While some economists, academics and other Nigerians have described the 2021 Budget Proposal placed before the National Assembly by President Muhammadu Buhari on October 8, 2020, as a budget of hope, the Presidential candidate of the opposition Peoples Democratic Party (PDP) in the last election, Atiku Abubakar has described it as a “very grave and perhaps disturbing.”
A renowned scholar and economist, Dr. Abdulmaji Jamal, in an interview with the News Agency of Nigeria (NAN) in Bauchi described the N13.8 Trillion budget estimate as realistic. He explained that the benchmark of N379 to a dollar as envisaged by the estimate is reasonable, considering the nation’s dwindling oil revenue which may appreciate or indicate otherwise. He said that the 11.9 per cent inflation target of the expected annual expenditure was also reasonable. “But we must expect a significant reduction in the prices of consumables especially foodstuff,” he said. Similarly, Dauda Mohammed, a civil servant expressed optimism that the price of oil in the international market would appreciate and the budget target could be achieved as envisaged or even better. He added that the budget which was projected at the N 4.4 trillion deficit would definitely see the light of the day through exploiting the various existing revenue sources and blocking of leakages. Also, Alhassan Ibrahim, a businessman lauded the president for such an ambitious budgetary allocation. He said that the N420 billion and the N20 billion earmarked for the social investment and housing programmes would likely generate employment and provide sufficiency in shelter. Ibrahim called on the government to ensure full implementation of the budget while calling on the national assembly to ensure speedy and timely passage of the budget into law for development. And, in his reaction to the budget proposal, Atiku, in a statement he personally signed further looked at the budget as unpatriotic, and that “it will also be catastrophic for our nation’s economy.” Full text of Atiku’s statement is reproduced here: Looking at the 2021 Budget Proposal placed before the National Assembly by President Muhammadu Buhari on Thursday, October 8, 2020, a number of issues, very grave and perhaps disturbing issues arise. I could bring up several of them, but for the sake of its direness and consequence to our economy, permit me to address one very important issue. The budget deficit in the proposal is ₦5.21 trillion. This amount is just over 3.5% of Nigeria’s 2019 GDP. This is contrary to the Fiscal Responsibility Act of 2007, which provides in Part II, Section 12, subsection 1 that: “Aggregate Expenditure and the Aggregate amount appropriated by the National Assembly for each financial year shall not be more than the estimated aggregate revenue plus a deficit, not exceeding three per cent of the estimated Gross Domestic Product or any sustainable percentage as may be determined by the national Assembly for each financial year.” Nigeria had a GDP of approximately $447 billion in 2019. Three percent (3%) of this amount is $13. 3 billion, which at the current official exchange rate of ₦379 to $1, gives you a figure of ₦5.07 trillion. So clearly, the budget deficit of ₦5.21 trillion, as announced by President Muhammadu, is above 3% of our GDP and is therefore in contravention of the Fiscal Responsibility Act of 2007. Even more disturbing is the fact that our GDP has fallen sharply from its 2019 figures, and has been projected by the World Bank and other multilateral institutions at somewhere between $400 billion and $350 billion. Meaning that in actual sense, the ₦5.21 trillion budget deficit is actually far above the 3% threshold stipulated by the FRA. “That this escaped the notice of the Buhari administration shows a glaring lack of rigour in the formulation of the Budget. A very disturbing development. Furthermore, this deficit shows the precarious state of our national finances, which have since been overburdened by excessive borrowing on the part of the Buhari administration. It has not escaped my attention that the Fiscal Responsibility Act of 2007 makes provision for the National Assembly to raise the threshold of the budget deficit from 3% to a higher figure. However, if this is done, they will be serving this administration’s interests, not Nigeria’s, because the Act says that such a threshold must be sustainable. Is it sustainable when our budget makes almost as much provision for debt servicing, as it does for capital expenditure? As such, I call on the President, to recall this budget, and recalibrate it to reflect the provisions of the Fiscal Responsibility Act of 2007, and the current economic realities of the nation. To do otherwise will not only be unpatriotic, it will also be catastrophic for our nation’s economy.
A heavy duty trailer has broken down on Niger bridge in Koton karfi of Kogi State, cutting off hundreds of travellers. Report reaching us at Greenbarge Reporters said that vehicles coming the Southern parts of the country are stranded in the middle of the bridge and far behind the same way the vehicles coming from the North, including Abuja.
It was gathered that some drivers paid off their passengers and meandered out of the traffic jam to return to base. Such passengers either trekk across the bridge to board another vehicles to continue with the journey or return to where they were coming from .
Information has it that officers of the Federal Road Safety Commission and other security officers who tried to salvage the situation were helpless, as even the bridge is being threatened by over-filled water.
Houses around the bridge are already immersed in water.
President Muhammadu Buhari has presented before the joint session of the National Assembly, the nation’s 2021 appropriation bill of N13.08 trillion. It includes N1.35 trillion spending by Government-Owned Enterprises and Grants and Aid funded expenditures of N354.85 billion.
