The Nigerian President, Muhammadu Buhari on Tuesday formally presented an N8.6 trillion 2018 budget to a joint session of the Senate and the House of Representatives at the National Assembly. Dubbed the “budget of consolidation” the budget was baout 16% increase from the N7.44 trillion appropriated in 2017.
President Buhari said the 2018 budget will consolidate on the gains of the 2017. He noted that the nation’s economy will be stabilised by 2018 adding that GDP growth is also predicted. The President appealed to the National Assembly to continue to support the government’s policies to sustain the growth achieved so far.
He thanked the leaders and communities in the Niger Delta and pledged the administration’s continued support to sustain peace. The President also stated that the government is working hard to ensure that the Ogoni Clean-up is fast tracked and done well.
He also thanked the Opec for exempting Nigeria from the oil global cut, adding that this helped the nation sort out some issues. President Buhari also noted that the government put a lot of effort in place to enable the country move up in the ease of doing business.
He urged Nigerians to always do the right thing and not shy away from building a better nation. The President noted that the agriculture sector has been a contribution to non oil growth. He added that on the issue of security, Nigeria needs to address grievances through dialogue.
President Buhari pointed that the Ogoni cleanup will be funded by Nigeria’s international partners. He noted however that there is a provision for the clean up in the Nigerian budget. The President pointed out that Nigeria invested N1.2tr in capital projects in 2016, “We invested $500M in sovereign wealth fund.”
He pointed that stability had been restore in the Forex market and Nigeria’s external research had increase to $34bn. “Export outgrew imports in second quarter of 2017. We surpassed our target in ease of doing business ranking. Our tax to GDP ratio is one of the lowest globally.”
President Buhari promised that government shall continue to develop infrastructures. “Over 766 KM of road were built in 2016. Our power sector reforms remain a work in progress.” He stated that Nigeria is committed to developing green energy and other alternative power sources. “Despite low oil prices, this administration has invested additional $500million into the Sovereign Wealth Fund.
The agricultural sector plays a remarkable role in Nigeria’s exit from recession it is still the biggest employer of labour.” The President said 6 crop processing zones will be established in 2018 to develop infrastructure for production and processing of crops.
“We have purchased 10 locomotives and two coaches for the Abuja-Kaduna rail line. We plan to commission this in December 2017. Food security is an important aspect of this administration’s security agenda. Anybody involved with food smuggling is a threat to our national security and will therefore be dealt with,” President Buhari.
He added, “Total projected revenue in 2018 is expected to be N6.6trn. Total projected non oil revenue is expected to be N4,1trn. Total projected oil revenue in 2018 is expected to be N2.442trn. Total expected expenditure is N8.612trn.”
The President says Nigeria plans to borrow N1.6trn.
The President also said that 9.8 billion Naira will be set aside for the Mambilla power project and N300 billion for construction and rehabilitation roads. “Budget provision to the Niger Delta Development Commission has increased from N53.89 billion from N34.2 billion in 2017.
The Niger Delta Amnesty programme is sustained in the 2018 budget as President Buhari says all projects in the region would be completed. He says attention is being given to the northeast ravaged by insurgency as well as other areas where cattle rustlers operate,” he said.
President Buhari finally laid the budget of N8.6 trillion to the joint session.
The budget is projected at an oil price of $45 per barrel and an estimate of 2.3 million barrels per day. He added that the budget is further projected on an exchange rate of N305 to $1, a real Gross Domestic Growth of 3.5 per cent and inflation rate of 12.4 per cent.
The President is hailed as he hands the budget over to the leadership of the joint session. Earlier, the Senate President Bukola Saraki noted that all tiers of government must work together to prevent the nation from falling back into recession. The Senate president said “It is pleasing to know that the budget is being presented early.”
He added that how the 2018 budget is implemented will be a determining factor for the current administration. Saraki stated that revenues from taxes must be taken seriously as the nation cannot afford to turn a blind eye to revenue underperformance. “We must ensure that our borrowing is targeted at productive projects.”
He also called for more support for Made-in-Nigeria goods. He called for a good working relationship between the Executive and the Legislative arm to work for the good of the nation. He pledged that the National Assembly will work as a team with the Executive to ensure the speedy passage of the Budget.
We must grow our economy away from oil, as well as the need to increase non-oil revenue generation & collection.
