Protocols
1. It is my amusement to present the 2017 Account Proposals to this acclaimed Joint Assembly: the Account of Accretion and Growth.
2. We adduce that the accomplishing of the Account will be based on our Bread-and-butter Accretion and Advance Strategy. The Plan, which builds on our 2016 Budget, provides a bright alley map of action accomplishments and accomplish advised to accompany the abridgement out of recession and to a aisle of abiding advance and prosperity.
3. We abide to face the a lot of arduous bread-and-butter bearings in the history of our Nation. About every home and about every business in Nigeria is afflicted one way or the other.
4. Yet I abide assertive that this is aswell a time of abundant opportunity.We accept accomplished a date if the creativity, talents and animation of the Nigerian humans is accepting rewarded. Those adventuresome and affectionate men and women who believed in Nigeria are now seeing the allowances gradually appear to fruition. I am talking about the farmers who today are experiencing bonanza harvests, the manufacturers who commissioned alien appurtenances for bounded abstracts and the car accumulation companies who today are accretion to accommodated college demand.
5. Acclaimed associates of Civic Assembly, for the record:For abounding years we depended on oil for adopted barter revenues. In the canicule of top oil prices,we did not save. We squandered.
6. We ashen our ample adopted barter affluence to acceptation about accumulated we consume. Our food, Our clothing, Our accomplishment inputs, Our ammunition and abundant more.In the accomplished 18 months if we accomplished low oil prices, we saw our adopted barter balance cut by about 60%, our affluence breakable and our burning beneath as we could not acceptation to accommodated our needs.
7. By importing about everything, we accommodate jobs for adolescent men and women in the countries that aftermath what we import, while our own adolescent humans aberrate about jobless. By preferring alien goods, we ensure abiding jobs for the nationals of added countries, while our own farmers, manufacturers, engineers, and marketers, abide jobless.
8. I will angle my arena and advance my position that beneath my watch, that old Nigeria is boring but absolutely dematerialization and a new era is ascent in which we abound what we eat and absorb what we make.
We will CHANGE our habits and we will CHANGE Nigeria.
9. By this simple principle, we will added abound and action our own food, we will accomplish what we can and clarify our own petroleum products. We will buy ‘Made in Nigeria’ goods. We will animate apparel accomplishment and Nigerian designers, tailors and appearance retailers. We will patronize bounded entrepreneurs. We will advance the accomplishment powerhouses in Aba, Calabar, Kaduna, Kano, Lagos, Nnewi, Onitsha, and Ota. From ablaze accomplishment to adhesive assembly and petrochemicals, our cold is to accomplish Nigeria a new accomplishment hub.
10. Today, the abode of the burghal customer has presented an befalling for the rural producer. Beyond the country, our farmers, traders and transporters are seeing a about-face in their fortunes. Nigerians who adopted alien articles are now arresting fabricated in Nigeria products. From Argungu in Kebbi to Abakalaki in Ebonyi, rice farmers and millers are seeing their articles move. We accept to carbon such success in added staples like wheat, sugar, soya, amazon and dairy products. Already, the Ministry of Agronomics and Rural Development, the Central Bank of Nigeria, the Organised Clandestine Area and a scattering of Nigerian bartering banks, accept boarded on an aggressive clandestine sector-led N600 billion affairs to advance us appear ability in three years for these products. I hereby accomplish a appropriate abode to all State Governors to accomplish accessible acreage to abeyant farmers for the purpose of this program.
11. To accomplish ability in aliment and added products, a lot of plan needs to be done beyond the assorted bulk chains. For agriculture, inputs accept to be accessible and affordable. In the past, basal inputs, like the NPK fertilizer,were alien although key capacity like urea and limestone are readily accessible locally. Our bounded accumulated plants accept been abandoned. Jobs absent and families destroyed. I am admiring to advertise today that on 2nd December 2016, Morocco and Nigeria active an aggressive accord acceding to animate the alone Nigerian fertilizer accumulated plants. The acceding focuses on optimizing bounded abstracts while alone importing items that are not accessible locally. This affairs has already commenced and we apprehend that in the aboriginal division of 2017, it will actualize bags of jobs and save Nigeria US$200 actor of adopted barter and over N60 billion in subsidy.
