{"id":21346,"date":"2019-10-08T15:19:02","date_gmt":"2019-10-08T15:19:02","guid":{"rendered":"https:\/\/everyday.ng\/?p=21346"},"modified":"2019-10-08T15:19:02","modified_gmt":"2019-10-08T15:19:02","slug":"records-2020-budget-speech-budget-of-sustaining-growth-and-job-creation","status":"publish","type":"post","link":"https:\/\/everyday.ng\/?p=21346","title":{"rendered":"(Records) 2020 Budget Speech: Budget of Sustaining Growth and Job Creation"},"content":{"rendered":"\n

By Muhammadu Buhari,<\/strong> President, Federal Republic of Nigeria<\/p>\n\n\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I will start by asking you to pardon my voice. As you can hear, I have a cold as a result of working hard to meet your deadline!

2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I am delighted to present the 2020 Federal Budget Proposals to this Joint Session of the National Assembly, being my first budget presentation to this 9th National Assembly.

3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Before presenting the Budget, let me thank all of you Distinguished and Honourable Members of the National Assembly, for your avowed commitment to cooperate with the Executive to accelerate the pace of our socio-economic development and enhance the welfare of our people.

4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I will also once again thank all Nigerians, who have demonstrated confidence in our ability to deliver on our socio-economic development agenda, by re-electing this Administration with a mandate to Continue the Change. We remain resolutely committed to the actualization of our vision of a bright and prosperous future for all Nigerians.

5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 During this address, I will present highlights of our budget proposals for the next fiscal year. The Honourable Minister of Finance, Budget and National Planning will provide full details of these proposals, subsequently.

OVERVIEW OF ECONOMIC DEVELOPMENTS IN 2019

6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The economic environment remains very challenging, globally. The International Monetary Fund expects global economic recovery to slow down from 3.6 percent in 2018 to 3.5 percent in 2020. This reflects uncertainties arising from security and trade tensions with attendant implications on commodity price volatility.

7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nearer to home, however, Sub-Saharan Africa is projected to continue to grow from 3.1 percent in 2018 to 3.6 percent in 2020. This is driven by investor confidence, oil production recovery in key exporting countries, sustained strong agricultural production as well as public investment in non-dependent economies.

8.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Mr. Senate President; Right Honourable Speaker; I am pleased to report that the Nigerian economy thus far has recorded nine consecutive quarters of GDP growth. Annual growth increased from 0.82 percent in 2017 to 1.93 percent in 2018, and 2.02 percent in the first half of 2019. The continuous recovery reflects our economy\u2019s resilience and gives credence to the effectiveness of our economic policies thus far.

9.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We also succeeded in significantly reducing inflation from a peak of 18.72 percent in January 2017, to 11.02 percent by August 2019. This was achieved through effective fiscal and monetary policy coordination, exchange rate stability and sensible management of our foreign exchange.
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President Buhari presenting the budget to federal lawmakers<\/figcaption><\/figure>\n\n\n


10.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We have sustained accretion to our external reserves, which have risen from US$23 billion in October 2016 to about US$42.5 billion by August 2019. The increase is largely due to favourable prices of crude oil in the international market, minimal disruption of crude oil production given the stable security situation in the Niger Delta region and our import substitution drive, especially in key commodities.

11.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The foreign exchange market has also remained stable due to the effective implementation of the Central Bank\u2019s interventions to restore liquidity, improve access and discourage currency speculation. Special windows were created that enabled small businesses, investors and importers in priority economic sectors to have timely access to foreign exchange.

12.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Furthermore, as a sign of increased investor confidence in our economy, there were remarkable inflows of foreign capital in the second quarter of 2019. The total value of capital imported into Nigeria increased from US$12 billion in the first half year of 2018 to US$14 billion for the same period in 2019.

