Assembly 
Earleir
today, President Buhari presdented the 2019 budget to the joint session
of the National Assembly. Below is the full text of the speech he
delivered.... PROTOCOLS –1. It is my pleasure to present the 2019 Budget
Proposals to this Joint Session of the National Assembly.2. This being
my last budget speech to the 8th National Assembly, I will review
economic developments over the past three and a half years with
particular emphasis on 2018. I will then highlight the budget proposals
for 2019. The full details of which will be given by the Honourable
Minister of Budget and National Planning.OVERVIEW OF ECONOMIC
DEVELOPMENTS3. The last three and a half years have been challenging
both at home and abroad. Commodity prices, both oil and non-oil, have
been volatile. Global trends, be it security, trade or politics have
also been unpredictable. Here in Nigeria, we have had to cope with
disruptions in oil production and exports, security challenges and
devastating floods.4. Through hard work, and by the special grace of
God, we have weathered these storms and made progress on many fronts
which is why we have cause to be optimistic about the future.5. The
economy has recovered from recession and we have had six quarters of
growth since then.6. We have done more work with less resources in
agriculture, infrastructure and social investments. We have built better
understanding between the Federal Government and the States on
non-partisan lines, in particular, intervening several times to support
States to meet their obligations including the payment of salaries and
pensions.7. Sustained development is difficult, if not impossible, in an
atmosphere of insecurity and poor governance. We have therefore made
strenuous and successful efforts to overcome the insurgency in the
North-East and to resolve inter-communal misunderstandings elsewhere.8.
The Federal government and the National Economic Council have been
working in a unified and patriotic manner to tackle the underlying
causes of tension between pastoralists and sedentary farmers. These
conflicts have a long-standing history caused mainly by competition for
increasingly scarce resources occasioned by rising population and
erratic weather conditions – a product of climate change.9. I take this
opportunity to salute the men and women in our Armed Forces and Security
Services for their courage, sacrifice and patriotism in protecting our
collective safety and security.10. The Federal Government has also
sustained its efforts to fight grand corruption and improve public
financial management, and its efforts to improve public financial
management through the comprehensive implementation of the Treasury
Single Account, the Government Integrated Financial Management
Information System and the Integrated Payroll and Personnel Information
System.11. You will also recall that as part of our commitment to
improved governance, we joined the Open Government Partnership in 2016
with the aim of enhancing public service delivery, promoting business
opportunity, enhancing government efficiencies, preventing corruption
and building trust in government. We remain committed to these, and
other institutional reforms that will enhance transparency and
accountability in public service delivery.12. We also recorded several
successes in economic management. Real Gross Domestic Product growth
stood at 1.81 percent in the third quarter of 2018 compared to 1.17
percent in the third quarter of 2017. We have had a sustained accretion
to foreign exchange reserves from a low of $28.57 billion in May 2015 to
$42.92 billion by mid-December 2018. This has contributed to exchange
rate stability and will provide a buffer against any unanticipated
external shocks. Inflation has also declined from a peak of 18.72
percent in January 2017 to 11.28 percent in November this year.13. In
the area of trade, Nigeria has moved from a deficit to surplus in our
trade balance. As at the third quarter of 2018, the trade balance was a
surplus of N681.27 billion representing a significant improvement from
the deficit of N290.1 billion in 2016. This reflects the rebound in
crude oil exports, increased non-oil exports and a reduction in the
importation of food and items that can be produced locally. Foreign
capital inflows including direct and portfolio investments also
responded to improved economic management. Capital importation to
Nigeria in the third quarter of 2018 stood at $2.86 billion, which is a
56.7 percent increase compared to the corresponding period in 2016.14.
Trading is a significant contributor to our economic development but we
must continue to focus on strengthening actual production. From farmers
to miners to processors to digital entrepreneurs to players in the
entertainment industry, all hands must be on deck to ensure the country
succeeds.15. With regard to the oil and gas sector, crude oil production
continues to increase steadily towards budgetary targets and will
receive a further boost when the 200,000 barrels per day Egina oil field
starts operations.16. In agriculture, we are seeing increased
investment across the entire value chain from agricultural inputs to
farming and ultimately, food processing. Barely three years ago, Nigeria
was spending $5 million dollars a day on rice importation. Today rice
imports have virtually stopped. Indeed, we are on course to achieve food
security in major staple foods in the not too distant
future Distinguished Senate President, Right Honourable Speaker17.
Infrastructure development is also another area in which we have made a
lot of progress. Our approach was a logical one. We simply prioritised
the completion of critical on-going projects over the introduction of
new ones.18. For example, in the Ministry of Water Resources, we
identified 116 abandoned or uncompleted projects relating to irrigation,
dams, drainage and water supply. To date, we have completed and/or
commissioned a number of these projects including;a. Central Ogbia
Regional Water Project, Bayelsa Stateb. Northern Ishan Regional Water
Supply Project, Edo Statec. Sabke Water Supply Project, Katsina Stated.
Takum Water Supply Project, Taraba Statee. Ogwashi – Uku Dam, Delta
Statef. Shagari Irrigation Project, Sokoto Stateg. Galma Dam, Kaduna
State.h. Mangu Water Supply Project, Plateau Statei. Federal University
of Agriculture, Makurdi Water Supply Project, Benue State 19. In the
railway sector, we completed and commissioned the Abuja-Kaduna Rail Line
and the Abuja Metro-Rail Project. Similarly, the previously abandoned
Itakpe-Ajaokuta-Warri Rail Line is undergoing test runs and will soon be
commissioned. We are also on track for the Lagos – Kano rail line as
significant progress has been made on the Lagos to Ibadan segment of the
project.20. We remain committed to rebuilding and expanding our road
network. In 2018, an additional 1,531 kilometers of roads have been
constructed and 1,008 kilometers rehabilitated across the country.