President Buhari, who tagged the budget as “the Budget of Economic Recovery and Resilience,” said that the budget is expected to accelerate the pace of our economic recovery, promote economic diversification, enhance competitiveness and ensure social inclusion.
Full text of the budget is reproduced here:
2021 BUDGET SPEECH:
Budget of Economic Recovery and Resilience
Delivered By:
His Excellency, President Muhammadu Buhari
President, Federal Republic of Nigeria
At the Joint Session of the National Assembly, Abuja
Thursday, 8th October 2020
PROTOCOLS
1. It is with pleasure that I present the 2021 Federal Budget Proposals to this Joint Session of the National Assembly.
2. Distinguished and Honourable Leaders, and Members of the National Assembly, at this juncture, I wish to commend your tremendous efforts in approving the revision of the 2020 – 2022 Medium-Term Expenditure Framework and Fiscal Strategy Paper, and passage of the 2020 Appropriation (Repeal and Amendment) Act, in response to the Coronavirus Pandemic.
3. Today marks an important occasion in our quest to accord the federal budget process the seriousness it deserves. In line with our commitment, we have worked extra hard to ensure early submission of the 2021 –2023 Medium-term Expenditure Framework and Fiscal Strategy Paper, as well as the 2021 Appropriation Bill. It is my sincere hope that the National Assembly will pass this Bill into law early enough to enable implementation by 1st January 2021, given the collaborative manner in which the budget was prepared.
4. In the course of this address, I will present the highlights of our budget proposals for the next fiscal year. The Honourable Minister of Finance, Budget and National Planning will, later, provide the full details of these proposals.
Recent Developments
1. The 2021 Budget was prepared amidst a challenging global and domestic environment due to the persistent headwinds from the Coronavirus Pandemic. The resulting global economic recession, low oil prices and heightened global economic uncertainty have had important implications for our economy.
2. The Nigerian economy is currently facing serious challenges, with the macroeconomic environment being significantly disrupted by the Coronavirus Pandemic. Real Gross Domestic Product (‘GDP’) growth declined by 6.1 percent in the second quarter of 2020. This ended the 3-year trend of positive, but modest, real GDP growth recorded since the second quarter of 2017. I am glad to note that, through our collective efforts, our economy performed relatively better than that of many other developed and emerging economies.
3. GDP growth is projected to be negative in the third quarter of this year. As such, our economy may lapse into the second recession in four years, with significant adverse consequences. However, we are working assiduously to ensure a rapid recovery in 2021. We remain committed to implementing programmes to lift 100 million Nigerians out of poverty over the next 10 years.
4. As skills’ deficits limit employment opportunities in the formal economy, various skills’ development programmes are being implemented simultaneously to address this problem frontally. For instance, the Government is implementing the Special Public Works programme to provide employment opportunities to 774,000 youths across the 774 local government areas of Nigeria. We have also recently introduced the N75 billion Nigeria Youth Investment Fund, of which N25 billion have been provided in 2021 Budget.
5. We thank all Nigerians, for your perseverance and continued support during these difficult times. We remain unwavering in our commitment to actualize our vision of a bright future for everyone.
Performance of the 2020 Budget
6. Distinguished and Honourable Members of the National Assembly, you will recall that the 2020 ‘Budget of Sustaining Growth and Job Creation’ was amended in response to recent fiscal pressures. I am glad to report that these efforts enabled us to effectively respond to the public health challenge of Coronavirus outbreak and moderate economic impact.
7. Pursuant to our revised assumptions, the amended 2020 Budget was based on a benchmark oil price of 28 US Dollars per barrel; oil production of 1.80 million barrels per day; and exchange rate of N360 to the US Dollar.
8. Based on these budget parameters, aggregate revenue of N5.84 trillion was projected to fund N10.81 trillion in expenditure. The projected deficit of N4.98 trillion, or 3.57 percent of GDP, is expected to be financed mainly by borrowing.
9. In 2020, average daily oil production was 1.88 mbpd up to June, as against the revised estimate of 1.80 mbpd for the entire year. However, the market price of Bonny Light crude averaged 40.79 US Dollars per barrel, significantly higher than the revised benchmark price of 28 US Dollars.
10. As at July 2020, the Federal Government’s actual revenue available for the budget was N2.10 trillion. This revenue performance was only 68 percent of our pro-rated target in the revised 2020 budget. At N992.45 billion, oil revenue performed well above our budget target, by 168 percent. Non-oil tax revenues totalled N692.83 billion, which was 73 percent of the revised target.
11. To improve independent revenue performance, I have directed that the cost profiles of Government Owned Enterprises (‘GOEs’) should be scrutinized and limits imposed on their cost-to-revenue ratios. Supervising Ministers have also been directed to ensure closer monitoring of the revenue generating activities and expenditures of the Government Owned Enterprises.
12. On the expenditure side, as at end of July 2020, a total of N5.37 trillion had been spent as against the pro-rated expenditure of N5.82 trillion. Accordingly, the deficit was N3.27 trillion. This represents 66 percent of the revised budgeted deficit for the full year.
13. Despite these challenges, we met our debt service obligations. We are also up to date on the payment of statutory transfers and staff salaries, while overhead costs have been significantly covered.