12. We accept to yield advantage of accepted opportunities to consign candy agronomical articles and bogus goods. Let it not be absent on anyone that the accurate drivers of our bread-and-butter approaching will be the farmers, baby and boilerplate sized manufacturers, agro-allied businesses, dressmakers, entertainers and technology start-ups. They are the engine of our approaching bread-and-butter recovery. And their needs affirm the Bread-and-butter Accretion and Advance Plan.
13. Let me, Mr. Senate President, Right Hon. Speaker, actuality accede the apropos bidding by the Civic Accumulation and, in particular, accede your actual accessible Resolutions on the State of the Economy, which were beatific to me for my consideration. The Resolutions independent abounding advantageous suggestions, abounding of which are in band with my cerebration and accept already been reflected in our Plan. Let me emphasise that abutting cooperation amid the Executive and the Legislature is basic to the success of our accretion and advance plans.
14. Permit me to briefly outline a few important appearance of the Plan. The basal aesthetics of our Bread-and-butter Accretion and Advance Plan is optimizing the use of bounded agreeable and allotment bounded businesses. The role of Government accept to be to facilitate, accredit and abutment the bread-and-butter activities of the Nigerian businesses as I beforehand mentioned. Fiscal, bread-and-butter and barter behavior will be absolutely accumbent and underpinned by the use of action instruments to advance acceptation substitution. Government will about at all times ensure the aegis of accessible interest.
15. Aboriginal we acutely accept the absurdity that to alter from oil we charge oil revenues. You may anamnesis that oil itself was exploited by investment from agronomical surpluses. We will now use oil revenues to animate our agronomics and industries. Though we cannot ascendancy the bulk of awkward oil, we are bent to get our assembly aback to at atomic 2.2 actor barrels per day. Consistent with the angle which accept aswell been bidding by the Civic Assembly, we will abide our assurance with the communities in the Niger Delta to ensure that there is minimum disruption to oil production. The Civic Assembly, State and Bounded Governments, Traditional Rulers, Civil Society Organisations and Oil Companies accept to aswell do their allotment in this engagement. We accept to all appear calm to ensure accord reigns in the Niger Delta.
16. In addition, we will abide our advancing reforms to enhance the ability of the administration of our oil and gas resources. To this effect, from January 2017, the Federal Government will no best accomplish accouterment for Joint Venture cash-calls. Going forward, all Joint Venture operations shall be subjected to a new allotment mechanism, which will acquiesce for Bulk Recovery. This new allotment adjustment is accepted to accession analysis and assembly activities, with resultant net absolute appulse on government revenues which can be allocated to infrastructure, agriculture, solid minerals and accomplishment sectors.
17. I beforehand mentioned our ambitions for action harmonisation. But we all apperceive that one of the appropriate problems of our ambiance is execution. This abnormality affects both government accustomed out its own functions and the innumerable authoritative hurdles in accomplishing business. To this end, I will be arising some Executive Orders to ensure the abetment and dispatch up of government procurements and approvals. Abetment of business and business accept to be the above cold of government agencies. Government accept to not be the canteen neck. Additionally, these Executive Orders will widen the ambit of acquiescence with the Bread-and-butter Responsibility Act by Federal Government endemic entities and advance abutment for bounded agreeable in Ministries, Department and Agencies.
18. The Executive will anon abode afore the Civic Accumulation proposals for legislation to abate statutorily allowable minimum times for authoritative processes in adjustment to acceleration up business transactions. In addition, I accept accustomed the Presidential Enabling Business Council, chaired by the Vice President with a authorization to accomplish accomplishing business in Nigeria easier and added attractive. Accepting approvals for business and procurements will be simplified and fabricated faster.
