Press Release: Buhari Administration’s Vision for Niger Delta

The Buhari administration, in line with its New Vision for the Niger Delta (#NDNewVision), is working hard to ensure that the people of the region benefit maximally from the wealth of their land.

So far, the Buhari administration has also taken actions to underscore its commitment to the people of the region.

These include:

Increased Budgetary Allocation to Niger Delta Ministry and NDDC

Take-off of Maritime University in Delta State

Commencement of Ogoni Clean-up

Investments in Infrastructure: Bonny-Bodo Road and Ibaka Deep Sea Port

Approval for establishment of Export Processing Zone in Delta State

Approval for establishment of Modular Refineries

Presidential Amnesty Programme

Increased Budgetary Allocation:

N71.20 billion allocated in the 2018 Budget for the Niger Delta Development Commission

N53.89 billion allocated in the 2018 Budget for the Ministry of Niger Delta, up from the N34.20 billion provided in 2017

Maritime University, Delta State:

The new Maritime University in Okerenkoko, Delta State, has now commenced operations, inviting job applications for academic staff.

President Muhammadu Buhari administration recently approved an increase in the take-off grant from the N2bn earlier announced to N5bn. This sum was included in the 2018 budget presented to the National Assembly earlier this week, under the Federal Ministry of Education allocation.

Academic activities are expected to start in the University soon following the completion of the hiring process for professors, readers, senior lecturers, lecturers, assistant, assistant lecturers and graduate assistants to teach in the faculties of Science, Maritime Transportation, Maritime Engineering and Technology, Maritime Environmental Management and General Studies.

The take-off of the Maritime University was one of the major requests tabled before the Federal Government when the Vice President Yemi Osinbajo, SAN, went on a series of tour to all the Niger Delta states during the year, following President Buhari’s meeting with leaders of Pan Niger Delta Elders Forum (PANDEF) last November.

Ogoni clean-up:

In June 2016, the Buhari administration started the implementation of the 2011 United Nations Environment Programme (UNEP) report on Ogoniland devastated by decades of oil spills.

An Inter-Ministerial committee on Hydrocarbon Pollution Restoration Project (HYPREP) (under the Federal Ministry of Environment) was established.

HYPREP has since set up structures in place for the final take off of clean-up and restoration of the region devastated by oil spills. This shows the commitment of the FG to restore the region.

8 Companies engaged to conduct Demonstration Clean-up Exercises in the 4 Local Government Areas of Ogoni Land, to enable HYPREP select the best and most suitable technology for the remediation work. These Demonstrations were recently concluded; the results are being studied by the Governing Council of the Ogoni Clean-up Project.

HYPREP has also trained 15 indigenous Ogoni scientists on environmental assessment remediation.

HYPREP assessed existing water facilities in Ogoni land in line with the UNEP recommendation report that potable water be provided for Ogoni following pollution of water sources in region by oil spills.

Health impact assessment study to be done to ascertain whether there is a link between some disease patterns and oil pollution in the affected communities.

Bids have been invited for consultancy on provision of water, health study and environmental remediation.

Infrastructure:

Investment in Ibaka Deep Sea Port:

The Federal Government has budgeted N1 billion towards the development of Ibaka seaport in Akwa Ibom.

Investment in Bonny-Bodo Road Project:

The N120 billion Bonny-Bodo road project was flagged-off in October 2017 by the Vice President, Prof. Yemi Osinbajo, SAN. The 34-kilometre road project, linking Bonny Island to the mainland was first mooted about 40 years ago.

The Bonny-Bodo bridge and road project is a Public Private Partnership arrangement jointly funded by Nigeria LNG and the Federal Government, in which the Federal Government and the Nigeria Liquefied Natural Gas Company Limited (NLNG) will each bear 50 percent of the N120.6 billion that it will cost to complete the project.

When completed, the 34-kilometres road would connect several major communities in the Niger Delta region and boost socio-economic development and improve the lives of people in the Niger Delta region.

Export Processing Zone (EPZ):

The Federal Government approved the establishment of the Export Processing Zone (EPZ) comprising the Gas City Project at Ogidigben, and the Deep Seaport in Gbaramatu, Warri South-West local government area, Delta State.

When fully operational, these projects are expected to boost socio-economic activities and improve the security landscape of the Niger Delta region.

