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Buhari Presents N16.3trn 2022 Budget Estimate To NASS …Set To Borrow N5.01trn To Fund Proposal
President Muhammadu Buhari, yesterday, presented N16.39trillion as the 2022 budget proposal before a joint session of the National Assembly.
The oil benchmark for the 2022 appropriation is $57per barrel, while the exchange rate is N410.5 per dollar in the budget proposal titled, “Budget of Economic Growth and Sustainability”.
The budget is projected to stimulate GDP growth by 4.2 per cent, while inflation rate is put at 13 per cent.
It is projected oil production will be at 1.88m barrels per day including condensates.
Budget deficit is estimated at N6.23trillion.
While presenting the budget, Buhari said, “Defence and internal security will continue to be our top priority. We remain firmly committed to the security of life, property and investment nationwide. We will continue to ensure that our gallant men and women in the armed forces, police and paramilitary units are properly equipped, remunerated and well-motivated.
“The 2022 budget is also the first in our history, where MDAs were clearly advised on gender responsive budgeting. These are part of critical steps in our efforts to distribute resources fairly and reach vulnerable groups of our society.
“Distinguished Members of the National Assembly, the 2022 to 2024 Medium Term Expenditure Framework and Fiscal Strategy Paper sets out the parameters for the 2022 Budget as follows:
“Conservative oil price benchmark of $57 per barrel.
“Daily oil production estimate of 1.88million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day); Exchange rate of four 410.15 per US Dollar; and projected GDP growth rate of 4.2 percent and 13 percent inflation rate.
“Based on these fiscal assumptions and parameters, total federally-collectible revenue is estimated at N17.70trillion in 2022.
“Total federally distributable revenue is estimated at N12.72 trillion in 2022 while total revenue available to fund the 2022 Federal Budget is estimated at N10.13 trillion. This includes Grants and Aid of N63.38 billion, as well as the revenues of 63 Government-Owned Enterprises.
“Oil revenue is projected at N3.16 trillion, non-oil taxes are estimated at N2.13 trillion and FGN Independent revenues are projected to be N1.82 trillion.
“A total expenditure of N16.39 trillion is proposed for the Federal Government in 2022 or the economies to survive and thrive.
The proposed expenditure comprises: Statutory Transfers of N768.28 billion; Non-debt Recurrent Costs of N6.83 trillion; Personnel Costs of N4.11 trillion; Pensions, Gratuities and Retirees’ Benefits N577.0 billion; Overheads of N792.39 billion; Capital Expenditure of N5.35 trillion, including the capital component of Statutory Transfers; Debt Service of N3.61 trillion; and Sinking Fund of N292.71 billion to retire certain maturing bonds.
The total fiscal operations of the Federal Government is expected to result in a deficit of N6.26 trillion.
This represents 3.39 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act 2007.
However, President Muhammadu Buhari said his government will borrow an additional N5.01trillion in 2022 to be able to execute its N16.39trillion budget.
He made this known yesterday during the presentation of the budget to the National Assembly.
Buhari described the budget as “Budget of Economic Growth and Sustainability”.
Capital expenditure will gobble N5.35trillion and debt service N3.61trillion.
Total recurrent expenditure will be N6.83trillion, out of which personnel cost will consume N4.11trillion.
Total revenue expected is N10.13trillion.
Oil revenue will be a third of it as it is estimated at N3.16trillion. Non-oil taxes will be N2.13trillion and Federal Government revenue from its MDAs will be N1.82trillion.
Buhari said the oil benchmark for 2022 has been put at $57 and daily production at 1.88 million barrels, including condensates.
Government expects exchange rate to be stable at N410.15 to US Dollar and inflation to be kept at 13 percent.
Buhari tried to allay the fears of critics of borrowing by government.
He said the loans were within what Nigeria could afford and that the crisis the nation faces is ‘revenue challenge’, so that it can sustain repayment of the loans.