PERFORMANCE OF THE 2019 BUDGET

13.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Distinguished and Honourable Members of the National Assembly, you will recall that the 2019 \u2018Budget of Continuity\u2019 was based on a benchmark oil price of US$60 per barrel, oil production of 2.3 mbpd, and an exchange rate of N305 to the United States Dollar. Based on these parameters, we projected a deficit of N1.918 trillion or 1.37 percent of Gross Domestic Product.

14.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 As at June 2019, Federal Government\u2019s actual aggregate revenue (excluding Government-Owned Enterprises) was N2.04 trillion. This revenue performance is only 58 percent of the 2019 Budget\u2019s target due to the underperformance of both oil and non-oil revenue sources. Specifically, oil revenues were below target by 49 percent as at June 2019. This reflects the lower-than-projected oil production, deductions for cost under-recovery on supply of premium motor spirit (PMS), as well as higher expenditures on pipeline security\/maintenance and Frontier exploration.

15.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Daily oil production averaged 1.86 mbpd as at June 2019, as against the estimated 2.3 mbpd that was assumed. This shortfall was partly offset as the market price of Bonny Light crude oil averaged US$67.20 per barrel which was higher than the benchmark price of US$60.

16.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Additionally, revenue projections from restructuring of Joint Venture Oil and Gas assets and enactment of new fiscal terms for Production Sharing Contracts did not materialize, as the enabling legislation for these reforms is yet to be passed into law.

17.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The performance of non-oil taxes and independent revenues such as internally generated revenues were N614.57 billion and N217.84 billion, respectively.

18.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Receipts from Value Added Tax were below expectations due to lower levels of activities in certain economic sectors, in the aftermath of national elections. Corporate taxes were affected by the seasonality of collections, which tend to peak in the second half of the calendar year.

19.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 On the expenditure side, 2019 Budget implementation was also hindered by the combination of delay in its approval and the underperformance of revenue collections. As such, only recurrent expenditure items have been implemented substantially. Of the prorated expenditure of N4.46 trillion budgeted, N3.39 trillion had been spent by June 30, 2019.

20.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In compliance with the provisions of the 2018 Appropriation Act, we implemented the 2018 capital budget till June 2019. Capital releases under the 2019 Budget commenced in the third quarter. As at 30th September 2019, a total of about N294.63 billion had been released for capital projects. I have directed the Ministry of Finance, Budget and National Planning to release an additional N600 billion of the 2019 capital budget by the end of the year.

21.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Despite the delay in capital releases, a deficit of N1.35 trillion was recorded at end of June 2019. This represents 70 percent of the budgeted deficit for the full year.

22.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Despite these anomalies, I am happy to report that we met our debt service obligations, we are current on staff salaries and overhead costs have also been largely covered.

2020 BUDGET PRIORITIES

23.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Distinguished Senators, Honourable Members, let me now turn to the 2020 Appropriation, which is designed to be a budget of:

a.\u00a0\u00a0\u00a0 Fiscal consolidation, to strengthen our macroeconomic environment;

b.\u00a0\u00a0\u00a0 Investing in critical infrastructure, human capital development and enabling institutions, especially in key job creating sectors;

c.\u00a0\u00a0\u00a0 Incentivising private sector investment essential to complement the Government\u2019s development plans, policies and programmes; and

d.\u00a0\u00a0\u00a0 Enhancing our social investment programs to further deepen their impact on those marginalised and most vulnerable Nigerians.

PARAMETERS & FISCAL ASSUMPTIONS UNDERPINNING THE APPROPRIATION BILL AND THE FINANCE BILL

24.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Distinguished and Honourable Members of the National Assembly, the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) set out the parameters for the 2020 Budget. We have adopted a conservative oil price benchmark of US$57 per barrel, daily oil production estimate of 2.18 mbpd and an exchange rate of N305 per US Dollar for 2020.

25.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We expect enhanced real GDP growth of 2.93% in 2020, driven largely by non-oil output, as economic diversification accelerates, and the enabling business environment improves. However, inflation is expected to remain slightly above single digits in 2020.

