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Buhari Presents N16.3trn 2022 Budget Estimate To NASS …Set To Borrow N5.01trn To Fund Proposal

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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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Stop Creating Enmity, It’ll Hurt You, Fubara Tells Police …Donates 100 Vehicles To Boost Response To Emergencies

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Rivers State Governor, Sir Siminalayi Fubara, has advised partisan police officers who abandon their core professional responsibilities to pursue vested political interests to know that the enmity they fuel and eventually create will hurt them in the long run.
Governor Fubara maintained that police officers are engaged and trained as professionals to protect lives and property while contributing to the desired peace in the State as a patriotic duty.
The Governor insisted that it is, therefore, an aberration for any of them to think that protecting any particular individual or being one-sided in the political affairs to the detriment of the State amounts to professionalism.
Governor Fubara gave the advice at the inauguration and formal handover of 100 operational vehicles acquired by his administration to the Rivers State Police Command at the Sharks Football Stadium in Port Harcourt, yesterday.
The Governor said: “I need to say this, so that you will understand. When you (Disu) came into Rivers State, and I had my encounter with you, I requested for only one thing: That I will never ask you to do what is wrong, so do what is right. Protect the lives and property of Rivers people. Don’t be partisan.
“We have seen those people that were partisan; how they ended. And, I am saying it here, to every one of you that is an officer that is being partisan: you will see how you will end.
“So, work in such a way that when your name is mentioned in this State, or your children come to this State, you won’t be scared. This is important.”
Governor Fubara urged them to forget about the current ongoing political anxiety in the State, because, according to him, nothing will last forever.
He charged them to conduct their operations as real professionals that have been so trained so that they can be effective in the responsibility of protecting lives and property of people in Rivers State.
Governor Fubara said: “It is not to protect any individual. It is not to be one-sided in the political affairs of the State. Politics will come and it will go.
“The enmity you are creating, for those of you that are partisan, will live with you forever. So, I want to advise you, I have said it before, and I am saying it again: I will never ask any of you to do what is wrong. My appeal is: stand on the ethics of your profession, protect lives and property of Rivers people. Be fair to all.”
Commenting on the donated vehicles, Governor Fubara said it is an achievement of the Commissioner of Police whose idea it was to make such operational vehicles available for his Command.
Governor Fubara explained that what he had originally planned was to provide very high-profile vehicles to all the security agencies in the State to enhance their operational capabilities much more.
He said: “But, the CP advised that he did it sometime in Lagos State; that we should adopt that model by acquiring these vehicles you are seeing here: the Toyota Sienna, Camry and Collora, and I bought into the idea.
“And why are we doing this? We discovered that the response time to crime scenes; launching attacks against acts of criminality, were slow because you (police) lack mobility.
“And what we just did was a first phase of support to the Nigerian Police. We also intend to come again to give you other sophisticated vehicles to support what you are doing,” the Governor added.
Governor Fubara assured that as a State Government, his administration will continue to support the police because, as he put it, they are worthy friends to have since criminals cannot be friends to covet.
He emphasised: “So, we need to accommodate you. We need to tolerate you. We need to work with you so that at the end, people can live freely, move freely, and do their businesses freely in Rivers State.
“My Honourable CP, like I said before privately, I am saying it again: I want to appreciate you. We will give you all the support to succeed. I will give you all the support that will help to build your name into better reckoning when you leave here. I am very sure God will elevate you positively,” he added.
In his opening remarks, the Rivers State Commissioner of Police, Olatunji Disu, described the event as a significant milestone in the ongoing commitment towards achieving safety and security of the State.
CP Disu expressed gratitude to Governor Fubara for his unwavering support to the State Command of the Nigerian Police Force, which has translated in their dedication to serving the welfare of the various communities.
He said: “I stand before you filled with gratitude as we gather to commission these 100 vehicles, a generous donation from our esteemed Governor, Sir Siminalayi Fubara.
“This act of generosity, not only enhances our operational capacity, but also reflects your deep concern for the citizens of the State.
“These vehicles will empower our officers, enabling them to respond more swiftly and effectively to emergencies, and enhance our community policing efforts. With your support Sir, we are reinforcing our resolve to combat crime and uphold the rule of law.”
CP Disu, on behalf of the entire Rivers State Police Command, thanked Governor Fubara for his unparalleled leadership, and commitment to good governance in the State.
He assured that, together, the Police Force will continue to work tirelessly, and perform its professional duties in keeping Rivers State safe and secured for everybody.

