Here is the full text of President Muhammadu Buhari after signing the 2022 budget and finance bill into law on Friday at the state house.
PROTOCOLS
I am delighted to sign into law today the 2022 appropriation
bill as well as the enabling 2021 finance bill.
2. I would like to thank the senate president, the Speaker of the House of Representatives, and indeed all the Distinguished and Honourable Leaders and members of the national assembly for the expeditious consideration and passage of these bills.
3. I also appreciate the continuing cooperation and
commitment of the Ninth National Assembly to the restoration of a predictable
January to December fiscal year, as provided for in the constitution of the
Federal Republic of Nigeria.
4. The finance bill 2021 is particularly critical for the
successful implementation of the 2022 budget. Its passage further underscores
our firm commitment to regularly support federal appropriation bills with
finance bills designed to facilitate their implementation.
5. I equally appreciate the continued mutual understanding, collaboration and productive engagements between officials of the executive and the legislative arms of government which have made this expeditious consideration as well as the passage of the bills possible.
6. We must continue to sustain this partnership in the
interest of our people in order to ensure the effective implementation of the
budget and realisation of its laudable objectives.
7. As you will recall, I laid the 2022 appropriation bill
before the Joint Session of the national assembly on 7th October 2021, and
forwarded the 2021 finance bill thereafter. This administration remains
committed to the early presentation of the annual appropriation bill to the
national assembly to ensure its passage before the beginning of the fiscal
year.
8. As the 2023 budget is going to be a transition budget,
work will start in earnest to ensure early submission of the 2023-2025
medium-term expenditure framework and fiscal strategy paper as well as the 2023
appropriation bill to the national assembly.
9. Heads of ministries, departments and agencies (MDAs) are to cooperate with the ministry of finance, budget and national planning, more specifically with the budget office of the federation, to realise this very important objective.
10. The 2022 budget that I just signed into law provides for
aggregate expenditures of N17.127 trillion, an increase of N735.85 billion over
the initial Executive Proposal for a total expenditure of N16.391 trillion.
N186.53 billion of the increase however came from additional critical
expenditures that I had authorised the minister of finance, budget and national
planning to forward to the national assembly. The Minister will provide the
public with the details of the budget as passed by the national assembly, and
signed into law by me.
11. As I mentioned during the presentation of the 2022
appropriation bill, the fiscal year 2022 is very crucial in our efforts to
complete and put to use critical agenda projects, as well as improve the
general living conditions of our people.
12. It is in this regard that I must express my reservations
about many of the changes that the national assembly has made to the 2022
executive budget proposal.
13. Some of the worrisome changes are as follows:
a. Increase in projected FGN independent revenue by N400
billion, the justification for which is yet to be provided to the executive;
b. Reduction in the provision for Sinking Fund to Retire
Maturing Bonds by N22 billion without any explanation;
c. Reduction of the provisions for the Non-Regular
Allowances of the Nigerian Police Force and the Nigerian Navy by N15 billion
and N5 billion respectively. This is particularly worrisome because personnel
cost provisions are based on agencies’ nominal roll and approved
salaries/allowances;
d. Furthermore, an increase of N21.72 billion in the
Overhead budgets of some MDAs, while the sum of N1.96 billion was cut from the
provision for some MDAs without apparent justification;
e. Increase in the provision for Capital spending (excluding
Capital share in Statutory Transfer) by a net amount of N575.63 billion, from
N4.89 trillion to N5.47 trillion. Nevertheless, provisions for some critical
projects were
reduced. These include:
i. Reduction of N12.6 billion in the Ministry of Transport’s
budget for the ongoing Rail Modernisation projects,
ii. Reduction of N25.8 billion from Power Sector Reform
Programme under the Ministry of Finance, Budget and National Planning, and
iii. Reduction of N14.5 billion from several projects of the
Ministry of Agriculture, and introducing over 1,500 new projects into the
budgets of this Ministry and its agencies.
f. Inclusion of new provisions totalling N36.59 billion for
National Assembly’s projects in the Service Wide Vote which negates the
principles of separation of Powers and financial autonomy of the legislative
arm of government.
g. The changes to the original Executive proposal are in the
form of new insertions, outright removals, reductions and/or increases in the
amounts allocated to projects.
