Focus
‘Nigeria’s Economic Recovery ’ll Pick Up Pace In 2018’
Being a text of the 2018 Budget Proposals presented to the National Assembly by President Muhammadu Buhari on Tuesday, November 7, 2017.
Exerpts.
Protocols
I am here to present 2018 Budget Proposals. Before presenting the Budget, let me thank all of you distinguished and honourable members of the National Assembly, and indeed all Nigerians, for your support and prayers for my full recovery while I was on medical vacation.
I am very pleased to address this Joint Session of the National Assembly, on the revenue and expenditure estimates, and related matters, of the Federal Government of Nigeria for the 2018 fiscal year.
The 2018 Budget will consolidate on the achievements of previous budgets and deliver on Nigeria’s Economic Recovery and Growth Plan (ERGP) 2018 – 2020.
Overview Of Economic Developments In 2017
2017, so far, has been a year of uncertainty on many fronts across the world. Whether it is Brexit, the crisis in the Korean Peninsular, or indeed, the political uncertainty in key oil producing nations of the Middle East and South America, we can all agree that these developments have in one way or another impacted Nigeria’s economic fortunes.
By all accounts, 2018 is expected to be a year of better outcomes. The tepid economic recovery is expected to pick up pace and the global political terrain is expected to stabilise. The International Monetary Fund (IMF) is anticipating global GDP growth of 3.7 percent in 2018. Emerging markets and developing economies are expected to lead with GDP growth of 4.9 percent, while advanced economies are projected to grow at a slower rate of 2 percent.
Nigeria’s journey out of the recent recession was a revealing one. We heard many opinions from within and outside Nigeria on how best to address our economic woes. We listened carefully and studied these proposals diligently. Our belief has always been that the quickest and easiest solution may not necessarily be the best solution for a nation as diverse as ours. We took our time to create a balanced and equitable response, keeping in mind that only tailored Nigerian solutions can fix Nigeria’s unique problems.
And from the recovery that we are seeing today, it is clear that we made the right decisions. Distinguished and Honourable Members of the National Assembly, I am now asking you to continue to support our economic policies in order to consolidate and sustain on the success achieved so far. We simply cannot go back.
In the non-oil sector, crop production has been one of the main contributors to non-oil growth, which rose to 0.45 percent in the second quarter of this year. This was primarily driven by our ongoing financial, capacity building and infrastructure development programs.
The Ministry of Agriculture and Rural Development, working with development partners and the private sector, has embarked on numerous capacity building projects. We have also completed over 33,000 Hectares of Irrigation Projects that have increased water availability in key food producing states. We shall continue to intensify our interventions through the Anchor Borrowers’ Programme and the Presidential Fertiliser Initiative to ensure that this momentum is sustained. We have also made provisions in the 2018 Budget to complete ongoing Irrigation Projects at Ada, in Enugu State; Lower Anambra, in Anambra State; and Gari, in Jigawa State. In 2017, many factories and projects in the food and agricultural sectors were commissioned in Kebbi, Nasarawa, Kaduna, Anambra, Edo, Jigawa, Rivers, Niger, Ogun and Ebonyi States, to mention a few. This is a clear statement that our economic diversification and inclusive growth ambitions are coming to fruition.
Significant progress has also been made in the Solid Minerals development sector. In Ondo State, for instance, work is ongoing to fully exploit the bitumen resources to meet the 600,000 MTs of asphalt imported per annum for roads and other construction projects. To consolidate on these efforts, we have also established a 30 billion Naira Solid Minerals Development Fund to support other minerals exploration activities across the country.
In the oil and gas sector, the relatively higher crude oil prices supported our economic recovery. Our mutually beneficial engagement with oil producing communities in the Niger Delta contributed immensely to the recovery in oil production experienced in recent months. We would like to thank the leadership and communities in the Niger-Delta for their continued support and to also reiterate our assurances that this Administration will continue to honour our commitments to them. We cannot afford to go back to those dark days of insecurity and vandalism. We all want a country that is safe, stable and secure for our families and communities. This means we must all come together to address any grievances through dialogue and peaceful engagement. Threats, intimidation or violence are never the answer.
We are working hard on the Ogoni Clean-up Project. During the year, we engaged 8 international and local companies proposing different technologies for the mandate. To enable us select the best and most suitable technology for the remediation work, we asked each company to conduct Demonstration Clean-up Exercises in the 4 Local Government Areas of Ogoni Land. These Demonstrations were recently concluded and the results are being studied by the Governing Council of the Ogoni Clean-up Project. Although the Project will be funded by the International Oil Companies, we have made provisions in the 2018 Budget for the costs of oversight and governance, to ensure effective implementation.
On the international front, I would like to thank our friends and partners in the Joint OPEC / Non-OPEC Ministerial Monitoring Committee (JMMC) who graciously granted Nigeria an exemption from the output cuts imposed on OPEC Member Countries in January 2017. This exemption, which was extended in September 2017, significantly helped during our most challenging time. We shall continue our positive engagement with other oil producing nations to ensure that the momentum generated is sustained.
Permit me, Mr Senate President and Right Honourable Speaker, to state that despite the downturn in oil prices and our challenging economic circumstances, this Administration was able to invest an unprecedented sum of over 1.2 trillion Naira in capital projects through the 2016 Budget. This is the highest ever in the history of this country. This is a clear demonstration of our commitment to consolidate on our economic diversification reforms and lay a stronger foundation for future growth and development.
Our Sovereign Wealth Fund, which was established in 2011 with US$1 billion, did not receive additional investment for 4 years when oil prices were as high as US$120 per barrel. However, despite record low oil prices, this Administration was able to invest an additional US$500 million into the Fund. This further demonstrates that in our struggle to have a stable and secure nation today, we have not, and will not, lose sight of the need to lay a solid foundation for the future prosperity of successive generations.
We have asked the Sovereign Wealth Fund to look inward and invest locally. Some of the successes we are seeing today in the agricultural sector are driven by this new investment approach by the Nigeria Sovereign Investment Authority (NSIA). The NSIA also has a very strong pipeline of local investments that will support our inclusive and diversified economic growth plan.
Stability has been restored to the foreign exchange market due to the interventions by the Central Bank of Nigeria to improve access to liquidity, discourage currency speculation and increase net foreign exchange inflows. As at the 30th of October, 2017, our external reserves had increased to US$34bn. This stability has supported our efforts to provide the enabling environment and interventions needed to empower Micro, Small and Medium-Sized enterprises, investors, manufacturers and exporters, to sustain and in some cases, grow their operations. Indeed, by the second quarter of 2017, exports significantly outpaced imports, resulting in a trade surplus of 506.5 billion Naira.
Ease of Doing Business Reforms
One of the targets we set for gauging our progress in creating an enabling environment for business was to achieve a positive movement in the World Ease of Doing Business Index. You would recall Nigeria experienced a decade-long decline in this ranking. In 2008, Nigeria was ranked 120th. By 2015, our situation had deteriorated to 169th of the 189 countries surveyed. Our very simple, logical and user-friendly reforms are reversing this trend. A recently released World Bank business ranking report announced that Nigeria had moved 24 places to 145th position in 2017. I am delighted that we have met and even surpassed our target of moving at least 20 paces up this global ranking. The same World Bank report also stated that Nigeria is among the top 10 reforming countries in the world.
To ensure these reforms are institutionalised, Executive Order Number 1 on the Promotion of Transparency and Efficiency in the Business Environment was issued in May 2017. The Order contained measures that ease the process of business registration, approval of permits, granting visas and streamlining port operations. We are committed to continuing and accelerating the Ease of Doing Business reforms, which are critical to attracting new investments, growing the economy and creating jobs for our people.
Improved Tax Administration
Although the economy is diversified with non-oil Sector accounting for over 90 percent of total Nominal GDP, the Government’s revenues are not as diversified yet. Our Tax-to-GDP ratio of about 6% is one of the lowest in the world. This situation is not consistent with our goal of having a diversified, sustainable and inclusive economy. Accordingly, we are stepping up efforts to ensure all taxable Nigerians comply with the legal requirement to declare income from all sources and remit taxes due to the appropriate authorities.