14. For the first time in recent years, we commenced the implementation of this year’s capital budget in the first quarter. As at 15th September 2020 a total of about N1.2 trillion had been released for capital projects. Every Federal MDA has received at least 50 percent of its 2020 capital expenditure budget, in line with my earlier directives.
15. Let me emphasise that revenue generation remains our major challenge. Nevertheless, Government is determined to tackle the persisting problems with domestic resource mobilization, as there is a limit to deficit financing through borrowing. The time has come for us to maintain a healthy balance between meeting our growing expenditure commitments and our long-term public financial health.
Key Achievements in the 2020 Fiscal Year
34. Over the last year, this Administration has implemented several priority projects. I am happy to report that much progress has been made on several fronts and our Government has delivered on key policies, programmes and projects in these priority areas.
16. In agriculture, we have recorded appreciable success in rice and other crops mainly through the Anchor Borrowers Programme and the Presidential Fertilizer Initiative, anchored by the Central Bank of Nigeria and the Nigeria Sovereign Investment Authority, respectively. We are also accelerating the construction of 337 rural roads around key agricultural corridors to enhance access to market and reduce post-harvest losses. These efforts have reduced the adverse impact of Coronavirus on our food availability, prices and security.
17. We have made progress on the railway projects connecting different parts of the country. The Lagos-Ibadan Line will soon be operational. The Abuja-Kaduna Line is running efficiently. The Itakpe-Ajaokuta Line was finally completed after over 30 years since it was initiated and commissioned in September 2020.
18. Arrangements are underway to complete the Ibadan-Kano Line. Also, work will soon commence on the Port Harcourt-Maiduguri Line and Calabar-Lagos Coastal Line, which will connect the Southern and Eastern States to the North, and the South-South as well as South-East to the North, and South-West, respectively.
19. The Second Niger Bridge is at about 46 percent completion. We hope to commission the project before the end of our tenure in 2023. We have awarded several contracts to rehabilitate, reconstruct and construct major arterial roads, in order to reduce the hardship to commuters and increase economic activity.
20. To bridge the infrastructure deficit, we are also implementing innovative financing strategies to pull-in private sector investment. The Infrastructure Company, which I recently approved, will become a world-class infrastructure development vehicle, wholly focused on making critical infrastructural investments in Nigeria. This Infrastructure Company will raise funding from the Central Bank of Nigeria, the Nigeria Sovereign Investment Authority, the Africa Finance Corporation, pension funds as well as local and foreign private sector development financiers.
21. Under the Road Infrastructure Tax Credit Scheme, we are undertaking the construction and rehabilitation of over 780km of roads and bridges, nationwide, to be financed by the grant of tax credits to investing business. Ongoing projects under this scheme include:
a. Construction and Rehabilitation of Lokoja-Obajana-Kabba-Ilorin Road Section II (Obajana-Kabba) in Kogi and Kwara States;
b. Construction of Apapa-Oworonshoki-Ojota Expressway in Lagos State; and
c. Construction of Bodo-Bonny road with a Bridge across the Opobo Channel in Rivers State.
22. To enhance good governance, we strengthened our anti-corruption agencies to ensure they work independently and jointly, while respecting the rule of law. We have also worked to address emergent cases of insecurity and insurgency, nationwide, with innovative approaches. Our security operations in the Niger Delta, North Central and North West are yielding desired results. We are determined to get rid of bandits, kidnappers and criminal behaviour from our midst.
Theme & Priorities of the 2021 Budget
23. Distinguished Senators; Honourable Members; let me now turn to the 2021 Appropriation Bill, which is designed to further deliver on the goals of our Economic Sustainability Plan. This Plan provides a clear road map for our post- Coronavirus economic recovery as a transitional plan to take us from the Economic Recovery and Growth Plan (2017 – 2020) to the successor Medium-Term National Development Plan (2021 – 2025).
24. In view of the many challenges confronting us, we must accelerate our economic recovery process, promote social inclusion and strengthen the resilience of the economy. The 2021 Appropriation has, therefore, been themed the ‘Budget of Economic Recovery and Resilience’. It is expected to accelerate the pace of our economic recovery, promote economic diversification, enhance competitiveness and ensure social inclusion.
Parameters & Fiscal Assumptions Underpinning the 2021 Appropriation
25. Distinguished Members of the National Assembly, the 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper set out the parameters for the 2021 Budget, which include:
a. Benchmark oil price of 40 US Dollars per barrel;
b. Daily oil production estimate of 1.86 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day);
c. Exchange rate of N379 per US Dollar; and
d. GDP growth projected at 3.0 percent and inflation closing at 11.95 percent.
Finance Bill 2020
26. Distinguished and Honourable Members; I have directed the Minister of Finance, Budget and National Planning to finalise the Finance Bill 2020, which will be forwarded for your kind consideration and passage into law, shortly after today’s 2021 Budget presentation. The Finance Bill is to support the realization of our 2021 revenue projections, adopt appropriate counter-cyclical fiscal policies and enhance the efficiency of fiscal incentives.