Priority projects such as the Abuja - Kaduna – Kano highway as well as
the Second Niger Bridge are well underway through the Presidential
Infrastructure Development Fund.21. In every State of Nigeria today
there is a major Federal road project going on. For instance:a. In the
North Central, long neglected roads like the Ilorin-Jebba Road, a
stretch of 93 km that took a number of days to travel has been completed
to provide a critical link between the North and South of Nigeria over a
few hours. We have awarded the dualization of this road to expand it
all the way to Mokwa, as we have done to the Abuja – Keffi-Lafia
-Makurdi roads where work recently commenced. Similarly, work has
resumed on the Suleja - Minna road after years of inactivity.b. In the
South-South, we have recently completed the 60 km section of Alesi to
Ugep in Cross River State, and awarded the 72km section from Odukpani
Junction to Ugep which will reduce a journey that used to take 3 days a
few years back, to 3 hours. Work has also commenced on the Calabar - Itu
- Odukpani Road that links Akwa-Ibom to Cross River State, as we have
started work on the long-neglected Bodo - Bonny Bridge to connect these
long separated communities.c. In the South East, a critical section of
Umunya linking Awka to Onitsha, a stretch of 18 kilometers, is being
constructed now and one side of it should be ready for use before June
2019. Roads like Arochukwu – Ohafia – Bende are also receiving our
attention.d. In the South–West, long neglected and abandoned roads like
the Badagry Expressway have been awarded for construction along with the
Apapa – Tin Can Island, Mile 2 – Oworonshoki, road to ease the
congestion currently being experienced in Lagos, while interstate roads
linking Ogun through Ikorodu to Sagamu, and Ipaja to Otta and Abeokuta
are being repaired with payment to contractors.e. In the North-West, we
have completed the Sokoto to Tambuwal – Jega Road comprising 135 Km out
of the entire Sokoto to Yauri stretch and sections of Kaduna Eastern
bypass and Kano Western bypass are also progressing.f. In the
North-East, we have started work on the long-neglected Mayo – Belwa –
Jada Road, and the Gombe – Numan – Jalingo Road and recently awarded the
reconstruction of bridges damaged by insurgency.In addition, thanks to
the N100 billion Sukuk Bond raised in Nigeria, work is on-going in 25
road projects. Among which are:a. Construction of the Oju/Loko-Oweto
bridge over River Benueb. Dualisation of section of Abuja-Abaji-Lokoja
Roadc. Dualisation of section of Suleja-Minna Roadd. Dualisation of
section of Lokoja-Benin Road (Obajana - Okene)e. Dualisation of section
of Kano - Maiduguri Road linking Kano-Jigawa-Bauchi-Yobef. Dualisation
of section of Kano-Katsina Roadg. Dualisation of section of Kano Western
By-Passh. Construction of Kaduna Eastern By-Passi. Rehabilitation of
outstanding section of Onitsha-Enugu Expresswayj. Rehabilitation of
Enugu-Port Harcourt Roadk. Dualisation of section of Yenegoa Road
Junction22. In power, we are working on over 90 transmission projects
across the country. Major power transmission stations like Mayo Belwa in
Adamawa, Ejigbo and Odogunyan in Lagos, Apo in Abuja, Ikot – Ekpene
Switching Station Akwa Ibom, Maiduguri in Borno, Damaturu in Yobe have
been completed to support electricity transmission.23. For effective
delivery to critical areas, we decided that we had to decentralize power
supply leveraging off-grid solutions especially solar based systems. We
are pushing more “willing- buyer willing –seller” arrangements.
Already, this has brought more reliable off-grid power to markets and
economic clusters around the country.24. The projects being implemented
right now include the Ariaria Market in Aba, the Sabon Gari Market in
Kano, the Sura Shopping Complex in Lagos to mention a few. Our hope is
to roll out such programs to 300 such economic clusters across the
country.25. In addition to economic clusters, we are also looking at
rolling out similar off grid solutions to Universities and medical
centers across the country.26. As we develop our infrastructure and
power sector, we have not lost sight of the adverse impact climate
change has to our economy, food and national security agenda. The recent
floods, farmer-herdsmen conflict and aggressive desertification are all
effects of climate change. We have seen our forests, lakes, arable land
and grazing areas gradually disappear over the decades.27. As a
Government, we took a long term view on tackling the effects of climate
change which must be contained and ultimately reversed. We have stepped
up our afforestation efforts. In the past two years, we have planted
over 2.3 million seedlings in 21 States. We also successfully launched
the Green Bond which will focus on developing environmentally friendly
projects and other green programs across the country. Nigeria is also
actively participating in international efforts to tackle climate
change.28. Furthermore, working with key stakeholders including the
National Assembly, State Governments and the private sector, we
intensified our drive to remove obstacles, reduce processes and lower
costs of doing business. The fact that over the past three years,
Nigeria has gained 24 places in the World Bank Ease of Doing Business
rankings is a clear indication that we are moving in the right
direction.29. We are confident that improvements arising from on-going
work will result in another quantum leap in the 2019 rankings. The
States have also keyed into efforts to improve the business environment,
and the sub-national Doing Business Report for Nigeria showed that 32
out of 36 states recorded overall improvement.30. In line with our
commitment to creating a fairer and more inclusive society, I am pleased
to update you on our efforts in this regard. Specifically,a. Through
the N-Power scheme, 500,000 graduates have been employed to date;b. The
National Home-Grown School Feeding program is feeding 9,300,892 pupils
in 49, 837 schools in 24 states across Nigeria, and empowering 96,972
cooks;c. The Government Enterprise and Empowerment Program has seen to
the disbursement of 1,378,804 loans to small businesses and farmers in
all states including the FCT. These are interest free loans that will be
paid back;d. 297,973 households in 26 states across the country are
benefitting from the Conditional Cash Transfer program.Distinguished
Senate President, Right Honourable Speaker31. Whilst we are most
encouraged by the improved performance of the economy since we started
implementing our Economic Recovery and Growth Plan, there is an area
that continues to be a cause of concern. That has to do with our
unsatisfactory revenue performance.32. Although we have sustained
efforts at boosting tax revenues, our progress has been constrained by
the relatively low level of growth, having just emerged from recession.