Already, we have introduced the Voluntary Assets and Income Declaration Scheme (VAIDS) on the 1st of July, 2017. The Scheme provides non-compliant taxpayers with a nine-month window to regularise their tax status relating to historical periods. In return, overdue interest and penalties will be forgiven. In addition, no investigations or criminal charges will be brought against participating taxpayers. We expect that this Scheme will widen the tax net for both the Federal and State Governments. I am therefore, asking all Nigerians to seize this opportunity and do the right thing. Let us not shy away from our duty to build a better Nigeria.
Optimising Efficiency in Expenditure
In 2016, this administration adopted a policy of allocating at least 30 percent of our annual budget to capital expenditure. This was entrenched in the ERGP to unlock further growth in the economy. This tradition was maintained in the 2017 Budget and has been reflected in the proposal for 2018, in which 30.8 percent of total expenditure has been set aside for the capital vote.
To support these efforts, you would recall that an Efficiency Unit was set up under the Federal Ministry of Finance to reduce wastage, plug leakages and foster greater fiscal transparency. We have intensified the implementation of the Integrated Payroll and Personnel Information System (IPPIS) across government MDAs to automate personnel records and salaries’ payment process, with the goal of eliminating ghost workers. 461 Federal MDAs have been captured on the system, so far. Our target is to enroll all MDAs. I have directed the military and other security agencies to ensure total compliance without further delay.
Increased Investment in Infrastructure
Mr Senate President, and the Right Honourable Speaker, we shall continue to develop our infrastructure across the country. Although a lot of progress has been made, the huge contractor liabilities we inherited have adversely impacted our infrastructure development timetable. Indeed, contractors were owed trillions of Naira when this Administration came into office. In some areas, we have made payments so projects may be completed; while in others, we are reconciling the liabilities to identify and settle legitimate claims. As a responsible and accountable Administration, we decided that clearing this backlog was an important priority.
For instance, at the outset of this Administration in 2015, the Abuja Metro-Rail Project, which began in 2007 was only 50 percent completed, after 8 years. Today, in just 18 months, we have pushed the project to 98 percent completion. This was achieved as the Nigerian Government was diligently able to meet its counterpart funding obligations for the Chinese loans.
We have also continued work on key strategic Roads. Over 766 kilometres of roads were constructed or rehabilitated across the country in 2017. For instance, work is at various stages of completion on these strategic roads with immense socio-economic benefits:
a. Rehabilitation of Ilorin-Jebba-Mokwa-Birnin-Gwari-Kaduna Road;
b. Dualisation of Oyo-Ogbomosho-Ilorin Road;
c. Rehabilitation of Gombe-Numan-Yola Road;
d. Dualisation of Kano-Maiduguri Road;
e. Rehabilitation of Sokoto-Tambuwal-Jega Road and Kotangora-Makera Road that transverse Sokoto, Kebbi and Niger States;
f. Rehabilitation and Reconstruction of Enugu-Port-Harcourt Road;
g. Rehabilitation of Enugu-Onitsha Dual Carriageway Road;
h. Rehabilitation of Aleshi-Ugep Road and the Iyamoyun-Ugep Section in Cross River State;
i. Rehabilitation, Reconstruction and Expansion of Lagos-Ibadan Dual Carriageway Road;
j. Construction of Loko-Oweto Bridge over River Benue in Nasarawa and Benue States; and
k. Construction Gokanni Bridge along Tegina-Mokwa-Jebba Road in Niger State.
Under the Federal Roads Development Programme, we recently completed a Data Collection Exercise on the 7,000km Federal Road Network which was funded by the World Bank. This information is enabling us to make informed decisions regarding the planning, budgeting and management of the Federal Road Network. Going forward, we will be working based on facts rather than subjectivity.
Furthermore, we have also invested a lot of time and effort in identifying alternative means of funding new projects. For example, the recent 100 billion Naira Sukuk Financing will cater specifically for the development of 25 roads across the country. We also developed different structures that empower private investors to contribute to the development of roads of significant national importance. Already, we are seeing results. For example:
a. The Bonny-Bodo Road is being jointly funded by the Federal Government and Nigeria LNG Limited. This project was conceived decades ago but it was abandoned. This Administration restarted the project and when completed, it will enable road transportation access for key communities in the Niger- Delta region; and
b. The Apapa Wharf-Toll Gate Road in Lagos State is also being constructed by private sector investors in exchange for tax credits.
Distinguished Members of the National Assembly, our Power Sector Reforms still remain a work in progress. Although we have increased generation capacity significantly, we still have challenges with the Transmission and Distribution Networks. That said, I am pleased to announce that since 2015, the Transmission Company of Nigeria (TCN) and Niger-Delta Power Holding Company (NDPHC) have added 1,950 MVA of 330-132kV transformer capacity at 10 Transmission stations, as well as 2,930 MVA of 132-33kV transformer capacity to 42 substations nationwide. With these additions, the Transmission Network today can handle up to 7,000 Mega Watts (MW).
The key bottleneck now is the Distribution Network where the substations cannot take more than 5,000 MW. This is constraining power delivery to consumers. We are working with the privatized Distribution Companies to see how to overcome this challenge. Nigerians should be rest assured that this Administration is doing all it can to alleviate the embarrassing power situation in this country.
Furthermore, to sustain the continued expansion of generation capacity and enhance evacuation, we approved a Payment Assurance Guarantee Scheme which enabled the Nigerian Bulk Electricity Trader (NBET) to raise 701 billion Naira. This assures the Generation Companies of up to 80% payment on their invoices. This intervention has brought confidence back into the sector and we expect additional investment to flow through, particularly in the gas production sector.
Distinguished Members of the National Assembly, this Administration is committed to the development of Green Alternative Energy Sources. To date, we have signed Power Purchase Agreements (PPA) with 14 solar companies. We also approved:
a. The completion of the 10 MW Wind Farm in Katsina State, a project that was abandoned since 2012; and
b. The concession of 6 small hydro-electric power plants with a total capacity of 50 MW.
To enable the successful take-off of these, and future Green Projects, I am pleased to inform this Distinguished Assembly that the Federal Government will be launching the first African Sovereign Green Bond in December 2017. The bond will be used to finance renewable energy projects. We are very excited about this development as it will go a long way in solving many of our energy challenges, especially in the hinterland.
On Rail, we recently received 2 additional locomotives and 10 standard gauge coaches for the Abuja-Kaduna Rail Line. These will be deployed for the new non-stop express service between the two cities that will only take one hour and fifteen minutes. This new service will complement the existing service currently in place. We plan to commission this by December 2017.
We have also kick-started the abandoned Itakpe-Ajaokuta-Warri Rail Line. This project has been on for over 17 years. We had to take some drastic measures but I am pleased to announce that work is ongoing and we expect to commission this service by September 2018. This service will start with 7 standard gauge coaches.
The situation at the Apapa port complex is a top priority for this Administration. The delays due to congestion and their adverse impact on business operations and costs is a key concern to our Government. As I mentioned earlier, we are partnering with the private sector to fix the road. We shall do the right thing considering. We will not cut corners.
In addition to the road, we have also commenced the extension of the Lagos-Ibadan Standard Gauge Rail Line to connect Apapa and Tin Can Port Complexes. This project will significantly ease the congestion at the ports and enhance both export and import operations. This project shall be completed by December 2018. Already, working with the private sector, we have repaired the Apapa Port Narrow Gauge Line which is currently being used to evacuate goods from the port, thereby easing congestion.
As we all know, sometimes doing the right thing takes time and requires sacrifices. I am therefore appealing to all stakeholders to work with us in ensuring we deliver a solution that we will all be proud of.
Certainly, the infrastructure requirement to reposition Nigeria for the future is huge and our resources are limited. Government, therefore, will pursue private partnerships to maximise available capital and developmental impact. In the next fiscal year, we will also establish 7 tertiary health institutions across the country through partnership with our Sovereign Wealth Fund and other private sector investors.
Agricultural Development
The agricultural sector played a crucial role in Nigeria’s exit from recession. Today, it remains the largest employer of labour and holds significant potential to realise our vision of repositioning Nigeria as a food secured nation.