“Some have expressed concern over our resort to borrowing to finance our fiscal gaps. They are right to be concerned. However, we believe that the debt level of the Federal Government is still within sustainable limits. Borrowings are to specific strategic projects and can be verified publicly.
“As you are aware, we have witnessed two economic recessions within the period of this administration. In both cases, we had to spend our way out of recession, which necessitated a resort to growing the public debt. It is unlikely that our recovery from each of the two recessions would have grown as fast without the sustained government expenditure funded by debt.
“Our target over the medium term is to grow our Revenue-to-GDP ratio from about 8 percent currently to 15 percent by 2025. At that level of revenues, the Debt-Service-to-Revenue ratio will cease to be worrying. Put simply, we do not have a debt sustainability problem, but a revenue challenge which we are determined to tackle to ensure our debts remain sustainable.
“Very importantly, we have endeavoured to use the loans to finance critical development projects and programmes aimed at improving our economic environment and ensuring effective delivery of public services to our people”.
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I Won’t Allow Spoils Of Office To Change Me – Fubara …As Rivers People Mark Gov’s 50th Birthday With Prayers
Rivers State Governor, Sir Siminalayi Fubara, has declared that he will not be drunk with power or allow the associated advantages and benefits that come with holding a lofty position in government to change him.
Rather, the governor assured that he will remain committed to his vows made to Rivers people when he got their mandate, to completely put things in place that will transform the State to become what they dreamt it to become.
Governor Fubara made the remark when some leaders, elders and critical stakeholders of the State paid him a birthday visit to celebrate him as he attains 50 years at Government House in Port Harcourt on Tuesday morning.
The governor, according to a statement by his Chief Press Secretary, Nelson Chukwudi, explained that he had never subscribed to celebrating birthdays but seeing leaders of the State gather to celebrate him pulled out tears of joy from his eyes.
Governor Fubara said: “I want to say that I will still be the Fubara that you know; power will not change me. I will still make sure that what I hold dear in life remains, which is God and my respect for people. I will continue to maintain it.
“Power will come, power will go, but I will still remain the Fubara that you know. With your support, that Rivers State that we all yearn for, we will definitely, even if we don’t get it completely, we will put those things in place that will channel and drive us to that Rivers State with your support.”
Governor Fubara emphasised: “That is the only thing that I know I can assure you. I will not do anything, act in any manner that will bring disgrace to myself or to everyone of you that have decided and ready to sacrifice everything for us.
“This morning is a birthday morning. It is not a morning to discuss politics. It is a morning to say I am happy, I am 50 years, according to you. But the most important thing is: I am celebrating my Golden Jubilee. It means that I have joined the league of the old men from today.”
Fubara, on behalf of his wife, Lady Valerie and family, expressed gratitude to God for divine grace, and thanked all the leaders who made sacrifices to be in attendance so early to wish him well.
In his remark, former Governor of Rivers State, Sir Celestine Omehia, thanked God for installing Governor Fubara, who has become a deliverer of the State and its people from the hands of those bent on destroying Rivers State.
He said, it is, therefore, worthwhile to celebrate such a patient and meticulous leader, loved by all Nigerians on his 50th birthday because he has continued to prioritise the interest of the State and protect it.
The former Governor recounted the strength of faith in God that Governor Fubara has demonstrated, enjoyed divine direction in governance, and pledged the continued support of Rivers people to ensure the success of his administration.
In his speech, former National Chairman of the Peoples Democratic Party (PDP), Prince Uche Secondus, said regardless of who a kingmaker is, as soon as the king is crowned, such person must give way to the king to perform his duties but regretted that
the immediate past Governor, who styled himself as kingmaker had continued to do things to distract the king.
But Prince Secondus, noted that amidst the brewing crisis, Rivers people, and indeed, Nigerians have come to admire and love the character of steel, fear and total trust in God that Governor Fubara has demonstrated, including forging unity, and inclusivity, which are evidence of his mandate as divine.
