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For The Record

FG Has Met Its Debt Servicing Commitments -Buhari

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Being the text of a speech delivered by President Muhammadu Buhari at the joint session of the National Assembly, Abuja on Thursday, October 7, 2021.
Excerpts.
Protocols
It is my great pleasure to be
here once again to present the 2022 Federal Budget Proposals to this distinguished Joint Session of the National Assembly.
Distinguished and Honourable leaders, and members of the National Assembly, let me start by commending you for the expeditious consideration and passage of the Supplementary Appropriation Bill 2021. This further underscores your commitment to our collective efforts to contain the Covid-19 Pandemic and address the various security challenges facing our country.
I will also take this opportunity to thank you for the quick consideration and approval of the 2022-2024 Medium-term Expenditure Framework and Fiscal Strategy Paper. Our hope is that National Assembly will continue to partner with the Executive by ensuring that deliberations on the 2022 Budget are completed before the end of this year so that the Appropriation Act can come into effect by the first of January 2022.
The 2022 Budget will be the last full year budget to be implemented by this administration. We designed it to build on the achievements of previous budgets and to deliver on our goals and aspirations as will be reflected in our soon-to-be launched National Development Plan of 2021 to 2025.
Distinguished Senators and Honourable Members, in normal times, I make use of this opportunity to provide an overview of global and domestic developments in the current year, a summary of our achievements, and our plans for the next fiscal year.
However, these are exceptional times. The grim realities of Covid-19 and its lethal variants are still upon us. From President to Pauper, the virus does not discriminate.
This is why our country still maintains its Covid-19 guidelines and protocols in place to protect its citizens and stop the spread of this disease.
Over the past few days, we have consulted with the Presidential Steering Committee on Covid-19 and the leadership of the National Assembly on how best to present the 2022 budget proposal keeping in mind the deep-rooted traditions in place and the guidelines for safe mass gatherings.
We ultimately decided that the most responsible and respectful approach was to hold a shorter than usual gathering while allowing the Honourable Minister of Finance, Budget and National Planning to provide fuller details of our proposals in a smaller event.
I am sure many of you will be relieved as my last budget speech in October 2020 lasted over fifty minutes.
Still, over the next few minutes, I will provide key highlights of our 2021 performance as well as our proposals for 2022.
Performance Of The 2021 Budget
The 2021 ‘Budget of Economic Recovery and Resilience’ is based on a benchmark oil price of 40 US Dollars per barrel, oil production of 1.6m b/d, and exchange rate of 379 Naira to US Dollar. Furthermore, a Supplementary budget of 982.73 billion Naira was recently enacted to address exigent issues in the Security and Health sectors.
Based on the 2021 Fiscal Framework, total revenue of 8.12 trillion Naira was projected to fund aggregate federal expenditure of 14.57 trillion Naira (inclusive of the supplementary budget). The projected fiscal deficit of 6.45 trillion Naira, or 4.52 percent of GDP, is expected to be financed mainly by domestic and external borrowings.
By July 2021, Nigeria’s daily oil production averaged one 1.70million barrels (inclusive of condensates) and the market price of Bonny Light crude averaged 68.53 US Dollars per barrel.
Accordingly, actual revenues were 34 percent below target as of July 2021, mainly due to the underperformance of oil and gas revenue sources. Federal Government’s retained revenues (excluding Government Owned Enterprises) amounted to 2.61 trillion Naira against the proportionate target of 3.95 trillion Naira for the period.
The Federal Government’s share of Oil revenue totalled 570.23 billion Naira as of July 2021, which was 51 percent below target, while non-oil tax revenues totalled 964.13 billion Naira. The poor performance of oil revenue relative to the budget was largely due to the shortfall in production as well as significant cost recovery by NNPC to cover the shortfall between its cost of importing petrol and the pump price.
The National Assembly will recall that in March 2020 the Petroleum Products Pricing Regulatory Agency announced that the price of petrol would henceforth be determined by market forces.
However, as the combination of rising crude oil prices and exchange rate combined to push the price above the hitherto regulated price of 145 Naira per litre, opposition against the policy of price deregulation hardened on the part of Labour Unions in particular.
Government had to suspend further upward price adjustments while engaging Labour on the subject. This petrol subsidy significantly eroded revenues that should have been available to fund the budget.
On a positive note, we surpassed the non-oil taxes target by eleven (11) percent in aggregate. The sustained improvement in non-oil taxes indicates that some of our revenue reforms are yielding positive results. We expect further improvement in revenue collections later in the year as more corporate entities file their tax returns and we accelerate the implementation of our revenue reforms.
Improving Revenue Generation and Administration
We have stepped up implementation of the strengthened framework for performance management of government owned enterprises (GOEs), with a view to improve their operational efficiencies, revenue generation and accountability. The 50% cost-to-income ratio imposed on the GOEs in the Finance Act 2020 has contributed significantly to rationalizing wasteful expenditures by several GOEs and enhanced the level of operating surpluses to be transferred to the Consolidated Revenue Fund (CRF). I solicit the cooperation of the National Assembly in enforcing the cost-to-income ratio and other prudential guidelines during your consideration of the budget proposals of the GOEs, which I am also laying before you today.
On the expenditure side, as at end of July 2021, a total of six point seven-nine (6.79) trillion Naira had been spent as against the pro-rated expenditure of seven point nine-one (7.91) trillion Naira. Accordingly, a deficit of four point one-seven (4.17) trillion Naira was recorded as at end of July 2021. The deficit was financed through domestic borrowing.
Despite our revenue challenges, we have consistently met our debt service commitments. We are also up to date on the payment of staff salaries, statutory transfers, and overhead costs. As at (4th of October 2021, a total of 1.732 trillion Naira had been released for capital expenditure.
I am pleased to inform you that we expect to fund MDAs’ capital budget fully by the end of the fiscal year 2021.
Capital releases thus far have been prioritised in favour of critical ongoing infrastructural projects in the power, roads, rail, agriculture, health and education sectors.
We have made progress on the railway projects connecting different parts of the country. I am glad to report that the Lagos-Ibadan Line is now completed and operational. The Abuja-Kaduna Line is running efficiently. The Itakpe-Ajaokuta rail Line was finally completed and commissioned over thirty (30) years after its initiation.