Tax Expenditure Statement
27. In compliance with the Fiscal Responsibility Act of 2007, we will prepare and publish, a Tax Expenditures Statement for 2019. The 2019 Statement will be the first of these annual Statements, setting out the estimated cost of tax exemptions, incentives and rebates provided under Nigeria’s revenue and other laws. The 2019 Statement is expected to contribute to public discussion on the use of our tax policies and system to achieve socio-economic development.
Federal Government Revenue Estimates
28. Based on the foregoing fiscal assumptions and parameters, total federally distributable revenue is estimated at N8.433 trillion in 2021. Total revenue available to fund the 2021 Federal Budget is estimated at N7.886 trillion. This includes Grants and Aid of N354.85 billion as well as the revenues of 60 Government-Owned Enterprises.
29. Oil revenue is projected at N2.01 trillion. Non-oil revenue is estimated at N1.49 trillion. As you will observe, the format of the 2021 Appropriation Bill has been modified to include budgeted revenues, no matter how small, for each MDA, to focus on internal revenue generation. Accordingly, I implore you to pay as much attention to the revenue side as you do to the expenditure side.
Planned 2021 Expenditure
30. An aggregate expenditure of N13.08 trillion is proposed for the Federal Government in 2021. This includes N1.35 trillion spending by Government-Owned Enterprises and Grants and Aid funded expenditures of N354.85 billion. For 2021, the proposed N13.08 trillion expenditure comprises:
a. Non-debt Recurrent Costs of N5.65 trillion;
b. Personnel Costs of N3.76 trillion;
c. Pensions, Gratuities and Retirees’ Benefits of N501.19 billion;
d. Overheads of N625.50 billion;
e. Debt Service of N3.124 trillion;
f. Statutory Transfers of N484.49 billion; and
g. Sinking Fund of N220 billion (to retire certain maturing bonds).
Fiscal Balance
1. The 2021 Budget deficit (inclusive of Government Owned Enterprises and project-tied loans), is projected at N5.20 trillion. This represents 3.64 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act, 2007. It is, however, to be noted that we still face the existential challenge of Coronavirus Pandemic and its aftermath; I believe that this provides a justification to exceed the threshold as provided for by this law.
31. The deficit will be financed mainly by new borrowings totalling N4.28 trillion, N205.15 billion from Privatization Proceeds and N709.69 billion in drawdowns on multilateral and bilateral loans secured for specific projects and programmes.
Statutory Transfers
32. The sum of N484.49 billion provided for Statutory Transfers in the 2021 Budget represents an increase of N56.46 billion (or 13 percent) over the revised 2020 provision. The Statutory Transfer provisions are:
a. Niger Delta Development Commission – N63.51 billion;
b. North East Development Commission – N29.70 billion;
c. National Judicial Council – N110.00 billion;
d. Universal Basic Education Commission – N70.05 billion;
e. Independent National Electoral Commission – N40.00 billion;
f. National Assembly – N128.00 billion;
g. Public Complaints Commission – N5.20 billion;
h. Human Rights Commission – N3.00 billion; and
i. Basic Health Care Provision Fund – N35.03 billion.
33. In compliance with the Fiscal Responsibility Act 2007, all beneficiaries of Statutory Transfers will be required to provide the Budget Office of the Federation with periodic reports on the allocation and expenditure of funds for inclusion in the quarterly Budget Implementation Report.
Recurrent Expenditure
34. In our efforts to enhance national security and human capital development, a major part of the 2021 recurrent cost estimate is allocated to paying salaries and overheads in MDAs providing these critical public services. These include:
a. N227.02 billion for the Ministry of Interior;
b. N441.39 billion for the Ministry of Police Affairs;
c. N545.10 billion for Ministry of Education;
d. N840.56 billion for Ministry of Defence; and
e. N380.21 billion for Ministry of Health.
Personnel Costs
35. Personnel cost is still our largest single item of expenditure. In the 7 months to 31st July 2020, it accounted for 34 percent of total Federal Government spending and is projected at 33 percent of 2021 expenditure.
36. To check the incidence of payments to non-existent personnel and unauthorised allowances, only Federal staff that have been captured on the Integrated Personnel Payroll Information System (‘IPPIS’) platform will receive salaries.
37. All agencies have been directed to ensure that they obtain all necessary approvals before embarking on any fresh recruitment. Any breach of these directives will be severely sanctioned.
Debt Service
38. We remain committed to meeting our debt service obligations. Hence, we have provisioned N3.12 trillion for this in 2021, representing an increase of N445.57 billion from N2.68 trillion in 2020. A total of N2.183 trillion has been set aside to service domestic debts while N940.89 billion has been provided for foreign debt service. N220 billionis provided for transfers to the Sinking Fund to pay off maturing bonds issued to local contractors and creditors.
Overhead Costs
39. Total overhead costs of MDAs and Government Owned Enterprises are projected to rise to N625.50 billion in 2021, mainly due to the inclusion of the overheads of an additional 50 Government Owned Enterprises. Overhead provisions have also been made for newly created agencies. To keep a tab on running costs, MDAs must adhere to extant expenditure controls.