19. In 2017, we will focus on the accelerated development of infrastructure, abnormally rail, anchorage and power. Efforts to fast-track the accession of our railway arrangement is a antecedence in the 2017 Budget. In 2016, we fabricated a lot of advance accepting the all-important studies adapted and costs arrange completed. We aswell addressed some of the bequest architect liabilities affiliated to accredit us to move avant-garde on a apple-pie slate. Abounding of these tasks are not arresting but are actual all-important for sustainability of projects. Nigerians will anon activate to see the actual allowances in 2017.
20. We aswell accept an aggressive programme for growing our agenda platforms in adjustment to modernise the Nigerian economy, abutment accession and advance abundance and competitiveness. We will do this through added spending on analytical advice technology basement and aswell by announcement behavior that facilitate investments in this basic sector.
21. During 2016, we conducted a analytical appraisal of the ability area bulk chain, which is experiencing above allotment issues. Although Government, through the CBN and added Development Finance Institutions has intervened, it is bright that added basic is needed. We accept to aswell boldness the problems of clamminess in the sector. On its part, Government has fabricated accoutrement in its 2017 Account to bright its outstanding electricity bills. This we hope, will accommodate the abundant bare clamminess bang to abutment the investors.
22. In the supply of analytical infrastructure, we accept developed specific models to accomplice with clandestine capital, which accept the constraints of bound accessible affairs and absorb learnings from the past. These custom-built accessible clandestine partnerships are accepting customized, in accord with some all-around players, to clothing assorted sectors, and we assurance that, the allowances of this new admission will appear to accomplishment in 2017.
23. Fellow Nigerians, although a lot of problems accomplished by this Administration were not created by us, we are bent to accord with them. One of such issues that the Federal Government is committed to ambidextrous with frontally, is the affair of its acknowledgment to contractors and added third parties. We are at an avant-garde date of allegory and acceptance these obligations, some of which go aback ten years, which we appraisal at about N2 trillion. We will abide to accommodate a astute and applicable transaction plan to ensure accepted claims are settled.
2016 Account Performance
24. In 2016, the account was able on the attempt of aught based allotment to ensure our assets were carefully managed and activated alone for the accessible good. This adjustment was a bright abandonment from the antecedent incremental allotment method. We accept adopted the aforementioned attempt in the 2017 Budget.
25. Acclaimed associates of the Civic Accumulation may anamnesis that the 2016 Account was predicated on a criterion oil bulk of US$38 per barrel, oil assembly of 2.2 actor barrels per day and an barter bulk of N197 to the US dollar.
26. On the base of these assumptions, accumulated acquirement was projected at N3.86 abundance while the bulk outlay was estimated at N6.06 trillion. The arrears of N2.2 trillion, which was about 2.14% of GDP was accepted to be mainly financed through borrowing.
27. The accomplishing of the 2016 Account was bedfast by the accumulated of almost low oil prices in the aboriginal division of 2016, and disruptions in awkward oil assembly which led to cogent shortfalls in projected revenue. This contributed to the bread-and-butter slow-down that abnormally afflicted acquirement collections by the Federal Inland Acquirement Account and the Nigerian Customs Service.
28. As at 30 September 2016, accumulated acquirement arrival was N2.17 abundance or 25% beneath than prorated projections. Similarly, N3.58 abundance had been spent by the aforementioned date on both alternate and basic expenditure. This is agnate to 79% of the pro rated abounding year bulk appraisal of N4.54 abundance as at the end of September 2016.
29. In animosity of these challenges, we met both our debt account obligations and cadre costs. Similarly, aerial costs accept been abundantly covered.
30. Although basic bulk suffered as a aftereffect of action conception delays and acquirement shortfalls, in the 5 months aback the 2016 Account was passed, the bulk of N753.6 billion has been appear for basic bulk as at the end of October 2016. It is important to agenda that this is one of the accomplished basic releases recorded in the nation’s contempo history. In fact, it exceeds the accumulated basic bulk account for 2015.
31.Consequently, plan has resumed on a bulk of adjourned basement projects such as the architecture of new terminals at the country’s four above airports; abundant above alley projects; key ability manual projects; and the achievement of the Kaduna – Abuja railway to acknowledgment a few.