Modular Refineries:

The objectives of establishing modular refineries in the Niger Delta region include the following: to create a robust domestic refining sector necessary to meet and exceed the full capacity of national demand, address the proliferation of illegal refineries in the Niger Delta, and attendant environmental degradation, and to provide jobs for unemployed youths in the region.

13 out of 35 applications have reached what is known as the LTC (License to Construct) stage.

Two out of these 13 refineries are almost ready for shipment. Consideration for Customs duty waiver and some form of tax holiday also underway.

Government is also working with Nigerian Sovereign Wealth Fund (NSWF), Bank of Industry (BOI), AfrExim Bank, and Nigerian Content Development Management Board to address the issue of lack of financial capacity on the part of the local partners (Local partners are expected to come up with a minimum of 15% of cost as counterpart funding).

Presidential Amnesty Programme (PAP):

The Presidential Amnesty Programme engages ex-militants and youths from the impacted communities in formal education, vocational skills acquisition and empowerment schemes.

The 2018 budgetary allocation for the Niger Delta Amnesty Programme is N65 billion.

21,615 beneficiaries have so far been trained, out of which 4,079 have been empowered.

PAP has empowered 4,079 ex-militants through the establishment of businesses such as agriculture (cluster farms). 3,237 ex-militants are in various stages of Vocational Training and University Scholarship Programmes.

The Amnesty Office has initiated the training of 10,000 beneficiaries in modern agriculture and established them into 10,000-hectare cluster farms in the nine (9) Niger Delta States.

PAP modern agricultural schemes are projected to create 80,000 new jobs in three years

Laolu Akande
Senior Special Assistant to the President on Media & Publicity
Office of the Vice President
12th November 2017

Speech: President Buhari’s 2018 Budget Address

I am here to present 2018 Budget Proposals. Before presenting the Budget, let me thank all of you Distinguished and Honourable Members of the National Assembly, and indeed all Nigerians, for your support and prayers for my full recovery while I was on medical vacation.

I am very pleased to address this Joint Session of the National Assembly, on the revenue and expenditure estimates, and related matters, of the Federal Government of Nigeria for the 2018 fiscal year.

The 2018 Budget will consolidate on the achievements of previous budgets and deliver on Nigeria’s Economic Recovery and Growth Plan (ERGP) 2018 – 2020.

OVERVIEW OF ECONOMIC DEVELOPMENTS IN 2017

2017, so far, has been a year of uncertainty on many fronts across the world. Whether it is Brexit, the crisis in the Korean Peninsular, or indeed, the political uncertainty in key oil producing nations of the Middle East and South America, we can all agree that these developments have in one way or another impacted Nigeria’s economic fortunes.

By all accounts, 2018 is expected to be a year of better outcomes. The tepid economic recovery is expected to pick up pace and the global political terrain is expected to stabilize. The International Monetary Fund (IMF) is anticipating global GDP growth of 3.7 percent in 2018. Emerging markets and developing economies are expected to lead with GDP growth of 4.9 percent, while advanced economies are projected to grow at a slower rate of 2 percent.

Nigeria’s journey out of the recent recession was a revealing one. We heard many opinions from within and outside Nigeria on how best to address our economic woes. We listened carefully and studied these proposals diligently. Our belief has always been that the quickest and easiest solution may not necessarily be the best solution for a nation as diverse as ours. We took our time to create a balanced and equitable response, keeping in mind that only tailored Nigerian solutions can fix Nigeria’s unique problems.

And from the recovery that we are seeing today, it is clear that we made the right decisions. Distinguished and Honourable Members of the National Assembly, I am now asking you to continue to support our economic policies in order to consolidate and sustain on the success achieved so far. We simply cannot go back.

In the non-oil sector, crop production has been one of the main contributors to non-oil growth, which rose to 0.45 percent in the second quarter of this year. This was primarily driven by our ongoing financial, capacity building and infrastructure development programs.

The Ministry of Agriculture and Rural Development, working with development partners and the private sector, have embarked on numerous capacity building projects. We have also completed over 33,000 Hectares of Irrigation Projects that have increased water availability in key food producing states. We shall continue to intensify our interventions through the Anchor Borrowers’ Programme and the Presidential Fertilizer Initiative to ensure that this momentum is sustained. We have also made provisions in the 2018 Budget to complete ongoing Irrigation Projects at Ada, in Enugu State; Lower Anambra, in Anambra State; and Gari, in Jigawa State. In 2017, many factories and projects in the food and agricultural sectors were commissioned in Kebbi, Nasarawa, Kaduna, Anambra, Edo, Jigawa, Rivers, Niger, Ogun and Ebonyi States, to mention a few. This is a clear statement that our economic diversification and inclusive growth ambitions are coming to fruition.