Capital Expenditure
40. An aggregate sum of N3.85 trillion is expected to be available for capital projects in 2021, as summarised below:
a. N1.80 trillion for MDAs’ capital expenditure;
b. N745 billion for Capital Supplementation;
c. N355 billion for Grants and Aid-funded projects;
d. N20 billion for the Family Homes Fund;
e. N25 billion for the Nigeria Youth Investment fund;
f. N336 billion for 60 Government Owned Enterprises;
g. N247 billion for capital component of Statutory Transfers; and
h. N710 billion for projects funded by Multi-lateral and Bi-lateral loans.
41. The 2021 capital budget is N1.15 trillion higher than the 2020 provision of N2.69 trillion. At 29 percent of aggregate expenditure, the provision moves closer to this Administration’s policy target of 30 percent.
42. Capital expenditure in 2021 remains focused on the completion of as many ongoing projects as possible, rather than the commencement of new ones. We have also made efforts to ensure equity in the distribution of projects and programmes in the proposed budget. I will be providing the National Assembly a list of some of the most critical projects which we must work collectively to ensure they receive adequate funding. Until projects reach completion, they do not deliver the dividends of democracy that Nigerians rightly deserve.
Highlights of the 2021 Capital Projects
43. Key capital spending allocations in the 2021 Budget include:
a. Power: N198 billion (inclusive of N150 billion for the Power Sector Recovery Plan);
b. Works and Housing: N404 billion;
c. Transportation: N256 billion;
d. Defence: N121 billion;
e. Agriculture and Rural Development: N110 billion;
f. Water Resources: N153 billion;
g. Industry, Trade and Investment: N51 billion;
h. Education: N127 billion;
i. Universal Basic Education Commission: N70 billion;
j. Health: N132 billion;
k. Zonal Intervention Projects: N100 billion; and
l. Niger Delta Development Commission: N64 billion.
44. The Ministry of Agriculture and Rural Development will facilitate the integrated development of its sector by promoting crops’ value chains; as well as providing rural roads, water and sanitation, veterinary and pest controls, grazing, food and strategic reserves, and access to inputs and extension services.
45. The 157 percent increase in the capital allocation to the health sector is to enhance the capacity to deliver healthcare services through the procurement of equipment, vaccines and other facilities. Two centres of excellence, as well as one Accident and Emergency Centre, will be equipped in Federal Teaching Hospitals in each geopolitical zone.
46. In addition, numerous Primary Health Care Centres will be equipped and upgraded across the six geopolitical zones. Furthermore, funds have been allocated for the expansion of Midwives Service Scheme in the six geopolitical zones. To enhance occupational safety, funds have been provided for the provision of Personal Protective Equipment for health workers.
47. The Ministry of Education’s capital allocation has been increased by 65 percent to improve the education of our children. Funds have been provided for the provision of scholarship awards to Nigerian students at home and abroad.
48. We have provided funds for the upgrade of security and other infrastructural facilities in our Unity Colleges nationwide. To improve access to education, we have made provision for the establishment of five new Federal Science and Technical Colleges. We have also provided for the payment of allowances to 5,000 teachers under the Federal Teachers Scheme.
49. In line with our commitment to invest in Transportation Infrastructure, capital allocation to the Works and Housing sector is to facilitate the completion of several critical projects in 2021. I have directed the Minister of Finance, Budget and National Planning to provide a detailed breakdown of key infrastructural projects in her subsequent Press Briefing.
50. Key projects for implementation in the Power sector include several Rural Electrification Projects in the 36 States and Abuja, Rural Electrification Access Programme in Federal Universities, the Kaduna LPFO Gas Fired power Plant, the Mambilla Hydro Power Project and the Zungeru Hydropower Project.
51. Provisions have been made for legacy debts owed to local contractors compensation and resettlement of project-affected communities, the Renewable Energy Micro Utility (Solar) project, and the construction of transmission lines and substations nationwide. These project’s implementation is expected to have positive impact on electricity supply nationwide, as well as boost productivity and employment.
52. Projects to be implemented by the Ministry of Water Resources in 2021 include provision of potable water in the North East, construction of irrigation and dams across the country, and the provision of Water, Sanitation and Hygiene facilities.
53. The Ministry of Transportation has earmarked funds for projects such as the Lagos-Ibadan-Kano Line, Abuja-Kaduna Line, Port-Harcourt-Maiduguri Line and Itakpe-Ajaokuta-Warri Line. These projects, when completed, will minimize the cost of transporting people and goods around the country.
54. To maintain the peace in the Niger Delta region for economic and social activities to thrive, the provision of N65 billion for the Presidential Amnesty Programme has been retained in the 2021 Budget. In addition, the sum of N63.51 billion has been appropriated for the Niger Delta Development Commission and N24.27 billion has been provided for the capital projects of the Ministry of Niger Delta Affairs. These allocations should further support the development of the region by facilitating the completion of important ongoing projects, such as the East-West Road.
