President Muhammadu Buhari on Tuesday sent the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the National Assembly with N500 billion voted to pay unemployed Nigerian graduates and feed school children among other social welfare programmes in the N6.07 trillion budget for 2016.
Buhari said “phased” social welfare programmes will be created to cater for a large population of the poorest and most vulnerable Nigerians upon the evidence of children’s enrolment in school and evidence of immunisation.
For 2016, N63.29 billion was voted for subsidy (including N150 billion for 2015 arrears); N20 billion for the Presidential Amnesty Programme in 2016, down from N47.39 billion voted in 2015, and N39.88 billion voted for Frontier Exploration Services – to prospect for oil in the Chad Basin.
The National Assembly budget was slashed from N120 billion in 2015 to N115 billion in 2016.
In new borrowings, the Federal Government proposed N1.2 trillion (domestic) and N635 billion (foreign) borrowing, totalling N1.835.88 trillion in 2016.
According to the MTEF/FSP, the Federal Government recovered N350.33 billion in misappropriated funds which will be injected into the 2016 budget.
The recoveries include N137.90 billion (refunds/recoveries from Strategic Alliance Contracts); N162.43 billion (NNPC/CBN) and other recoveries which amount to N50 billion.
The MTEF/FSP is the precursor to the budget itself, as provided in the Fiscal Responsibility Act (FRA).
On the social welfare programme, Buhari stated in the MTEF/FSP: “The Federal Government will collaborate with state governments to institute well-structured social welfare intervention programmes such as: school feeding programme initiatives, conditional cash transfer to the most vulnerable, and post-NYSC grant.
“N500 billion has been provisioned in the 2016 budget as social investments for these programmes. These interventions will start as a pilot scheme and we’ll work towards securing the support of donor agencies and our development partners in order to minimize potential risks.”
According to the President, “Job creation and social inclusion are key to the administration’s development programme, as a means to reducing the rates of unemployment, poverty and inequality.”
Buhari stated, next year, Federal Government ministries, department and agencies (MDAs) will be pruned. He ruled out the possibility of salary increase for civil servants in 2016.
“Government will, in the near-to-medium-term, continue to prune the size of the federal government and its MDAs to more efficient levels without compromising efficiency and effectiveness. Over the medium-term, however, government will revisit the need to rationalise the agencies of government and strategically implement relevant provisions.
“In spite of deliberate efforts at curtailing the growth of the federal government’s recurrent expenditure profile, rising personnel cost – a major component of recurrent spending – has tended to push it up to crowd out capital expenditure.
“While the IPPIS in a number of MDAs has so far helped to manage this phenomenon, we will immediately extend its implementation to all remaining MDAs so as to reap the full anticipated benefits. The ongoing effort at optimizing the size of government is another step in this respect.
“However, while security exigencies necessitate the employment of more personnel which would have an upward impact on the wage bill, the mounting number of claims for increases in salaries and allowances, including pensions and benefits, will need to be curtailed as part of the efforts at rebalancing the structure of government spending,” Buhari stated in the MTEF/FSP.
US hails Buhari’s anti-corruption drive
The United States government has commended the anti-corruption drive of President Muhammadu Buhari, saying it is a positive step for Nigeria’s economic growth and future.
Speaking during the commemoration of 2015 International Anti-Corruption Day Tuesday in Abuja, the US ambassador to Nigeria, James Entwistle, stated that corruption must be addressed by governments, civil society, and the private sector, through “top-down and bottom-up efforts.”
He also challenged the nation to unite with the US to fight endemic corruption in Nigeria.
He said, “According to the recent Transparency International report on corruption in Africa, Nigerians were among the most likely to believe that corruption was getting worse in their country.
“President Buhari’s focus on addressing corruption is a positive indication for a secure and bright economic future for this country. Corruption must be addressed by governments, civil society, and the private sector, through both top-down and bottom-up efforts.
“The success of this fight depends on continuing efforts to ensure that citizens everywhere, as individuals, journalists, and as organised civil society, are able to expose corruption and participate in holding their governments accountable.”
He expressed concern over attempts by some governments to restrict civil society groups and pledged to continue working to ensure a robust, effective international response to the restrictions being placed on civil society.
He highlighted the damaging effects of corruption on the economy, society, and security, stressing that it also decreases confidence in the rule of law and could threaten the stability of markets and distort competition when companies that play by the rules lose out to others that bribe to win business.
The envoy said various estimates put the figure at nearly $1 trillion for corruption globally, adding that the Center for Strategic and International Studies has reviewed data from the World Bank and others and estimated that a segment of private sector corruption alone in developing countries is at least $500 billion, more than three times all foreign assistance given in 2012.
“Sadly, corruption can be found everywhere and continues to be an issue in my country. In my home state of Virginia, former governor Robert McConnell and his wife were indicted on federal corruption charges for receiving improper gifts and loans from a businessman,” Entwistle noted.
Buhari calls for peaceful elections in Benin Republic
…Country to contribute 800 troops to fight Boko Haram
President Muhammadu Buhari Tuesday commended the efforts made so far by the outgoing President of Benin Republic Boni Yayi, and the Beninois National Electoral Commission to ensure a peaceful and transparent presidential election in the country next year.