We will consolidate on existing policies and develop new ones to ensure the numerous value chain challenges in the agricultural sector are addressed. As I mentioned earlier, several investors have deployed significant capital in the production and processing of rice, sugar, maize, soya, cassava, yams, tomato, oil palm, rubber and poultry, to mention a few. We are also seeing increased investment in the agro-inputs manufacturing sector such as fertilisers.
We are determined to protect these investments and encourage more. Food Security is an important aspect of this Administration’s National Security agenda. Any person involved in smuggling of food items is a threat to our National Security and will therefore be dealt with accordingly. A Committee chaired by the Vice President is working on this matter. A key part of their work will be the reactivation of the Badagry Agreement signed between Nigeria and the Republic of Benin in 2003. This agreement, which was abandoned by previous Administrations, established a mutually beneficial framework for the two neighbours and allies to partner in tackling smuggling and other cross border crimes. I would like to assure investors in the agricultural value chain that the menace of smuggling will be handled decisively.
To further support investors and State Governments, we will accelerate the establishment of at least 6 Staple Crop Processing Zones, in the first phase. This initiative will develop infrastructure for the production, processing and storage of strategic commodities. The focus is on backward integration for grains, horticulture, livestock, fisheries and sugar; as well as exportable commodities such as cocoa, cassava and oil palms.
Health Sector Developments
During 2017, the country had a number of disease outbreaks such as Meningitis, Yellow Fever, Monkey Pox and Lassa Fever. I would like to commend the Federal and State Ministries of Health for their selfless service and timely responses to contain these outbreaks. I would also like to thank the World Health Organisation, the Global Fund and UNICEF, for their continued support during these trying times. This collaboration was a key factor in the low mortality rates experienced. To further improve our response to such outbreaks, we are working to upgrade our Integrated Disease Surveillance and Response System. This will further enhance the efficiency of our diagnostic and clinical management processes.
In this respect, I urge this Distinguished House to expedite the passage of the Bill for the Nigeria Centre for Disease Control to enable us consolidate on the successes recorded to date.
Implementing the Social Investment Program
I am pleased to inform you that we have recorded tremendous success in the implementation of the Federal Government’s Social Investment Programme. Specifically,
a. Over 4.5 million Primary 1 to Primary 3 pupils in public schools are being fed under the School Feeding programme;
b. Over 200,000 unemployed graduates have been employed under the N-Power Scheme in education, health and agricultural sectors;
c. Over 250,000 enterprises have benefitted from the sum of 12.5 billion Naira, which has been disbursed to entrepreneurs to expand their businesses; and
d. Over 110,000 households are currently benefitting from the Conditional Cash Transfer programme across the country.
Performance Of The 2017 Budget
The 2017 Budget of Recovery and Growth was based on a benchmark oil price of US$44.5 per barrel, oil production of 2.2 million barrels per day, and a Naira-to-US Dollar Exchange Rate of 305. Based on these assumptions, total revenue of 5.084 trillionNaira was projected to fund aggregate expenditure of 7.441 trillion Naira. A projected fiscal deficit of 2.356 trillion Naira was to be financed mainly by domestic and external borrowing.
On revenue performance, collections were 14 percent below target as of September 2017, mainly due to the shortfall in non-oil revenues.
A key revenue shortfall was from Independent Revenues; only 155.14 billion Naira was remitted by September 2017 as against the projected pro-rated sum of 605.87 billion Naira. This represents a 74 percent shortfall, which is very disappointing.
This recurring issue of under-remittance of operating surpluses by State Owned Entities is absolutely unacceptable. You will all recall that in September 2017, the Joint Admissions and Matriculation Board (JAMB) announced that they were ready to remit 7.8 billion Naira back to the Government. The shocking discovery was that in the last decades, JAMB only remitted an aggregate of 51 million Naira. This clearly illustrates the abuses that occur in State Owned Entities as well as their potential for increased Independent Revenues, if only people would do the right thing. We all need to play our role to ensure the right thing is done. I would also like to remind Nigerians that the Whistle Blower lines are still open.
Accordingly, I have directed the Economic Management Team (EMT) to review the fiscal profiles of these agencies, to ensure strict compliance with the applicable Executive Orders and Financial Regulations. There may be a need to consider a review of the Fiscal Responsibility Act and the Executive will be approaching the National Assembly on this issue in due course.
On the expenditure side, a total of 450 billion Naira of the capital vote had been released as at the end of October 2017. With your support for our funding plan, our target is to release up to 50% of the capital vote for MDAs by the year’s end. We have prioritised payments of our counterpart obligations on our concessionary loans, as well as funding of critical infrastructure and other projects with socio-economic benefits. Furthermore, MDAs have made provisions to carry over to the 2018 Budget, capital projects that are not likely to be fully funded by year-end 2017, to ensure project continuity.
Regrettably, the late passage of the 2017 Budget has significantly constrained budget implementation. As you are aware, the 1999 Constitution authorized necessary Federal Government expenditures prior to the 12th of June, 2017 when the 2017 Appropriation Act was signed into law. This year, we have worked very hard to achieve an earlier submission of the Medium-term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), and the 2018 Appropriation Bill. Our efforts were to avail the National Assembly with sufficient time to perform its important duty of passing the Appropriation Bill into law, hopefully by the 1st of January, 2018. It is in this spirit that I solicit the cooperation of the Legislature in our efforts to return to a more predictable budget cycle that runs from January to December.
Priorities For The 2018 Budget Of Consolidation
The 2018 Budget Proposals are for a Budget of Consolidation. Our principal objective will be to reinforce and build on our recent accomplishments. Specifically, we will sustain the reflationary policies of our past two budgets. In this regard, the key parameters and assumptions for the 2018 Budget are as set out in the 2018-2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). These include:
a. Benchmark oil price benchmark of US$45 per barrel;
b. Oil production estimate of 2.3 million barrels per day, including condensates;
c. Exchange rate of N305/US$ for 2018;
d. Real GDP growth of 3.5 percent; and
e. Inflation Rate of 12.4 percent.
Federally-Collectible Revenue Estimates
Based on the above fiscal assumptions and parameters, total federally-collectible revenue is estimated at 11.983 trillion Naira in 2018. Thus, the three tiers of Government shall receive about 12 percent more revenues in 2018 than the 2017 estimate. Of the amount, the sum of 6.387 trillion Naira is expected to be realised from oil and gas sources. Total receipts from the non-oil sector are projected at 5.597 trillion Naira.
Federal Government Revenue Estimates
The Federal Government’s estimated total revenue is 6.607 trillion Naira in 2018, which is about 30 percent more than the 2017 target. As we pursue our goal of revenue diversification, non-oil revenues will become a larger share of total revenues. In 2018, we project oil revenues of 2.442 trillion Naira, and non-oil as well as other revenues of 4.165 trillion Naira.
Non-oil and other revenue sources of 4.165 trillion Naira, include several items including: Share of Companies Income Tax (CIT) of 794.7 billion Naira, share of Value Added Tax (VAT) of 207.9 billion Naira, Customs & Excise Receipts of 324.9 billion Naira, FGN Independently Generated Revenues (IGR) of 847.9 billion Naira, FGN’s Share of Tax Amnesty Income of 87.8 billion Naira, and various recoveries of 512.4 billion Naira, 710 billion Naira as proceeds from the restructuring of government’s equity in Joint Ventures and other sundry incomes of 678.4 billion Naira.
Proposed Expenditure for 2018
A total expenditure of 8.612 trillion Naira is proposed for 2018. This is a nominal increase of 16 percent above the 2017 Budget estimate. In keeping with our policy, 30.8 percent (or 2.652 trillion Naira) of aggregate expenditure (inclusive of capital in Statutory Transfers) has been allocated to the capital budget.
We expect our fiscal operations to result in a deficit of 2.005 trillion Naira or 1.77 percent of GDP. This reduction is in line with our plans under the ERGP to progressively reduce deficit and borrowings.