This has restrained our tax revenue drive.33. Furthermore, the
volatility in oil prices, and disruptions in oil production, delayed our
plans to recover past due oil license and royalty charges as well as
restructuring of the Joint Venture Oil Assets.34. As we have returned to
the path of growth, I have directed that action on all our revenue
initiatives be expedited. I have already issued a number of Presidential
directives on the disposal of recovered assets, deployment of the
National Trade Window as well as the immediate recovery of past-due oil
royalties including by crude seizures, if necessary.35. On asset
recovery, in order to put to use for the benefit of all Nigerians monies
and assets stolen from the public treasury, we have since the 2016
Budget created a revenue line in the budget for stolen and recovered
funds.36. Thus every government project today benefits in one way or the
other from recovered looted funds. I have also directed all the
relevant authorities to liquidate all recovered, unencumbered assets,
such as landed properties, buildings and vehicles, so that these funds
can be available to help in the funding of the Budget, particularly the
important infrastructure projects. 2018 BUDGET PERFORMANCE37. Now to the
2018 Budget performance. The 2018 Budget was based on a benchmark oil
price of $51/b, oil production of 2.3 million barrels per day and an
exchange rate of N305 to the dollar. Based on these, the Federal
Government’s aggregate revenue of N7.17 trillion was projected to
contribute to the 2018 Budget of N9.12 trillion. The projected deficit
of N1.95 trillion (or 1.73 percent of GDP) was to be financed mainly by
borrowing.38. In 2018, average oil production up to end of the third
quarter was 1.95 mbpd, as against the estimated 2.3 mbpd for the entire
year. However, average market price of Bonny Light crude oil was higher
(an average of $74 per barrel as at October) than the benchmark price of
$51.39. As at the end of the third quarter, Federal Government’s actual
aggregate revenue was N2.84 trillion, which is 40 percent higher than
2017 revenue. The overall revenue performance is only 53 percent of the
target in the 2018 Budget largely because some one-off items are yet to
be actualized. We have now rolled this revenue item over to 2019.40. Of
the total appropriation of N9.12 trillion, N4.59 trillion had been spent
by 30th September, 2018 against the prorated expenditure target of
N6.84 trillion. This represents 67 percent performance. Debt service and
the implementation of non-debt recurrent expenditure, notably payment
of workers’ salaries and pensions are on track. Despite the delay in the
passage of the 2018 Budget on 20th June 2018, the sum of N820.57
billion had been released for capital projects as at 14th December,
2018. We have carried over capital projects that were not likely to be
fully funded by year-end 2018 to the 2019 Budget. PRIORITIES FOR THE
2019 BUDGET41. The 2019 Budget Proposal is intended to further place the
economy on the path of inclusive, diversified and sustainable growth in
order to continue to lift significant numbers of our citizens out of
poverty. The underlying drivers of the 2019 revenue projections have
been adjusted to reflect current realities. On the expenditure side,
allocations to Ministries, Departments and Agencies of Government were
guided by the 3 objectives of the ERGP, which are, (i) Restoring and
Sustaining Growth; (ii) Investing in our People and (iii) Building a
Globally Competitive Economy.2019 KEY BUDGET ASSUMPTIONS42. The 2019
Budget proposal is based on the following assumptions:a. Oil price
benchmark of $60 per barrel;b. Oil production estimate of 2.3 million
barrels per day, including condensates;c. Exchange rate of N305/$;d.
Real GDP growth of 3.01 percent; ande. Inflation Rate of 9.98
percent.43. Notwithstanding the recent softening in international oil
prices, the considered view of most reputable analysts is that the
downward trend in oil prices in recent months is not necessarily
reflective of the outlook for 2019. However, as a responsible
Administration, we will continue to monitor the situation and will
respond to any changes in the international oil price outlook for
2019.44. With regard to oil production, I have directed the NPPC to take
all possible measures to achieve the targeted oil production of 2.3
million barrels per day.FEDERAL GOVERNMENT REVENUE ESTIMATES45. Total
revenue is projected at N6.97 trillion (which is 3 percent lower than
the 2018 estimate of N7.17 trillion), consisting of Oil revenue
projected at N3.73 trillion while non-oil revenue is estimated at N1.39
trillion.46. We have allowed for N305 billion ($1 billion) for
under-recovery by NNPC on PMS in 2019. We will continue working to bring
it downwards so that such resources are freed up to meet the
developmental needs of our people.47. Let me also take this opportunity
to address and clarify the under-recoveries or subsidy on petrol. In a
period of economic challenges where purchasing power is weak, we must
reduce some of the burden on Nigerians.48. The problem with subsidies in
the past is abuse and corruption. Today the government through the NNPC
is the sole importer of PMS and therefore, the under-recovery is from
the NNPCs trading account. This means the possibility of some marketers
falsifying claims is removed.49. The estimate for non-oil revenue
consists of N799.52 billion from Companies Income Tax (CIT), N229.34
billion from Value Added Tax (VAT) and Customs Duties of N302.55
billion. We have reduced our expectation from Independent Revenues to
N624.58 billion. Other revenues expected in 2019 include various
recoveries of N203.38 billion, N710 billion as proceeds from the
restructuring of government’s equity in Joint Ventures and other sundry
incomes of N104.11 billion.PROPOSED EXPENDITURE FOR 201950. A total
expenditure of N8.83 trillion is estimated for 2019. This includes
grants and donor funds of N209.92 billion. This provision is less than
the 2018 FGN appropriated expenditure estimate of N9.12 trillion.
However, it is higher than the N8.6 trillion originally proposed by the
Executive Branch to the National Assembly for 2018.51. The budget
deficit is projected to decrease to N1.86 trillion (or 1.3 percent of
GDP) in 2019 from N1.95 trillion projected for 2018. This reduction is
in line with our plans to progressively reduce deficit and
borrowings.52. The proposed N8.83 trillion of 2019 Aggregate Expenditure
comprises:a. Recurrent Costs of N4.04 trillion;b. Debt Service of N2.14
trillion;c. Statutory Transfers of about N492.36 billion;d. Sinking
Fund of N120 billion which will be used to retire maturing bond to local
contractors; ande. Capital Expenditure of N2.031 trillion including
capital supplementation but excluding the capital component of Statutory
Transfers. STATUTORY TRANSFERS 53. The provision for Statutory
Transfers in 2019 is N492.36 billion which is a seven percent decrease
from 2018. However, transfers to Niger Delta Development Commission
(NDDC) and Universal Basic Education Commission (UBEC) are projected to
be higher as they are directly related to the quantum of oil
revenue.DEBT MANAGEMENT 54. The sum of N2.14 trillion has been provided
for debt service. Of this amount, 80 percent is to service domestic debt
which accounts for about 70 percent of the total debt. Although our
national debt is within sustainable limits, we need to increase our
domestic resource mobilization to bring down our debt-revenue ratio over
the medium term. RECURRENT EXPENDITURE55. A substantial part of the
recurrent cost proposal for 2019 is for the payment of salaries and
overheads in Ministries providing critical public services such as: a.
N569.07 billion for the Ministry of Interior;b. N435.62 billion for the
Ministry of Defence;c. N462.24 billion for the Ministry of Education;
andd. N315.62 billion for the Ministry of Health.The allocation to these
Ministries represent significant increases over votes in previous
budgets, underscoring our commitment to increase investment in national
security and human capital development.PERSONNEL COSTS 56. Personnel
costs, estimated at N2.29 trillion, currently amount to nearly 40
percent of projected revenues. Substantial savings have been made from
wider use of the Integrated Personnel Payroll Information System
platform. I have directed that all MDAs must implement the IPPIS by
March, 2019. We have made provisions for staff promotion arrears and
recruitments by the armed forces, police and para-military agencies. 57.
