Buhari signs N17.127trn 2022 budget into law, directs MDAs to commence early preparation of 2023 budget

In keeping with the tradition of restoring a predictable January to December fiscal year, as provided for in the Constitution of the Federal Republic of Nigeria, President Muhammadu Buhari Friday in Abuja signed into law the 2022 Appropriation Bill and the 2021 Finance Bill.

 The President signed the documents in the Presidential Villa in the presence of Senate President Ahmed Lawan, Speaker of the House of Representatives, Femi Gbajabiamila, and other members of the Federal Executive Council.

Speaking at the event, the President said the 2022 Budget, 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.

The President explained that N186.53 billion of the increase however came from additional critical expenditures that he 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,’’ he said.

The President announced that 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.

He, therefore, directed Heads of Ministries, Departments and Agencies (MDAs) 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.

President Buhari also expressed strong reservations on the ‘‘worrisome changes’’ made by the National Assembly to the 2022 Executive Budget proposal.

He announced that he would revert to the National Assembly with a request for amendment as soon as the Assembly resumes to ensure that critical ongoing projects cardinal to this administration do not suffer a setback due to reduced funding.

The President recounted that during the presentation of the 2022 Appropriation Bill, he had stated that the fiscal year 2022 would be very crucial in his administration’s efforts to complete and put to use critical agenda projects, as well as improve the general living conditions of our people.

‘‘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.

‘‘Some of the worrisome changes are as follows:

‘‘Increase in projected FGN Independent Revenue by N400 billion, the justification for which is yet to be provided to the Executive;

‘‘Reduction in the provision for Sinking Fund to Retire Maturing Bonds by N22 billion without any explanation;

‘‘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;

‘‘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;

‘‘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.’’

President Buhari also expressed concern in the reductions in provisions for some critical projects, including N12.6 billion in the Ministry of Transport’s budget for the ongoing Rail Modernisation projects; N25.8 billion from Power Sector Reform Programme under the Ministry of Finance, Budget and National Planning; 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.

Further, the President also expressed his reservations on the following:

‘‘Inclusion of new provisions totaling 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.

‘‘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.

‘‘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.

‘‘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.

‘‘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 conceptualised, designed and costed.

‘‘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.’’

President Buhari declared that it was 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.

‘‘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.’’

On COVID-19 and budget implementation, the President said despite the lingering adverse effects of the pandemic, he was 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.

‘‘To enable MDAs to complete the implementation of their 2021 capital projects and optimise 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,’’ he said.

The President commended the understanding and speedy action of the National Assembly on this matter.

‘‘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.

‘‘The Ministry of Finance, Budget and National Planning will implement all measures required to ensure timely and targeted release of capital votes.

‘‘All MDAs are to effect early commencement of project implementation, while ensuring productive use of funds provided for achievement of the objectives set for their sectors.

‘‘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.’’

To achieve the laudable objectives of the 2022 Budget, President Buhari pledged that the Federal Government would further intensify revenue mobilisation efforts.

He expressed optimism in the ability of the Government to finance the budget considering the positive global oil market outlook and the continuing improvement in non-oil revenues.

‘‘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 realisation 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.

‘‘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 a quick consideration and approval of the Plan when submitted.

‘‘All borrowings will be judiciously utilised and invested in our future growth and prosperity.’’

The President also directed MDAs 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 infrastructural development.

He thanked the Ministers of Finance, 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.

Also, in his new year message to Nigerians, Buhari said ;We remain grateful to the Almighty God for yet another Year attained as a country, united by a common destiny and resolute in our determination to overcome the several challenges along the path to build the great and prosperous Nation of our dream.

I salute the courage and resilience of all Nigerians, which was evident in 2021 as this nation, like other countries of the world, faced significant challenges that occurred as a consequence of the COVID-19 pandemic and the efforts to restore the global economy and social order.

The persistent insecurity in certain parts of the country may have threatened to unravel the incremental gains achieved in the real sectors of the economy and in the administration’s overall objective to position the nation on the irreversible trajectory of sustainable growth and progress, but I assure you that we will remain resolute in our commitments and shall continue to press ahead with our programmes and plans.

The path to nationhood is often fraught with unpredictable difficulties and challenges, and most tried and tested nations have often prevailed through dogged determination, resilience, concerted commitment to unity, and the conviction that the whole of the nation, standing together against all odds, is by far greater and would ultimately be more prosperous and viable than the sum of its distinguishable parts.