We plan to finance the deficit partly by new borrowings estimated at 1.699 trillion Naira. Fifty percent of this borrowing will be sourced externally, whilst the balance will be sourced domestically. The balance of the deficit of 306 billion Naira is to be financed from proceeds of privatisation of some non-oil assets by the Bureau of Public Enterprises (BPE).
61. The proposed 8.612 trillion Naira of 2018 Aggregate Expenditure comprises:
a. Recurrent Costs of N3.494 trillion;
b. Debt Service of N2.014 trillion;
c. Statutory Transfers of about N456 billion;
d. Sinking Fund of N220 billion (to retire maturing bond to Local Contractors);
e. Capital Expenditure of N2.428 trillion (excluding the capital component of Statutory Transfers).
Statutory Transfers
62. 456.46 billion Naira was provided in the 2018 Budget for Statutory Transfers. The 5 percent increase over last year’s provision is mainly due to increases in transfer to Niger Delta Development Commission (NDDC) and the Universal Basic Education Commission (UBEC), which are related directly to the size of oil revenue.
Debt Restructuring
63. We are closely monitoring our debt service to revenue ratio. We shall address this ratio through our non-oil revenue-generation drive and restructuring of the existing debt portfolio. Presently, domestic debt accounts for about 79 percent of the total debt. Our medium-term strategy is to reduce the proportion of our domestic debt to 60% by the end of 2019 and increase external debt to 40 percent. It is noteworthy that rebalancing our debt portfolio will enhance private sector access to domestic credit. In addition, annual debt service costs will reduce as external debts are serviced at lower rates and repaid over a longer period than domestic debt.
Recurrent Expenditure
64. A substantial part of the recurrent cost proposal for 2018 is for the payment of salaries and overheads in key Ministries providing critical public services such as:
a. N510.87 billion for Interior;
b. N435.01 billion for Education;
c. N422.43 billion for Defence; and
d. N269.34 billion for Health.
The allocation to these Ministries represent significant increases over votes in previous budgets.
Personnel Costs
65. Personnel costs is projected to rise by 12 percent in 2018. Although we have made substantial savings by registering MDAs on the Integrated Personnel Payroll Information System (IPPIS) platform, the increase is mainly due to provision for staff promotion arrears, and recruitments by the Military, Police Force and para-military agencies. Furthermore, I have directed agencies are not to embark on any fresh recruitment unless they have obtained all the requisite approvals. Any breach of this directive will be severely sanctioned.
Overhead Costs
66. Overhead costs is projected to rise by 26 billion Naira in 2018, a modest increase of about 12 percent reflecting inflationary adjustments. MDAs are required to adhere to government regulations regarding cost control.
Capital Expenditure
67. To consolidate on the momentum of the 2017 Budget’s implementation, many ongoing capital projects have been provided for in the 2018 Budget. This is in line with our commitment to appropriately fund ongoing capital projects to completion. By allocating 30.8 percent of the 2018 Budget to capital expenditure, the Federal Government is also demonstrating its strong commitment to investing in critical infrastructure capable of spurring growth and creating jobs in the Nigerian economy.
68. Key capital spending allocations in the 2018 Budget include:
a. Power, Works and Housing: N555.88 billion;
b. Transportation: N263.10 billion;
c. Special Intervention Programmes: N150.00 billion;
d. Defence: N145.00 billion;
e. Agriculture and Rural Development N118.98 billion;
f. Water Resources: N95.11 billion;
g. Industry, Trade and Investment: N82.92 billion;
h. Interior: N63.26 billion;
i. Education N61.73 billion;
j. Universal Basic Education Commission: N109.06 billion;
k. Health: N71.11 billion;
l. Federal Capital Territory: N40.30 billion;
m. Zonal Intervention Projects N100.00 billion;
n. North East Intervention Fund N45.00 billion;
o. Niger Delta Ministry: N53.89 billion; and
p. Niger Delta Development Commission: N71.20 billion.
69. As I had previously indicated, we aim to consolidate on our achievements in 2017. We shall meet our counterpart funding obligations. We shall complete all ongoing projects. And we shall carry forward all strategic projects that were budgeted for but which we were unable to kick start due to liquidity challenges, late passage of the budget, prolonged contractual negotiations, and other matters.
70. Specifically, I would like to bring your attention to the following key projects and programmes that we are determined to implement in 2018:
a. N9.8 billion for the Mambilla hydro power project, including N8.5 billion as counterpart funding;
b. N12 billion counterpart funding for earmarked transmission lines and substations;
c. N35.41 billion for the National Housing Programme;
d. N10.00 billion for the 2nd Niger Bridge; and
e. About N300 billion for the construction and rehabilitation of the strategic roads mentioned earlier.
Consolidating on the Social Intervention Programme
71. This Administration remains committed to pursuing a gender-sensitive, pro-poor and inclusive growth. We are keenly interested in catering for the most vulnerable. Accordingly, we have retained the 500 billion Naira allocation to the Social Intervention Programme. Under the programme, 100 billion Naira has been set aside for the Social Housing Programme.
72. Government will also continue to implement the Conditional Cash Transfer (CCT) programme, as well as the National Home-Grown School Feeding programme in 2018. These initiatives are already creating jobs and economic opportunity for local farmers and cooks, providing funding to artisans, traders and youths, as well as supporting small businesses with business education and mentoring.
Regional Spending Priorities for Peace, Security and Development
73. To maintain peace and security in the Niger Delta for economic and social activities to thrive, the provision of 65 billion Naira for the Presidential Amnesty Programme has been retained in the 2018 Budget. In addition, the capital provision for the Ministry of Niger Delta has been increased to 53.89 billion Naira from the 34.20 billion Naira provided in 2017. This is to further support the development in the region. We will complete all critical projects, including the East-West Road, which has a provision of about 17.32 billion Naira in 2018.
74. Across the nation, and particularly in the North East region, our commitment to the security of life and property remains absolute. We will ensure that our gallant men and women in arms are properly equipped and well-motivated. The result of our efforts is evident in the gradual return to normalcy in the North East. It is in this spirit that I recently assented to the North-East Development Commission Bill that was passed by this Distinguished House. We expect that this development will consolidate on our ongoing efforts to combat insurgency, reintegrate Internally Displaced Persons and rebuild communities in the North East Region, which have been adversely affected by the insurgency.
75. Similar attention is being given to efforts to reduce violent crime across the country. The Nigerian Army was recently deployed to combat the growing scourges of cattle rustling and banditry that have plagued our communities in Kaduna, Niger, Kebbi, Katsina and Zamfara States. We will also continue to arrest the incidence of Armed Robbery, Kidnapping and other Violent Crimes across our nation.
76. We have also increased our focus on cyber-crimes and the abuse of technology through hate speech and other divisive material that is being propagated on social media. Whilst we uphold the Constitutional rights of our people to freedom of expression and association, where the purported exercise of these rights infringes on the liberties of other citizens or threatens to undermine our National Security, we will take firm and decisive action.
77. In this regard, I reiterate my call for Nigerians to exercise restraint, tolerance and mutual respect in airing any grievances and frustrations. Whilst the ongoing national discourse on various political issues is healthy and welcome, we must not forget the lessons of our past. I trust that the vast majority of our people would rather tread the path of peace and prosperity, as we continue to uphold and cherish our Unity in Diversity.
CONCLUSION
78. Distinguished and Honourable Members of the National Assembly, you will recall that in my 2017 Budget Speech, I promised a new era for Nigeria and an end to the old ways of overdependence on oil revenues. The statistics and initiatives I mentioned clearly show that this new era has come and the old Nigeria is surely disappearing. We must, therefore, all work together to protect and sustain this CHANGE to create a new Nigeria:
a. A Nigeria that feeds itself;
b. A Nigeria that optimally utilizes its resources;
c. A Nigeria with a diversified, sustainable and inclusive economy.
79. Mr. Senate President, Mr. Speaker, Distinguished and Honourable Members of the National Assembly, this speech would be incomplete without commending the immense, patriotic and collaborative support of the National Assembly in the effort to move our great nation forward. I wish to assure you of the strong commitment of the Executive branch to deepen the relationship with the Legislature.