26.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Accompanying the 2020 Budget Proposal is a Finance Bill for your kind consideration and passage into law. This Finance Bill has five strategic objectives, in terms of achieving incremental, but necessary, changes to our fiscal laws. These objectives are:

a.\u00a0\u00a0\u00a0 Promoting fiscal equity by mitigating instances of regressive taxation;

b.\u00a0\u00a0\u00a0 Reforming domestic tax laws to align with global best practices;

c.\u00a0\u00a0\u00a0 Introducing tax incentives for investments in infrastructure and capital markets;

d.\u00a0\u00a0\u00a0 Supporting Micro, Small and Medium-sized businesses in line with our Ease of Doing Business Reforms; and

e.\u00a0\u00a0\u00a0 Raising Revenues for Government.

27.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The draft Finance Bill proposes an increase of the VAT rate from 5% to 7.5%. As such, the 2020 Appropriation Bill is based on this new VAT rate. The additional revenues will be used to fund health, education and infrastructure programmes. As the States and Local Governments are allocated 85% of all VAT revenues, we expect to see greater quality and efficiency in their spending in these areas as well.

28.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The VAT Act already exempts pharmaceuticals, educational items, and basic commodities, which exemptions we are expanding under the Finance Bill, 2019. Specifically, Section 46 of the Finance Bill, 2019 expands the exempt items to include the following:

a.\u00a0\u00a0\u00a0 Brown and white bread;

b.\u00a0\u00a0\u00a0 Cereals including maize, rice, wheat, millet, barley and sorghum;

c.\u00a0\u00a0\u00a0 Fish of all kinds;

d.\u00a0\u00a0\u00a0 Flour and starch meals;

e.\u00a0\u00a0\u00a0 Fruits, nuts, pulses and vegetables of various kinds;

f.\u00a0\u00a0\u00a0\u00a0 Roots such as yam, cocoyam, sweet and Irish potatoes;

g.\u00a0\u00a0\u00a0 Meat and poultry products including eggs;

h.\u00a0\u00a0 Milk;

i.\u00a0\u00a0\u00a0\u00a0 Salt and herbs of various kinds; and

j.\u00a0\u00a0\u00a0\u00a0 Natural water and table water.\u00a0

29.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Additionally, our pro\nposals also raise the threshold for VAT registration to N25 million in turnover per annum, such that the revenue authorities can focus their compliance efforts on lar\nger businesses thereby bringing relief for our Micro, Small and Medium-sized businesses.

30.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It is absolutely essential to intensify our revenue generation efforts. That said, this Administration remains committed to ensuring that the inconvenience associated with any fiscal policy adjustments, is moderated, such that the poor and the vulnerable, who are most at risk, do not bear the brunt of these reforms.

FEDERAL GOVERNMENT REVENUE ESTIMATES

31.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The sum of N8.155 trillion is estimated as the total Federal Government revenue in 2020 and comprises oil revenue N2.64 trillion, non-oil tax revenues of N1.81 trillion and other revenues of N3.7 trillion. This is 7 percent higher than the 2019 comparative estimate of N7.594 trillion inclusive of the Government Owned Enterprises.

32.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The increasing share of non-oil revenues underscores our confidence in our revenue diversification strategies, going forward. Furthermore, in our efforts to enhance transparency and accountability, we shall continue our strict implementation of Treasury Single Account (TSA) to capture the domiciliary accounts in our foreign missions and those linked to Government Owned Enterprises.

PLANNED 2020 EXPENDITURE

33.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 An aggregate expenditure of N10.33 trillion is proposed for the Federal Government in 2020. The expenditure estimate includes statutory transfers of N556.7 billion, non-debt recurrent expenditure of N4.88 trillion and N2.14 trillion of capital expenditure (excluding the capital component of statutory transfers). Debt service is estimated at N2.45 trillion, and provision for Sinking Fund to retire maturing bonds issued to local contractors is N296 billion.