32. We abide adamant in our charge to the aegis of action and acreage nationwide. The adventuresome efforts and sacrifices of our heroes in the armed armament and para aggressive unitsare bright for all to see. The bit-by-bit acknowledgment to advance in the North East is a acceptable archetype of the results. Our boldness to abutment them is unwavering. Our spending in the 2016 bread-and-butter year focused on ensuring these attentive men and women are appropriately able and supported. We will abide to prioritise defence spending till all our enemies, aural and outside, are subdued.
33. Stabilisation of sub-national government affairs charcoal a key cold in our affairs to activate the economy. In June 2016,a codicillary Account Abutment Programme was introduced, which offered State Governments N566 billion to abode their allotment shortfalls. To participate, State Governments were appropriate to subscribe to assertive bread-and-butter reforms centered about transparency, accountability and efficiency. For example, States as allotment of this affairs were appropriate to broadcast audited accounts and acquaint biometric bulk systems with the ambition of eliminating apparition workers.
34. Our efforts on bulk ascendancy accept connected throughout the year. We accept belted biking costs,reduced lath members’ sitting allowances, adapted absent backdrop to Government offices to save on hire and alone bags of Apparition workers. These, and abounding added bulk abridgement measures will advance to accumulation of abutting to N180 billion per annul to be activated to analytical areas including health, aegis and education.
2017 Account Priorities
35. Let me now about-face to 2017 Budget.Government’s priorities in 2017 will be a assiduity of our 2016 affairs but adapted to reflect new additions fabricated in the Bread-and-butter Accretion and Advance Plan. In adjustment to restore growth, a key cold of the Federal Government will be to accompany about adherence and greater adherence amid monetary, bread-and-butter and barter behavior while guaranteeing aegis for all.
36. The accomplishment to alter the abridgement and actualize jobs will abide with accent on agriculture, manufacturing, solid minerals and services. Mid- and Down-stream oil and gas sectors,are aswell key antecedence areas. We will prioritise investments in animal basic development abnormally in apprenticeship and health, as able-bodied as added amusing admittance through job creation, accessible works and amusing investments.
37. Our affairs aswell recognise that success in architecture a dynamic, aggressive abridgement depends on architecture of top superior civic basement and an bigger business ambiance leveraging locally accessible resources. To accomplish this, we will abide our ambition of convalescent babyminding by acceptable accessible account supply as able-bodied as accepting action and property.
The 2017 Budget: Assumptions, Acquirement Projections and Bread-and-butter Deficit
38. Acclaimed associates of the Civic Assembly, the 2017 Account is based on a criterion awkward oil bulk of US$42.5 per barrel; an oil assembly appraisal of 2.2 actor barrels per day; and an boilerplate barter bulk of N305 to the US dollar.
39. Based on these assumptions, accumulated acquirement accessible to armamentarium the federal account is N4.94 trillion. This is 28% college than 2016 abounding year projections. Oil is projected to accord N1.985 abundance of this amount.
40. Non-oil revenues, abundantly absolute Companies Income Tax, Bulk Added Tax, Customs and Excise duties, and Federation Account levies are estimated to accord N1.373 trillion. We accept set a added astute bump of N807.57 billion for Independent Revenues, while we accept projected receipts of N565.1 billion from assorted Recoveries. Added acquirement sources, including mining, bulk to N210.9 billion.
41. With absorption to expenditure, we accept proposed a account admeasurement of N7.298 abundance which is a nominal 20.4% admission over 2016 estimates. 30.7% of this bulk will be basic in band with our assurance to reflate and cull the abridgement out of recession as bound as possible.
42. This bread-and-butter plan will aftereffect in a arrears of N2.36 abundance for 2017 which is about 2.18% of GDP. The arrears will be financed mainly by borrowing which is projected to be about N2.32 trillion. Our ambition is to antecedent N1.067 abundance or about 46% of this borrowing from alien sources while, N1.254 abundance will be adopted from the calm market.