80. Nigeria is currently emerging from a very difficult economic period. If we all cooperate, and support one another, we can consolidate on our exit from the recession and firmly position Nigeria for economic prosperity. All the projects presented within this Budget have been carefully selected and subjected to extensive consultations and stakeholder engagements. As a Government, we are determined to bring succour to our people, improve their lives, and deliver on our promises to them. 2018 is a crucial year as we strive to ensure that we consolidate our successes and institutionalize the policies and practices that drove this turnaround.
81. I appeal to you to swiftly consider and pass the 2018 Appropriation Bill.
82. It is therefore with great pleasure and a deep sense of responsibility, that I lay before this Distinguished Joint Session of the National Assembly, the 2018 Budget Proposals of the Federal Government of Nigeria.
83. I thank you most sincerely for your attention.
84. May God bless the Federal Republic of Nigeria.
Focus
Differentiation And Learning Strategies As Tool For Desired Learning Outcome
What is differentiation? Differentiation refers to the learning experiences in which the approach or method of learning is adjusted to meet the needs of individual learners with a focus on the how of personalised learning.” (Culottes, R. 2016). It is a process that helps learners who are struggling and help gifted learners learn faster, this way, teaching becomes easier for the teacher and makes it easier to achieve the desired learning outcome. In differentiation, the learning objective is the same but the means through which it is achieved may be varied. It is like having a destination and arriving there through various means, by road, rail, water or air. It is one of the three elements of individualised learning which involves changing the instructional approach so as to meet the various needs of students.
Differentiation could also entail designing and delivering instruction by using different teaching styles and also giving the learners various alternatives for taking information. It provides flexibility to both the teacher and the learner but the learning objectives must be clearly defined to enable learners work their way towards achieving it. We should not mix up differentiation with learning styles. Learning style presumes that a learner learns better in a certain way, be it visual, auditory, or hands on. Although a learner might find a particular learning style useful for a particular topic, it does not mean that the particular learning style will apply to all other topics, for instance, if a learner learns a topic through songs, it does not mean that the same learner will learn every other topic through songs. Learning is not always as straight forward.
How a teacher can use differentiation in the classroom.
When practising differentiation in the classroom, a teacher can teach a particular topic using various teaching techniques that meet the needs and interests of the learners, a teacher can decide to put learners in groups based on their ability or interest and at the same time has to vary the content of the lesson to meet the needs of the learners. In differentiation, the teacher considers the learner’s personalised learning style and ability when the lesson is being taught. According to Carol Tomlinson, differentiation can be done through the following:
Content: Here differentiation can occur in the learning activities which have to meet the interest and need of the learner. Bloom’ s taxonomy levels of remembering, understanding, applying, analysing, evaluating and creating, which involves different levels of intellectual behaviour from lower to higher level thinking come into play. The teacher applies these in planning the lesson so that various interests and learning styles are taken into consideration. Bearing in mind the objective of the lesson, the teacher then provides the learners with options on the content and together they study to achieve the set objective.
Process: These are methods which a teacher employs in presenting learning materials to keep the learner’s interest. Learners may need different levels of support, some work better on their own while others prefer to work in pairs or in small groups. Grouping can be done depending on the learner’s readiness or as a way of complementing each other. Support can also be given to learners depending on their individual learning styles and so the teacher has to prepare a lesson plan that caters for visual, auditory, kinesthetic or those who learn through words.
Product: At the end of the lesson, the learner shows mastery of the lesson by the product the learner creates. It can be in form of a song, quizzes, tests, a story, an art project or any other activities the teacher may deem fit. All these are to assess how the learner has mastered the concept.
Learning environment: The classroom environment affects learning and so the physical and psychological conditions of the learning environment have to be right such as the furniture, classroom arrangement and classroom management. The learning environment has to be safe, conducive and supporting in order to sustain the interest of the learners. Learning environment can also involve changes to habits and routines such as recess time, circle time, lunch time or outdoor learning.
What are the Importance of Differentiation in Learning?
Differentiation is important in the classroom because it caters for all types of learners, whether high ability learners or additional needs learners. It gives learners the opportunity to learn in diverse ways so as to meet learning objectives the best way they can. Differentiation helps instructors to connect with the different learning styles depending on which works best for the learners. All learners may not respond well with a game, a song may work better for others or reading for others.
Differentiation is a great learning instruction for learners with additional needs.
Differentiation provides a platform for learners to strive to achieve set learning objectives.
Differentiation motivates learners to learn in a manner that meets their interest and personalised learning style. We know that all learners do not learn the same way and so the teacher has to employ various learning styles to know which best resonates with the learners. What Experts say about Differentiation in Learning? According to Carol Tomlinson, differentiation is a way of honoring the reality of the learners. They maybe energetic, outgoing, quiet, shy, confident or self-doubting, they could be interested in a particular thing or in a thousand things, could be academically advanced or struggling with cognitive, sociological, economic or emotional challenges. Many speak a different language at home and learn at different rates and styles and they all come together in our academically diverse classrooms. Carol Ann Tomlinson (William Clay Parrish, Jr. Professor and Chair of Educational leadership, Foundations, and Policy).
Differentiating instruction is really a way of thinking, not a list of strategies. Many times, it is making decisions in the moment based on this mindset. It is recognising that “fair” does not always mean treating everyone equally. It is recognising that all of our students bring different gifts and challenges, and that as educators, we need to recognise those differences and use our professional judgment to flexibly respond to them in our teaching.” Larry Ferlazzo (award-winning teacher at Luther Burbank High School in Sacramento, California, who writes a teacher advice column for Education Week.
Another expert, Lisa Westman posits that all teachers want their students to succeed, and all teachers try to make this happen, that is all differentiation is. She writes that we complicate differentiation by not allowing ourselves to be provisional with how we apply the foundational pieces of differentiated instruction. Instead if we address these four questions in our instructional planning, differentiation will always be the result: what do my students need? How do I know? What will I do to meet their needs? How do I know if what I am doing is working? Lisa Westman (instruction coaching, differentiation, and standards-based grading consultant and professional development facilitator). “Differentiated instruction is dynamic and organic. In a differentiated learning space, teachers and students learn together. Students focus on learning the course content, while teachers tailor their instructional strategies to student learning styles.” Alexa Epitropoulous (media and author relations specialist at ASCD). How to apply Differentiation in Learning. To apply differentiation effectively, the teacher has to do the following:
i.Do a baseline test for all students in order to find out where they are and to device strategies to help each learner achieve the desired objective using appropriate means to deliver the content.
ii.Explain the learning objectives clearly and what the standard for success is, this is the key for differentiation to thrive, a classroom environment where learners work towards a clearly defined goal. Here, the need of the student is very important and the teacher has to identify them and create a supportive environment where differentiation is accepted by the learners themselves and for their peers.
iii. Know the individualised needs of their learners in order for teaching to be effective so that cognitive as well as academic outcomes can be achieved.
What is a learning strategy? A learning strategy is a way a learner organizes and uses certain skills to learn the content of the curriculum and to complete tasks effectively be it in the classroom or outside the classroom. Learners depend upon their senses to process information and many learners make use of one of their senses more than others. There are basically four types of learning strategies and they are as follows:
1. Visual strategies: here learners learn and retain knowledge better when the content is presented in the form of pictures for example, charts, diagrams and symbols. To apply this strategy in a classroom environment, the teacher needs to do the following: Make use of a lot of; colourful visual aids like charts, pictures and diagrams which must be well explained. Use different handouts for various concepts and leave spaces in them so learners can write in them. If using multimedia, screens have to show clearly.
2. Auditory strategies: this involves creating learning experiences where talking and listening take centre stage. These instructional methods can be employed in the following ways: Start a new topic with a background information of the concept to be learnt. Use activities like story-telling and group discussions to encourage vocal collaboration. Learners are encouraged to read aloud the questions. Conclude by giving a summary of the lesson
3. Reading and Writing: this makes use of the traditional ways of learning such as copying of notes, reading textbooks or handouts and taking notes. They seem to learn better by doing the following in the classroom: Provide written information on worksheets and other resources. Students are to rewrite notes. Convert charts and diagrams into written text. If using multimedia, use bullet points. Learn to reference written texts.
