President Muhammadu Buhari on Tuesday, at exactly 10:05 am, signed on Tuesday in Abuja signed the 2023 Budget of N21.83 trillion along with the 2022 Supplementary Appropriation Bill into law in the council chambers of the State House.
It is the 8th and final budget themed: ‘Budget of Fiscal Sustainability and Transition’, presented by Buhari over his two tenures.
Recall the Nigerian Senate had on Wednesday, December 28, 2022, approved the 2023 Appropriation Bill.
On 7 October 2022, President Buhari presented the 2023 fiscal budget to the joint session of the National Assembly, where he proposed an annual budget of N20.51 trillion for the year 2023, a 19.8% increase when compared to the N17.13 trillion approved for 2022 including the supplementary budget.
At 10:02, the Senior Special Assistant (SSA) to President Buhari on National Assembly Matters (Senate), Senator Babajide Omoworare and the Senior Special Assistant to the President on National Assembly Matters (House of Representatives), Nasiru Ila presented the budget to him for signing.
He was joined by the Senate President Ahmad Lawan, Speaker of House of Representatives, Femi Gbajabiamila, Secretary to the Government of the Federation, Boss Mustapha, Chief of Staff, Ibrahim Gambari, Attorney General and Minister of Justice, Abubakar, Minister of Finance, Budget and National Assembly, Zainab Ahmed, Minister of State Budget and National Assembly, Clem Agba, Director-General, Budget Office of the Federation, Ben Akabueze and staff of the budget office. He urged the next administration to continue the January to December budget circle by presenting the appropriation bill on time.
He said he decided to sign the 2023 Appropriation Bill into law as passed by the National Assembly to enable its implementation to commence without delay.
He, however, directed the Minister of Finance, Budget and National Planning to engage with the Legislature to revisit some of the changes made to the Executive budget proposal, saying “it is my hope that we will receive cooperation in this regard from the National Assembly.”
According to a statement by Special Adviser on Media and Publicity, Femi Adesina, Buhari speaking at the signing ceremony, the President 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 President explained that the 2022 Supplementary Appropriation Act would enable the administration to respond to the havoc caused by the recent nationwide floods on the infrastructure and agriculture sectors.
As is customary, he said the Minister of Finance, Budget and National Planning will subsequently provide more details of the approved budget and the supporting 2022 Finance Act.
He said: “The 2023 Budget that I have the honour of signing into law today provides for aggregate expenditures of N21.83 trillion, an increase of N1.32 trillion over the initial Executive Proposal for a total expenditure of N20.51 trillion. As is customary, the Honourable Minister of Finance, Budget and National Planning will subsequently provide more details of the approved budget and the supporting 2022 Finance Act.
“We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal. 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.
“Nevertheless, considering the imminent transition process to another democratically elected government, I decided to sign the 2023 Appropriation Bill into law as passed by the National Assembly to enable its implementation to commence without delay. I have however directed the Minister of Finance, Budget and National Planning to engage with the Legislature to revisit some of the changes made to the Executive budget proposal, and it is my hope that we will receive cooperation in this regard from the National Assembly.
“I also urge the National Assembly to reconsider its position on my proposal to securitize the Federal Government’s outstanding Ways and Means 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 a 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. 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.”
Speaking more on the changes made by the National Assembly, Buhari said: “We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal.
“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 urged the National Assembly to reconsider its position on his proposal to securitize the Federal Government’s outstanding Ways and Means 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.
“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.
The President directed the Ministry of Finance, Budget and National Planning to work towards the early 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.
To achieve the laudable objectives of the 2023 Budget, the President said relevant Agencies must sustain 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.
“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.
Buhari while commending everyone’s efforts in getting the budget passed, said: “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.”
Acknowledging that “these are challenging times worldwide,”
the President 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.
“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.