Government Fiscal Strategy in 2021
55. The government is already implementing several measures to overcome our fiscal constraints. In addition to the Strategic Revenue Growth Initiatives, we are leveraging technology and automation, as well as more effective monitoring of Independently Generated Revenues. Our efforts are aimed at addressing revenue leakages and redirecting scarce resources to the poor and vulnerable. These efforts include:
a. Deregulation of the price of petroleum products;
b. Ongoing verification exercise with IPPIS; and
c. Implementation of service-based electricity tariffs.
56. The new petrol pricing regime has freed up resources that was allocated to subsidise petroleum products. Similarly, the ongoing IPPIS verification exercise has closed gaps that encourage ghost workers or pensioners. The service reflective electricity tariffs will help resolve liquidity crisis in the power sector and make the sector attractive to foreign investment. These reforms have released trillions of Naira for allocation to other priority areas.
57. Distinguished Senators, Honourable Members, permit me to reiterate that the main thrust of our capital spending programme in 2021 is the completion of as many ongoing projects as possible across the country. Accordingly, we have prioritized projects that can be rapidly completed to benefit our people.
58. Distinguished Senators and Honourable Members, I note, with satisfaction, your determination to promptly consider and pass the Petroleum Industry Bill into law. The enactment of this Bill will boost confidence and attract further investments into our oil and gas sector, as well as increase revenues.
59. I fully understand the difficulties many of our people are going through with the implementation of our reform agenda. However, the measures we are implementing are necessary for sustainable public finance, better allocation of our scarce resources and improved public service delivery. As we implement these reforms, social safety nets will be implemented to cushion the effect of the most vulnerable of our citizens as well as business owners.
60. In furtherance of our inclusiveness agenda, the sum of N420 billion has been provided to sustain the Social Investment Programme. N20 billion has also been set aside for the Family Homes Fund, our Social Housing Programme. We have expanded our National Social Register, to include an additional one million Nigerians following the onset of Coronavirus. We recently introduced the N75 billion Survival Fund Programme to support and protect businesses from potential vulnerabilities. Furthermore, the Central Bank of Nigeria is reducing the interest rate on its intervention facilities from 9% to 5% with a 1-year moratorium till 31st March 2021, to provide concessional lending of:
. N100 billion to households and small businesses;
a. N100 billion to the healthcare and pharmaceutical industry; and
b. N1 trillion to large agricultural and manufacturing businesses.
61. We urge Nigerian businesses and individuals to make the most of these concessional credit facilities and other such opportunities.
Conclusion
62. Mr. Senate President, Mr. Speaker, Distinguished and Honourable Members of the 9th National Assembly; let me use this opportunity to, again, commend your firm commitment towards ensuring a very harmonious and productive relationship with the Executive. It is important to further deepen this relationship in the interest of our people.
63. As you review the 2021 Budget estimates, we believe the legislative process will be expedited to ensure its prompt passage to sustain the restoration of a predictable January – December fiscal year. In this regard, I have directed all Ministers and Heads of Agencies to be personally available for budget defence.
64. Let me re-emphasize that Nigerians expect that the 2021 Budget will contain only implementable and critical projects, which when completed, will significantly address current structural challenges of the economy, improve the business environment and accelerate economic recovery.
65. May I conclude my remarks by commending the National Assembly for its support in steering our economy during these very challenging times. We remain committed to sustaining this partnership. We believe that as we work together, we will jointly deliver on our joint mandate to our people.
66. It is with great pleasure, therefore, that I lay, before this Distinguished Joint Session of the National Assembly, the 2021 Budget Proposals of the Federal Government of Nigeria, for your consideration.
67. I thank you for your attention.
68. May God continue to bless the Federal Republic of Nigeria.
The Central Bank of Nigeria (CBN) has alerted Nigerians on fraudulent messages and videos in social media circles requesting unsuspecting loan seekers and owners of small-scale businesses to apply for loans or investment schemes purportedly facilitated by the Bank.
The apex bank, in a statement today, October 8, said that while it had gone into several development finance intervention programmes from which different categories of businesses have benefitted (and still benefitting), it does not do so through direct interaction with prospective applicants.
“For the avoidance of doubt, there are clearly spelt out procedures for accessing CBN intervention funds, which are disbursed through Participating Financial Institutions (PFIs), such as Deposit Money Banks (DMBs), Development Finance Institutions (DFIs) and Microfinance Banks (MFBs). The Bank also does not facilitate investment schemes.
“Members of the public, particularly youth and owners of small-scale businesses, are therefore advised to disregard any video or text message proposing investment schemes or charging them fees on the pretext that their organisations are endorsed by the CBN and therefore would guarantee easy access to CBN loans. These videos and massages are fraudulent and anyone who enters into correspondence with those behind them does so at his or her own risk. The CBN has neither appointed nor accredited any organization to serve as agent on its behalf for the purpose of investment or applying for intervention loans.
“Prospective applicants are therefore advised to approach their respective banks, NIRSAL Micro-Finance Bank or the Central Bank of Nigeria (CBN) branch nearest to them for clarification on the procedure for accessing any of the CBN-related facility.