Significant progress has also been made in the Solid Minerals development sector. In Ondo State, for instance, work is ongoing to fully exploit the bitumen resources to meet the 600,000 MTs of asphalt imported per annum for roads and other construction projects. To consolidate on these efforts, we have also established a 30 billion Naira Solid Minerals Development Fund to support other minerals exploration activities across the country.

In the oil and gas sector, the relatively higher crude oil prices supported our economic recovery. Our mutually beneficial engagement with oil producing communities in the Niger Delta contributed immensely to the recovery in oil production experienced in recent months. We would like to thank the leadership and communities in the Niger-Delta for their continued support and to also reiterate our assurances that this Administration will continue to honour our commitments to them. We cannot afford to go back to those dark days of insecurity and vandalism. We all want a country that is safe, stable and secure for our families and communities. This means we must all come together to address any grievances through dialogue and peaceful engagement. Threats, intimidation or violence are never the answer.

We are working hard on the Ogoni Clean-up Project. During the year, we engaged 8 international and local companies proposing different technologies for the mandate. To enable us select the best and most suitable technology for the remediation work, we asked each company to conduct Demonstration Clean-up Exercises in the 4 Local Government Areas of Ogoni Land. These Demonstrations were recently concluded and the results are being studied by the Governing Council of the Ogoni Clean-up Project. Although the Project will be funded by the International Oil Companies, we have made provisions in the 2018 Budget for the costs of oversight and governance, to ensure effective implementation.

On the international front, I would like to thank our friends and partners in the Joint OPEC / Non-OPEC Ministerial Monitoring Committee (JMMC) who graciously granted Nigeria an exemption from the output cuts imposed on OPEC Member Countries in January 2017. This exemption, which was extended in September 2017, significantly helped during our most challenging time. We shall continue our positive engagement with other oil producing nations to ensure that the momentum generated is sustained.

Permit me, Mr. Senate President and Right Honourable Speaker, to state that despite the downturn in oil prices and our challenging economic circumstances, this Administration was able to invest an unprecedented sum of over 1.2 trillion Naira in capital projects through the 2016 Budget. This is the highest ever in the history of this country. This is a clear demonstration of our commitment to consolidate on our economic diversification reforms and lay a stronger foundation for future growth and development.

Our Sovereign Wealth Fund, which was established in 2011 with US$1 billion, did not receive additional investment for 4 years when oil prices were as high as US$120 per barrel. However, despite record low oil prices, this Administration was able to invest an additional US$500 million into the Fund. This further demonstrates that in our struggle to have a stable and secure nation today, we have not, and will not, lose sight of the need to lay a solid foundation for the future prosperity of successive generations.

We have asked the Sovereign Wealth Fund to look inward and invest locally. Some of the successes we are seeing today in the agricultural sector are driven by this new investment approach by the Nigeria Sovereign Investment Authority (NSIA). The NSIA also has a very strong pipeline of local investments that will support our inclusive and diversified economic growth plan.

Stability has been restored to the foreign exchange market due to the interventions by the Central Bank of Nigeria to improve access to liquidity, discourage currency speculation and increase net foreign exchange inflows. As at the 30th of October, 2017, our external reserves had increased to US$34bn. This stability has supported our efforts to provide the enabling environment and interventions needed to empower Micro, Small and Medium-Sized enterprises, investors, manufacturers and exporters, to sustain and in some cases, grow their operations. Indeed, by the second quarter of 2017, exports significantly outpaced imports, resulting in a trade surplus of 506.5 billion Naira.

Ease of Doing Business Reforms

One of the targets we set for gauging our progress in creating an enabling environment for business was to achieve a positive movement in the World Ease of Doing Business Index. You would recall Nigeria experienced a decade-long decline in this ranking. In 2008, Nigeria was ranked 120th. By 2015, our situation had deteriorated to 169th of the 189 countries surveyed. Our very simple, logical and user-friendly reforms are reversing this trend. A recently released World Bank business ranking report announced that Nigeria had moved 24 places to 145th position in 2017. I am delighted that we have met and even surpassed our target of moving at least 20 paces up this global ranking. The same World Bank report also stated that Nigeria is among the top 10 reforming countries in the world.