Arrangements are underway to complete the Ibadan-Kano Line. Also, work will soon commence on the Port Harcourt-Maiduguri Line and Calabar-Lagos Coastal Line, which will connect the Southern and Eastern States to themselves and to the North.
Progress is also being made on several power generation, transmission, and distribution projects, as well as off-grid solutions, all aimed towards achieving the national goal of optimizing power supply by 2025.
I am again happy to report that we continue to make visible progress in our strategic road construction projects like the Lagos – Ibadan expressway, Apapa – Oworonsoki expressway, Abuja – Kano expressway, East-West Road and the second Niger bridge. We hope to commission most of these projects before the end of our tenure in 2023.
The Pandemic revealed the urgent need to strengthen our health system. Towards this end, we constructed 52 Molecular labs, 520 bed intensive care units, 52 Isolation centres and provision of Personal Protective equipment across 52 Federal Medical Centres and Teaching Hospitals.
We continue to push our expenditure rationalization initiatives which we commenced in 2016. For example, on personnel costs, the number of MDAs captured on the Integrated Payroll and Personnel Information System increased from 459 in 2017 to 711 to date.
The recent passage of the Petroleum Industry Act 2021, and consequent incorporation of the Nigeria National Petroleum Corporation should also result in rationalisation of expenditure, as well as increased investments and improved output in the oil and gas industry.
Distinguished Senators and Honourable Members, you will agree with me that a lot has been accomplished over the last year but there is still much to be done. I will now proceed with a review of the 2022 Budget proposal.
Theme And Priorities Of The 2022 Budget
The allocations to MDAs were guided by the strategic objectives of the National Development Plan of 2021 to 2025, which are:
a.Diversifying the economy, with robust MSME growth;
b. Investing in critical infrastructure;
c. Strengthening security and ensuring good governance;
d. Enabling a vibrant, educated and healthy populace;
e. Reducing poverty; and
f. Minimizing regional, economic and social disparities.
The 2022 Appropriation therefore is a Budget of Economic Growth and Sustainability.
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.
Parameters And Fiscal Assumptions
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:
a. Conservative oil price benchmark of 57 US Dollars per barrel;
b. Daily oil production estimate of 1.88 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day);
c. Exchange rate of four 410.15 per US Dollar; and
d. Projected GDP growth rate of 4.2 percent and 13 percent inflation rate.
2022 Revenue Estimates
Based on these fiscal assumptions and parameters, total federally-collectible revenue is estimated at 17.70 trillion Naira in 2022.
Total federally distributable revenue is estimated at 12.72 trillion Naira in 2022 while total revenue available to fund the 2022 Federal Budget is estimated at 10.13 trillion Naira. This includes Grants and Aid of 63.38 billion Naira, as well as the revenues of 63 Government-Owned Enterprises.
Oil revenue is projected at 3.16 trillion, Non-oil taxes are estimated at 2.13 trillion Naira and FGN Independent revenues are projected to be 1.82 trillion Naira.
Planned 2022 Expenditure
A total expenditure of sixteen point three-nine (16.39) trillion Naira is proposed for the Federal Government in 2022. The proposed expenditure comprises:
a. Statutory Transfers of 768.28 billion Naira;
b. Non-debt Recurrent Costs of 6.83 trillion;
c. Personnel Costs of 4.11 trillion Naira;
d. Pensions, Gratuities and Retirees’ Benefits 577.0 billion Naira;
e. Overheads of 792.39 billion Naira;
f. Capital Expenditure of 5.35 trillion Naira, including the capital component of Statutory Transfers;
g. Debt Service of 3.61 trillion Naira; and
h. Sinking Fund of 292.71 billion Naira to retire certain maturing bonds.
Fiscal Balance
We expect the total fiscal operations of the Federal Government to result in a deficit of 6.26 trillion Naira. This represents 3.39 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act 2007. Countries around the world have to of necessity over-shoot their fiscal thresholds for the economies to survive and thrive
We need to exceed this threshold considering our collective desire to continue tackling the existential security challenges facing our country.
We plan to finance the deficit mainly by new borrowings totalling 5.01 trillion Naira, 90.73 billion Naira from Privatization Proceeds and 1.16 trillion Naira drawdowns on loans secured for specific development projects.
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. We focused on;
a.the completion of major road and rail projects;
b. the effective implementation of Power sector projects;
c. the provision of potable water;
d. construction of irrigation infrastructure and dams across the country; and
e. critical health projects such as the strengthening of national emergency medical services and ambulance system, procurement of vaccines, polio eradication and upgrading Primary Health Care Centres across the six geopolitical zones.
Innovations in Infrastructure Financing
In 2022, Government will further strengthen the frameworks for concessions and public private partnerships (PPPs). Capital projects that are good candidates for PPP by their nature will be developed for private sector participation.
We will also explore available opportunities in the existing ecosystem of green finance including the implementation of our Sovereign Green Bond Programme and leveraging debt-for-climate swap mechanisms.
Enhancing Revenue Mobilisation
Our strategies to improve revenue mobilisation will be sustained in 2022 with the goal of achieving the following objectives:
a. Enhance tax and excise revenues through policy reforms and tax administration measures;
b. Review the policy effectiveness of tax waivers and concessions;
c. Boost customs revenue through the e-Customs and Single Window initiatives; and
d. Safeguard revenues from the oil and gas sector.
Distinguished Senators and Honourable Members, I commend you for the passage of the Petroleum Industry Act 2021. It is my hope that the implementation of the law will boost confidence in our economy and attract substantial investments in the sector.
Finance Bill 2022
In line with our plan to accompany annual budgets with Finance Bills, partly to support the realization of fiscal projections, current tax and fiscal laws are being reviewed to produce a draft Finance Bill 2022.
It is our intention that once ongoing consultations are completed, the Finance Bill would be submitted to the National Assembly to be considered alongside the 2022 Appropriation Bill.
Conclusion
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 deliver socio-economic development and democracy dividends for our people.
I wish to assure you of the strong commitment of the Executive to strengthen the relationship with the National Assembly.
Nigeria is currently emerging from a very difficult economic challenge. We must continue to cooperate and ensure that our actions are aimed at accelerating the pace of economic recovery so that we can achieve economic prosperity and deliver on our promises to the Nigerian people.
The fiscal year 2022 is very crucial in our efforts to ensure that critical projects are completed, put to use and improve the general living conditions of our people.
It is with great pleasure therefore, that I lay before this distinguished Joint Session of the National Assembly, the 2022 Budget Proposals of the Federal Government of Nigeria.
I thank you most sincerely for your attention.
May God bless the Federal Republic of Nigeria.