Highlights of the event were prayers by the clergy for the Governor, his administration and the State; a toast; the cutting of the 50th Birthday cake by the Governor, who was supported by his wife; presentation of gifts to the Governor; rendition of special birthday songs; and a special birthday party organised by the elders and stakeholders to celebrate the Liberator of Rivers people at 50.
Later in the morning, members of the State Executive Council; Local Government Council chairmen; Permanent Secretaries; Government House staff; Service Commanders; and many others visited the Governor to wish him a glorious birthday, and presented gifts to celebrate his Golden Jubilee birthday.
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Tinubu Seeks Multifaceted Response To Terrorism, Other Security Threats
President Bola Tinubu, on Wednesday called for a multifaceted response to terrorism, insurgency and other forms of security threats in the Lake Chad Basin region.
Tinubu, represented by the Vice-President Kashim Shettima, made the call when he declare open the 5th meeting of the Lake Chad Basin Governors’ Forum in Maiduguri, the Borno capital.
The Tide source reports that the meeting, which was hosted by the Yobe State Government brings together eight Governors from Nigeria, Cameroon, Chad, and the Republic of the Niger.
The event also brings humanitarian organisations, and local and international communities to address pressing security challenges and explore solutions for stability in the region.
The president said the chain of events that disrupted the stability of the region over the past 15 years demands that power must be wielded responsibly to guarantee the safety and prosperity of the people.
The Nigerian leader noted that while military power was necessary to contain the security threats, it must be accompanied by strategies that address their root causes.
This, according to him, in include poverty, inequality, and lack of job opportunities for the region’s young population.
“Your Excellencies, distinguished ladies and gentlemen, our response to these threats must be multifaceted.
“While military solutions are indispensable, they must be complemented by strategies that address the root causes of insecurity – poverty, inequality, and the lack of opportunities for our youth.
“It is a tragic irony that Africa, a continent with the youngest population in the world, sees its youth become cannon fodder for destructive ideologies and the drivers of conflict.
“This is the challenge before us: to transform this demographic dividend into a force for good. Power’s true essence lies not in its possession but in its application.
“Hard power may secure borders, but it is soft power—through diplomacy, culture, and shared values—that builds bridges and binds us together,” he said.
Tinubu said every part of the world was entangled in its own unique security challenges, resulting in the global military gulping “a historic 2.4 trillion dollars in 2023, with no signs of slowing.”
He, however, observed that: “hard power, detached from the moral imperatives of justice and diplomacy, only widens the very divide it seeks to bridge.”
Tinubu told the Lake Chad Basin Governors’ Forum that it was only by sticking to the vision for which the forum was created that pursuing and adopting partnerships that benefit the people could be achieved.
Such partnerships, he said, include the collective commitment to the African Continental Free Trade Area (AfCFTA) and advancing the United Nations’ Sustainable Development Goals.
He noted that the choices made “today will echo through generations, shaping the future of this region.”
He recalled the successes recorded so far in repelling threats to the region’s borders and sovereignty by elements of terror.
The President attributed past victories by member countries to the joint missions they had embarked on.
Tinubu cautioned the governors and other stakeholders against allowing “the geopolitical tensions across the world to sow discord” in the region, and submitting themselves “to become tools in any proxy agenda.
“The salvation of the Lake Chad region is neither in Europe nor in the Americas. It lies in the hands of all those gathered here today.
“You, distinguished representatives of this forum, embody not only our collective will to protect the region but also the transformative potential that stability brings.
“The true enemy remains the non-state actors—those who exploit weak borders, poor governance, and fragile economies to challenge our claim to civilization.
” However, the worst threat we may face is not the insurgents or terrorists at odds with our humanity.
” It is the absence of cooperation, sincerity, and fidelity to our shared pact as brothers’ keepers.
“We undermine this pact when we renege on agreements to secure our borders when misinformation and falsehoods breed mistrust, and when we jeopardize the freedom and choices of our people.”