Receiving the Beninois President at the State House, President Buhari commended the visionary leadership that Yayi had provided for his country for close to 10 years, urging him to complete the legacy of patriotism and statesmanship by ensuring a peaceful handover of power.
“Whatever happens in Benin is of particular interest to Nigeria because we are very good neighbours. I would like to congratulate the President of Benin for successfully completing two terms in office, and his plan to hand over power after the elections in February,’’ Buhari said.
The President, in a statement by his Special Adviser, Media, Femi Adesina, said Nigeria would need more support from neighbouring countries in fighting the scourge of terrorism and illegal activities in the Gulf of Guinea that currently undermine the West African economy.
On energy and gas supply to West African countries, the President said discussions were still ongoing among the technical experts from various countries.
In his remarks, the Beninois President promised do his best to ensure a peaceful and transparent presidential election in his country next year.
President Yayi also emphasized the need for more cooperation in West Africa to confront the challenges of insecurity and infrastructure deficit currently faced by the countries in the sub-region.
Meanwhile, Yayi revealed that his country was ready to contribute 800 men to join Nigeria and other neighbouring countries in the fight against terrorism, adding that the men were already battle-ready and waiting for deployment.
Speaking to State House correspondents shortly after meeting with President Muhammadu Buhari behind closed doors inside the Presidential Villa, Abuja, during his one-day state visit to Nigeria, Yayi, who spoke through an interpreter, disclosed that his country would always remain on the side of Nigeria in the fight against terrorism and corruption.
He said, “President Buhari took over the mantle of government at a time terrorism occasioned by the activities of Boko Haram was high.
“To fight terrorism, Benin is ready to send about 800 men to join the men that are already prepared to fight terrorism. The team is battle ready for deployment. The willpower is there and Benin is committed to deploying the men. Benin will always remain on the side of Nigeria in its trying times.
“The sub-region is also going through serious problems of development. Fighting Boko Haram is becoming difficult because OPEC countries are going through oil crises.
Commending the leadership style of Buhari, Yayi promised to always cooperate with Nigeria.
“We will always stand beside Buhari in his fight against corruption,” he said.
Buhari, in his response, said the military operation in the North East was being reduced to the remotest parts of the region.
He added that because of Nigeria’s commitment to the cause of the sub-region, it would be hosting the Economic Community of West Africa States (ECOWAS) in about nine days’ time.
He said Nigerian officials were currently busy planning a hitch-free event.
Buhari also spoke on the security in the Gulf of Guinea from Senegal to Angola, expressing the hope that improved security in that area would check oil theft which has Nigeria as a major casualty.
Support measures to ensure credible elections – Buhari tells Nigerians
…As IPAC backs war against corruption
President Muhammadu Buhari on Tuesday in Abuja called on Nigerians to support all necessary measures to ensure free, fair and credible elections in the country, including the use of card readers and permanent voter cards.
Receiving members of the newly elected Inter-Party Advisory Council (IPAC) Executive Committee in his office, President Buhari said that more work was needed to perfect the conduct of elections in the country.
The President, in a statement by his Senior Special Assistant, Media, Mallam Garba Shehu, told members of IPAC that it was regrettable that the electorate in some parts of the country were deprived of the use of card readers and permanent voter cards during the last general elections, despite the enthusiasm that followed their introduction into Nigeria’s electoral system.
Referring to recent elections in Kogi and Bayelsa states, Buhari said it was unfortunate that there were still reports of unhelpful electoral attitudes.
The President also used the visit of the IPAC leaders to thank them for their strong support for his candidacy in the build-up to the 2015 presidential election.
He congratulated the newly-elected Chairman of IPAC, Malam Bashir Yusuf, who is also the Chairman of the Peoples Democratic Movement (PDM).
In his remarks, Yusuf reaffirmed IPAC’s belief in the unity, progress and indivisibility of Nigeria.
He also pledged the group’s support to President Buhari’s fight against insurgency and corruption in the country.
According to the group, the council is playing a leading role in curtailing the negative influences of big money in Nigeria’s political life.
He pointed out that big money politics not only diminishes the power of the vote, but also perpetuates the vicious cycle of corruption in Nigeria’s public life.
He said: “It is in consideration of this that IPAC totally and unequivocally supports your administration’s ongoing war against corruption and further supports Your Excellency’s determination to leave no stone unturned in bringing corrupt public officers to book.
“To deal decisively with economic and financial corruption, we must simultaneously deal with political corruption as well.”
The group also emphasized the need for cleaner elections in the country as a follow up to the successful March and April 2015 general elections.
IPAC, he said, is committed to playing positive roles to strengthen multiparty democracy in Nigeria.
World Bank to Buhari: Remove oil subsidy now
The World Bank has urged President Muhammadu Buhari to remove petroleum subsidy, saying that the time has come for the President to take the decision.
Speaking at the launch of the new edition of Nigeria Economic Report, the World Bank’s lead economist, John Litwack, said the best time to remove fuel subsidy is now when global crude oil price is at its lowest level, noting that the Bank foresaw continuous decline in global crude oil price.
According to Litwack, now is the best time for the government to scrap the subsidy, as doing so would not push retail pump price beyond an average of N100 per litre, or generate the kind of pressure that would negatively impact on the people beyond what they are currently facing.
-Leadership