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For The Record

An Open Letter To President Bola Ahmed Tinubu On The Imperative Of Revisiting The Eight-Point Resolution Brokered As Truce For The Rivers Political Crisis

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Your Excellency, as belated as it may come, please, do accept my congratulations on your victory in the last Presidential election, and the seamless swearing-in ceremony that ushered you in as the sixth democratically elected President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria.
Of course, your victory did not come as a surprise to many, given your antecedents as a democrat, astute administrator and, a go-getter. Whereas your track record as a political activist, especially in the wake of the annulled June 12, 1993 presidential election is self-evident; your exceptional performance as Governor of Lagos State is a clincher any day.
It is my prayer therefore, that the good Lord, who has brought you this far, guide and direct your ways to steer the ship of state aright.
That being said, Your Excellency, please permit me to commence this correspondence with an allegory drawn from our recent past. A few years ago, Chief Olusegun Obasanjo was elected Nigeria’s President on the platform of the Peoples Democratic Party (PDP). You were equally elected Governor of Lagos State on the platform of the Alliance for Democracy (AD). This electoral upshot inevitably placed you in opposition to the government at the centre.
The dust raised in the wake of the elections was yet to settle before you disagreed with then President Obasanjo. The bone of contention transcended personal vendetta, or so it seemed. Again, it happened at a time when our democracy could rightly be described as nascent. You had approached the court to seek judicial interpretation on some grey areas of our constitution, as provided for, in the concurrent list.
Much as Obasanjo would have loved to have things go his own his way, he was apparently restrained by the grundnorm. And he recognized it was within your right to seek judicial interpretation as to whether he wasn’t exercising his powers as president ultra vires. That was the rule of law at play; a classic specimen of what we fondly refer to as the beauty of democracy in our political parlance.Above all, it underscored the centrality of the constitution in resolving state matter.
Nigerians gave you thumbs up for engaging Obasanjo and the federal government all the way up to the Supreme Court. Moreover, happening at a time when the fear of President Obasanjo and the unwritten federal might were considered the beginning of political wisdom in our polity. Of course, the constitution came handy as a leveler between your good self and former President Obasanjo.
In light of the above, Nigerians naturally expect a clear departure from what the Obasanjo era and the immediate past regime offered them as constitutional democracy. Whereas it is still early in the day to rate your performance in this regard, one cannot but acknowledge that you have so far shown that you have some listening ear. Your intervention in what could have degenerated into a total breakdown of law and order in Rivers State late last year comes as a reference point. For me, stepping in to halt the ship of state from completederailment is an eloquent attestation to the fact that you place the security of lives and property, peace and harmony, and national cohesion over and above partisan interest.
You could equally have looked the other way and allow the crisis fester, since Rivers State is a PDP state. But you hearkened to the voice of reason, and that of well-meaning Nigerians, particularly, Chief Edwin Kiagbodo Clark, the leader of the Ijaw nation, and, the Ijaw National Congress (INC) to halt the drift. Notwithstanding your tight schedule, you took out time to summon the governor of Rivers State, Sir Siminalayi Joseph Fubara, his predecessor, now FCT minister, Barr. Ezebunwo Nyesom Wike and Hon. Martins Amaewhule who were the principal actors in the crisis to the Villa, and have them subscribed to a peace deal.
Although I had my reservations over the eight-point resolution ab initio, I refrained myself from joining the bandwagon in pointing out some of the obvious limitations in the document at the time. My position was informed by the following reasons. First, I didn’t see it as the wisest thing to do at a time when the crisis was raging like a wildfire. For me, nothing could have been more paramount than bringing the situation under control, which the armistice effectively accomplished. Second, I trusted your judgment, and honestly believed that you brokered the deal in good faith. I was therefore willing to give the truce the deserved benefit of the doubt by putting it to test. Finally, and most importantly, the governor who was in the eye of the storm was unwavering in restating his commitment to the terms of the truce.
However, three months after the deal was struck, I dare say, Your Excellency; that it has failed in attaining the ultimate goal of reconciling the warring factions.Instead, it had become the template for the palpable tension the state has since been grappling with. This outcome is by no means surprising to any discerning mind. And the reasons are not far-fetched. First, as I mentioned earlier, it would appear that in a bid to halt to the looming anarchy, the constitution which is the grundnorm was not properly consulted in forging the eight-point resolution. Also, a reexamination of the document reveals a certain degree of political fiat in its construct.
That the eight-point resolution has since triggered a plethora of litigations is only natural. That it has induced a near state of anomie clearly points to the inherent flaws in the document. That it has thrown up desperadoesand warmongers like Chief Tony Okocha and Engr. Samuel Nwanosike who now disparage, distract and outrightly abuse a sitting governor with reckless abandon is equally expected. As for Wike, the man believes the governor is his lackey, therefore, tongue-lashing, and outrightly threatening to give the governor sleepless nights are privileges he believes are within his right. But most worrisome, is the fact that Wike doesn’t make empty threats. In other words, backtracking on getting the governor out of office, either by hook or crook isn’t just an option.
The truth is, some of the articles in the eight-point resolution stealthily stripped the governor of the powers and aura of his office;thus exposing him to the ridicule we see today. For instance, article three directed the governor to reinstate former members of the state executive council,who had earlier resigned their appointments from the state cabinet. Truth be told, such directive to a sitting governor, in the very least, leaves a sour taste in the mouth. Perhaps, it would have been a different kettle of fish had the governor whimsically sacked the commissioners because he suspected their allegiance lay with the FCT minister. But here, these supposed honourable men and women resigned their appointments on their own volition, citing “personal grounds”.
One would have expected Your Excellency toresolve the issue a little differently given your groundedness in public and private administration; knowing that trust and mutual respect took flight the moment those commissioners handed in their resignation letters. In other words, people with obvious reservations against each other cannot truly work as a team.
The constitution expressly confers the powers to appoint commissioners on the governor of a state. It follows therefore that commissioners owe their loyalty to the governor who appoints them. While in the saddle, Wike was unequivocal in demanding a hundred percent loyalty from his commissioners. And that was what he got during his eight-year reign. Granted that the commissioners in question were all nominated by the FCT minister as we now know; the question is, was it also within his right to direct their resignation at will, and then re-direct their reinstatement because the plot to remove the governor failed?