There is no doubt that the issue of Security remains at the front burner of priority areas that this Administration has given utmost attention to. As a follow up to our promise to re-energize and reorganize the security apparatus and personnel of the armed forces and the police, it is on record that this Administration has invested heavily in re-equipping our military in line with upgrading the platforms and firepower required to tackle the current challenges being faced in the country.

 

The net results of these efforts have been the number of insurgents and bandits who have willingly surrendered to our Security Forces and continue to do so through various channels and the Safe Corridor created for that purpose.

 

Government, however, realizes that victory on the battlefield is just one aspect of sustainable victory. We know that to fully win this war, we must also win the peace and real security lies in winning the hearts and minds of the affected citizens. To this end, working with our international partners and neighbouring countries, we would be deploying multi-faceted solutions that will be targeted at addressing human security at the grassroots, before it leads to insecurity.

 

Once again I would like to take a moment to remember and honour the gallant Military, Police Officers, and other security agents who have lost their lives in the cause of protecting the territorial integrity of this Nation against both internal and external aggressors, assuring their families that their sacrifices would not be in vain.

 

We equally remember and commiserate with Nigerians who have lost loved ones as a result of insecurity in different parts of the country. Every life matters and every single death caused by any form of insecurity is a matter of personal concern to me both as a citizen and as the President of this great country.

 

We remain fully committed to upholding the constitutional provisions that protect all Nigerians from any form of internal and external aggression.

 

On the economy, we have shown a high level of resilience to record some significant achievements despite the turbulence that has characterized our economy and indeed the global economy. The lessons we have learned and keep learning from COVID-19 have encouraged us to intensify efforts to mitigate its socio-economic effects on our Nation.

The major wins we have recorded can be clearly seen in Nigeria’s most recent Gross Domestic Product (GDP) figures released by the National Bureau of Statistics (NBS). The 4.03% growth recorded in the third quarter of 2021 is indicative of the recovery being recorded in our economy and the confidence that is being shown through the policies that our Administration has put in place after the outbreak of the pandemic.

We may also recall that this recent growth is closely followed by the 5.1% (year on year) growth in real terms recorded by Nigeria in Quarter 2 of 2021. This growth was one of the best recorded by any nation across Sub-Saharan Africa. The 5.1% growth at that time was and remains the highest growth recorded by the Nigerian economy since 2014.

 

Despite the challenges we have faced as a Nation, the good news is that we have so far recorded four consecutive quarters of growth after the negative growth rates recorded in Quarter 2 and Quarter 3 of 2020 due to the effect of the COVID-19 pandemic.

On August 16, 2021 I signed the landmark Petroleum Industry Act into law. The signing of this legacy legislation is a watershed moment in the history of our Nation, considering the massive positive impact the new Act would have on the economy. I would like to sincerely commend the 9th Assembly for the grit they demonstrated, succeeding where others have failed, and the cooperation that led to the completion of this process after almost two decades.

Just like I stated during the investment trips and fora that I have attended recently, the legislation is expected to serve as a liberalizing force in the energy industry, and we are optimistic that this law will provide the much-needed legal, governance, regulatory and fiscal framework for the development of the energy sector, the host communities, and Nigeria as a Nation. Our objective to increase Liquefied Natural Gas exports and expand our domestic market is still very much at the forefront of some of the policies we would be pushing in the new year.

In year 2022 and going forward, our Administration would intentionally leverage ICT platforms to create jobs, while ensuring that the diversification of our economy creates more support to other emerging sectors. I am proud to announce that several foreign investors are taking advantage of our ranking as one of the leading start-up ecosystems in Africa to invest in our digital economy.

We have given the utmost priority to fighting corruption and other related offenses which have been a bane to the growth and prosperity of our dear Nation. We have made major strides and breakthroughs through the innovative use of technology and forensics in the investigative and prosecutorial procedures with commendable results to show that the anti-corruption drive of our Administration is succeeding.

In the meantime, the accomplishments that have been recorded so far can be traced to the dedication of the Nation’s anti-corruption Agencies who have received the necessary support needed to effectively prosecute their duties.

 

Despite our challenges in 2021, it was also a year in which the Administration executed successfully, key projects, programmes, and initiatives to fulfil the promises made under the Security, Economy Anti-corruption (SEA) agenda.

 

As we welcome 2022, let us, with hope, envision a year of continued progress against our combined challenges arising from security and socio-economic issues.

 

As it is said, the past is but a story told, the future will still be written in gold. Let us be united in our fight to keep our Nation united against all odds and with gratitude, celebrate life in this new epoch.

 

 

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