Buhari Signs 2016 Budget, Highlights Of 2016 Budget, President Buhari’s Remarks At 2016 Budget Signing Ceremony [FULL TEXT]

President Muhammadu Buhari signs the 2016 Budget into law during a brief ceremony at the Presidential Villa in Abuja yesterday. From left is the Minister of State for Budget and National Planning Hajia Zainab Ahmed; Minister of Finance Kemi Adeosun; Minister Budget and National Planning, Sen. Udoma Udo Udoma; Speaker House of Representatives, Yakubu Dogara; Senate President Bukola Saraki; Vice President Prof Yemi Osinbajo; SSA to the President on National Assembly Matters (House of Reps.) Ita Enang and (at right) John Odigie-Oyegun, APC Chairman

President Muhammadu Buhari yesterday signed the 2016 Appropriation Bill into law, noting that the Act provides for aggregate expenditures of ₦6.06 trillion. 

Daily Trust/PREMIUM TIMES/Today News/GRAPHITTI NEWS report continues:

He said details of the approved budget and the strategic implementation plan would be provided by the minister of budget and national planning. Also noteworthy, is Minister of Budget and National Planning, Udoma Udo Udoma, saying at a State House briefing shortly after the budget was signed, that full implementation may not be achieved because the federal government was starting late.

The president said through the 2016 budget, titled ‘Budget of Change,’ the government seeks to fulfill its own side of the social contract. He said the document was intended to signpost a renewal of his government’s commitment to restoring the budget as a serious article of faith with Nigerians.

Buhari said his administration was committed to ensuring that henceforth the appropriation bill was presented to the National Assembly in time for passage before the beginning of the fiscal year. He said in designing this year’s budget, a deliberate choice to pursue an expansionary fiscal policy despite the huge decline in government revenues from crude oil exports was made.

“This is why we decided to enlarge the budget deficit at this time, to be financed principally through foreign and domestic borrowings. All borrowings will however be applied towards growth-enhancing capital expenditures,” the president said. He said the signing of the budget would trigger concerted efforts to reflate the economy, “a key element of which is an immediate injection of ₦350billion into the economy by way of capital projects.”

Buhari said to illustrate the government’s renewed commitment to infrastructural development, the 2016 budget allocated over ₦200billion to road construction compared to N18billion last year. He added that despite the current difficulties, “we will work extra hard to achieve our revenue projections. Our revenue generating agencies are coming under better management and are being re-oriented. The implementation of the Treasury Single Account (TSA) is expected to contribute significantly to improving transparency over government revenues.”

The president thanked the leadership and members of the National Assembly for their cooperation and he noted that his administration’s determined fight against corruption was resulting in improvements in the quality of public expenditure. “The continuing efforts to reduce recurrent expenditures should hopefully free up more funds for capital expenditure in 2017 and beyond,” he stated, stressing that he has heard the cries of Nigerians and shares their pain.

Buhari also said Nigeria was experiencing probably the toughest economic times in its history. “I want to commend the sacrifice, resilience and toughness of all Nigerians, young and old, who have despite the hardships continued to have hope and confidence of a great future for Nigerians. But permit me to say that this government is also like none other. We are absolutely committed to changing the structure of the Nigerian economy once and for all.”

“I cannot promise you that this will be an easy journey, but in the interest of so much and so many we must tread this difficult path. But I can assure you this government you have freely elected will work with honesty and dedication day and night to ensure that our country prospers and that the prosperity benefits all Nigerians,” Buhari said.

Minister of Budget and National Planning, Udoma Udo Udoma, at the aforementioned State House briefing, also said the 2017 budget would be presented to the National Assembly in October for the document to be passed before the end of the year, adding that this was to ensure that the implementation of next year’s budget begins in January.
“There is going to be extensive consultation with the National Assembly and non-governmental organizations,” the minister added.

Senate president Bukola Saraki said the National Assembly is looking forward to the implementation of the budget. “The passing of the appropriation bill is the most difficult all over the world. Even America that we copy sometimes the government is shut down, we didn’t see that in our case, it is a first time, is a new government. So these sorts of challenges are rare. But I’m happy we are all here to see that we’ve passed the budget and what we await now is implementation,” Saraki said.

The Senate President said: “I want to assure Nigerians that from the comment from the mouth of the president, our commitment is to see that the budget is  implemented, not just the assent. It is now the implementation, that is when Nigerians will begin to see the benefits”, he said.

Highlights Of 2016 Budget

President Muhammadu Buhari has finally signed 2016 Appropriation Bill into law, making it effectively an Act of the National Assembly.