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New Pump Price Of Petrol Worrisome, Unfair -NECA D-G

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The Nigeria Employers Consultative Association (NECA) says the new hike in pump price of Premium Motor Spirit (PMS), also known as petrol, is worrisome and unfair.
The Director-General of NECA, Mr Adewale-Smatt Oyerinde said this in a statement while reacting to the new hike in pump price of PMS in Abuja, yesterday.
The Tide’s source recalls that the Nigerian National Petroleum Company Ltd. (NNPCL) had said that with effect from Sept. 3, the new pump price of PMS would be N897 per litre.
According to Oyerinde, the new pump price of petrol is not only worrisome but also unfair.
“We had expected that the government will leverage on the momentum created by the completion of the Dangote refinery and the planned commencement of operation of the Port-Harcourt refinery.
“This is in order to clear the obvious self-inflicted pain on Nigerians and progressively reduce the pump price of petrol. This seems not to be the case.
“This new pump price could be seen as making Nigerians to pay for the crass inefficiency in the NNPCL,” he said.
He said that rather than address the fundamentals that have made Nigeria a net importer of petrol, even when we have four refineries, government have continued to inflict pain on Nigerians.
According to him, the government is, advertently, contributing to the increase in cost of doing business.
“We advise that government should have a rethink and do all that is necessary to address the continuous impoverishment of Nigerians and incapacitation of organised businesses,” he said.

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China, Nigeria Pledge To Strengthen Ties

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President Xi Jinping has declared his readiness to work closely with President Bola Tinubu to fully unleash the exemplary roles of China-Nigeria diplomatic friendship and advance China-Africa cooperation.
Xi disclosed this in Beijing at the meeting with Tinubu, who was on State Visit to the Great Hall at the invitation of the Chinese President.
The meeting is in view of the 2024 summit of the Forum on China-Africa Cooperation (FOCAC) scheduled to hold from Sept. 4 to Sept. 6 in Beijing, China.
During their meeting, Xi stated that since the past half of a century that China and Nigeria established their diplomatic ties both parties have always treated each with mutual understanding.
Xi said, “We have found the path of seeking collective strength, unity and win-win cooperation, until this point China and Nigeria as major developing countries have strengthened strategic cooperation and set new vistas for China-Africa Relations in the new era.
“This has further spearheaded common progress among global South countries; I propose elevating our bilateral ties to a comprehensive strategic partnership.
“At the upcoming 2024 FOCAC summit, we will jointly take stock of the experience of China-Africa friendship and advance the building of high level of China-Africa community shared future.
“China and Nigeria alphabet worked closely together under the FOCAC framework and jointly carried out strategic cooperation projects.
“I am ready to work with Mr President, to fully unleash the exemplary role of China-Nigeria cooperation, to advance China-Nigeria and China-Africa relations toward a new and greater achievement.”
Responding, Tinubu expressed appreciation to Xi, saying the visit marked his second visitation to the country.
According to him, the first time was during his tenure as the then governor of Lagos and now, as president.
“This is a very important visit for Nigeria and the rest of Africa as the Chairman of ECOWAS.
“China and Nigeria relations have indeed lasted for over a half a century and will continue to be strengthened to advance our trade and economic development.
“Nigeria has a very great potential as the country with largest population in Africa and biggest in the area of young population that can drive the economic growth.
“You have upgraded the relationship to what is more than just strategic in addressing developmental problems.
“The strategic partnership should result in our regional development, peace stability and security in West Africa, which has become crucial,” Tinubu said.
He said that Nigeria was in the path to ensure economic reforms, adding that when fully implemented, such reform would engender sustainable growth.
“We have recognised the need to reform our economic programme and taken strategic measures to realise such goals.
Highpoint of the meeting was the signing of Memorandum of Understanding (MoU) on Belt and Road Initiative projects, news exchange cooperation, cooperation on television, among others.
President Tinubu was accompanied by Minister of Foreign Affairs, Yusuf Tuggar, Sen. Uba Sani, Governor of Kaduna and Gov. AbdulRahman AbdulRasaq of Kwara, among others.

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