STATUTORY TRANSFERS

34.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The sum of N556.7 billion is provided for Statutory Transfers in the 2020 Budget and includes:

a.\u00a0\u00a0\u00a0 N125 billion for the National Assembly;

b.\u00a0\u00a0\u00a0 N110 billion for the Judiciary;

c.\u00a0\u00a0\u00a0 N37.83 billion for the North East Development Commission (NEDC);

d.\u00a0\u00a0\u00a0 N44.5 billion for the Basic Health Care Provision Fund (BHCPF);

e.\u00a0\u00a0\u00a0 \u00a0N111.79 billion for the Universal Basic Education Commission (UBEC); and

f.\u00a0\u00a0\u00a0\u00a0 N80.88 billion for the Niger Delta Development Commission (NDDC), which is now supervised by the Ministry of Niger Delta Affairs.

35.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We have increased the budgetary allocation to the National Human Rights Commission from N1.5 billion to N2.5 billion. This 67 percent increase in funding is done to enable the Commission to perform its functions more effectively.

RECURRENT EXPENDITURE

36.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The non-debt recurrent expenditure includes N3.6 trillion for personnel and pension costs, an increase of N620.28 billion over 2019. This increase reflects the new minimum wage as well as our proposals to improve remuneration and welfare of our Police and Armed Forces. You will all agree that Good Governance, Inclusive Growth and Collective Prosperity can only be sustained in an environment of peace and security.

37.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Our fiscal reforms shall introduce new performance management frameworks to regulate the cost to revenue ratios for Government Owned Enterprises, which shall come under significant scrutiny. We will reward exceptional revenue and cost management performance, while severe consequences will attend failures to achieve agreed revenue targets.\u00a0

38.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We shall also sustain our efforts in managing personnel costs. Accordingly, I have directed the stoppage of the salary of any Federal Government staff that is not captured on the Integrated Payroll and Personnel Information System (IPPIS) platform by the end of October 2019. All agencies must obtain the necessary approvals before embarking on any fresh recruitment and any contraventions of these directives shall attract severe sanctions.

39.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Overhead costs are projected at N426.6 billion in 2020. Additional provisions were made only for the newly created Ministries. I am confident that the benefits of these new Ministries as it relates to efficient and effective service delivery to our citizens significantly outweighs their budgeted costs.

40.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 That said, the respective Heads of MDAs must ensure strict adherence to government regulations regarding expenditure control measures. The proliferation of Zonal, State and Liaison Offices by Federal Ministries, Departments and Agencies (\u2018MDAs\u2019), with attendant avoidable increase in public expenditure, will no longer be tolerated.

CAPITAL EXPENDITURE

41.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 As I mentioned earlier, investing in critical infrastructure is a key component of our fiscal strategy under the 2020 Budget Proposals. Accordingly, an aggregate sum of N2.46 trillion (inclusive of N318.06 billion in statutory transfers) is proposed for capital projects in 2020.

42.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Although the 2020 capital budget is N721.33 billion (or 23 percent) lower than the 2019 budget provision of N3.18 trillion, it is still higher than the actual and projected capital expenditure outturns for both the 2018 and 2019 fiscal years, respectively. However, at 24 percent of aggregate projected expenditure, the 2020 provision falls significantly short of the 30 percent target in the Economic Recovery and Growth Plan (ERGP) 2017-2020.

43.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The main emphasis will be the completion of as many ongoing projects as possible, rather than commencing new ones. MDAs have not been allowed to admit new projects into their capital budget for 2020, unless adequate provision has been made for the completion of ALL ongoing projects.

44.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Accordingly, we have rolled over capital projects that are not likely to be fully funded by the end of 2019 into the 2020 Budget. We are aware that the National Assembly shares our view that these projects should be prioritised and given adequate funding in the 2020 Appropriation Act.

