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Reactions Trail N7.2trn 2017 Budget
Mixed reactions have continued to trail the 2017 National budget of N7.298trillion presented to a joint sitting of the National Assembly, Wednesday by President Muhammadu Buhari.
While some see hope of recovery in the implementation of the 2017 budget as proposed, many Nigerians say the deficit budget and the quantum of borrowing needed to fund it has no promise of relief from economic hardship.
The 2017 appropriation bill of N7.298 trillion represents 20.4 per cent increase over the 2016 estimate.
Buhari, in his presentation, said the budget was predicated on a benchmark of $42.5 per barrel of oil, as against $38 in 2016, a projection of the production of 2.2million barrels per day and the exchange rate of N305 per dollar as against N197 per dollar, bench mark for 2016 budget.
Further breakdown of the Budget shows an allocation of 30.7 per cent of the budget to capital expenditure aimed at pulling the economy out of recession.
Key capital spending provisions would be on power, works and housing, which got the highest budgetary allocation of N529billion, followed by transport; N262billion, social intervention N150 billion.
Defence got N140 billion while the judiciary got an increased allocation of 100 billion naira.
Education got N50billion while Universal Basic Education got a direct allocation of N92billion, while the sum of N51 billion was also allocated to health.
According to the President, “We will continue to fortify our defence spending till all our enemies within and without are subdued, the people who voted for us are waiting for us to change the course of this nation, we are increasing funding to the judiciary in order to allow them function even better.”
Further breakdown of the budget proposals as submitted by the President shows that N419.02 billion was earmarked for statutory transfers, N1.66trillion for Debt servicing, N177.46billion as sinking fund.
Others are N2.98trillion for non debt re-current expenditure.
The president added that aggregate revenue available to fund the federal budget was N4.94 trillion, which is 28 per cent higher than 2016 full year projections.
Oil, according to him, is projected to contribute N1.985 trillion of the N4.94trillion, while non oil revenues, largely comprising Companies Income Tax, Value Added Tax, Customs and Excise duties, and Federation Account levies are estimated to contribute N1.373trillion.
“We have set a more realistic projection of N807.57 billion for independent revenues, while we have projected receipts of N565.1 billion from various recoveries.
Other revenue sources, including mining, amount to N210.9 billion”, he said.
The President added that the 2017 budget has a deficit plan of N2.36 trillion, which is about 2.18 per cent of GDP and to be financed mainly by borrowing, which was projected to be about N2.32 trillion.
“Our intention is to source N1.067trillion or about 46 per cent of this borrowing from external sources while, N1.254trillion will be borrowed from the domestic market”, he explained.
But in the votes for recurrent expenditure, the Ministry of Interior has the largest allocation of N482.7billion, followed by the Ministry of Education which has N390billion, Defence N325billion, Health N252billion, among others.
He also said that, the 2017 budget, will focus on the development of infrastructure, especially rail, road and power.
Buhari said he expects the 2017 budget to better the lives of Nigerians in a greater measure than that of 2016.
In his speech, the Senate President, Bukola Saraki, said the 2017 budget must ease the economic burden which is already overwhelming Nigerians.
He called on the executive during the formal presentation of the 2017 Appropriation Bill to implement the budget such that the lots of the less privileged Nigerians are made better.
He also said there is no hiding the fact that Nigerians are presently experiencing economic hardship.
According to him, the 8th National Assembly will work with the executive to ensure that it surmounts the present economic recession by passing the 11 economic reform laws alongside the 2017 budget.
“Our people must see that the singular pre-occupation of government is the search for solution to the current economic hardship; and the commitment to ease their burden,” Saraki said.
“They don’t want to know what political parties we belong, what language we speak or how we worship God. They have trusted their fate into our hands, and they need us now more than ever, to justify the trust that they have reposed on us”, he stated.
He added that: “The people of Nigeria will pardon us if we do some things wrong. But they will not forgive us if we do nothing. And that is why, Mr. President, the two chambers have taken a position that whatever may be our differences, or opinions on issues of the economy we will all work with one common purpose for this reason.”
Saraki noted that when the National Bureau of Statistics (NBS) confirmed that the nation’s economy has slumped into a recession, “the National Assembly rose with one voice.
“Through a joint resolution, we recommended that you make a ‘state of the nation’ address on the plan of government to get us out of recession and have 20 important Executive actions that in our view needed to be taken to get the economy back on track,” Saraki said.
“The National Assembly on its part listed and prioritized 11 economic reform bills for passage. We intend to get these bills ready alongside the 2017 Appropriation bill. We believe that the core elements of these bills will aid the Executive in mobilizing the required private capital into the general economy, but especially the infrastructure market”, he stated.