The N6.06 trillion 2016 budget was signed on Friday, ending weeks of disagreement with the National Assembly.

The National Assembly passed the budget on March 23, but the president withheld his assent and returned the document.

The Presidency said the lawmakers added new projects and removed critical items proposed by the administration.

The two arms reconciled controversial figures, and transmitted a clean copy of the budget to the president on Thursday.

Here are highlights of the budget as passed by the National Assembly:

Aggregate expenditure — ₦6, 060,677,358,227

Statutory transfers – ₦351, 370,000,000

Debt service – ₦1, 475,320,000,00

Recurrent expenditure – ₦2, 646,389,236,196

Capital expenditure – ₦1, 587,598,122,031

Fiscal deficit – ₦2, 204,936,925,711.16

Deficit/GDP – 2.14 per cent

The parameters proposed by President Buhari were retained.

Oil price benchmark and crude oil production were left at US$38 per barrel and 2.2000mbpd respectively.

Similarly, the exchange was left at ₦197/USD1.

Tagged “Budget of Change”, Mr. Buhari presented the 2016 Appropriation Bill to joint session of the National Assembly last December, proposing ₦6.08 trillion as aggregate expenditure, before it was reduced by the lawmakers to ₦6.06 trillion.

President Buhari’s Remarks At 2016 Budget Signing Ceremony [FULL TEXT]

It gives me great pleasure today to sign the first full-year budget of this administration into law. I thank the leadership of the National Assembly, in particular, the Senate President and the Speaker of the House of Representatives, and indeed all members of the National Assembly for their cooperation in making this a reality.

The budget is intended to signpost a renewal of our commitment to restoring the budget as a serious article of faith with the Nigerian people. This Administration is committed to ensuring that henceforth the annual appropriation bill is presented to the National Assembly in time for the passage of the Act before the beginning of the fiscal year.

Through the 2016 budget, aptly titled “Budget of Change’’, the government seeks to fulfill its own side of the social contract. The Budget I have signed into law provides for aggregate expenditures of N6.06trn. Further details of the approved budget, as well as our Strategic Implementation Plan for the 2016 budget, will be provided by the Honourable Minister of Budget and National Planning.

I shall be speaking in more details about the Budget, its implementation and the over-all national economic and social policies of the Government in my address on May 29th, God willing.

In designing the 2016 budget, we made a deliberate choice to pursue an expansionary fiscal policy despite the huge decline in government revenues from crude oil exports. This is why we decided to enlarge the budget deficit at this time, to be financed principally through foreign and domestic borrowings. All borrowings will, however, be applied towards growth-enhancing capital expenditures.

The signing of the budget today will trigger concerted efforts to reflate the Nigerian economy, a key element of which is an immediate injection of N350bn into the economy by way of capital projects. To illustrate our renewed commitment to infrastructural development, the 2016 budget allocates over N200bn to road construction as against a paltry N18bn allocated for same purpose in the 2015 budget.

Despite the current difficulties, we will work extra-hard to achieve our revenue projections. Our revenue generating agencies are coming under better management and are being re-oriented. The implementation of the Treasury Single Account (TSA) is expected to contribute significantly to improving transparency over government revenues.

Our determined fight against corruption is resulting in improvements in the quality of public expenditure. The work of the Efficiency Unit, as well as other public financial management initiatives, are also contributing in this regard. The continuing efforts to reduce recurrent expenditures should hopefully free up more funds for capital expenditure in 2017 and beyond.

As I said in my New Year message, living in State House does not in any way alienate me from your daily struggles. I read the newspapers and listen to the TV and radio news. I hear your cries. I share your pains.

We are experiencing probably the toughest economic times in the history of our Nation. I want to commend the sacrifice, resilience and toughness of all Nigerians young and old who have despite the hardships continued to have hope and confidence of a great future for Nigerians. But permit me to say that this government is also like none other. We are absolutely committed to changing the structure of the Nigerian economy once and for all.

We are working night and day to diversify the economy so that we never again have to rely on one commodity to survive as a country. So that we can produce the food we eat, make our own textiles, produce most of the things we use. We intend to create the environment for our young peoples to be able to innovate and create jobs through technology.

I cannot promise you that this will be an easy journey, but in the interest of so much and so many, we must tread this difficult path. I can assure you that this government you have freely elected will work with honesty and dedication, day and night to ensure that our country prospers and that the prosperity benefits all Nigerians.

God bless Federal Republic of Nigeria.