“The Public is also advised to contact the Central Bank of Nigeria (CBN) on 07002255226 or send an email to contactcbn@cbn.gov.ng for any further clarification.”
All Schools within the Federal Capital Territory are to re-open for the first term of the 2020/2021 academic session on Monday, 12th of October 2020.
2. This was revealed by the Honourable Minister of the FCT, Malam Muhammad Musa Bello during a press briefing held on Thursday, 8th October in his office.
3. According to the FCT Minister, boarding students are to resume on Sunday, 11th of October while day students will resume on the 12th of October.
4. Malam Bello noted that the decision to reopen the schools was taken based on the directive from the Federal Ministry of Education that states should work out modalities for the safe re-opening of schools and after pain staking consultations with various stakeholder groups in the education sector.
5. According to the Minister, these groups include the FCT Parents Teachers Association, the Health and Human Services Secretariat of the FCTA, the Nigeria Union of Teachers, National Association of Proprietors of Private Schools, Nigeria Union of Teachers amongst others.
6. Malam Bello pointed out that the collaboration of these stakeholder groups ensured the safe re-opening of secondary schools to conduct the terminal examinations for JSS 3 and SSS 3 students in August without a single case of COVID-19 reported. Based on this, the Minister said “We are therefore convinced that we can safely re-open our schools on the aforementioned dates”.
7. He enjoined parents, guardians and stakeholders to complement the Administrations’ efforts by further creating awareness and sensitizing their wards on the need to adhere strictly to health and safety measures as stipulated by the relevant health authorities.
8. These, he said, include regular washing of hands with soap under running water, use of sanitizer, use of facemasks while maintaining physical distancing.
9. The Minister also used the event to remind residents of the FCT, especially parents and guardians that the virus has not been eliminated yet as it still remains a deadly disease, adding that now was not the time to be complacent.
10. He also commended frontline health personnel that worked tirelessly to ensure that the virus is largely contained in the FCT with relatively low morbidity and condoled with families of those who lost their lives to the virus.
11. A minute silence was also observed for the repose of the soul of the Acting Secretary for Education Alh. Umaru Marafa who died while preparations were being made for the re-opening of schools.
12. While giving details on the guidelines regulating the re-opening of schools, the Chairman of the FCT School Resumption Committee Dr Fatima Abdulrahman said that on resumption on the 11th of October, students will use the first week for revision and the second week to write the second term examinations which were suspended following the sudden closure of all schools at the onset of the pandemic.
13. Dr Abdulrahman continued that on conclusion of the examinations, the first term of the 2020/2021 session will conclude on the 18th of December. This essentially means that there will be no third term in the 2019/2020 academic session.
The other guidelines as released by the Education Secretariat are:
i. All Public and Private schools in FCT should put in place adequate safety measures based on the Re-Opening of Schools guidelines which has been set.
ii. The Committee on Reopening of Schools and the Department of Quality Assurance under the Education Secretariat will work together by undertaking regular evaluation of all Schools in FCT and embark on inspection and monitoring of schools to ensure strict compliance to the laid down health protocols of Covid-19.
iii. Any School found wanting will face appropriate sanctions, including closure.
iv. The FCT Administration through the School committee on resumption has taken proactive steps ahead of the resumption to safeguard the Ttudents and Teachers as they return back to academic activities which include:
a. Compulsory fumigation of all public Schools in FCT.
b. Clearing of grasses.
c. Provision of sanitizers, soap, buckets, and thermometers for each Schools to be placed at strategic places within the Schools for Students and Staff.
d. Provision of sick bay in every school where students with high temperature would be kept under the supervision of a health personnel is mandatory
e. Students with underlying medical conditions should report with a medical report.
f. Observe bed spacing of 2metres.
g. Suspension of school bus services for now and where parents insist, school must ensure adequate social distancing in the bus.
14. The Honourable Minister of State Dr Ramatu Tijjani Aliyu and the Permanent Secretary of the FCTA, Mr Olusade Adesola flagged off the fumigation exercise of the schools at the Government Secondary School Garki and the Government Secondary School Jabi respectively.
15. Present at the media briefing were the Hon. Minister of State, Dr Ramatu Tijjani Aliyu, the Permanent Secretary, Mr Olusade Adesola, Chief of Staff to the FCT Minister, Malam Bashir Mai-Bornu, the Acting Secretary of the Health and Human Services Secretariat, Dr Mohammed Kawu and other senior officials of the FCTA.
President Muhammadu Buhari has said that no civil servant on the payroll of the Federal Government will receive salary henceforth without enrolment on the Integrated Payroll and Personnel Information System..
Speaking at the presentation of the 2021 Budget to a Joint Sitting of the National Assembly today, October 8, President Buhari said that there is no going back on the decision to use the IPPIS for payment of all categories of civil servants.
Buhari stressed that revenue generation is the major challenge facing his administration.
The Academic Staff Union of Universities has been on strike over disagreement with the Federal Government on the mode of payment of lecturers.
National Chairman of the Peoples Democratic Party (PDP), Uche Secondus has advised the people of Ondo State to vote out the ruling All Progressives Congress (APC) in the Saturday’s governorship election.