The Senate President said the harsh economic realities confronting the nation calls for greater collaboration by all arms of government to find urgent and sustainable solutions.
“It is in times like this, when we are challenged from all sides that we need to develop new relationships and cultivate more friends. No one can clap with one hand and expect to be heard. This is the time when compromise, engagement is the tool necessary for successful collaboration and cooperation.
“This is why I encouraged the Executive to continue with its engagement plans across all sections and stakeholders in the country particularly with our brothers in the Niger Delta and all parts of the country where instability is impacting on our collective economic and security aspirations,” he stated.
Similarly, the Speaker of the House of Representative, Hon Yakubu Dogara, described as frustrating, the repeated experience of poor implementation of the nation’s annual budget.
He appealed to Buhari to allow the capital component of the 2016 budget up to May, 2017, saying “it is certainly frustrating that we go through the annual Budget cycle/process of Budget presentation by Mr President, processing of same by the National Assembly, passage and signing into law every year, without unlocking the full potentials of such budgets for our citizens.
“This is because implementation and execution of the agreed Budget is always a major challenge year in year out. Sometimes, implementation rate is as low as 30 per cent, most times it is never higher than 50 per cent at the best of times. This has led to unacceptably high rate of abandonment of projects and distortions in Nigeria’s economic planning. Of course, this is an inherited problem for Mr President as he has only effectively passed through one budget cycle”.
“An Appropriation Act must be allowed to run for an uninterrupted period of twelve months, for the Executive to have enough time to execute it. This means that both Mr. President and the National Assembly must find a way to continue the execution of the 2016 Budget especially the capital component till May 6, 2017, which is twelve months from the date Mr President signed the 2016 Appropriation Bill.
“The problem is that most often the recurrent component of the Budget is implemented to an appreciable level, but the capital component execution is very low. It is crystal clear that the capital component of the 2016 Budget cannot realistically be implemented for only six months period, considering the time required for procurement processes and the raising of the revenue, including loans by government”.
Nneka Amaechi-Nnadi, Abuja
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Fubara Frowns At Slow Pace Of Ndele–Omofo–Egmini–Agba-Ndele Road Project ….Says Contract May Be Reviewed
Rivers State Governor, Sir Siminalayi Fubara, has expressed dissatisfaction over the slow progress of work on the 14.5-kilometer Ndele/Omofo/Egamini/Agba-Ndele Road project located off the East–West Road in Emohua Local Government Area.
Addressing newsmen during an inspection tour of the project on Tuesday, the Governor noted that the pace and quality of work being delivered by the contracting firm, Messrs Stream Co. & Equipment Limited, fell below acceptable standards.
He was accompanied on the tour by the Permanent Secretary, Ministry of Works, Dr. Austin Ezekiel-Hart, who briefed the Governor on the status of the project and adjoining infrastructure.
Governor Fubara, who appeared visibly unsatisfied with what he saw on the stretch of the road, said his administration would not condone mediocrity or allow public funds to be wasted on underperforming projects. He, therefore, hinted that a review of the contract may be imminent to ensure the delivery of quality infrastructure to the people.
“I can say here already that the contractor handling the road from the bridge to the East–West Road is not doing a good job. I’m not happy about it. When I get back, there will be a need to review that contract because I’m not impressed. They don’t have the capacity, and we need capacity because we must have value for whatever money we’re spending,” the Governor said.
The Governor, however, commended Setraco Nigeria Limited for the standard and pace of work on the 240-meter Agba-Ndele/Abua Bridge, which forms a major component of the project. He explained that the bridge, which his administration inherited, would significantly improve connectivity among communities in the area once completed.
Governor Fubara stated that the bridge will serve as a key link between communities in Abua/Odual, Ahoada-East, and Emohua Local Government Areas, reducing travel time and providing an alternative route to the East–West Road.
He emphasised that the project demonstrates his administration’s commitment to rural connectivity and inter-community access, which are central to his development vision for Rivers State.
“Where we are standing on is a bridge connecting Abua/Odual, Ahoada-East, and Emohua Local Government Areas. The community that is connected to this bridge is Agba-Ndele.
“Instead of running through the East–West Road to Ahoada-East and heading into Port Harcourt or out of it, this bridge provides easy access for the Abua/Odual people to cross into Emohua, Agba-Ndele, and access the East–West Road in minutes,” he explained.
Governor Fubara also expressed optimism that the bridge would be ready for use in early 2026, noting that Setraco’s expertise and performance met his administration’s expectations for quality and delivery timelines.
He highlighted that projects of such importance should be handled by firms with the capacity to meet government standards.
The Governor further remarked that once completed, the bridge would serve as a crucial economic corridor for farmers and traders, especially those involved in agriculture and cultivation of local produce across the beneficiary local government areas.