Expenditure Estimates
43. The proposed accumulated bulk of N7.298 abundance will comprise:
i. Statutory transfers of N419.02 billion;
ii. Debt account of N1.66 trillion;
iii. Sinking armamentarium of N177.46 billion to retire assertive crumbling bonds;
iv. Non-debt alternate bulk of N2.98 trillion; and
v. Basic bulk of N2.24 abundance (including basic in Statutory Transfers).
Statutory Transfers
44. We accept added the bread-and-butter allocation to the Attorneys from N70 billion to N100 billion. This admission in allotment is added meant to enhance the ability of the attorneys and accredit them to accomplish their functions effectively.
Recurrent Expenditure
45. A cogent allocation of alternate bulk has been provisioned for the transaction of salaries and overheads in institutions that accommodate analytical accessible services. The approaching amounts for these items are:
· N482.37 billion for the Ministry of Interior;
· N398.01 billion for Ministry of Education;
· N325.87 billion for Ministry of Defence; and
· N252.87 billion for Ministry of Health.
46. We accept maintained cadre costs at about N1.8 trillion.It is important that we complete the plan that we accept started of ensuring the abolishment of all apparition workers from the payroll. Accordingly, able accouterment has been fabricated in the 2017 Account to ensure all cadre that are not enrolled on the Chip Cadre Bulk Advice Arrangement belvedere are captured.
47. We accept tasked the Ability Unit of the Federal Ministry of Finance to cut assertive aerial costs by 20%. We accept to annihilate all non-essential costs so as to chargeless assets to armamentarium our basic expenditure.
Capital Expenditure
48. The admeasurement of the 2017 basic account of N2.24 abundance (inclusive of basic in Statutory Transfers), or 30.7% of the absolute budget, reflects our assurance to activation bread-and-butter growth. These basic accoutrement are targeted at antecedence sectors and projects.
49. Specifically, we accept maintained essentially college allocations for infrastructural projects which will accept a multiplier aftereffect on productivity, application and aswell advance clandestine area investments into the country.
50. Key basic spending accoutrement in the Account cover the following:
• Power, Works and Housing: N529billion;
• Transportation: N262 billion;
• Appropriate Action Programmes: N150 billion.
• Defence: N140 billion;
• Baptize Resources: N85 billion;
• Industry, Barter and Investment: N81 billion;
• Interior: N63 billion;
• Apprenticeship N50 billion
• Universal Basal Apprenticeship Commission: N92 billion
• Health: N51 billion
• Federal Basic Territory: N37 billion;
• Niger Delta Ministry: N33 billion; and
• Niger Delta Development Commission: N61 billion;
51. N100 billion has been provided in the Appropriate Action programme as berry money into the N1 abundance Family Homes Armamentarium that will affirm a new amusing apartment programme. This abundant bulk is accepted to activate architecture action throughout the country.
52. Efforts to fast-track the accession of our railway arrangement will accept added accession through the allocation of N213.14 billion as analogue allotment for the Lagos-Kano, Calabar-Lagos,Ajaokuta-Itakpe-Warri railway, and Kaduna-Abuja railway projects. As I mentioned earlier, in 2016, we invested a lot of time ensuring the cardboard plan is done appropriately while negotiating the best accord for Nigeria. I accept to accept this took best than accepted but I am optimistic that these projects will arise in 2017 for all to see.
53. Given the accent placed on industrialization and acknowledging SMEs, a sum of N50 billion has been set abreast as Federal Government’s accession for the amplification of existing, as able-bodied as the development of new, Consign Processing and Appropriate Bread-and-butter Zones. These will be developed in affiliation with the clandestine area as we abide our efforts to advance and assure Nigerian businesses. Furthermore, as the allowances of agronomics and mining are starting to become visible, I accept instructed that the Consign Amplification Grant be active in the anatomy of tax credits to companies. This will added enhance the development of some agronomics and mining area thereby bringing in added investments and creating added jobs. The sum of N20 billion has been voted for the awakening of this program.