If you ask me, requesting Wike, the nominator, to nominate fresh persons in their stead would have created more semblance of statecraft, seriousness in governance and, more importantly, saved the governor’s face. It also would have gone a long way to demonstrate that some things are beyond trifles. Put differently, the notion that a crisis of that magnitude could be resolved absent collateral damage rest on a faulty premise.
Again, article six of the eight-point resolution apparently puts the governor in a catch 22 situation. Directing the governor to re-present the state Appropriation Bill that has already been passed and signed into law to Hon. Martins Amaewhule and his co-travelers, in my humble opinion, was another sore point in the document. I doubt it was a fitting consideration for a failed impeachment that shouldn’t have happened in the first place; not after the courts have already made pronouncements on the issues.
Your Excellency, I honestly believe you didn’t intend the current stalemate between the executive and the legislative arms of government in Rivers State. Nevertheless, that is the reality on ground, as the governor, on one hand, governs the state with an infiltrated state civil service; and Martins Amaehule with his ‘Assembly’ members, working at cross-purposes with the governor, dish out all the anti-executive bills they can imagine. A case in point is the latest piece of legislation coming from the ‘Assembly’. Again, one wonders,what Assembly worth its salt, wouldseekto elongate the tenure of the current local government chairmen and councilors; knowing they were elected and sworn into office for a three-year term that expires in June? The question is, do we now enact our laws retroactively?
Now, to the crux of the matter, Wike is a man with a history of political violence. His politics thrives in an atmosphere of strife and rancour. It cannot be over emphasized that he presently seeks to overheat the Rivers polity, and possibly make the state ungovernable. He is hell bent on accomplishing the intendment of a failed impeachment. His penchant for violence explains why Rivers State under his reign wore the appalling badge of a conquered territory. The state hasn’t exploded yet, given its current tenuous peace of the graveyard,is because, Gov. Siminalaye Fubara has refused to swallow Wike’s bait. In fact, his refusal to join issues with the man he calls master, and probably heat up the polity explains why restive Wike wants 2027 switch place with 2024 in the Nigeria political calendar.
Already, his vicious supporters are on the prowl, momentarily rehearsing vandalism and arson of public and private properties, with no qualms, even in broad day light. Sadly, the license to take laws into their hands springs from standing on Wike’s mandate. This much is evident in a video that has gone viral on the cyberspace. One would have dismissedthe ongoing rampageas the man’s political trademark, except that wily Wike claims to be standing on your mandate, even though he has been most cautious in defecting to his supposedly ‘cancerous’ APC.
Your Excellency, is it not curious that Wike and his supporters are the only band daily chanting “On your mandate we shall stand, Jagaban”, one year after you had contested and won the February 25, 2023 presidential election?
Of utmost concern is the disturbing silence of the Police, the DSS and other security agencies in the face of Wike’s supporters running amok. Rather, than live up to their constitutional billing, they seem to unwittingly nudge the people to resort to self-help. And while they continue in their ostrichism, the fire is being steadily stoked by the man who thinks Rivers State is his sole enterprise, and to balm his bruised ego could unleash the unimaginable.
It is however reassuring that Your Excellency is no stranger to Rivers politics and its combustive nature. As Dr. Peter Odili’s contemporary as governors, you were well abreast of what transpired in the state from 1999-2007. You were also a major player in the Amaechi-Wike debacle while the former was the occupant of Brick House. In fact, you were purported to have saved Amaechi’s skin from the Jonathans, when, in cahoots with Wike, they unleashed the federal might.
You saw Rivers State went upin flame from 2013-2019, all for Wike to succeed his Ikwerre brother as governor in a multi-ethnic state. You were also witnessto how thepolitically induced inferno incredibly extinguished itself as soon as Wike’s vaulting ambition was achieved. But while the carnage last, Rivers people lost their lives in their hundreds.
As governor, and for eight years, Wike ruled like a demigod, and the state, his footstool. He literally vetoed the constitution on Citizens’ Rights, Freedom of Speech, Freedom of Association, Procurement, and Social Justice. In fact, one of the lion-hearted among us aptly tagged the Wike-era as the years of the Rivers of Blood.
Your Excellency, there is no better way to say Rivers State is presently sitting on a keg of gunpowder, while drifting daily towards the precipice. And if something is not done urgently to avert a repetition of its recent ugly past, tomorrow may be too late.
I have personally bemoaned the lot of the Rivers man since the dawn of the fourth republic in my book: The Rivers Season of Insanity. I would spare you the details therein. However, it may interest Your Excellency to know that as a Rivers man; I have tremendous respect for you, just as I envy what you have made of Lagos State. I’m therefore genuinely bothered that Rivers State may just be the odd state out as you are set to replicate the Lagos wonder across the federation. Rivers State can only andtruly share in the Renewed Hope, if Wike is restrained from plunging it into another round of bloodletting.
Much as it is the truth, I hate to reiterate, that in all her abundance, Rivers State can only boast of the loudest and most vaulting chief executives ever, since 1999. The allure to graduate from Brick House to Aso Villa has become an elixir, which those we elect to govern have not been able to extricate themselves from. And to make a bad situation worse, it remains the only state in Nigeria that flaunts an obnoxious injunction that insulates her past and serving governors from the ethics of good governance, such as transparency, accountability and probity.
I have no doubt in my mind that you already saw through Wike and his antics. And it is only a matter of time before you reined him in. My concern however, is that it shouldn’t happen only after he must have thrust the state into another round of massacre. Need I say, that going by his claim, what Wike delivered in last year’s election were Rivers votes, not his votes.
Ask the Jonathans if their alliance with Wike was worth the trouble, given the benefit of hindsight, and your guess will be as good as mine.
In a nutshell,Your Excellency, Rivers State has had more than her fair share of bloodletting since 1999. It is against this backdrop that I most fervently pray that the blood of Dr. Marshall Harry, Chief A. K Dikkibo, Hon. Monday Ndor, Hon. Charles Nsiegbe, Amb. Ignatius Ajuru, Hon. Monday Eleanya, Barr. Ken Aswuete and several other victims of assassination be allowed to water the peace initiative and advocacy of the incumbent governor.
Finally, Your Excellency, in view of the above, it is my humble submission that the eight-point resolution be revisited with the hope that it guarantees sustainable peace and harmony in the Rivers polity.
“The time is always right to do what is right.”
-Martin Luther King Jr.
Thank you for time and consideration.
Yours Respectfully,