He maintained that his administration is determined to deliver people-oriented projects that promote connectivity, strengthen commerce, and enhance livelihoods across the State.
“I’m really impressed with what I’ve seen on the bridge. I’m very sure that before the end of January, it might be completely ready for us to walk through and even drive across,” Governor Fubara said.
Reaffirming his vision for Rivers people, the Governor noted that his development plan seeks to integrate all parts of the State through strategic infrastructure investments that promote mobility, social cohesion, and economic growth.
He explained that his government is executing projects across multiple local government areas to ensure balanced development and inclusivity.
Governor Fubara stated that the administration will soon address the deplorable state of the Abua/Ahoada Road, which he said, will be included in the 2026 state budget.
“Our vision is to connect the entire Rivers State together, especially communities that have challenges of access. The bridge here connects Abua/Odual and Ahoada-East to Emohua and Port Harcourt. It will ease movement, promote trade, and boost our economy because agriculture is strong on this side. Moving goods to the city won’t be a problem anymore,” he said.
Governor Fubara reiterated his administration’s commitment to delivering quality infrastructure that provides value for public funds and meets the aspirations of Rivers people.
Rivers State Governor, Sir Siminalayi Fubara, has unveiled plans to permanently relocate the dumpsite along the busy Port Harcourt Airport–Obiri-Ikwerre Road, describing the current location as both a public health threat and a damaging first impression for visitors arriving in Port Harcourt, the State capital.
The Governor made this known on Tuesday during an inspection of a proposed replacement site, which is a disused burrow pit near Bambo Estate, off Eneka Road in Igwuruta, Ikwerre Local Government Area.
The location is being assessed as a potential permanent dumpsite for the State.
Governor Fubara, who was conducted by the Board Chairman, Rivers State Waste Management Agency (RIWAMA), Dr Samuel Nwanosike, and its Managing Director, Dr Ibimina Wokoma, expressed concern about the environmental and health challenges posed by the existing site, which sits along a major entry point into the State.
“The kind of environmental hazards that we are facing there along the Airport–Obiri- Ikwerre Road; the smell on that road being the entrance into the State, we felt it’s not proper,” he said. “So, we are making alternative arrangements so we can have a permanent refuse dumpsite that meets acceptable standards.
“He added that the government would move swiftly to formalise ownership of the land and complete construction work on the access road to make the new site functional.“We have not concluded the issue of the burrow pit, but the access road, I think the government is doing something about it.
So, I will make sure that everything that needs to be done to ensure government owns this burrow pit is done,” he stated.
Governor Fubara also commended the Rivers State Waste Management Agency (RIWAMA) for what he described as a more assertive and improved approach to managing refuse across the State.In addition to the dumpsite inspection, the Governor also visited the Permanent Secretaries’ Quarters located in Elimgbu Town, Obio/Akpor Local Government Area, to assess the extent of ongoing construction work on the facility.
Rivers State Governor, Sir Siminalayi Fubara, has charged the newly appointed Secretary to the State Government (SSG), Barrister Benibo Anabraba, to uphold the dignity of his office, protect the interest of the State, and discharge his duties with honour, respect, and responsibility.
Governor Fubara gave the charge during the swearing-in ceremony of the new SSG, held on Monday at the Executive Council Chambers of Government House, Port Harcourt.
Describing Anabraba’s appointment as an act of divine favour, the Governor said positions of leadership are not attained by our own human effort but by God’s grace in our lives.
“Let me first congratulate you. I’m using the word ‘congratulations’ because a few of us, not by our power but by the special favour of God, find ourselves in exalted positions. It’s not because we are the best, but only by His grace.”
Governor Fubara noted that the Office of the Secretary to the State Government is one of great honour, occupied by only a few since the creation of Rivers State, and urged the new appointee to serve with humility and dedication.
He, however, expressed confidence in Anabraba’s capacity to deliver, citing his past record as a principal officer of the Rivers State House of Assembly.
“This position is a rare privilege. Guard that office with honour. Discharge your duties with respect. Protect the interest of Rivers State. When you leave office, let it be with honour, and that only comes through responsible service.
“I know you’re a dedicated person. This opportunity is not for show or display of power. It’s a call to duty,” he cautioned.
The Governor emphasised that the current administration is focused on restoring confidence of the people because peace has been achieved in the State.
He enjoined the new SSG to align with the vision of the administration and contribute meaningfully to the collective progress of Rivers people.
“We are emerging from a very difficult period and must reassure our people that we mean well for them, especially now that peace has returned to Rivers State. By the grace of God, do your work well. Help us succeed in this assignment that God has given to us,” the Governor added.