45.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Therefore, I will once again commend the 9th National Assembly\u2019s firm commitment to stop the unnecessary cycle of delayed annual budgets. I am confident that with our renewed partnership, the deliberations on the 2020 Budget shall be completed before the end of 2019 so that the Appropriation Act will come into effect by the 1st of January.

46.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Some of the key capital spending allocations in the 2020 Budget include:

a.\u00a0\u00a0\u00a0 Works and Housing: N262 billion;

b.\u00a0\u00a0\u00a0 Power: N127 billion;

c.\u00a0\u00a0\u00a0 Transportation: N123 billion;

d.\u00a0\u00a0\u00a0 Universal Basic Education Commission: N112 billion;

e.\u00a0\u00a0\u00a0 Defence: N100 billion;

f.\u00a0\u00a0\u00a0\u00a0 Zonal Intervention Projects: N100 billion;

g.\u00a0\u00a0\u00a0 Agriculture and Rural Development: N83 billion;

h.\u00a0\u00a0 Water Resources: N82 billion;

i.\u00a0\u00a0\u00a0\u00a0 Niger Delta Development Commission: N81 billion;

j.\u00a0\u00a0\u00a0\u00a0 Education: N48 billion;

k.\u00a0\u00a0\u00a0 Health: N46 billion;

l.\u00a0\u00a0\u00a0\u00a0 Industry, Trade and Investment: N40 billion;

m.\u00a0 North East Development Commission: N38 billion;

n.\u00a0\u00a0 Interior: N35 billion;

o.\u00a0\u00a0\u00a0 Social Investment Programmes: N30 billion;

p.\u00a0\u00a0\u00a0 Federal Capital Territory: N28 billion; and

q.\u00a0\u00a0\u00a0 Niger Delta Affairs Ministry: N24 billion.



47.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Although Government\u2019s actual spending has reduced, our plans to leverage private sector funding through our tax credit schemes will ensure our capital programmes are sustained.

48.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For example, we launched the Road Infrastructure Tax Credit Scheme, pursuant to which I have approved the construction and rehabilitation of 19 Nigerian roads and bridges of 794.4km across 11 States. Indeed, the Scheme has attra\ncted private investment of over N205 billion and the first set of tax credits are being processed by the Federal Ministry of Finance, Budget and National Planning.

49.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\nAs I mentioned during my Independence Day Speech, under the Presidential Power Initiative, we will modernise the National Grid in 3 phases; starting from 5 Gigawatts to 7 Gigawatts, then to 11 Gigawatts by 2023, and finally 25 Gigawatts afterwards in collaboration with the German Government and Siemens.

BUDGET DEFICIT

50.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Budget deficit is projected to be N2.18 trillion in 2020. This includes drawdowns on project-tied loans and the related capital expenditure.

51.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 This represents 1.52 percent of estimated GDP, well below the 3 percent threshold set by the Fiscal Responsibility Act of 2007, and in line with the ERGP target of 1.96 percent.

52.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The deficit will be financed by new foreign and domestic borrowings, Privatization Proceeds, signature bonuses and drawdowns on the loans secured for specific development projects.

DEBT SERVICE

53.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nigeria remains committed to meeting its debt service obligations. Accordingly, we provided the sum of N2.45 trillion for debt service. Of this amount, 71 percent is to service domestic debt which accounts for about 68 percent of the total debt. The sum of N296 billion is provided for the Sinking Fund to retire maturing bonds issued to local contractors.

54.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I am confident that our aggressive and re-energised revenue drive will maintain debt-revenue ratio at acceptable and manageable levels. We will also continue to be innovative in our borrowings by using instruments such as Sukuk, Green Bonds and Diaspora Bonds.

