our efforts to improve access and
quality in our health and education sectors.
Sports
58. The
performance of our sportsmen and women continues to strike an
important chord for all Nigerians across the country. We want to take
our sports to great heights again. We all recall our disappointment
with our performance in the recent Summer Olympics games in London.
At the same time, we were very delighted with the success of our
Paralympics athletes.
59. My Administration
is committed to addressing the challenges faced by our sports men and
women. Later this month, I will be hosting a Presidential retreat on
sports in order to strategise on ways to support our sports sector to
achieve greater heights.
CONCLUSION
60.
Mr. Senate President, Mr. Speaker, Distinguished and Honourable
Members of this esteemed Assembly, Fellow Nigerians, the Budget
Proposal I lay before you today represents our continued drive for
real and sustainable growth for the wellbeing of Nigerians.
61. It is a budget
that gives priority to our concerns for security, infrastructure,
food security and human development sectors. It is a Budget that
introduces a series of innovative features. This Budget is a push in
the right direction borne out of our well thought-out and articulated
developmental policies.
62. This is a budget
for every Nigerian. It belongs to the farmer, the investor, the
entrepreneur, the youth and the elderly. Yes, we have challenges, but
also incredible opportunities. Ours is the task of transforming these
opportunities into real, tangible outcomes which all our people can
experience and call their own. We need the cooperation of everyone to
make it work, to grow the economy, and to create jobs for our people.
I continue to call on all Nigerians to act. Making Nigeria work
begins with you and me.
63. Finally, I must
restate my appreciation of the contributions and cooperation of the
Legislature in discharging our collective responsibility to build the
nation of our dreams.
64. I look forward to
an expeditious consideration and passage of this Proposal, as we
strive to guarantee positive socio-economic transformation for the
benefit of our people.
65. May God bless the
Federal Republic of Nigeria.
66. I thank you.
NATIONAL ASSEMBLY CAREER