Earlier, Gov. Mai Mala Buni of Yobe, had said that the forum was an opportunity for states around the Lake Chad Basin region across Nigeria, Niger, Chad, and Cameroon Republics to discuss and reflect on the journey so far.
He noted that as partners in progress, the Yobe Government provided the platform for participants to strengthen contact and collaboration towards ensuring stabilisation, recovery, and resilience across the Lake Chad Basin in the months and years ahead.
Also, Gov. Babagana Zulum of Borno, commended the strategic partners of the forum, saying their contributions have enabled governments of the forum to tackle some of their challenges to strengthen and rebuild the region.
He said the platform was a rallying point for political cohesion, fostering regional interaction, sustaining the socio-economic development of the region, and regional integration.
On his part, Gov. Umaru Fintri of Adamawa, noted that the Basin had passed through the worst environmental moment, leading to the shrinking of the Lake Chad
“The United Nations Environmental Programme has recently revealed that Lake Chad has shrunk 90 per cent in six years and blamed the situation on climate change, irrigation and construction of dams and population increase.”
The Executive Secretary of Lake Chad Basin Commission, Amb. Mamman Nuhu, said the forum’s meeting “serves as a critical platform for fostering dialogue and enhanced collaboration.”
He also said that the meeting reaffirmed the collective commitment to addressing the multifaceted challenges facing the lake chad basin.
He noted that the theme of the meeting reflects the immense progress achieved so far and the equally immense work that needs to be done.
Ms Cynthia Rowe, Development Director for the British High Commission, Nigeria, and Representative of International Support Group, commended the governors of the region.
Rowe stressed that the region had recorded marked improvement in the face of daunting challenges.
She, however, pledged the support of the funding partners to continue in their efforts towards assisting the forum achieve its objectives.
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FG Suspends Max Air Operations For Three Months Over Kano Incident
The Federal Government, through the Nigeria Civil Aviation Authority, has suspended Max Air’s domestic flight operations following a tyre burst incident involving one of its aircraft in Kano on Tuesday night.
The affected Boeing 737-400 aircraft, with registration number 5N-MBD, suffered a tyre burst while landing at Mallam Aminu Kano International Airport at about 10:51 p.m. on 28 January 2025.
Although all 53 passengers on board were evacuated safely, the aircraft was temporarily grounded before the Federal Airports Authority of Nigeria reopened the runway around 8:00 a.m. on Wednesday.
The Nigerian Safety Investigation Bureau has since launched an investigation into the incident — the third involving Max Air in three months.
Confirming the suspension, NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, in a statement released yesterday, stated that the regulatory body would support NSIB’s probe while also conducting its own assessment of the airline.
“It must be stated that the specific cause(s) of this incident can only be established after the NSIB has conducted its investigation,” Achimugu said.
He noted that the NCAA had already been carrying out an organisational risk assessment for all scheduled airlines, including Max Air, before the latest incident.
However, as a result of this incident, Max Air is suspending its domestic flight operations for three months, effective from midnight on 31 January 2025, to allow for an internal review of its operations,” he stated.
During the suspension period, the NCAA will conduct a comprehensive safety and economic audit of the airline.
“The safety audit will involve a re-inspection of Max Air’s organisation, procedures, personnel, and aircraft, as specified by the Nigeria Civil Aviation Regulations,” Achimugu explained.
He added that the economic audit would assess the airline’s financial health to ensure it can sustain safe flight operations.
“The resumption of Max Air’s domestic flights will depend on the satisfactory completion of this audit,” he added.
While acknowledging the potential disruption to passengers, the NCAA reassured the public that safety remained its top priority.
“The NCAA is aware of the inconvenience this action may cause Max Air’s intending passengers. However, the safety and well-being of passengers is paramount. We appeal for patience and understanding while we ensure the protection of passenger rights,” the statement added.
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