i. Provisions made for as many as 10,733 projects were
reduced while 6,576 new projects were introduced into the budget by the
National
Assembly.
ii. Reduction in the provisions for many strategic capital
projects to introduce ‘Empowerment ’projects. The cuts in the provisions for
several of these projects by the National Assembly may render the projects
unimplementable or set back their completion, especially some of this
Administration’s strategic capital projects.
iii. Most of the projects inserted relate to matters that
are basically the responsibilities of State and Local Governments, and do not
appear to have been properly conceptualized, designed and costed.
iv. Many more projects have been added to the budgets of
some MDAs with no consideration for the institutional capacity to execute the
additional projects and/or for the incremental recurrent expenditure that may
be required.
14. It is surprising that despite the National Assembly
increasing projected revenue by N609.27 billion, the additional Executive
request of N186.53 billion for critical expenditure items could not be
accommodated without increasing the deficit, while the sum of N550.59 billion
from the projected incremental revenues was allocated at the discretion of
National Assembly.
15. I signed the 2022 Appropriation Bill into law to enable
its implementation to commence on 1st January 2022. However, I will revert to
the National Assembly with a request for amendment and/or virement as soon as
the Assembly resumes to ensure that critical ongoing projects that are cardinal
to this administration, and those nearing completion, do not suffer a setback
due to reduced funding.
16. Despite the lingering adverse effects of COVID-19 on
budget implementation, I am happy with the success recorded in the
implementation of the 2021 Budget. The sum of N3.94 trillion that was provided
for the implementation of capital projects by MDAs during the fiscal year has
been released fully.
17. To enable MDAs to complete the implementation of their
2021 capital projects and optimize the impact of the capital budget on the
economy, they have been allowed to continue to expend the funds released for
their 2021 capital budgets till 31st March, 2022. I deeply appreciate the
understanding and speedy action of the National Assembly on this matter.
18. As the 2022 Budget will be the last full year budget to
be implemented by our Administration, its effective implementation is very
critical for delivering our legacy projects, promoting social inclusion and
strengthening the resilience of the economy.
19. The Ministry of Finance, Budget and National Planning
will implement all measures required to ensure timely and targeted release of
capital votes. All Ministries, Departments and Agencies are to effect early
commencement of project implementation, while ensuring productive use of funds
provided for achievement of the objectives set for their sectors.
20. Considering the incidence of new COVID-19 variants
globally, we will ensure timely implementation of measures provided for in the
2022 Budget to contain the spread of the virus and protect our people. We
continue to count on the collaboration of the State governments in our effort
to protect the lives and livelihood of our people.
21. To achieve the laudable objectives of the 2022 Budget,
we will further intensify our revenue mobilization efforts. I am optimistic
about our ability to finance the budget considering the positive global oil
market outlook and the continuing improvement in our non-oil revenues.
22. To achieve our revenue targets, revenue-generating
agencies, and indeed all MDAs must ensure prompt and full remittance of
collected revenues. Relevant Agencies must also ensure the realization of our
crude oil production and export targets. I also appeal to our fellow citizens
and the business community at large to fulfil their tax obligations promptly.
23. However, being a deficit budget, the specific Borrowing
Plan will be forwarded to the National Assembly shortly. I count on the
cooperation of the National Assembly for quick consideration and approval of
the Plan when submitted. All borrowings will be judiciously utilized and
invested in our future growth and prosperity.
24. MDAs are to liaise with the Bureau of Public Enterprises
and/or the Infrastructure Concession and Regulatory Commission to explore
available opportunities for public-private partnerships, concessions as well as
climate finance arrangements to fast-track the pace of our infrastructural
development.
25. I thank the Minister of Finance, Budget and National
Planning, the Minister of State, Budget and National Planning, the Budget
Office of the Federation, and all who worked tirelessly and sacrificed so much
towards producing the 2022 Appropriation Act that I signed today.
26. Let me conclude by commending the understanding,
sacrifice and resilience of our people during these challenging times. As a
Government, we remain committed to improving the general living conditions of
our people. We will continue to implement measures aimed at moderating the
unintended negative effects of policies on the citizenry.
27. I thank you most sincerely for your kind attention. May
God continue to bless the Federal Republic of Nigeria.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com