… Says  full implementation cannot  be guaranteed

After much delay , President Mohammadu Buhari  has finally signed  the 2016 Appropriation Bill  into law with warning that its full implementation could not be guaranteed, an indication that  the prolonged delays in passage of the  budget will impact negatively on its implementation.

This assent has now given way for the full implementation of the budget

The 2016 budget, aptly titled “Budget of Change, provides for aggregate expenditures of N6.06trillion and was signed into law by President Muhammadu Buhari in the presence of Senate President Bukola Saraki, Speaker of the House of Representatives, Yakubu Dogara, members of the Federal Executive Council as well as other top government officials at the Presidential Villa, Abuja, Friday.

Apart from the delayed passage, dwindling oil revenue amongst others are some of the challenges likely to impact negatively on the 2016 budget.

But President Muhammadu Buhari while signing the budget, it will trigger concerted efforts to reflate the Nigerian economy.

“In designing the 2016 budget, we made a deliberate choice to pursue an expansionary fiscal policy despite the huge decline in government revenues from crude oil exports. This is why we decided to enlarge the budget deficit at this time, to be financed principally through foreign and domestic borrowings. All borrowings will however be applied towards growth-enhancing capital expenditures”

He revealed one of the key elements in the budget which he said is an immediate injection of N350billion into the economy by way of capital projects.

“To illustrate our renewed commitment to infrastructural development, the 2016 budget allocates over N200billion to road construction as against a paltry N18billion allocated for same purpose in the 2015 budget”

He also assured that despite the current difficulties ” we will work extra hard to achieve our revenue projections Our revenue generating agencies are coming under better management and are being re-oriented. The implementation of the Treasury Single Account (TSA) is expected to contribute significantly to improving transparency over government revenues”

“We are experiencing probably the toughest economic times in the history of our Nation. I want to commend the sacrifice, resilience and toughness of all Nigerians young and old who have despite the hardships continued to have hope and confidence of a great future for Nigerians. But permit me to say that this government is also like none other. We are absolutely committed to changing the structure of the Nigerian economy once and for all”

“We are working night and day to diversify the economy such that we never again have to rely on one commodity to survive as a country. So that we can produce the food we eat, make our own textiles, produce most of things we use. We intend to create the environment for our young people to be able to innovate and create jobs through technology”

“I cannot promise you that this will be an easy journey but in the interest of so much and so many we must tread this difficult path. But I can assure you this government you have freely elected will work with honesty and dedication day and night to ensure that our country prospers and that the prosperity benefits all Nigerians. God bless Federal the Republic of Nigeria.”

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Senate President Bukola Saraki in his remarks described the passing of the appropriation bill as ” the most difficult all over the world”

According to him” even in America that we copy sometimes, the government is shut down, we didn’t see that in our case.”

” It is a first time, is a new government so these sorts of challenges are rare. But I’m happy we are all here to see that we have passed the budget and the President has ‎and what we await now is implementation. I want to assure Nigerians that from the comment from the mouth of the President our commitment is to see that the budget is  implemented, is not just the assent is now the implementation that is when Nigerians will begin to see the benefits.”

” Like I said let’s focus on the good part and play less on the controversy that is behind us now and I want to assure Nigerians that the benefit expected from this budget is implemented”

Minister of Budget and National Planning, Senator Udoma Udo Udoma and Minister of State, Zainab Ahmed, who briefed State House Correspondents, shortly after the President’s assent, lamented that government was not likely to implement the budget in full.

“We are not likely to fully implement the 2016 budget but we will try our best.”

He disclosed that he will be providing full details but admitted that the signed budget is based on projection of $38 per barrel of crude oil at a production rate of 2.2 million barrels per day.

He also assured that the 2017 budget will go to National Assembly in October to avoid recurrent of the recent delays and achieve January to December budget cycle

“The most important time for road construction is dry season. A lot of consultation will take place, ahead of the 2017 budget

 Bellow  are  the Remarks By President Muhammadu Buhari At The Signing Of The 2016 Appropriation Bill Into Law On Friday, May 6, 2016, Abuja

  1. It gives me great pleasure today to sign the first full-year budget of this administration into law. I thank the leadership of the National Assembly, in particular, the Senate President and the Speaker of the House of Representatives, and indeed all members of the National Assembly for their cooperation in making this a reality.
  2. The budget is intended to signpost a renewal of our commitment to restoring the budget as a serious article of faith with the Nigerian people. This Administration is committed to ensuring that henceforth the annual appropriation bill is presented to the National Assembly in time for the passage of the Act before the beginning of the fiscal year.
  3. Through the 2016 budget, aptly titled “Budget of Change’’, the government seeks to fulfil its own side of the social contract. The Budget I have signed into law provides for aggregate expenditures of N6.06trn. Further details of the approved budget, as well as our Strategic Implementation Plan for the 2016 budget, will be provided by the Honourable Minister of Budget and National Planning.
  4. I shall be speaking in more details about the Budget, its implementation and the over-all national economic and social policies of the Government in my address on May 29th, God willing.
  5. In designing the 2016 budget, we made a deliberate choice to pursue an expansionary fiscal policy despite the huge decline in government revenues from crude oil exports. This is why we decided to enlarge the budget deficit at this time, to be financed principally through foreign and domestic borrowings. All borrowings will however be applied towards growth-enhancing capital expenditures.
  6. The signing of the budget today will trigger concerted efforts to reflate the Nigerian economy, a key element of which is an immediate injection of N350bn into the economy by way of capital projects. To illustrate our renewed commitment to infrastructural development, the 2016 budget allocates over N200bn to road construction as against a paltry N18bn allocated for same purpose in the 2015 budget.
  7. Despite the current difficulties we will work extra-hard to achieve our revenue projections. Our revenue generating agencies are coming under better management and are being re-oriented. The implementation of the Treasury Single Account (TSA) is expected to contribute significantly to improving transparency over government revenues.
  8. Our determined fight against corruption is resulting in improvements in the quality of public expenditure. The work of the Efficiency Unit, as well as other public financial management initiatives, are also contributing in this regard. The continuing efforts to reduce recurrent expenditures should hopefully free up more funds for capital expenditure in 2017 and beyond.
  9. As I said in my New Year message, living in State House does not in any way alienate me from your daily struggles. I read the newspapers and listen to the TV and radio news. I hear your cries. I share your pains.
  10. We are experiencing probably the toughest economic times in the history of our Nation. I want to commend the sacrifice, resilience and toughness of all Nigerians young and old who have despite the hardships continued to have hope and confidence of a great future for Nigerians. But permit me to say that this government is also like none other. We are absolutely committed to changing the structure of the Nigerian economy once and for all.

11.We are working night and day to diversify the economy so that we never again have to rely on one commodity to survive as a country. So that we can produce the food we eat, make our own textiles, produce most of the things we use. We intend to create the environment for our young peoples to be able to innovate and create jobs through technology.

  1. I cannot promise you that this will be an easy journey, but in the interest of so much and so many we must tread this difficult path. I can assure you that this government you have freely elected will work with honesty and dedication, day and night to ensure that our country prospers and that the prosperity benefits all Nigerians. God bless Federal Republic of Nigeria.