To ensure these reforms are institutionalized, Executive Order Number #1 on the Promotion of Transparency and Efficiency in the Business Environment was issued in May 2017. The Order contained measures that ease the process of business registration, approval of permits, granting visas and streamlining port operations. We are committed to continuing and accelerating the Ease of Doing Business reforms, which are critical to attracting new investments, growing the economy and creating jobs for our people.

Improved Tax Administration

Although the economy is diversified with non-oil Sector accounting for over 90 percent of total Nominal GDP, the Government’s revenues are not as diversified yet. Our Tax-to-GDP ratio of about 6% is one of the lowest in the world. This situation is not consistent with our goal of having a diversified, sustainable and inclusive economy. Accordingly, we are stepping up efforts to ensure all taxable Nigerians comply with the legal requirement to declare income from all sources and remit taxes due to the appropriate authorities.

Already, we have introduced the Voluntary Assets and Income Declaration Scheme (VAIDS) on the 1st of July, 2017. The Scheme provides non-compliant taxpayers with a nine-month window to regularise their tax status relating to historical periods. In return, overdue interest and penalties will be forgiven. In addition, no investigations or criminal charges will be brought against participating taxpayers. We expect that this Scheme will widen the tax net for both the Federal and State Governments. I am therefore, asking all Nigerians to seize this opportunity and do right thing. Let us not shy away from our duty to build a better Nigeria.

Optimising Efficiency in Expenditure

In 2016 this Administration adopted a policy of allocating at least 30 percent of our annual budget to capital expenditure. This was entrenched in the ERGP to unlock further growth in the economy. This tradition was maintained in the 2017 Budget and has been reflected in the proposal for 2018, in which 30.8 percent of total expenditure has been set aside for the capital vote.

To support these efforts, you would recall that an Efficiency Unit was set up under the Federal Ministry of Finance to reduce wastage, plug leakages and foster greater fiscal transparency. We have intensified the implementation of the Integrated Payroll and Personnel Information System (IPPIS) across government MDAs to automate personnel records and salaries’ payment process, with the goal of eliminating ghost workers. 461 Federal MDAs have been captured on the system, so far. Our target is to enroll all MDAs. I have directed the military and other security agencies to ensure total compliance without further delay.

Increased Investment in Infrastructure

Mr. Senate President, and the Right Honourable Speaker, we shall continue to develop our infrastructure across the country. Although a lot of progress has been made, the huge contractor liabilities we inherited have adversely impacted our infrastructure development timetable. Indeed, contractors were owed trillions of Naira when this Administration came into office. In some areas, we have made payments so projects may be completed; while in others, we are reconciling the liabilities to identify and settle legitimate claims. As a responsible and accountable Administration, we decided that clearing this backlog was an important priority.

For instance, at the outset of this Administration in 2015, the Abuja Metro-Rail Project, which began in 2007 was only 50% completed, after 8 years. Today, in just 18 months, we have pushed the project to 98% completion. This was achieved as the Nigerian Government was diligently able to meet its counterpart funding obligations for the Chinese loans.

We have also continued work on key strategic Roads. Over 766 kilometres of roads were constructed or rehabilitated across the country in 2017. For instance, work is at various stages of completion on these strategic roads with immense socio-economic benefits:

1. Rehabilitation of Ilorin-Jebba-Mokwa-Birnin-Gwari-Kaduna Road;
2. Dualization of Oyo-Ogbomosho-Ilorin Road;
3. Rehabilitation of Gombe-Numan-Yola Road;
4. Dualization of Kano-Maiduguri Road;
5. Rehabilitation of Sokoto-Tambuwal-Jega Road and Kotangora-Makera Road that transverse Sokoto, Kebbi and Niger States;
6. Rehabilitation and Reconstruction of Enugu-Port-Harcourt Road;
7. Rehabilitation of Enugu-Onitsha Dual Carriageway Road;
8. Rehabilitation of Aleshi-Ugep Road and the Iyamoyun-Ugep Section in Cross River State;
9. Rehabilitation, Reconstruction and Expansion of Lagos-Ibadan Dual Carriageway Road;
10. Construction of Loko-Oweto Bridge over River Benue in Nasarawa and Benue States; and
11. Construction Gokanni Bridge along Tegina-Mokwa-Jebba Road in Niger State.