Caleb Emmanuel Fubara

Fubara hails from Opobo Town

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For The Record

Can Rivers Assembly Remove Governor’s Powers To Appoint Executive Officers?

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Background
On Thursday, February 15, 2024 at its 109th Legislative sitting, the House passed into Law, the Rivers State House of Assembly Service Commission (Amendment) Bill, 2024. The Bill repealed the Rivers State House of Assembly Service Commission (Amendment) Law, No. 3 of 2006 and further amended the Rivers State House of Assembly Service Commission Law of 1999. The Bill was sent to the Governor for his assent and after the statutory 30 days, the House re-passed the Bill into Law on 22nd March, 2024.
The Rivers State House of Assembly Service Commission was established by the Rivers State House of Assembly Service Commission Law of 1999. Section 2 provides:
“The Commission shall comprise a Chairman and four other members who shall in the opinion of the Speaker be persons of unquestionable integrity.
“The Chairman and members of the Commission shall be appointed by the Rivers State House of Assembly acting on the advice and recommendation of the House Committee of Selection and shall in making the appointment be guided by the geographical spread and diversity of the people of Rivers State.”
The above section was repealed by the Rivers State House of Assembly Service Commission (Amendment) Law No 3, 2006. In Sections 2 and 3, the Amendment Law provides that:
S. 2 “Section 2 of the Principal Law is amended by repealing subsection (1) and substituting the following subsection:
“(1) The Commission shall comprise a Chairman and 4 (four) other members.
S. 3 “Section 2(2) of the Principal Law is amended by repealing subsection (2) and substituting the following subsection:
“(2) The Chairman and members of the Commission shall be appointed by the Governor subject to the confirmation by the House of Assembly and shall in making the appointment be guided by the geographical spread and diversity of the people of Rivers State.”
The import of the 2024 Amendment Bill passed into Law by the House is that the Governor will no longer have the power to appoint the Chairman and members of the Rivers State House of Assembly Service Commission and the power of appointment shall be vested in the House of Assembly.
Legal Issues
The first issue to consider is the Constitutional power of the Governor. Section 5(2) of the Constitution of the Federal Republic of Nigeria, 1999 provides that the executive powers of the State shall be vested in the Governor of that State.” Further, Section 176(2) provides that: “The Governor of a State shall be the Chief Executive of that State.”
This follows that the Governor is the Chief Executive Officer of the State Government and by the powers vested on him, is responsible for making appointments into various executive bodies, subject to the provisions of the 1999 Constitution and other statutes. All Commissions and other parastatals are executive bodies under the control of the Governor. The House of Assembly Service Commission is an executive body and as such, the Chairman and members can only be appointed by the Governor. The House of Assembly has no powers to make any appointment into an executive body as no statutory body is under the control of the legislature. The Rivers State House of Assembly should not mistake the presence of the building of the Service Commission in its premises as conferring powers on the House to appoint the Chairman and members of the Commission.
The second issue to consider is the Constitutional alteration of 2023. In that alteration, the Third Schedule was amended to include State Houses of Assembly Service Commissions, which invariably follows that a State House of Assembly Commission is one of State bodies established by section 197 of the 1999 Constitution. Let’s be reminded that Section 198 of the 1999 Constitution gives the Governor the power of appointment into various executive bodies, subject to confirmation by a resolution of the House of Assembly of a State. The job of the Rivers State House of Assembly ends with the confirmation of the appointees.
The alteration to the Third Schedule, paragraph 1A provides that the composition, tenure, structure, finance, functions, powers, and other proceedings of the Commission shall be as prescribed by a law of the House of Assembly of the State. Notice that the appointment of the Chairman and members of the Commission is not listed. Therefore, it can be safely inferred that the power to appoint the Chairman and members of the House of Assembly Service Commission lies with the Governor, as is the case with the other bodies listed under Section 197 of the 1999 Constitution.
There is nothing in the Alteration that, by any stretch of imagination, can be inferred to confer the power of appointing the Chairman and members of the Rivers State House of Assembly Service Commission on the Rivers State House of Assembly, notwithstanding the fact that the law creating the Commission was enacted by the Rivers State House of Assembly.