4. Kinesthetic strategies: this is also called tactile learning since it has to do with the sense of touch. This is the most physical of the learning strategies because kinesthetic learners learn best through instructional methods that involve movement, motion and touch. These learners are able to sense body position and movement in the classroom environment. Tactile learning is achieved through activities like moving, touching and feeling things. Below are some of the strategies to use: Engage learners in physical movement such as dance. Make use of flash cards when teaching. Students are to draw images of information as part of formative assessment. Provide learners with hand-on experiences. There is no single learning strategy that works for all learners because it’s not a one size fits all, as such it will be impossible to devise a generalized strategy that works for the whole class. The teacher has to apply the different learning strategies in a classroom learning environment so as to meet the needs and interests of the learners because a blend of these strategies will most likely produce the desired learning outcome and also motivate learners to have a deeper understanding of the concept taught.
Tassie, a curriculum development specialist resides in Port Harcourt.
Focus
#END Bad Governance: He Spoke Peace Tense, Protesters Understood!
Compact with meekness. Compassionate. Empathetic. Never of him to trample under foot, humans and their concerns. He listens; attentively. He shows genuine understanding; with humbling humility. So, he is endeared, not just to a few but to many.
And truly so, Governor Siminalayi Fubara is a political liberator. In him, Rivers State has a championing, new order, albeit, movement of renaissance: Berthing the people at a new coast of fresh breathe; freed from political manipulations, strangulation and enslavement. This is why ‘Rivers First’; call it a mantra, is not a mere catchy phrase, but a propelling commitment, and indeed, a reflection of the embodied resolve to work the better for Rivers State.
Here, the nationwide #EndBadGovernance street protest also took place, peacefully.
Nigerian youths planned and staged it to last 10 days, from August 1 to 10, 2024. And it was so, even if it fizzled out so quickly, lost steam so early in the State – did not last beyond four days. The intervention of Governor Fubara through his strategic crisis management approach anchored on more inclusive engagements, obviously assuaged frayed nerves.
The organisers tagged it #EndBadGovernance protest. It was their chosen channel. With it, they voiced their pains amidst economic challenges: Of heightened hunger, soaring cost of commodities and unbearable living conditions. They looked to President Bola Tinubu-led Federal Government to be more strategic. And he is doing so, nonetheless. More and more time is but solicited to see his policies being implemented, come through, under the Renewed Hope Agenda, in driving the national economy out of the woods.
Much more in that regard is known of Rivers State, several cushioning measures are being implemented to address the burden of excruciating economic realities on the people. Which is why Governor Fubara spoke up against the protest early enough. His position was firm. It was without a mincing of words, to the youths and to any other segment of the society. He made it clear that though, it is their fundamental right, the time they chose to stage the protest, is not right. This remained his counsel. The backdrop was to forestall a truncating of the prevailing but cherished sanity, peace and safety of lives and property that thrive here.
Street protests, unguarded, and when allowed to be hijacked, could bring tales of woes, such as the destruction of public facilities and personal property that took many years to bring to fruition. He insisted that if it must be staged, then ensure, nothing hampered the safety of lives and property. Just keep it peaceful: Give no room to political detractors. That reflected the message of Governor Fubara.
But political detractors always lurk around. If they are unable to hijack a thing, they become dramatis personae of what they conjecture. In fact, the hue and cry, baseless and meaningless hypes made by the then embattled Caretaker Committee Chairman of the All Progressives Congress (APC), Tony Okocha in Rivers State, is a characteristic decoy. Mischief is central in his chosen political macabre dance. Otherwise, why dramatise a staged attack on APC billboard in front of its factional secretariat along the Port Harcourt-Aba Expressway in order to put himself in a position to curry public pity, by playing the victim. So cheap. Sorely despicable. What was he thinking? That people around will not notice the drama play out? Even security details who monitored the protesters from Artillery to Pleasure Park never raised any red flag on their conduct around any property within that circumference!
You see, his kind, at such opportunity, raise false alarm without solid evidence to substantiate the veracity of the claimed attack at the weakest police interview. At best, what the public knows is calculated acts, wherein his hired folks, at his instruction, torn down the flex section of the billboard, which was performed before sponsored camera lenses. Even the Police authorities had disowned the incident, insisting that no office of any political party was attacked in Rivers State during the days of the protest. Come to think of it, even the protesters who marched from Artillery Junction to Pleasure Park never took notice of his antics and playbook. In fact, credible reports abound that nobody’s property, not even a politician’s residence in the State was attacked by the protesters. It is on record!
Thus, largely so, the protest was not destructive in nature in the State. Why? Governor Fubara had stepped in proactively. He doused the tension and anger. He identified those strategic groups, maybe not all but those possible contacts, and affiliates to the organisers who were tipped, maybe to coordinate the street demonstration in Rivers State. Governor Fubara engaged with them as individuals and collective. The security reports were of leading nature. So, eventually, representatives of those groups of the Civil Society Organisations (CSOs), stakeholders of National Association of Nigerian Students (NANS), Rivers State ethnic and youth groups, Community Based Organisations (CBOs), Non-Governmental Organisations (NGOs), Women Groups, Artisans and Traders, and the Ikoku Branch of Port Harcourt Motor Spare Parts Dealers Union, were brought together into one venue for dialogue; for mutual understanding of why the protest should not hold.
Heads of the security agencies in the State were also in attendance. At that meeting, held on July 31, 2024, Governor Fubara told them: “You are already aware of the political situation of our State, where people are looking for every avenue to destabilise this State. We don’t need to give them that opportunity to carry out that act. And that is the reason why, I, representing the Government, and the service commanders here, have always been in touch with you all, pleading that we should shelve this protest. And even if you have to do it, we should do it in a way and manner that it will not get out of control. I have information that you don’t have. I am aware of the people that are being hired to come into this State to cause mayhem. If anything happens here, we are going to be the greatest losers. Our property will be destroyed. Our economy will be destroyed. And when they finish, they will go back to their states.”
Those words were passionate. They resonated with the various groups amidst robust discussions. So, arising from that meeting at Government House in Port Harcourt, reason prevailed, positions aligned, and it was agreed that as groups, they will not participate in the protest.
In any case, some protesters still stormed the streets on August 1, in Rivers State. Not deterred, Governor Fubara went out and met with the group of protesters who stopped by at the gates of Government House. Standing amongst them unscathed, he addressed them, showing a glaring example of leadership: Courage. Acceptance. Endearment. Goodwill. He was the first so to do! Other elected representatives and political leaders had been overwhelmed by apprehension, and they unwittingly ran into hiding. But Governor Fubara showed his stuck as a leader when he made himself available to engage with the protesters, not done in a hurry, desperate impulse.
Because the moment was critical, he said: “I am one of you. I feel your pains, and in our Government here, we are doing everything to make life easy for our people. Our youths, I agree with you that there is hunger, but because we preach good governance, we are committed to make hunger disappear very soon. I am not against your protest, but we will not support any violent protest. We will not support anything that will destroy our State. We will not join forces with the enemy of progress (to destabilise our State). But if it has to do with the (peaceful) protesters, I don’t have any fears. Their demands are germane. I can understand them: hardship, bad governance, high cost of living, rent, medical bills. But we are coming from somewhere very bad. And we must start from somewhere to make things right,” he appealed.
With those words, his mien and presence, he inspired hope in them. He raised their downtrodden spirit to high heavens. It was organic. Surely, hope is enlivening. It strengthens the mind to trust in a blissful tomorrow. The protesters saw him as truer as a leader because he leaned his heart into the crisis, goodly too, to fully engage, motivate, and inspire them to expect greater accomplishments in the immediate or in the near future. It is this imbuing hope that kept the protesters peaceful, largely in the State.