We have also provided for the settlement of inherited outstanding
pension liabilities. Again we have included provisions for the
implementation of a new national minimum wage.58. Furthermore, 1 percent
of the Consolidated Revenue Fund amounting to N51.22 billion has been
earmarked for the Basic Health Care Provision Fund, and other related
commitments.59. Let me say something about the minimum wage issue. I am
committed to addressing the issue of a new minimum wage and I will be
sending a bill to the National Assembly on this. However, in order to
avoid a fiscal crisis for the Federal Government, as well as the States,
it is important to devise ways to ensure that its implementation does
not lead to an increase in the level of borrowing.60. I am accordingly
setting up a High Powered Technical Committee to advise on ways of
funding an increase in the minimum wage, and the attendant wage
adjustments, without having to resort to additional borrowings.61. The
work of this Technical Committee will be the basis of a Finance Bill
which will be submitted to the National Assembly, alongside the Minimum
Wage Bill. In addition, the Technical Committee will recommend
modalities for the implementation of the new minimum wage in such a
manner as to minimize its inflationary impact, as well as ensure that
its introduction does not lead to job losses.CAPITAL EXPENDITURE 62. We
have allocated N2.28 trillion for capital spending, inclusive of capital
in statutory transfers.63. For comprehensiveness and transparency, the
expenditure plans of the larger Government Owned Enterprises (GOEs) as
well as Multi-lateral and Bi-lateral project-tied loans have been
integrated into the 2019 -to- 2021 Medium Term Fiscal Framework.64. With
the inclusion of N275.88 billion representing capital for the larger
GOEs and N556.02 billion for Multi-lateral/Bi-lateral project-tied
loans, the aggregate capital budget is N3.12 trillion. This represents
30 percent of the total FGN proposed expenditure for 2019.65. In order
to get full value for monies expended by the Government over time and to
avoid duplication and waste, our emphasis will continue to be on
completion of existing projects. Accordingly, provisions have been made
to carry over projects that are not likely to be fully funded under the
2018 budget to the 2019 capital budget.66. The allocation to the Social
Intervention Projects (SIP) has been retained at N500 billion,
consisting of N350 billion recurrent and N150 billion capital. This
reflects our continued determination to pursue inclusive
gender-sensitive and pro-poor growth.67. In addition, to maintain the
peace in the Niger Delta, the provision of N65 billion for the
Presidential Amnesty Programme has been retained in the 2019 budget.
Similarly, the sum of N45 billion Naira has been provided for the North
East Intervention Fund, as well as the sum of N10 billion Naira as
take-off grant for the North East Development Commission.68. To further
support Small and Medium Scale Enterprises, which are the focus of our
industrialisation drive, we have set aside the sum of N15 billion for
the recapitalization of the Bank for Agriculture and the Bank of
Industry. In addition, the sum of N10 billion is provided as a grant to
the Bank of Industry for the purpose of subsidizing the interest rates
charged on loans to Small and Medium-Scale Enterprises. This is intended
to make it possible for them to access single digit interest rate loans
from the Bank of Industry.OUR VISION FOR THE FUTURE69. Our vision is
for much better prospects for all Nigerians. With careful economic
management and continued diversification of our production and revenue
bases, we will build an inclusive and stable economy for generations to
come.70. In addition to the development of Special Economic Zones which
will underpin our efforts to move away from a mono-economy, we intend to
exploit the comparative advantages of the six geo-political zones and
our 36 states by establishing 6 Industrial Parks and 109 Special
Production and Processing Centres across all 109 senatorial zones
including shared facilities. These clusters will have power, water, and
broadband facilities with embedded regulatory services. The clusters
will generate vibrant economic activity, stimulate small businesses and
create jobs across the length and breadth of Nigeria.71. A key objective
going forward is to further encourage and enable ‘prosperous small
businesses’. Our micro, small and medium enterprises will accordingly
benefit from improved access to funding, supporting infrastructure and
off-take arrangements by Government and larger enterprises. They will
leverage the Government Enterprise and Empowerment Programme, and the
Anchor Borrowers Programme.72. Nigeria cannot afford to be left behind
in the digital age. To create jobs for our young people, we will build a
digital economy around the technology and creative sectors. In
partnership with the states and the private sector, we are working on a
project to increase broadband penetration across all geopolitical zones
of the country, such that over the next four years, all the 774 LGAs
will be provided with fibre connectivity.73. Modern, up-to-date
infrastructure is particularly important to boost economic activity. We
will continue with our emphasis on power, roads and rail. In addition to
completing the Ibadan-Kano rail line we will also embark upon and move
rapidly to complete the Eastern Rail from Port Harcourt to Maiduguri
passing through Aba, which will connect to Abakaliki, Awka, Enugu,
Owerri, Umuahia, then through Makurdi, Jos, Bauchi and Gombe. The
Coastal Rail from Calabar to Lagos will also be completed as we aim to
build a true national rail network that links all State capitals. Our
road projects will gather pace and priority projects under the
Presidential Infrastructure Development Fund such as the
Abuja-Kaduna-Kano expressway, the Second Niger Bridge and the
Lagos-Ibadan expressway will be fast-tracked for early completion.74. We
shall expand generation, transmission and distribution of power from
the national grid while developing innovative off grid solutions for
schools, hospitals and markets.75. Efforts to improve hard
infrastructure will be complemented by expanding reforms in the ease of
doing business initiative. We will continue to remove obstacles, reduce
costs and ensure timely delivery of services.76. Our social investments
and social protection arrangements will continue to be deepened by
extending coverage to all States and increasing the number of school
children being fed daily. This will come with associated direct and
indirect jobs across the value chain including farmers, aggregators,
processors, transporters, cooks and servers.77. ‘Every child counts’!
This is the guiding principle of our national educational system and
entails far reaching actions to boost digital literacy, impart
functional skills to our children, and re-train tens of thousands of
teachers every year. Indeed, we must equip our children from a very
young age with skills for the modern era by emphasising education in
science, technology, engineering, arts and mathematics.78. Health is an
important part of our aspirations for human capital development and we
will continue to strive to make our people healthy and happy. In
addition to building world class treatment centres, including for
cancer, we will be establishing a health system that prioritises primary
health care so that millions of our people can be insured for a minimum
package of services with the poorest exempt from co-payments. In so
doing, we will reduce the stress, strains and costs that the Nigerian
people face in accessing decent health care.CONCLUSION79. This 2019
Budget Proposal, which I lay before you today, has benefited from
extensive consultations and stakeholder engagements reflecting our
belief that all sectors have a critical role to play in our journey
towards sustainable and inclusive development. It further demonstrates
our commitments to deliver the dividends of democracy to all Nigerians
in a more inclusive manner. It represents another important step in
building the Nigeria of our dreams. A vision that we are determined to
achieve with the support of all Nigerians.80. It is therefore with great
pleasure and a deep sense of responsibility, that I lay the 2019
Appropriation Bill before this Joint Session of the National Assembly,
for consideration and passage. What has become evident over the past
three, or so, years is that more can be achieved in the overall interest
of the Nigerian people when we work together. It is my hope that
despite our current preoccupation with political activities, we can all
commit to an early passage of this budget in the larger interest of our
people and the national economy.81. I thank you most sincerely for your
attention.82. God bless the Federal Republic of Nigeria.