Thirdly, is the Rivers State House of Assembly Service Commission and its staff under the control of the State Government? To answer this question, we will take our voyage to Section 318 of the 1999 Constitution. That section gives the definition of a Public Service of a State to mean: “the service of the state in any capacity in respect of the government of the state and includes service as: clerk or other staff of the House of Assembly; member of staff of the High Court, the Sharia Court of Appeal, the Customary Court of Appeal or other courts established for a state by the Constitution or by a law of a House of Assembly; member or staff of any Commission or authority established for the state by this Constitution or by a law of a House of Assembly; staff of any Local Government Council; staff of any statutory corporation established by a law of a House of Assembly; staff of any educational institution established or financed principally by a government of a State; and staff of any company or enterprise in which the government of a State or its agency holds controlling shares or interest.
The purport of this section is that the Assembly Service Commission is not an appendage of the legislature but under the control of the State Government. Even at the national level, the members of the National Assembly Service Commission are appointed by the President in collaboration with the National Assembly.
Fourthly, what is the position of the Rivers State House of Assembly Service Commission Law vis-à-vis the National Assembly Service Commission Act? Section 4(5) of the 1999 Constitution provides: “If any Law enacted by the House of Assembly of a State is inconsistent with any law validly made by the National Assembly, the law made by the National Assembly shall prevail, and that other law shall, to the extent of inconsistency, be void.”
Further, in A.G Bendel v AG Federation & 22 Ors (1982) 3 NCLRI, the Supreme Court held per Fatayi Williams CJN (as he then was) “neither a State nor an individual can contract out of the provisions of the Constitution. The reason for this is that a contract to do a thing which cannot be done without a violation of the Law is void.”
The fifth issue is: “can a statute revive a repealed statute?” In the case of Idehen v University of Benin, Suit No FHC/B/CS/120/2001, delivered on 19th December, 2001, the court held that:
“Contrary to the contention of the University, the effect of a repealing statute is to erase the repealed statute from the statute book. When a statute is repealed, it ceases to exist and no longer forms part of the laws of the land. In other words, the effect of the repeal is to render the repealed statute dead and non-existent in law. Like a dead person, it cannot be revived.”
The court also held in Onagoruwa v IGP (1991) 75 N.W.L.R (pt. 193) 593 that in law, a non-existent statute is dead and cannot be saved or salvaged by the court.
In Madumere v Onuoha (1999) 8 NWLR (Pt. 615) Pg 422, the Court of Appeal held that:
“the effect of repealing a statute is to obliterate it completely from the records of the Parliament as if it had never been passed. Such a law is to be regarded legally as a law that never existed…This means in effect that when a statute is repealed, it ceases to be an existing law under the Constitution of the Federal Republic of Nigeria.”
For the purpose of reviving your memory, the provision giving the Governor the power to appoint the Chairman and members of the Rivers State House of Assembly Service Commission under the repealed 2006 Law provides in its opening paragraph:
“3. Section 2(2) of the Principal Law is amended by repealing section 2 and substituting the following section…” (emphasis mine).
Further, Section 6(1)(a) of the Interpretation Act provides:
“(1) The repeal of an enactment shall not revive anything not in force or existing at the time when the repeal takes effect.”
Please note that Section 318(4) of the 1999 Constitution provides that “The Interpretation Act shall apply for the purposes of interpreting the provisions of this Constitution.”
It follows from the above that the House cannot repeal Sections 2 and 3 of the Rivers State House of Assembly Service Commission (Amendment) Law No 3, 2006 to revive the already repealed provisions of the 1999 Law.
Conclusion
In conclusion, the Rivers State House of Assembly lacks the powers, legal or otherwise, to remove the power of appointment of the Chairman and members of the Rivers State House of Assembly Service Commission from the Governor and vest that power on themselves. The provision in the Rivers State House of Assembly Service Commission (Amendment) Law, 2024 seeking to vest that power on the House is in clear contravention of the 1999 Constitution, and therefore, a nullity in the eyes of the Law. See the case of MacFoy v UAC (1961) 3 All ER 1169 where the court held that you cannot put something on nothing and expect it to stand.
In that case, Lord Denning stated: “If an act is void, then it is in law a nullity. It is not only bad, but incurably bad. There is no need for an order of court to set it aside. It is automatically null and void without more ado, though it is sometimes more convenient to have the court declare it to be so. And every proceeding which is founded on it is also bad and incurably bad. You cannot put something on nothing and expect it to stay there. It will collapse.”

Rt Hon Ehie is Chief of Staff, Government House, Port Harcourt.

By: Edison Ehie

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For The Record

We ’ll Not Take Rivers People’s Trust And Confidence For Granted – Fubara

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Being a text of the 2024 Budget speech presented to the Rivers State House of Assembly by Governor Siminalayi Fubara at Government House, Port Harcourt on Wednesday, December 13, 2023. Excerpts.

