Claims 2023 Budget was developed to promote fiscal sustainability, and macroeconomic stability and ensure a smooth transition to the incoming Administration.
President Buhari appreciates MDAs, Ministers, Senate and House of Representatives, the Office of the Chief of Staff for producing the 2023 Appropriation Act.
President says Finance Bill 2022 review as passed by the National Assembly is yet to be finalized.
President Muhammadu Buhari has signed into law the Appropriation Bill, 2023 totalling N21.83 trillion.
The President speaking at the signing of the eighth and final annual budget of this administration, said the aggregate expenditures of N21.83 trillion, is an increase of N1.32 trillion over the initial Executive Proposal for a total expenditure of N20.51 trillion.
The 2022 Supplementary Appropriations Act, according to President Buhari, will allow the administration to address the damage caused by the recent nationwide floods in the infrastructure and agricultural sectors.
He added that more information about the approved budget and the accompanying 2022 Finance Act will be provided later by the Minister of Finance, Budget, and National Planning.
This is six days after the National Assembly passed the measure, which represents a N1.32 trillion increase over the President’s N20.51 trillion budget proposal.
“We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal,” he said.
“The amended fiscal framework for 2023 as approved by the National Assembly shows additional revenues of N765.79 billion and an unfunded deficit of N553.46 billion.
“It is clear that the National Assembly and the executive need to capture some of the proposed additional revenue sources in the fiscal framework. This must be rectified.
“I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion. The National Assembly also increased the provisions made by Ministries, Departments and Agencies (MDAs) by N58.55 billion.”
President Buhari explained why he decided to sign the 2023 Appropriation Bill into law as voted by the National Assembly, stating it was to allow its implementation to start right away in light of the impending process of switching to another democratically elected government.
Although he expressed hope that the National Assembly would work with the Executive branch of government on this matter, he gave the Minister of Finance, Budget, and National Planning the task of engaging with the Legislature to review some of the adjustments made to the Executive budget proposal.
He encouraged the National Assembly to reevaluate its stance on his proposal to securitize the unpaid Ways and Means of Balance at the Central Bank of Nigeria for the Federal Government (CBN).
”As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings,” he said.
“I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.”
Breaking News: President Buhari Signs 2023 Budget into Law
“Failure to grant the securitization approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3% and the negotiated interest rate of 9% and a 40year repayment period on the securitised debt of the Ways and Means.”
To ensure more effective implementation of the 2022 capital Budget, President Buhari thanked the National Assembly for approving his request for an extension of its validity date to 31st March 2023.
The President directed the Ministry of Finance, Budget and National Planning to work towards the swift release of the 2023 capital votes to enable Ministries, Departments and Agencies to commence the implementation of their capital projects in good time to support efforts to deliver key projects and public services as well as improve the living conditions of Nigerians.
Reiterating that the 2023 Budget was developed to promote fiscal sustainability, and macroeconomic stability and ensure a smooth transition to the incoming Administration, the President said it was also designed to promote social inclusion and strengthen the resilience of the economy.
He pledged that adequate provisions have been made in the Budget for the successful conduct of the forthcoming general elections and the transition programme.
On achieving revenue targets for the budget, the President directed MDAs and Government Owned Enterprises (GOEs) to intensify their revenue mobilization efforts, including ensuring that all taxable organizations and individuals pay taxes due.
He urged the National Assembly to reconsider its position on his proposal to securitize the Federal Government’s outstanding Ways and Means of balance at the Central Bank of Nigeria (CBN).
“As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings,” he said.
“I have no intention to fetter the right of the National Assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.”
“Failure to grant the securitization approval will however cost the government about N1.8 trillion in additional interest in 2023 given the differential between the applicable interest rates which is currently MPR plus 3% and the negotiated interest rate of 9% and a 40year repayment period on the securitised debt of the Ways and Means.”
To ensure more effective implementation of the 2022 capital Budget, President Buhari thanked the National Assembly for approving his request for an extension of its validity date to 31st March 2023.
To achieve the laudable objectives of the 2023 Budget, the President said relevant Agencies must persist in current efforts towards the realization of crude oil production and export targets.
“To augment available fiscal resources, MDAs are to accelerate the implementation of Public Private Partnership initiatives, especially those designed to fast-track the pace of our infrastructural development,” he said.
“This, being a deficit budget, the associated Borrowing Plan will be forwarded to the National Assembly shortly.”
“I count on the cooperation of the National Assembly for a speedy consideration and approval of the Plan.”
On the Finance Bill 2022, the President expressed regret that its review as passed by the National Assembly is yet to be finalized.
“This is because some of the changes made by the National Assembly need to be reviewed by the relevant agencies of government. I urge that this should be done speedily to enable me to assent into law,” he said.
Ahmad Lawan, the President of the Senate, and Femi Gbajabiamila, the Speaker of the House of Representatives, were present when the budget was signed.
The Speaker of the House of Representatives, the President of the Senate, and all distinguished honorable leaders and members of the National Assembly were praised by the President for the swift deliberation and passage of the appropriations bill.
He also acknowledged the contributions made by the Ministers of Finance, Budget, and National Planning, the Federation Budget Office, the Senior Special Assistants to the President (Senate and House of Representatives), the Office of the Chief of Staff, and everyone else who toiled assiduously and made great sacrifices to create the 2023 Appropriation Act.
“As I mentioned during the presentation of the 2023 Appropriation Bill, early passage of the budget proposal is critical to ensure effective delivery of our legacy projects, a smooth transition programme and effective take-off of the incoming Administration.
“I appreciate the firm commitment of the 9th National Assembly to the restoration of a predictable January to December fiscal year, as well as the mutual understanding, collaboration and engagements between officials of the Executive and the Legislative arms of government.
“These have made the quick consideration and passage of our Fiscal bills possible over the last four years.”
The President expressed the belief that the next Administration would sustain the early presentation of the annual appropriation bill to the National Assembly to ensure its passage before the beginning of the fiscal year.
”I firmly believe the next Administration will also sustain the current public financial management reform efforts, further improve the budgeting process, and particularly maintain the tradition of supporting its Appropriation Bills with Finance Bills designed to facilitate their implementation.
”To sustain and institutionalize the gains of the reforms, we must expedite action and conclude work on the Organic Budget Law for it to become operational before the end of this Administration.”
”As this Administration draws to a close, we will accelerate the implementation of critical measures aimed at further improving the Nigerian business environment, enhancing the welfare of our people and ensuring sustainable economic growth over the medium- to long-term,” he said.
The President acknowledging that ‘‘these are challenging times worldwide,’’ concluded his speech at the ceremony by expressing deep appreciation to Almighty God for His Grace while commending the continuing resilience, understanding and sacrifice of Nigerians in the face of current economic challenges.