SOCIAL INVESTMENT PROGRAMME

55.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Our government remains committed to ensuring the equitable sharing of economic prosperity. Our focus on inclusive growth and shared prosperity underscores our keen interest in catering for the poor and most vulnerable. Accordingly, we are revamping and improving the implementation of the National Social Investment Programme through the newly created Ministry of Humanitarian Affairs, Disaster Management and Social Development.

56.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The National Social Investment Programme is already creating jobs and economic opportunity for local farmers and cooks, providing funding to artisans, traders, youths, and supporting small businesses with business education and mentoring.

57.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The provision of N65 billion for the Presidential Amnesty Programme has been retained in the 2020 Budget. Furthermore, to fast track the rebuilding efforts in the North East region, a provision of N37.83 billion has been made for the North East Development Commission.

OTHER STRATEGIC PRIORITIES IN 2020

58.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The 2020 Budget is expected to accelerate the pace of our economic recovery, promote economic diversification, enhance competitiveness and ensure social inclusion. We are optimistic of attaining higher and more inclusive GDP growth in order to achieve our objective of massive job creation and lifting many of our citizens out of poverty.

59.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The efficiency of port operations will also be enhanced by implementing a single customs window, speeding up vessel and cargo handling and issuing more licenses to build modern terminals in existing ports, especially outside Lagos.

60.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Furthermore, completing the reforms to the governance and fiscal terms of the Petroleum Industry will provide certainty and attract further investments into the sector. A consequence of this will be increase in jobs and in government\u2019s take. I therefore seek your support in passing into law two Petroleum Industry Executive Bills I will be forwarding to you shortly.

61.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In addition, we need to quickly review the fiscal terms for deep offshore oil fields to reflect the current realities and for more revenue to accrue to the government. The Deep Offshore and Inland Basin Production Sharing Contract (Amendment) Bill 2018, was submitted to the 8th National Assembly in June 2018 but was unfortunately not passed into law.

62.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I will be re-forwarding the Bill to this Assembly very shortly and therefore urge you to pass it. We estimate that this effort can generate at least 500 million US dollars additional revenue for the Federal Government in 2020, and over one billion dollars from 2021.

63.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Whilst the Budget is our principal fiscal tool to achieve these socio-economic development targets, we remain committed to prudently planning for our future economic prosperity. In this regard, I have directed the reconstituted Ministry of Finance, Budget and National Planning to commence preparations towards the development of successor medium – and long-term economic development plans, particularly as the Nigeria Vision 20-2020 and the ERGP expire next year.

\u00a0CONCLUSION

64.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Mr. Senate President, Mr. Speaker, Distinguished and Honourable Members of the National Assembly,\u00a0this speech would be incomplete without, once again, commending the patriotic resolve of the 9th National Assembly to collaborate with the Executive in the effort to deliver inclusive growth and enhance the welfare our people. I assure you of the strong commitment of the Executive to deepen the relationship with the National Assembly.

65.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 As you review the 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), as well as the 2020 Budget estimates, we believe that the legislative process will be quick, so as to restore the country to the January-December financial year.

66.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It is with great pleasure therefore, that I lay before this Distinguished Joint Session of the National Assembly, the 2020 Budget Proposals of the Federal Government of Nigeria.

67.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I thank you most sincerely for your attention.

68.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 May God bless the Federal Republic of Nigeria.

<\/p>\n","protected":false},"excerpt":{"rendered":"

By Muhammadu Buhari, President, Federal Republic of Nigeria 1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I will start by asking you to pardon my voice. As you can hear, I have a cold as a result of working hard to meet your deadline! 2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I am delighted to present the 2020 Federal Budget Proposals to this Joint Session of the National […]<\/p>\n","protected":false},"author":7,"featured_media":13345,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5777],"tags":[],"class_list":["post-21346","post","type-post","status-publish","format-standard","has-post-thumbnail","category-features"],"_links":{"self":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/21346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21346"}],"version-history":[{"count":0,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/21346\/revisions"}],"wp:attachment":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}