Earleir
today, President Buhari presdented the 2019 budget to the joint session
of the National Assembly. Below is the full text of the speech he
delivered.... PROTOCOLS –1. It is my pleasure to present the 2019 Budget
Proposals to this Joint Session of the National Assembly.2. This being
my last budget speech to the 8th National Assembly, I will review
economic developments over the past three and a half years with
particular emphasis on 2018. I will then highlight the budget proposals
for 2019. The full details of which will be given by the Honourable
Minister of Budget and National Planning.OVERVIEW OF ECONOMIC
DEVELOPMENTS3. The last three and a half years have been challenging
both at home and abroad. Commodity prices, both oil and non-oil, have
been volatile. Global trends, be it security, trade or politics have
also been unpredictable. Here in Nigeria, we have had to cope with
disruptions in oil production and exports, security challenges and
devastating floods.4. Through hard work, and by the special grace of
God, we have weathered these storms and made progress on many fronts
which is why we have cause to be optimistic about the future.5. The
economy has recovered from recession and we have had six quarters of
growth since then.6. We have done more work with less resources in
agriculture, infrastructure and social investments. We have built better
understanding between the Federal Government and the States on
non-partisan lines, in particular, intervening several times to support
States to meet their obligations including the payment of salaries and
pensions.7. Sustained development is difficult, if not impossible, in an
atmosphere of insecurity and poor governance. We have therefore made
strenuous and successful efforts to overcome the insurgency in the
North-East and to resolve inter-communal misunderstandings elsewhere.8.
The Federal government and the National Economic Council have been
working in a unified and patriotic manner to tackle the underlying
causes of tension between pastoralists and sedentary farmers. These
conflicts have a long-standing history caused mainly by competition for
increasingly scarce resources occasioned by rising population and
erratic weather conditions – a product of climate change.9. I take this
opportunity to salute the men and women in our Armed Forces and Security
Services for their courage, sacrifice and patriotism in protecting our
collective safety and security.10. The Federal Government has also
sustained its efforts to fight grand corruption and improve public
financial management, and its efforts to improve public financial
management through the comprehensive implementation of the Treasury
Single Account, the Government Integrated Financial Management
Information System and the Integrated Payroll and Personnel Information
System.11. You will also recall that as part of our commitment to
improved governance, we joined the Open Government Partnership in 2016
with the aim of enhancing public service delivery, promoting business
opportunity, enhancing government efficiencies, preventing corruption
and building trust in government. We remain committed to these, and
other institutional reforms that will enhance transparency and
accountability in public service delivery.12. We also recorded several
successes in economic management. Real Gross Domestic Product growth
stood at 1.81 percent in the third quarter of 2018 compared to 1.17
percent in the third quarter of 2017. We have had a sustained accretion
to foreign exchange reserves from a low of $28.57 billion in May 2015 to
$42.92 billion by mid-December 2018. This has contributed to exchange
rate stability and will provide a buffer against any unanticipated
external shocks. Inflation has also declined from a peak of 18.72
percent in January 2017 to 11.28 percent in November this year.13. In
the area of trade, Nigeria has moved from a deficit to surplus in our
trade balance. As at the third quarter of 2018, the trade balance was a
surplus of N681.27 billion representing a significant improvement from
the deficit of N290.1 billion in 2016. This reflects the rebound in
crude oil exports, increased non-oil exports and a reduction in the
importation of food and items that can be produced locally. Foreign
capital inflows including direct and portfolio investments also
responded to improved economic management. Capital importation to
Nigeria in the third quarter of 2018 stood at $2.86 billion, which is a
56.7 percent increase compared to the corresponding period in 2016.14.
Trading is a significant contributor to our economic development but we
must continue to focus on strengthening actual production. From farmers
to miners to processors to digital entrepreneurs to players in the
entertainment industry, all hands must be on deck to ensure the country
succeeds.15. With regard to the oil and gas sector, crude oil production
continues to increase steadily towards budgetary targets and will
receive a further boost when the 200,000 barrels per day Egina oil field
starts operations.16. In agriculture, we are seeing increased
investment across the entire value chain from agricultural inputs to
farming and ultimately, food processing. Barely three years ago, Nigeria
was spending $5 million dollars a day on rice importation. Today rice
imports have virtually stopped. Indeed, we are on course to achieve food
security in major staple foods in the not too distant
future Distinguished Senate President, Right Honourable Speaker17.
Infrastructure development is also another area in which we have made a
lot of progress. Our approach was a logical one. We simply prioritised
the completion of critical on-going projects over the introduction of
new ones.18. For example, in the Ministry of Water Resources, we
identified 116 abandoned or uncompleted projects relating to irrigation,
dams, drainage and water supply. To date, we have completed and/or
commissioned a number of these projects including;a. Central Ogbia
Regional Water Project, Bayelsa Stateb. Northern Ishan Regional Water
Supply Project, Edo Statec. Sabke Water Supply Project, Katsina Stated.
Takum Water Supply Project, Taraba Statee. Ogwashi – Uku Dam, Delta
Statef. Shagari Irrigation Project, Sokoto Stateg. Galma Dam, Kaduna
State.h. Mangu Water Supply Project, Plateau Statei. Federal University
of Agriculture, Makurdi Water Supply Project, Benue State 19. In the
railway sector, we completed and commissioned the Abuja-Kaduna Rail Line
and the Abuja Metro-Rail Project. Similarly, the previously abandoned
Itakpe-Ajaokuta-Warri Rail Line is undergoing test runs and will soon be
commissioned. We are also on track for the Lagos – Kano rail line as
significant progress has been made on the Lagos to Ibadan segment of the
project.20. We remain committed to rebuilding and expanding our road
network. In 2018, an additional 1,531 kilometers of roads have been
constructed and 1,008 kilometers rehabilitated across the country.