Secondus, who spoke today, October 7, at the grand finale of the PDP campaign in the state, said that the APC has failed Nigerians, blaming the APC and its supporters for the recurring violence in the state.
According to him, Governor Akeredolu and his supporters are jittery of the growing popularity of the PDP candidate, Eyitayo Jegede even as he advised the Independent National Electoral Commission (INEC) and security agencies to do their duties professionally without interference.
Chairman of the National Campaign Council for Ondo election and Oyo State Governor, Seyi Makinde, reaffirmed the panicky situation of the ruling party, saying that there are plans to rig the election.
Makinde assured the people that the PDP candidate would win the election and bring the dividends of democracy to the state.
The Chairman of PDP Governors’ Forum and Governor of Sokoto State, Aminu Tambuwal, tasked the people to reject APC with their votes, lamenting that it has inflicted unbearable hardship on Nigerians.
Tambuwal implored the people of the state to join other PDP states which have departed from listless chains of poverty, unemployment, economic crunch and diabolical policies to repress the poor.
Other PDP governors present were Nyesom Wike (Rivers); Douye Diri (Bayelsa), Ifeanyi Ogwuanyi (Enugu), Okezie Ikpeazu (Abia), Bello Mohammed (Zamfara).
Also, former governors of Niger, Ekiti and Osun states: Muazu Babaginda Aliyu, Ayodele Fayose, Olagunsoye Oyinlola respectively
The World Bank has predicted that global extreme poverty is expected to rise by 150 million in 2021for the first time in over 20 years as the disruption of the coronavirus pandemic compounds the forces of conflict and climate change.
“The COVID-19 pandemic is estimated to push an additional 88 million to 115 million people into extreme poverty this year, with the total rising to as many as 150 million by 2021, depending on the severity of the economic contraction.
“Extreme poverty, defined as living on less than $1.90 a day, is likely to affect between 9.1% and 9.4% of the world’s population in 2020,” according to the biennial Poverty and Shared Prosperity Report.
The report said that this would represent a regression to the rate of 9.2% in 2017, adding that had the pandemic not convulsed the globe, the poverty rate is expected to drop to 7.9% in 2020.
World Bank Group President, David Malpass was quoted as saying:“the pandemic and global recession may cause over 1.4% of the world’s population to fall into extreme poverty.
“In order to reverse this serious setback to development progress and poverty reduction, countries will need to prepare for a different economy post-COVID, by allowing capital, labor, skills, and innovation to move into new businesses and sectors.
“World Bank Group support will help developing countries resume growth and respond to the health, social, and economic impacts of COVID-19 as they work toward a sustainable and inclusive recovery.”
The report also finds that many of the new poor will be in countries that already have high poverty rates, adding that a number of middle-income countries will see significant numbers of people slip below the extreme poverty line.
About 82% of the total will be in middle-income countries, the report estimates.
President Muhammadu Buhari, former Nigeria Vice President Atiku Abubakar and the national leader of the ruling All Progressives Congress (APC), Asiwaju Bola Tinubu have sent words of advice to the newly appointed Emir of Zazzau in Kaduna State, Ambassador Ahmed Nuhu Bamalli
While President Buhari advised Ahmed Bamali to use his new appointment to foster unity among all interests in the emirate, Atiku asked him to build on legacy of predecessor even as Tinubu called on him to consolidate on the tremendous gains recorded by the late Emir, Alhaji Shehu Idris..
President Buhari said: “I congratulate you on making history by becoming the first emir from the Mallawa ruling house in 100 years. You deserve the appointment and I am confident you will justify the confidence reposed in you.
“While you bask in the glory of the moment, I want you to be the leader to all and treat all your people fairly in the performance of your duties.
“This is a challenging moment and therefore, I want you to use this opportunity to unite all members of the ruling houses for the interest of your people. May Allah grant you wisdom and guidance in the discharge of this responsibility.”
On his part, Atiku said: “although the shoes of the late Emir are big, I am still confident that Alhaji Ahmed Nuhu Bamalli is up to the task and responsibilities expected of him.” According to Atiku, who was the Presidential candidate of the opposition Peoples Democratic Party (PDP in the last election, peace and unity are among some of the challenges facing Nigeria, including Kaduna State, and urged the new Emir to focus on confidence building efforts in his domain.
Asiwaju Tinubu, on his part, prayed to Allah to grant the new Emir divine wisdom, guide and to protect him so that he can steer the ship of the Emirate successfully.
A popular evangelist in Akwa Ibo State, Uma Ukpai, has described members of the Indigenous People of Biafra (IPOB) and the Movement for the Actualisation of the Sovereign State of Biafra (MASSOB), who are agitating for Biafra republic as a new country from Nigeria as mad people.
Ukpai, who is the founder of a 50-year-old Uma Ukpai Evangelistic Association, said: “there will always be crazy people, even when people are seen to be normal.
“Whoever is agitating for Biafra shows the level of his madness, but everybody is mad, the difference is the level of your madness.”
The clergyman spoke today, October 7 when he addressed members of his ministry in Uyo, Akwa Ibom State.
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