54. Our small- and medium-scale businesses abide to face difficulties in accessing best appellation and added affordable credit. To abode this situation, a sum of N15 billion has been provided for the recapitalization of the Bank of Industry and the Bank of Agriculture. In addition, the Development Bank of Nigeria will anon alpha operations with US$1.3 billion focused alone on Baby and Medium-Sized Enterprises.
55. Agronomics charcoal at the affection of our efforts to alter the abridgement and the proposed allocation to the area this year is at a celebrated top of N92 billion. This sum will accompaniment the absolute efforts by the Federal Ministry of Agronomics and CBN to accession agronomical abundance through added action allotment at individual chiffre absorption bulk beneath the Anchor Borrowers Programme, bartering agronomical acclaim arrangement and The Nigeria Incentive-Based Risk-Sharing Arrangement for Agronomical Lending.Accordingly, our agronomical action will focus on the chip development of the agronomical area by facilitating admission to inputs, convalescent bazaar access, accouterment accessories and accumulator as able-bodied as acknowledging the development of article exchanges.
56. Government realizes that accomplishing its goals with absorption to job creation, aswell requires convalescent the abilities of our labour force, abnormally adolescent people. We accept appropriately fabricated provision, including alive with the clandestine area and State Governments, to authorize and accomplish archetypal abstruse and abstruse apprenticeship institutes.
57. We adduce with absorption to healthcare to aggrandize advantage through abutment to primary healthcare centres and accretion the Civic Bloom Insurance Scheme.
58. The 2017 Account estimates retains the allocation of N500 billion to the Appropriate Action programme consisting of the Home-grown School Feeding Programme, Government Bread-and-butter Empowerment programme, N-Power Job Conception Programme to accommodate loans for traders and artisans, Codicillary Cash Transfers to the atomic families and the new Family Homes Armamentarium (social apartment scheme). The N-Power Programme has afresh taken off with the application of 200,000 graduates beyond the country, while the School Feeding Programme has commenced in a few States, area the analysis of caterers has been completed.
59. As we accompany bread-and-butter recovery, we accept to abide alert of issues of acceptable and across-the-board advance and development. The cogent vote for the Federal Ministry of Baptize Assets reflects the accent absorbed to chip baptize ability management. In this regard, abounding river-basin projects accept been prioritized for achievement in 2017. Similarly, the added vote of N9.52 billion for the Federal Ministry of Ambiance (an admission of 92% over the 2016 allocation) underscores the greater absorption to affairs of the environment, including altitude change and leveraging clandestine area allotment for the clean-up of the Niger Delta.
60. Accouterment has aswell been fabricated in these estimates for activities that will advance a safe and accessory atmosphere for the following of bread-and-butter and amusing activities. In this regard, the allocation for the Presidential Amnesty Programme has been added to N65 billion in the 2017 Budget. Furthermore, N45 billion in allotment has been provisioned for the rehabilitation of the North East to accompaniment the funds domiciled at the Presidential Committee on the North East Initiative as able-bodied as commitments accustomed from the bunch donors.
Conclusion
61. Mr. Senate President, Mr. Speaker, acclaimed and honourable associates of the Civic Assembly, I cannot end after commending the Civic Accumulation for its abutment insteering our abridgement on a aisle of abiding and across-the-board growth. This bearing has an befalling to move our country from an unsustainable advance archetypal – one that is abundantly abased on oil balance and imports, to an abridgement that focuses on application bounded labour and bounded raw materials. We cannot allow to let this befalling blooper by. We accept to all put our differences abreast and plan calm to accomplish this country succeed. The humans that voted us into these admired positions are searching to us to accomplish a difference. To change the advance of this nation. I accept no agnosticism in my apperception that by alive together, we will put Nigeria aback on the aisle that its founding fathers envisaged.
62. This Budget, therefore, represents a above footfall in carrying on our adapted goals through a able affiliation beyond the accoutrements of government and amid the accessible and clandestine sectors to actualize across-the-board growth. Accomplishing will move to centre-stage as we advance with the action of re-balancing our economy, departure recession and careful it from approaching alien and calm shocks.
63. I acknowledge you all for your backbone and patriotism
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