Priority projects such as the Abuja - Kaduna – Kano highway as well as
the Second Niger Bridge are well underway through the Presidential
Infrastructure Development Fund.21. In every State of Nigeria today
there is a major Federal road project going on. For instance:a. In the
North Central, long neglected roads like the Ilorin-Jebba Road, a
stretch of 93 km that took a number of days to travel has been completed
to provide a critical link between the North and South of Nigeria over a
few hours. We have awarded the dualization of this road to expand it
all the way to Mokwa, as we have done to the Abuja – Keffi-Lafia
-Makurdi roads where work recently commenced. Similarly, work has
resumed on the Suleja - Minna road after years of inactivity.b. In the
South-South, we have recently completed the 60 km section of Alesi to
Ugep in Cross River State, and awarded the 72km section from Odukpani
Junction to Ugep which will reduce a journey that used to take 3 days a
few years back, to 3 hours. Work has also commenced on the Calabar - Itu
- Odukpani Road that links Akwa-Ibom to Cross River State, as we have
started work on the long-neglected Bodo - Bonny Bridge to connect these
long separated communities.c. In the South East, a critical section of
Umunya linking Awka to Onitsha, a stretch of 18 kilometers, is being
constructed now and one side of it should be ready for use before June
2019. Roads like Arochukwu – Ohafia – Bende are also receiving our
attention.d. In the South–West, long neglected and abandoned roads like
the Badagry Expressway have been awarded for construction along with the
Apapa – Tin Can Island, Mile 2 – Oworonshoki, road to ease the
congestion currently being experienced in Lagos, while interstate roads
linking Ogun through Ikorodu to Sagamu, and Ipaja to Otta and Abeokuta
are being repaired with payment to contractors.e. In the North-West, we
have completed the Sokoto to Tambuwal – Jega Road comprising 135 Km out
of the entire Sokoto to Yauri stretch and sections of Kaduna Eastern
bypass and Kano Western bypass are also progressing.f. In the
North-East, we have started work on the long-neglected Mayo – Belwa –
Jada Road, and the Gombe – Numan – Jalingo Road and recently awarded the
reconstruction of bridges damaged by insurgency.In addition, thanks to
the N100 billion Sukuk Bond raised in Nigeria, work is on-going in 25
road projects. Among which are:a. Construction of the Oju/Loko-Oweto
bridge over River Benueb. Dualisation of section of Abuja-Abaji-Lokoja
Roadc. Dualisation of section of Suleja-Minna Roadd. Dualisation of
section of Lokoja-Benin Road (Obajana - Okene)e. Dualisation of section
of Kano - Maiduguri Road linking Kano-Jigawa-Bauchi-Yobef. Dualisation
of section of Kano-Katsina Roadg. Dualisation of section of Kano Western
By-Passh. Construction of Kaduna Eastern By-Passi. Rehabilitation of
outstanding section of Onitsha-Enugu Expresswayj. Rehabilitation of
Enugu-Port Harcourt Roadk. Dualisation of section of Yenegoa Road
Junction22. In power, we are working on over 90 transmission projects
across the country. Major power transmission stations like Mayo Belwa in
Adamawa, Ejigbo and Odogunyan in Lagos, Apo in Abuja, Ikot – Ekpene
Switching Station Akwa Ibom, Maiduguri in Borno, Damaturu in Yobe have
been completed to support electricity transmission.23. For effective
delivery to critical areas, we decided that we had to decentralize power
supply leveraging off-grid solutions especially solar based systems. We
are pushing more “willing- buyer willing –seller” arrangements.
Already, this has brought more reliable off-grid power to markets and
economic clusters around the country.24. The projects being implemented
right now include the Ariaria Market in Aba, the Sabon Gari Market in
Kano, the Sura Shopping Complex in Lagos to mention a few. Our hope is
to roll out such programs to 300 such economic clusters across the
country.25. In addition to economic clusters, we are also looking at
rolling out similar off grid solutions to Universities and medical
centers across the country.26. As we develop our infrastructure and
power sector, we have not lost sight of the adverse impact climate
change has to our economy, food and national security agenda. The recent
floods, farmer-herdsmen conflict and aggressive desertification are all
effects of climate change. We have seen our forests, lakes, arable land
and grazing areas gradually disappear over the decades.27. As a
Government, we took a long term view on tackling the effects of climate
change which must be contained and ultimately reversed. We have stepped
up our afforestation efforts. In the past two years, we have planted
over 2.3 million seedlings in 21 States. We also successfully launched
the Green Bond which will focus on developing environmentally friendly
projects and other green programs across the country. Nigeria is also
actively participating in international efforts to tackle climate
change.28. Furthermore, working with key stakeholders including the
National Assembly, State Governments and the private sector, we
intensified our drive to remove obstacles, reduce processes and lower
costs of doing business. The fact that over the past three years,
Nigeria has gained 24 places in the World Bank Ease of Doing Business
rankings is a clear indication that we are moving in the right
direction.29. We are confident that improvements arising from on-going
work will result in another quantum leap in the 2019 rankings. The
States have also keyed into efforts to improve the business environment,
and the sub-national Doing Business Report for Nigeria showed that 32
out of 36 states recorded overall improvement.30. In line with our
commitment to creating a fairer and more inclusive society, I am pleased
to update you on our efforts in this regard. Specifically,a. Through
the N-Power scheme, 500,000 graduates have been employed to date;b. The
National Home-Grown School Feeding program is feeding 9,300,892 pupils
in 49, 837 schools in 24 states across Nigeria, and empowering 96,972
cooks;c. The Government Enterprise and Empowerment Program has seen to
the disbursement of 1,378,804 loans to small businesses and farmers in
all states including the FCT. These are interest free loans that will be
paid back;d. 297,973 households in 26 states across the country are
benefitting from the Conditional Cash Transfer program.Distinguished
Senate President, Right Honourable Speaker31. Whilst we are most
encouraged by the improved performance of the economy since we started
implementing our Economic Recovery and Growth Plan, there is an area
that continues to be a cause of concern. That has to do with our
unsatisfactory revenue performance.32. Although we have sustained
efforts at boosting tax revenues, our progress has been constrained by
the relatively low level of growth, having just emerged from recession.