And when a patch of the protesters saw his convoy pulled past Rumuobiakani Roundabout on the third day of the protest, they showed more excitement, cheered and chanted the praises of their most deserving people-centric Governor. The crowd of #EndBadGovernance protesters at the intersection of Trans Amadi Industrial Layout in Obio/Akpor Local Government Area waved Nigerian flag and green leaves while chanting: “Our Governor, carry go. Our Governor, we are solidly behind you and your government,” “We’ll support Governor that empowers the Youths”. The Governor came out of his car, waved back at them, and they cheered, their joy knowing no bounds. Thereafter, the Governor had easy passage as he continued his journey to attend the funeral ceremonies of late mother to the Chairman, Caretaker Committee of Khana Local Government Area in Kono Community.
At Kono on August 3, he took opportunity of the ambience to re-echo the need for peace. He urged the protesters to give government time to implement policies and programmes already designed and being rolled out to address the challenges facing the people. He asked for patience, understanding!
At Eleme on August 6, for the commissioning of the Pressure Swing Adsorption (PSA) Oxygen Plant built and installed by UNICEF in partnership with Federal Government, Rivers State Government, Canadian Government and HIS Towers, the Governor re-emphasised the primacy of peace and stability of the State as veritable tool for sustainable development. As he spoke peace and patience, the people cheered and chanted songs of support and cooperation.
Come to think of it: the Governor’s consistent emphasis on peaceful conduct of every resident of the State, and patience to allow the policies of government deepen their positive impacts on the people did not just resonate with the protesters alone. It also resonated with other well-meaning Nigerians both here at home and in the Diaspora, who were not part of the protest. It resonated with anchors and discussants, including lawyers, politicians, professionals from all walks of life, on major television and radio channels in the country and elsewhere. And it resonated with lawmakers across the country, including National Assembly.
In fact, the House of Representatives Technical Sub-Committee on Tertiary Education Trust Fund (TETFUND) said so on August 15 during an audience with the Governor in Government House, Port Harcourt. The sub-committee was in Rivers State to perform its oversight functions as mandated by law.
Speaking during the visit, the Chairman, Hon Miriam Odinaka Onuoha, commended the Governor for his wisdom and leadership in the effective management of the protest, by ensuring that while not denying residents their fundamental rights to peaceful assembly, procession and freedom of expression, he made sure that they exercised their rights in very peaceful manner without infringing on the rights of other Nigerians.
What to appreciate was that Governor Fubara did not speak politics to the protesters. He spoke to what they knew and had seen implemented by his administration. In meeting the expectations and challenges of Rivers residents as a measure embedded in his policies, he also showed them that he supports what the Federal Government is already doing. He reminded them that his Government was the first to release palliative buses, operating up until now, to ease transportation costs on students and all residents of the State, effective just few days after President Tinubu announced the removal of the subsidy on petroleum products.
Governor Fubara also reminded them that his Government was cushioning the increasing cost of living with the N4billion single-digit interest loan he floated for traders and small businesses in the State. It is a facility that is helping traders: mothers, fathers, and youths in the business line to grow their business capital base. These are added to the ongoing implementation of deliberately crafted policies and programmes that are ensuring the delivery of quality infrastructure in the health and education sectors to eventually provide affordable services to all residents in the State while also laying the groundwork that will make agriculture attractive to more people than usual in order to achieve food sufficiency and meaningful employment for the youths.
In all, it is indisputable that Rivers State is in good hands, and those who plotted to use the protests to cause anarchy and chaos, destroying critical State assets that had taken years to put in place, failed, even more woefully, this time.
Like the wise men keep saying, “God does not make mistakes”. The God we serve didn’t make any mistake when He choose Sir Siminalayi Fubara to govern the State and liberate its people from the clutches of desperate, self-seeking buccaneers, at this time in the life of Rivers State. Thus, as long as Rivers people come first in his calculations and decisions, Governor Fubara has come to stay, because he has the people’s back, always!
Nelson Chukwudi
Chukwudi is the Chief Press Secretary to the Rivers State Governor.
Focus
Re-Igniting Rivers Agricultural Stakes
Let us agree on this: prima facie, in many parts of the world, Nigeria and Rivers State inclusive, agriculture has not been maximally harnessed. This is so because, what we have seen happen in the sector has not contributed to fulfilling the vital function of feeding the people sufficiently. It has also not provided basic commodities as required, or helped desirably, in the generation of stable income too.
But this is not what it should be, neither should it be allowed to be so. This is why productive hands should not remain idle and germane efforts merely wished away when deliberate and consistently implemented policies can coordinate robust agricultural activities, necessarily so, to ensure support for human survival and promote enduring well-being. Perhaps, this is what sane leaders do in any society that plans to grow and also feed its people.
administration of Governor Siminalayi Fubara of Rivers State is in such ranking: forward-looking and mindful of those things to do, that can help real growth of all facets of the society, howbeit, agriculture. It has taken decisions on what must be done in order to increase attention for agriculture, and mobilising requisite resources that will support in refocusing the interest of majority of Rivers youths, and indeed, agro-actors, towards harnessing agriculture potentials in Rivers State.
Nigeria has, regrettably remained a consumption-dependent economy, and Rivers State is a part of this quagmire. The reason for this is clear: age-long, chronic and troubling lack of holistic attention to public policy implementation on a consistent basis to achieve sustained progress. But pulling off from such stance, the Governor Fubara-led administration is resolved to strengthen the comparative advantage of Rivers State in the agriculture value chain. It is a herculean task but not impossible because the potentials are glaring. So, there has been careful examination of what should be done, and how it should to be done to achieve an agricultural growth status that will make the State stand out.
To start, Governor Fubara has taken a critical look at the level of existing support previously offered by the State Government to promoting agriculture before he assumed office. Books may not lie, even when there could be disparities in what is recorded and what can be seen on ground. That, in itself, does offer a bearing. So, at least, what is clear is that such support was often driven by the quest to achieve economic development, promote key target interests, set out the prescriptions and requirements that would boost agricultural production.
With mind set on the mantra of “Consolidation and Continuity”, vital decisions are being taken, arising from those critical scrutinies, not necessarily to undermine what existed but to establish a path for continuity. With a policy direction that should stimulate commercial farming, and let it signpost the level of awareness that should be created in achieving food security in the State, there has been a determined posture secured without ineluctably falling to the trappings of incoherence and poor coordination most policy initiatives had suffered.
So, to have a holistic perspective for the required results that are expected, the decisions being taken took into cognizance: the need to identify support or collaborations where none existed, commence one, and gear up efforts in seeking requisite and workable collaborations to achieve success. In areas where such support did exist, but were incongruous, a review has been streamlined to give a new direction. Where there was abandonment of any process, a revitalization has been decided and production capacities of endeavours of agro-actors strengthened.
There is also a focus on small holder farmers because their concerns are in keen consideration of what the administration intends to do in the sector. These farmers belong to the brackets of small and medium enterprises that do need greater opportunities facilitated for their agribusinesses in other for them to access credit that would enable them expand their portfolio. More efforts are being harnessed with a search for an effective synergy within favourable environment to attract investors and financial institutions into funnelling credit to farming endeavours and the process of having an updated databank is being formalised. Regardless, the Rivers State Government has brokered partnership with the Bank of Industry (BOI) in the disbursement of N4billion to small scale entrepreneurs in the State. This is an initiative that should impact on the sector, nonetheless, if the beneficiaries were true to tact.
But of note is the review embarked upon by the government concerning its agricultural investment in the Songhai Integrated Farms. This farm is located in Bunu community, Tai Local Government Area of Rivers State. The Songhai Integrated Farms sits on a vast expanse of land measuring 314 hectares. Where it sits was, in 1985 established as part of the School-to-Land Farms project. But it was repurposed in 2011 to become Songhai Integrated Farms.
It had distinct production sections that included livestock production, crop cultivation, fisheries, forestry, engineering services, agro-industrialization, and the training of aspiring farmers. The farm started off with an environmentally-sustainable agricultural production system that harnessed a holistic value-chain approach to ensure higher incomes for farmers and processors, as well as other agro-actors to guarantee social and economic prosperity.
It was set up to operate a self-driven zero waste farming model designed to protect the natural environment by mitigating the impacts of climate change. So, each production section was made up of different units, overseen by specialists who work in synergy. Within the production line, nothing became discard-able waste since the finished products/byproducts were sent from one production unit to another in a sequential manner to further transform them into other useful products for human use. It was a continuous circle, and consistently so to promote sustainable economy.