Under the Federal Roads Development Programme, we recently completed a Data Collection Exercise on the 7,000km Federal Road Network which was funded by the World Bank. This information is enabling us to make informed decisions regarding the planning, budgeting and management of the Federal Road Network. Going forward, we will be working based on facts rather than subjectivity.

Furthermore, we have also invested a lot of time and effort in identifying alternative means of funding new projects. For example, the recent 100 billion Naira Sukuk Financing will cater specifically for the development of 25 roads across the country. We also developed different structures that empower private investors to contribute to the development of roads of significant national importance. Already, we are seeing results. For example:

1. The Bonny-Bodo Road is being jointly funded by the Federal Government and Nigeria LNG Limited. This project was conceived decades ago but it was abandoned. This Administration restarted the project and when completed, it will enable road transportation access for key communities in the Niger- Delta region; and
2. The Apapa Wharf-Toll Gate Road in Lagos State is also being constructed by private sector investors in exchange for tax credits.

Distinguished Members of the National Assembly, our Power Sector Reforms still remain a work in progress. Although we have increased generation capacity significantly, we still have challenges with the Transmission and Distribution Networks. That said, I am pleased to announce that since 2015, the Transmission Company of Nigeria (TCN) and Niger-Delta Power Holding Company (NDPHC) have added 1,950 MVA of 330-132kV transformer capacity at 10 Transmission stations, as well as 2,930 MVA of 132-33kV transformer capacity to 42 substations nationwide. With these additions, the Transmission Network today can handle up to 7,000 Mega Watts (MW).

The key bottleneck now is the Distribution Network where the substations cannot take more than 5,000 MW. This is constraining power delivery to consumers. We are working with the privatized Distribution Companies to see how to overcome this challenge. Nigerians should be rest assured that this Administration is doing all it can to alleviate the embarrassing power situation in this country.

Furthermore, to sustain the continued expansion of generation capacity and enhance evacuation, we approved a Payment Assurance Guarantee Scheme which enabled the Nigerian Bulk Electricity Trader (NBET) to raise 701 billion Naira. This assures the Generation Companies of up to 80% payment on their invoices. This intervention has brought confidence back into the sector and we expect additional investment to flow through, particularly in the gas production sector.

Distinguished Members of the National Assembly, this Administration is committed to the development of Green Alternative Energy Sources. To date, we have signed Power Purchase Agreements (PPA) with 14 solar companies. We also approved:

1. The completion of the 10 MW Wind Farm in Katsina State, a project that was abandoned since 2012; and
2. The concession of 6 small hydro-electric power plants with a total capacity of 50 MW.

To enable the successful take-off of these, and future Green Projects, I am pleased to inform this Distinguished Assembly that the Federal Government will be launching the first African Sovereign Green Bond in December 2017. The bond will be used to finance renewable energy projects. We are very excited about this development as it will go a long way in solving many of our energy challenges, especially in the hinterland.

On Rail, we recently received 2 additional locomotives and 10 standard gauge coaches for the Abuja-Kaduna Rail Line. These will be deployed for the new non-stop express service between the two cities that will only take one hour and fifteen minutes. This new service will complement the existing service currently in place. We plan to commission this by December 2017.

We have also kick-started the abandoned Itakpe-Ajaokuta-Warri Rail Line. This project has been on for over 17 years. We had to take some drastic measures but I am pleased to announce that work is ongoing and we expect to commission this service by September 2018. This service will start with 7 standard gauge coaches.

The situation at the Apapa port complex is a top priority for this Administration. The delays due to congestion and their adverse impact on business operations and costs is a key concern to our Government. As I mentioned earlier, we are partnering with the private sector to fix the road. We shall do the right thing considering. We will not cut corners.

In addition to the road, we have also commenced the extension of the Lagos-Ibadan Standard Gauge Rail Line to connect Apapa and Tin Can Port Complexes. This project will significantly ease the congestion at the ports and enhance both export and import operations. This project shall be completed by December 2018. Already, working with the private sector, we have repaired the Apapa Port Narrow Gauge Line which is currently being used to evacuate goods from the port, thereby easing congestion.