This has restrained our tax revenue drive.33. Furthermore, the
volatility in oil prices, and disruptions in oil production, delayed our
plans to recover past due oil license and royalty charges as well as
restructuring of the Joint Venture Oil Assets.34. As we have returned to
the path of growth, I have directed that action on all our revenue
initiatives be expedited. I have already issued a number of Presidential
directives on the disposal of recovered assets, deployment of the
National Trade Window as well as the immediate recovery of past-due oil
royalties including by crude seizures, if necessary.35. On asset
recovery, in order to put to use for the benefit of all Nigerians monies
and assets stolen from the public treasury, we have since the 2016
Budget created a revenue line in the budget for stolen and recovered
funds.36. Thus every government project today benefits in one way or the
other from recovered looted funds. I have also directed all the
relevant authorities to liquidate all recovered, unencumbered assets,
such as landed properties, buildings and vehicles, so that these funds
can be available to help in the funding of the Budget, particularly the
important infrastructure projects. 2018 BUDGET PERFORMANCE37. Now to the
2018 Budget performance. The 2018 Budget was based on a benchmark oil
price of $51/b, oil production of 2.3 million barrels per day and an
exchange rate of N305 to the dollar. Based on these, the Federal
Government’s aggregate revenue of N7.17 trillion was projected to
contribute to the 2018 Budget of N9.12 trillion. The projected deficit
of N1.95 trillion (or 1.73 percent of GDP) was to be financed mainly by
borrowing.38. In 2018, average oil production up to end of the third
quarter was 1.95 mbpd, as against the estimated 2.3 mbpd for the entire
year. However, average market price of Bonny Light crude oil was higher
(an average of $74 per barrel as at October) than the benchmark price of
$51.39. As at the end of the third quarter, Federal Government’s actual
aggregate revenue was N2.84 trillion, which is 40 percent higher than
2017 revenue. The overall revenue performance is only 53 percent of the
target in the 2018 Budget largely because some one-off items are yet to
be actualized. We have now rolled this revenue item over to 2019.40. Of
the total appropriation of N9.12 trillion, N4.59 trillion had been spent
by 30th September, 2018 against the prorated expenditure target of
N6.84 trillion. This represents 67 percent performance. Debt service and
the implementation of non-debt recurrent expenditure, notably payment
of workers’ salaries and pensions are on track. Despite the delay in the
passage of the 2018 Budget on 20th June 2018, the sum of N820.57
billion had been released for capital projects as at 14th December,
2018. We have carried over capital projects that were not likely to be
fully funded by year-end 2018 to the 2019 Budget. PRIORITIES FOR THE
2019 BUDGET41. The 2019 Budget Proposal is intended to further place the
economy on the path of inclusive, diversified and sustainable growth in
order to continue to lift significant numbers of our citizens out of
poverty. The underlying drivers of the 2019 revenue projections have
been adjusted to reflect current realities. On the expenditure side,
allocations to Ministries, Departments and Agencies of Government were
guided by the 3 objectives of the ERGP, which are, (i) Restoring and
Sustaining Growth; (ii) Investing in our People and (iii) Building a
Globally Competitive Economy.2019 KEY BUDGET ASSUMPTIONS42. The 2019
Budget proposal is based on the following assumptions:a. Oil price
benchmark of $60 per barrel;b. Oil production estimate of 2.3 million
barrels per day, including condensates;c. Exchange rate of N305/$;d.
Real GDP growth of 3.01 percent; ande. Inflation Rate of 9.98
percent.43. Notwithstanding the recent softening in international oil
prices, the considered view of most reputable analysts is that the
downward trend in oil prices in recent months is not necessarily
reflective of the outlook for 2019. However, as a responsible
Administration, we will continue to monitor the situation and will
respond to any changes in the international oil price outlook for
2019.44. With regard to oil production, I have directed the NPPC to take
all possible measures to achieve the targeted oil production of 2.3
million barrels per day.FEDERAL GOVERNMENT REVENUE ESTIMATES45. Total
revenue is projected at N6.97 trillion (which is 3 percent lower than
the 2018 estimate of N7.17 trillion), consisting of Oil revenue
projected at N3.73 trillion while non-oil revenue is estimated at N1.39
trillion.46. We have allowed for N305 billion ($1 billion) for
under-recovery by NNPC on PMS in 2019. We will continue working to bring
it downwards so that such resources are freed up to meet the
developmental needs of our people.47. Let me also take this opportunity
to address and clarify the under-recoveries or subsidy on petrol. In a
period of economic challenges where purchasing power is weak, we must
reduce some of the burden on Nigerians.48. The problem with subsidies in
the past is abuse and corruption. Today the government through the NNPC
is the sole importer of PMS and therefore, the under-recovery is from
the NNPCs trading account. This means the possibility of some marketers
falsifying claims is removed.49. The estimate for non-oil revenue
consists of N799.52 billion from Companies Income Tax (CIT), N229.34
billion from Value Added Tax (VAT) and Customs Duties of N302.55
billion. We have reduced our expectation from Independent Revenues to
N624.58 billion. Other revenues expected in 2019 include various
recoveries of N203.38 billion, N710 billion as proceeds from the
restructuring of government’s equity in Joint Ventures and other sundry
incomes of N104.11 billion.PROPOSED EXPENDITURE FOR 201950. A total
expenditure of N8.83 trillion is estimated for 2019. This includes
grants and donor funds of N209.92 billion. This provision is less than
the 2018 FGN appropriated expenditure estimate of N9.12 trillion.
However, it is higher than the N8.6 trillion originally proposed by the
Executive Branch to the National Assembly for 2018.51. The budget
deficit is projected to decrease to N1.86 trillion (or 1.3 percent of
GDP) in 2019 from N1.95 trillion projected for 2018. This reduction is
in line with our plans to progressively reduce deficit and
borrowings.52. The proposed N8.83 trillion of 2019 Aggregate Expenditure
comprises:a. Recurrent Costs of N4.04 trillion;b. Debt Service of N2.14
trillion;c. Statutory Transfers of about N492.36 billion;d. Sinking
Fund of N120 billion which will be used to retire maturing bond to local
contractors; ande. Capital Expenditure of N2.031 trillion including
capital supplementation but excluding the capital component of Statutory
Transfers. STATUTORY TRANSFERS 53. The provision for Statutory
Transfers in 2019 is N492.36 billion which is a seven percent decrease
from 2018. However, transfers to Niger Delta Development Commission
(NDDC) and Universal Basic Education Commission (UBEC) are projected to
be higher as they are directly related to the quantum of oil
revenue.DEBT MANAGEMENT 54. The sum of N2.14 trillion has been provided
for debt service. Of this amount, 80 percent is to service domestic debt
which accounts for about 70 percent of the total debt. Although our
national debt is within sustainable limits, we need to increase our
domestic resource mobilization to bring down our debt-revenue ratio over
the medium term. RECURRENT EXPENDITURE55. A substantial part of the
recurrent cost proposal for 2019 is for the payment of salaries and
overheads in Ministries providing critical public services such as: a.
N569.07 billion for the Ministry of Interior;b. N435.62 billion for the
Ministry of Defence;c. N462.24 billion for the Ministry of Education;
andd. N315.62 billion for the Ministry of Health.The allocation to these
Ministries represent significant increases over votes in previous
budgets, underscoring our commitment to increase investment in national
security and human capital development.PERSONNEL COSTS 56. Personnel
costs, estimated at N2.29 trillion, currently amount to nearly 40
percent of projected revenues. Substantial savings have been made from
wider use of the Integrated Personnel Payroll Information System
platform. I have directed that all MDAs must implement the IPPIS by
March, 2019. We have made provisions for staff promotion arrears and
recruitments by the armed forces, police and para-military agencies. 57.