Mr Speaker, Honourable Members, distinguished guests, ladies, and gentlemen.
It is my pleasure to be before this hallowed chamber today to present our state’s budget estimates of Revenues and Expenditures for the fiscal year 2024.
Before I proceed with my presentation, I wish to, again, thank God for the special opportunity to serve our people as their elected Governor.
We thank our dear President, His Excellency Bola Ahmed Tinubu GCFR for his special interest in the peace and progress of Rivers State and the bold steps he has taken to revamp the nation’s economy and sustainable development across the country.
We are also grateful to the good people of Rivers State and the progressive members of the State House of Assembly for your continuing support and prayer for the success of our administration.
We assure you that we will never take your trust and confidence for granted. We will remain faithful to our oath of office and do the best we can to advance the aspirations of our people for good governance, peace, security, and inclusive development.
Our spirit is high; our determination is forever strong as we remain focused on delivering on our mandate in an honest, accountable, just, and fair manner to all parts of the State and all segments of society.
Under our watch, no part of the State will be neglected in our development agenda; no one will be left behind in the distribution of resources and opportunities.
We reaffirm our commitment to working closely with the State House of Assembly to fulfil all our promises and take Rivers State to greater heights of peace, progress, and prosperity.
Mr Speaker, recall that we launched the construction of the Port Harcourt Dual Carriage Ring Road as a flagship project to accelerate the socio-economic development of our State. Julius Berger has since mobilised to the site and work on this multi-billion-naira project has begun.
In line with our consolidation mantra, we have in the last six months, completed many of the uncompleted projects we inherited from the immediate past administration, including roads, hospitals, and schools, while those not yet completed, have reached advanced stages of completion.
Some of the completed roads include Oyigbo – Okoloma Road, Alode – Onne Road, Botem-Gbene-Ue-Hiro Road, Mgbodahia internal roads, Ogbo-Uhugbogo-Udiemude Road, Omoku-Aligwu-Krigene road, Eneka internal roads, Ogbakiri internal roads, and Omagwa internal roads.
Other roads, which construction is proceeding very well include Ahoada-Omoku dualization, Emohua-Tema junction dualization, Umuakali – Eberi road, Alode-Ebubu-Eteo junction road, Egbu-Ehuda internal roads, Elelenwo internal roads, Rumuepirikom internal roads, phase 2, Bori city internal roads, the Ngo section of the Ogoni-Andoni-Opobo unity road, and the Opobo ring road and electrification projects.
On education, we have delivered Government Comprehensive Secondary School, Borokiri, Government Secondary School, Eneka, Government Secondary School, Emohua, Government Secondary School, Okehi, Comprehensive Secondary School, Alesa – Eleme, Government Secondary School, Ataba, and the 10,000 capacity University of Port Harcourt Auditorium. The hostel and auditorium projects at the Yenagoa campus of the Nigerian Law School are also almost completed.
Our commitment to healthcare delivery remains strong. Already, we have delivered the Professor Kelsey Harrison Hospital, the Dental, Maxillofacial, Ear Nose Throat and Ophthalmology Hospital, and several primary healthcare centres across the state.
To accelerate the delivery of affordable housing, we have signed a Memorandum of Understanding with TAF Global Africa and turned the sod for the phased development of 20,000 units of houses in the State.
This is another signature project of our administration, which is targeted at creating new model cities within Obio/Akpor and Ikwerre Local Government Areas of the State with enormous socio-economic benefits to the State and our people.
On sports development, we have opened the Real Madrid Football Academy for full academic and football training activities with the admission of the first batch of students. We have also rehabilitated the indoor basket hall and pitch at Niger Street, Port Harcourt.
We are poised to stimulate industrialization by creating an enabling business environment to attract investors to invest in the different sectors of the State’s economy.
To this end, plans are underway to organise the first Rivers State Investment Summit in decades to work out an investment and industrialization road map for the State.
We have also approved three bills: the Rivers State Investment Promotion Agency Bill, the Rivers State Youth Entrepreneurship Development Trust Fund Bill, the Rivers State Electricity Bill, and the Rivers State New Towns Development Bill, which are critical to accelerating investments, job creation, energy security, economic empowerment, and the socio-economic advancement of the State when passed into law.
Furthermore, we have concluded arrangements to launch the N4,000,000,000.00 seed fund in partnership with the Bank of Industry to support small and medium-scale enterprises across the State at a single-digit interest rate.
We have also entered into a memorandum of understanding with an investor to build a modern spare parts market in the State.
We appreciate the relevance and importance of the civil service to the development of the State through effective implementation of government policies and programmes.
Consequently, our commitment is to strengthen and motivate the civil service for optimal and responsible performance through regular promotions, payment of salaries, pensions and gratuities, and the provision of a good working environment.
Accordingly, we are happy to report that we are up to date in the payment of salaries and pensions to our civil servants and concluded the promotion exercise for our mainstream civil servants and other staff, except those without functional governing boards, such as the secondary school teachers and health to legally conduct the exercise, will be done as soon as we constitute the governing boards.
We have restored water and installed new lifts at the State’s Secretariat complex to improve sanitation and ease access to the higher floors of the complex.
Since we came on board, we have spent over 6 billion naira to pay the gratuities backlog to retired civil servants. Again, our commitment is to ensure that we clear all arrears of gratuities owed to civils by previous administrations.
Also, the recruitment exercise of 10,000 workers into the State’s civil service is almost completed and successful candidates will receive their engagement letters as soon as the report from the State’s Civil Service Commission is ratified by the State Executive Council.
Finally, we have worked with security agencies, local governments, and community leaders to keep our State peaceful, safe, and secure. This is an achievement we will continue to further improve and sustain throughout the Yuletide and beyond.
Mr Speaker, I have highlighted some of our achievements in policies and projects as a relatively young administration implementing a budget and programmes we inherited from the immediate past administration.
As a government, we are satisfied with the modest mileage we have gained in implementing our blueprint despite the prevailing economic hardship and the political challenges and distractions we faced since the inception of our government.