As we all know, sometimes doing the right thing takes time and requires sacrifices. I am therefore appealing to all stakeholders to work with us in ensuring we deliver a solution that we will all be proud of.

Certainly, the infrastructure requirement to reposition Nigeria for the future is huge and our resources are limited. Government, therefore, will pursue private partnerships to maximise available capital and developmental impact. In the next fiscal year, we will also establish 7 tertiary health institutions across the country through partnership with our Sovereign Wealth Fund and other private sector investors.

Agricultural Development

The agricultural sector played a crucial role in Nigeria’s exit from recession. Today, it remains the largest employer of labour and holds significant potential to realise our vision of repositioning Nigeria as a food secured nation.

We will consolidate on existing policies and develop new ones to ensure the numerous value chain challenges in the agricultural sector are addressed. As I mentioned earlier, several investors have deployed significant capital in the production and processing of rice, sugar, maize, soya, cassava, yams, tomato, oil palm, rubber and poultry, to mention a few. We are also seeing increased investment in the agro-inputs manufacturing sector such as fertilisers.

We are determined to protect these investments and encourage more. Food Security is an important aspect of this Administration’s National Security agenda. Any person involved in smuggling of food items is a threat to our National Security and will therefore be dealt with accordingly. A Committee chaired by the Vice President is working on this matter. A key part of their work will be the reactivation of the Badagry Agreement signed between Nigeria and the Republic of Benin in 2003. This agreement, which was abandoned by previous Administrations, established a mutually beneficial framework for the two neighbours and allies to partner in tackling smuggling and other cross border crimes. I would like to assure investors in the agricultural value chain that the menace of smuggling will be handled decisively.

To further support investors and State Governments, we will accelerate the establishment of at least 6 Staple Crop Processing Zones, in the first phase. This initiative will develop infrastructure for the production, processing and storage of strategic commodities. The focus is on backward integration for grains, horticulture, livestock, fisheries and sugar; as well as exportable commodities such as cocoa, cassava and oil palms.

Health Sector Developments

During 2017, the country had a number of disease outbreaks such as Meningitis, Yellow Fever, Monkey Pox and Lassa Fever. I would like to commend the Federal and State Ministries of Health for their selfless service and timely responses to contain these outbreaks. I would also like to thank the World Health Organisation, the Global Fund and UNICEF, for their continued support during these trying times. This collaboration was a key factor in the low mortality rates experienced. To further improve our response to such outbreaks, we are working to upgrade our Integrated Disease Surveillance and Response System. This will further enhance the efficiency of our diagnostic and clinical management processes.

In this respect, I urge this Distinguished House to expedite the passage of the Bill for the Nigeria Centre for Disease Control to enable us consolidate on the successes recorded to date.

Implementing the Social Investment Program

I am pleased to inform you that we have recorded tremendous success in the implementation of the Federal Government’s Social Investment Program. Specifically,

d. Over 4.5 million Primary 1 to Primary 3 pupils in public schools are being fed under the School Feeding programme;

Over 200,000 unemployed graduates have been employed under the N-Power Scheme in education, health and agricultural sectors;

Over 250,000 enterprises have benefitted from the sum of 12.5 billion Naira, which has been disbursed to entrepreneurs to expand their businesses; and

Over 110,000 households are currently benefitting from the Conditional Cash Transfer programme across the country.

PERFORMANCE OF THE 2017 BUDGET

The 2017 Budget of Recovery and Growth was based on a benchmark oil price of US$44.5 per barrel, oil production of 2.2 million barrels per day, and a Naira-to-US Dollar Exchange Rate of 305. Based on these assumptions, total revenue of 5.084 trillion Naira was projected to fund aggregate expenditure of 7.441 trillion Naira. A projected fiscal deficit of 2.356 trillion Naira was to be financed mainly by domestic and external borrowing.

On revenue performance, collections were 14 percent below target as of September 2017, mainly due to the shortfall in non-oil revenues.

A key revenue shortfall was from Independent Revenues; only 155.14 billion Naira was remitted by September 2017 as against the projected pro-rated sum of 605.87 billion Naira. This represents a 74 percent shortfall, which is very disappointing.