We have also provided for the settlement of inherited outstanding
pension liabilities. Again we have included provisions for the
implementation of a new national minimum wage.58. Furthermore, 1 percent
of the Consolidated Revenue Fund amounting to N51.22 billion has been
earmarked for the Basic Health Care Provision Fund, and other related
commitments.59. Let me say something about the minimum wage issue. I am
committed to addressing the issue of a new minimum wage and I will be
sending a bill to the National Assembly on this. However, in order to
avoid a fiscal crisis for the Federal Government, as well as the States,
it is important to devise ways to ensure that its implementation does
not lead to an increase in the level of borrowing.60. I am accordingly
setting up a High Powered Technical Committee to advise on ways of
funding an increase in the minimum wage, and the attendant wage
adjustments, without having to resort to additional borrowings.61. The
work of this Technical Committee will be the basis of a Finance Bill
which will be submitted to the National Assembly, alongside the Minimum
Wage Bill. In addition, the Technical Committee will recommend
modalities for the implementation of the new minimum wage in such a
manner as to minimize its inflationary impact, as well as ensure that
its introduction does not lead to job losses.CAPITAL EXPENDITURE 62. We
have allocated N2.28 trillion for capital spending, inclusive of capital
in statutory transfers.63. For comprehensiveness and transparency, the
expenditure plans of the larger Government Owned Enterprises (GOEs) as
well as Multi-lateral and Bi-lateral project-tied loans have been
integrated into the 2019 -to- 2021 Medium Term Fiscal Framework.64. With
the inclusion of N275.88 billion representing capital for the larger
GOEs and N556.02 billion for Multi-lateral/Bi-lateral project-tied
loans, the aggregate capital budget is N3.12 trillion. This represents
30 percent of the total FGN proposed expenditure for 2019.65. In order
to get full value for monies expended by the Government over time and to
avoid duplication and waste, our emphasis will continue to be on
completion of existing projects. Accordingly, provisions have been made
to carry over projects that are not likely to be fully funded under the
2018 budget to the 2019 capital budget.66. The allocation to the Social
Intervention Projects (SIP) has been retained at N500 billion,
consisting of N350 billion recurrent and N150 billion capital. This
reflects our continued determination to pursue inclusive
gender-sensitive and pro-poor growth.67. In addition, to maintain the
peace in the Niger Delta, the provision of N65 billion for the
Presidential Amnesty Programme has been retained in the 2019 budget.
Similarly, the sum of N45 billion Naira has been provided for the North
East Intervention Fund, as well as the sum of N10 billion Naira as
take-off grant for the North East Development Commission.68. To further
support Small and Medium Scale Enterprises, which are the focus of our
industrialisation drive, we have set aside the sum of N15 billion for
the recapitalization of the Bank for Agriculture and the Bank of
Industry. In addition, the sum of N10 billion is provided as a grant to
the Bank of Industry for the purpose of subsidizing the interest rates
charged on loans to Small and Medium-Scale Enterprises. This is intended
to make it possible for them to access single digit interest rate loans
from the Bank of Industry.OUR VISION FOR THE FUTURE69. Our vision is
for much better prospects for all Nigerians. With careful economic
management and continued diversification of our production and revenue
bases, we will build an inclusive and stable economy for generations to
come.70. In addition to the development of Special Economic Zones which
will underpin our efforts to move away from a mono-economy, we intend to
exploit the comparative advantages of the six geo-political zones and
our 36 states by establishing 6 Industrial Parks and 109 Special
Production and Processing Centres across all 109 senatorial zones
including shared facilities. These clusters will have power, water, and
broadband facilities with embedded regulatory services. The clusters
will generate vibrant economic activity, stimulate small businesses and
create jobs across the length and breadth of Nigeria.71. A key objective
going forward is to further encourage and enable ‘prosperous small
businesses’. Our micro, small and medium enterprises will accordingly
benefit from improved access to funding, supporting infrastructure and
off-take arrangements by Government and larger enterprises. They will
leverage the Government Enterprise and Empowerment Programme, and the
Anchor Borrowers Programme.72. Nigeria cannot afford to be left behind
in the digital age. To create jobs for our young people, we will build a
digital economy around the technology and creative sectors. In
partnership with the states and the private sector, we are working on a
project to increase broadband penetration across all geopolitical zones
of the country, such that over the next four years, all the 774 LGAs
will be provided with fibre connectivity.73. Modern, up-to-date
infrastructure is particularly important to boost economic activity. We
will continue with our emphasis on power, roads and rail. In addition to
completing the Ibadan-Kano rail line we will also embark upon and move
rapidly to complete the Eastern Rail from Port Harcourt to Maiduguri
passing through Aba, which will connect to Abakaliki, Awka, Enugu,
Owerri, Umuahia, then through Makurdi, Jos, Bauchi and Gombe. The
Coastal Rail from Calabar to Lagos will also be completed as we aim to
build a true national rail network that links all State capitals. Our
road projects will gather pace and priority projects under the
Presidential Infrastructure Development Fund such as the
Abuja-Kaduna-Kano expressway, the Second Niger Bridge and the
Lagos-Ibadan expressway will be fast-tracked for early completion.74. We
shall expand generation, transmission and distribution of power from
the national grid while developing innovative off grid solutions for
schools, hospitals and markets.75. Efforts to improve hard
infrastructure will be complemented by expanding reforms in the ease of
doing business initiative. We will continue to remove obstacles, reduce
costs and ensure timely delivery of services.76. Our social investments
and social protection arrangements will continue to be deepened by
extending coverage to all States and increasing the number of school
children being fed daily. This will come with associated direct and
indirect jobs across the value chain including farmers, aggregators,
processors, transporters, cooks and servers.77. ‘Every child counts’!
This is the guiding principle of our national educational system and
entails far reaching actions to boost digital literacy, impart
functional skills to our children, and re-train tens of thousands of
teachers every year. Indeed, we must equip our children from a very
young age with skills for the modern era by emphasising education in
science, technology, engineering, arts and mathematics.78. Health is an
important part of our aspirations for human capital development and we
will continue to strive to make our people healthy and happy. In
addition to building world class treatment centres, including for
cancer, we will be establishing a health system that prioritises primary
health care so that millions of our people can be insured for a minimum
package of services with the poorest exempt from co-payments. In so
doing, we will reduce the stress, strains and costs that the Nigerian
people face in accessing decent health care.CONCLUSION79. This 2019
Budget Proposal, which I lay before you today, has benefited from
extensive consultations and stakeholder engagements reflecting our
belief that all sectors have a critical role to play in our journey
towards sustainable and inclusive development. It further demonstrates
our commitments to deliver the dividends of democracy to all Nigerians
in a more inclusive manner. It represents another important step in
building the Nigeria of our dreams. A vision that we are determined to
achieve with the support of all Nigerians.80. It is therefore with great
pleasure and a deep sense of responsibility, that I lay the 2019
Appropriation Bill before this Joint Session of the National Assembly,
for consideration and passage. What has become evident over the past
three, or so, years is that more can be achieved in the overall interest
of the Nigerian people when we work together. It is my hope that
despite our current preoccupation with political activities, we can all
commit to an early passage of this budget in the larger interest of our
people and the national economy.81. I thank you most sincerely for your
attention.82. God bless the Federal Republic of Nigeria.