Those features had been carefully enumerated to have a proper understanding of the venture that was to make Rivers economy bigger and more progressive. But either by commission or omission, it became lame because it was driven into despicable condition, or rather, because it was abandoned. Every facility became decrepit as a result. For almost a decade, it remained so, and nothing was operational there. The hope that once soared, about all the potentials and contributions it was to make towards food security, and to provide gainful employment for the teeming Rivers youths, died, albeit, for the time it was in limbo.
Also, laid in waste were all the structures, those that were constructed with concrete, metallic, or wooden, and others that were installed, over the ground and underground. Most office equipment were stolen too, and carted away by vandals. The entire premises of the Songhai Integrated Farms became overgrown with short and tall grasses. And it was dangerously bushy too.
Those were the sorry sight that Governor Fubara beheld when he visited the farm on Saturday, October 7, 2023. The billions of naira in Rivers tax-payers’ money that was invested in the Songhai Integrated Farms project by the State Government went down the drains. So, the visit availed Governor Fubara the opportunity to do an on-the-spot assessment of the present condition of the farm, and ascertain what possible ways to bring it back to production stream again. On that visit, the Governor was conducted round the facility by the Manager of the Songhai Integrated Farms Project, Dr. Tammy Jaja. The revitalisation works to be done looked massive and very demanding but nothing is insoluble with political will, wisdom and courage.
In his explanation, Governor Fubara asserted the urgency that is required in restoring and repositioning the State for sustainable economic growth and development. With his visit, arising from the resolution reached when they last had the National Economic Council (NEC) meeting in Abuja, where they had considered the exigency of diversifying the nation’s economy and harped on the need to cushion current economic hardship experienced by the citizenry, he was determined to kickstart the version for the State. In his words, Governor Fubara said: “In our last National Economic Council meeting, because of the present situation of our economy, which you are aware; the issue of removal of fuel subsidy and other economic bites affecting everyone, everybody was advised to diversify. The other option is agriculture, and we were all advised to see what we can do to improve on food sufficiency.”
The Governor had assured that his Administration was determined to use the Songhai Integrated Farms as a launching pad to revolutionise agriculture in Rivers State. To achieve that, everything would be done to revamp the Songhai Farms. And when revitalized, the economy of the State could then be diversified, providing foundation for the people to be engaged meaningfully while also increasing the food sufficiency capacity of the State.
Governor Fubara assured: “As I leave here now, we are going to bring in all the stakeholders to discuss the way forward. What I am seeing here will require long-term planning and going back to the site to reinstate the installed facilities that have become desolate. The State Government will not just do that, we will bring in people who have the resources, expertise, strength and commitment to partner with us to bring back this place to life. The advantages to be derived when this place comes back to life include food sufficiency and employment generation. It will also address issues of youth restiveness.”
That process has begun. The people who had been identified to have the strength and commitment to partner the State Government were already in touch, and brought to the negotiation table. The talking has been extensive and intensive. The best among them with more enduring approach and sustainable model are at the verge of being engaged. Songhai Integrated Farms must be revitalized. That is the commitment and it remains unwavering.
While the discussions were ongoing, the farm has been repossessed by the Government. It would no longer be accessed freely as thorough fare to members of the public as it was in the days of abandonment. Gradually, the clearing of the short and tall grasses and trees are ongoing, and would be concluded, eventually. What shall be done with that project would be devoid of a lack of clarity and the adopted plan, nothing of abrupt disruption is anticipated. For this farm, the level of independence with which it would operate would be such that it could remain dogged, contest its place within the sector and drive food sufficiency process at a pace more sustaining and enviable for the State.
Another investment that is of critical concern to the Government is the 45,000-metric tonnes Rivers Cassava Processing Company, which is located in Afam Community, Oyigbo Local Government Area. This is a multi-billion-naira investment that was engineered as a public-private partnership (PPP) venture between the Rivers State Government, Shell, Vieux Manioc BV of the Netherlands, and the Netherlands Embassy. Understandably, the motivation for establishing this processing factory was to address the challenges of value addition of the cassava crop in the value chain sub-sector. So, the factory was inaugurated on May 28, 2021, as a company that will support the economy of Rivers State to earn more revenue from the cassava value chain. The company then had a board of directors in place, which helped in the preliminary stages of preparations leading to its inauguration. But barely within the first two months of start of production, the subsisting administration then dissolved the board, which left the company without adequate supervision to help it actualize its core mandate.
Things remained so until March 7, 2024, when Governor Fubara visited the factory. The visit, the Governor explained, was propelled by the desire to see the level of effectiveness and efficiency of the existing production line. He explained that the team managing the factory, led by the Managing Director of the Rivers Cassava Processing Plant, Ruben Giesen, had requested financial support, in a letter sent to him. This, the team said, would enable them complete two more production lines at the factory to increase capacity utilisation in order to churn out more products.
Governor Fubara said: “I got a request from the people who are managing the cassava processing plant that we need to extend our support for them to complete two production lines that will give them a standard that they can start to supply in earnest to a lot of distributors who need the products from this plant. And I felt it would be proper for me to see what we have already invested, the stage they are at, so that it will encourage us to give more support.”
Governor Fubara further said: “From what I have seen here today, it is really impressive. I can assure them that we are going to give the financial support to ensure that the production lines are all completed. This is to encourage them to go into full supply of the products with international standards to anywhere in the world.”
The promise given by Governor Fubara to inject more funds is with the aim of revitalising this mega cassava processing factory in order to ensure that the finished products meet internationally accepted standards. Of course, these are well intended responses, and the drive is to ensure an increase in quantum of food production capability and attain the level of sufficiency while also creating gainful employment for the growing youthful population of the State.
It is obvious that the Governor Fubara-led administration clearly understands that Nigeria is the largest cassava producer at the global level. It is on record, that Nigeria accounts for about one-fifth (20%) of total cassava production worldwide. Indeed, Rivers ranked among the Top Five Cassava Producing States in Nigeria. It is, therefore, of necessity and thoughtful of a Government that cares for its farmers, to keep keen interest on this factory, and ensure that it is supported to enhance value addition, and guarantee employment for the people.
In fact, Governor Fubara knows that this factory would also promote adoption and the use of 10 per cent high quality cassava flour (HQCF) in bread and confectionery businesses, so as to reduce wheat importation and conserve foreign exchange earnings to meet other needs. Indeed, cassava is one of the defining ingredients of our family lives in this region, and it is a valued crop in Niger Delta and in other parts of Nigeria. So, this factory, with the promised support from the Governor Fubara-led administration, will attain full operational status. This will further be propelled by feedstock from about 3,000 farmers within the farming communities and other far away farmers in neighbouring communities.
What the people need to understand is that, as long as this factory’s capacity is not fully strengthened, it will be difficult for it to receive uninterrupted supply of raw materials from the thousands of hectares that could be cultivated to service it. By extension, this means massive waste of hundreds of jobs its prospect assures, particularly the over 20,000 farm families that will earn income to enhance their livelihoods and improve their standard of living.
Even as the threat to food security continues to alarm watchers in Nigeria with food inflation rate rising from 33.93% in December, 2023 to 35.41% in January, 2024, and not yet abating, these efforts of the Rivers State Government are to ensure that people do not spend more money before they can afford enough food for themselves and their families. Instructively, if there is no change in focus and the required actions are taken, guided by well-thought-out policy and implemented with the right political will, the threat to acute food security will be reversed.
It is possible that at the end of the day, these measures geared towards building sustainable food systems will feed everyone, everywhere, and every day. The cry of hunger is loud and palpably so. And Governor Fubara understands that only a focused attention on finding enduring solutions through strategic investments in boosting agricultural yields and increasing its value chain would address the needs of the people. This is why the Government sees the initiatives as a task that must be done. The Governor’s eyes will remain on the ball, until desired results are achieved with maximum impact. That is a promise he made to the people, a SIMple promise he has vowed to fulfil without fear of intimidation or favour.
By: Nelson Chukwudi