Nevertheless, we can assure our people that the tempo of governance and delivery of services in our priority areas of investments and economic growth, infrastructure delivery and job creation, education, healthcare and human capital development, agriculture, and food security will gain traction and accelerate with speed and vigour in the new year.
2023 BUDGET PERFORMANCE REVIEW
Mr Speaker, a total revenue of 755,666,987.238 was projected for the 2023 fiscal year. This sum included a supplementary estimate of 200,000,000,000.00, which we accessed for the exclusive purpose of funding the construction of the Port Harcourt Ring Road project.
35. The breakdown of the 2023 budget was as follows:
(i) Recurrent Expenditure: N175,249,692,201.00
(ii) Capital Expenditure: N380,417,395,037.00
(iii) Supplementary capital estimates: N200,000,000,000.00
Total: N755,666,987.238.00
As of October 2023, the total actual receipts from all sources, was approximately 66% performance on the revenue side.
There were encouraging improvements in internally generated revenue receipts as against the projections for the year, while the performance of recurrent expenditure was 100%.
THE 2024 BUDGET ASSUMPTIONS
38. Mr Speaker, Honourable Members, the 2024 budget, christened Budget of Promise is based on the following assumptions:
(i) oil price benchmark of $70 per barrel;
(ii) oil production rate of 1.5 million barrels per day; and
(iii) exchange rate of #750/US as projected by the Federal Government. THE 2024 BUDGET SIZE
The total projected revenue for Rivers State for the 2024 Fiscal Year is N800, 392,485,433.01 billion. This is constituted as follows:
(i) Recurrent Expenditure: = 361,598,242,570.85
(ii) Capital Expenditure = 410,266,485,090.64
(iii) Total: = 800,392,485,433.01
FINANCING THE 2024 BUDGET
The financial sources of the 2024 budget are as follows:
Internally Generated Revenue – 231,057,836,945.00
Statutory Allocation – 68, 458,610.00
Mineral funds – 145, 526,581,463.00
Value Added Tax – 55, 650,000,000.00
Refunds Escrow, Paris/ECA – 1, 200,000,000.00
Refunds from bank charges – 1, 500,000,000.00
Excess Crude Account – 1, 700,000,000.00
Exchange rate gain – 1, 200,000,000.00
9. Forex equalization – 3, 000,000,000.00
10. Other FAAC – 5, 000,000,000.00
11. Asset sales – 20, 000,000,000.00
Capital receipts – 9, 879,557,210.00
Proposed internal/external grants – 24, 570,000,000.00
14. International Credits – 2, 000,000,000.00
Bonds – 237, 000,000,000.00
Internal loans – 235, 000,000,000.00
Prior year Balance – 6, 934,784,872.01
TOTAL = 800, 392,485,433.01
RECURRENT EXPENDITURE
The Recurrent Expenditure is projected to be spent as follows:
Personnel Emolument – 99, 588,939,939.39
New Recruitments – 28, 924,562,980.61
Overhead costs – 18, 871,623,339.00
Grants, contributions & subsidies – 7,908,000,000.00
Counterpart pension scheme – 15,000,000,000.00
Gratuities/Death Benefits – 77,850,000,000.00
Monthly pensions – 30,240,000,000.00
Domestic loans interest – 32,420,734,367.60
Foreign loan interest – 536,709,798.04
Domestic loan, principal repayment- 26,018,966,086.70
Foreign loan, principal repayment – 5,081,731,374.51
FAAC Deductions- 12,865,723,913.00
COT/Charges/ General Admin – 5,000,000,000.00
CAPITAL EXPENDITURE
The capital allocation of 410,266,485,090.64 represents about 51 per cent of the total budget projections for the fiscal year 2024.
SECTORAL ALLOCATION OF THE CAPITAL BUDGET
The sectoral allocation of the capital budget is as follows:
Governance – 161,742,835,256.27
Information & Communication – 2,234,273,168.00
Public Administration – 13,852,493,641.59
Finance and Planning – 7,779,818,293.13
Agriculture – 20,311,574,254.53
Infrastructure – 128,003,540,952.66
Commerce and Investment – 1,787,418,534,40
Culture and Tourism – 1,381,187..049.31
Education – 40,426,441,994.74
10. Health – 30,555.506,748.20
Social Development – 10,155,787,127.27
Environment & Sustainable Development – 8,449,614,889.89
Judiciary – N 5,646,617,642.76
The 2024 Budget Policy and Objectives
Hon. Speaker, the overall policy objectives of the 2024 budget are to promote economic development in the State through inclusive growth, the provision of critical infrastructure to support economic, business, and social activities, and the creation of an enabling environment for private sector-led industrialization, job creation and poverty reduction.
We will strive to address the challenges of socio-economic inequalities by ensuring improved access to quality and affordable education, healthcare, water, electricity, housing, social investments, gender empowerment and social inclusion.
This accounts for the reasonably high allocations in the 2024 capital budget to infrastructure, education, healthcare, social development, environment, sustainable development and agriculture.
With these funds, we will build more road networks to interconnect the State, rehabilitate, equip, train and staff all dilapidated primary and secondary schools, build technical and vocational education centres, and allocate more funds to our tertiary schools to improve the quality of teaching, learning and research.
We will also rehabilitate, equip and staff dilapidated primary healthcare facilities, restore, equip, and staff all our general hospitals, complete, equip and staff all five zonal hospitals, implement socially beneficial healthcare schemes, and introduce social investment schemes to fight poverty, social exclusion, and gender discrimination.
Given the importance of the judiciary in the advancement of the rule of law, economic growth, and social accountability, we have also improved the allocation for the funding of the judiciary, law, and justice sectors in this budget to achieve effective and speedy dispensation of justice in the State.
We will ensure that accessed local and international credits are used only for capital projects that would benefit economic growth, give attention to the completion of ongoing projects before embarking on new ones, and grow the economy through targeted investments in areas of comparative economic advantage, including commercial agriculture, electricity generation, renewable energy, oil and gas, housing, and sports development.
We will also provide our young people with the skills and tools they need to succeed in the 21st-century economy and to ensure that education and healthcare are accessible to all regardless of background and means.
Conclusion
Mr Speaker, Honourable Members, thank you again for your patriotism and dedication to the service and advancement of the State.
The budget we have put forward reflects our commitment to responsible financial management and our dedication to the progress of our State and the well-being of our people.
Our priorities are clear: to secure our State, foster sustainable economic growth, create opportunities for all, invest in the future, and ensure our collective prosperity.
As we all know, the security and well-being of the people are the reason we are in government. The budgeting process is fundamental to the realisation of this fundamental objective of state policy.
We recognize the challenges we face as a State and the pointless efforts to frustrate and sabotage our government even before we get started. As you know desperate situations call for desperate measures. I assure you of our determination to weather the raging storm strategically and responsibly.
Mr Speaker, I, therefore, commend this budget to the House of Assembly for your consideration and speedy passage.
Thank you for your kind attention. God bless you all; God bless Rivers State.

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