This recurring issue of under-remittance of operating surpluses by State Owned Entities is absolutely unacceptable. You will all recall that in September 2017, the Joint Admissions and Matriculation Board (JAMB) announced that they were ready to remit 7.8 billion Naira back to the Government. The shocking discovery was that in the last decades, JAMB only remitted an aggregate of 51 million Naira. This clearly illustrates the abuses that occur in State Owned Entities as well as their potential for increased Independent Revenues, if only people would do the right thing. We all need to play our role to ensure the right thing is done. I would also like to remind Nigerians that the Whistle Blower lines are still open.

Accordingly, I have directed the Economic Management Team (EMT) to review the fiscal profiles of these agencies, to ensure strict compliance with the applicable Executive Orders and Financial Regulations. There may be a need to consider a review of the Fiscal Responsibility Act and the Executive will be approaching the National Assembly on this issue in due course.

On the expenditure side, a total of 450 billion Naira of the capital vote had been released as at the end of October 2017. With your support for our funding plan, our target is to release up to 50% of the capital vote for MDAs by the year’s end. We have prioritised payments of our counterpart obligations on our concessionary loans, as well as funding of critical infrastructure and other projects with socio-economic benefits. Furthermore, MDAs have made provisions to carry over to the 2018 Budget, capital projects that are not likely to be fully funded by year-end 2017, to ensure project continuity.

Regrettably, the late passage of the 2017 Budget has significantly constrained budget implementation. As you are aware, the 1999 Constitution authorized necessary Federal Government expenditures prior to the 12th of June, 2017 when the 2017 Appropriation Act was signed into law. This year, we have worked very hard to achieve an earlier submission of the Medium-term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), and the 2018 Appropriation Bill. Our efforts were to avail the National Assembly with sufficient time to perform its important duty of passing the Appropriation Bill into law, hopefully by the 1st of January, 2018. It is in this spirit that I solicit the cooperation of the Legislature in our efforts to return to a more predictable budget cycle that runs from January to December.

PRIORITIES FOR THE 2018 BUDGET OF CONSOLIDATION

The 2018 Budget Proposals are for a Budget of Consolidation. Our principal objective will be to reinforce and build on our recent accomplishments. Specifically, we will sustain the reflationary policies of our past two budgets. In this regard, the key parameters and assumptions for the 2018 Budget are as set out in the 2018-2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). These include:

1. Benchmark oil price benchmark of US$45 per barrel;
2. Oil production estimate of 2.3 million barrels per day, including condensates;
3. Exchange rate of N305/US$ for 2018;
4. Real GDP growth of 3.5 percent; and
5. Inflation Rate of 12.4 percent.

Federally-Collectible Revenue Estimates

Based on the above fiscal assumptions and parameters, total federally-collectible revenue is estimated at 11.983 trillion Naira in 2018. Thus, the three tiers of Government shall receive about 12 percent more revenues in 2018 than the 2017 estimate. Of the amount, the sum of 6.387 trillion Naira is expected to be realised from oil and gas sources. Total receipts from the non-oil sector are projected at 5.597 trillion Naira.

Federal Government Revenue Estimates

The Federal Government’s estimated total revenue is 6.607 trillion Naira in 2018, which is about 30 percent more than the 2017 target. As we pursue our goal of revenue diversification, non-oil revenues will become a larger share of total revenues. In 2018, we project oil revenues of 2.442 trillion Naira, and non-oil as well as other revenues of 4.165 trillion Naira.

Non-oil and other revenue sources of 4.165 trillion Naira, include several items including: Share of Companies Income Tax (CIT) of 794.7 billion Naira, share of Value Added Tax (VAT) of 207.9 billion Naira, Customs & Excise Receipts of 324.9 billion Naira, FGN Independently Generated Revenues (IGR) of 847.9 billion Naira, FGN’s Share of Tax Amnesty Income of 87.8 billion Naira, and various recoveries of 512.4 billion Naira, 710 billion Naira as proceeds from the restructuring of government’s equity in Joint Ventures and other sundry incomes of 678.4 billion Naira.

Proposed Expenditure for 2018

A total expenditure of 8.612 trillion Naira is proposed for 2018. This is a nominal increase of 16 percent above the 2017 Budget estimate. In keeping with our policy, 30.8 percent (or 2.652 trillion Naira) of aggregate expenditure (inclusive of capital in Statutory Transfers) has been allocated to the capital budget.

We expect our fiscal operations to result in a deficit of 2.005 trillion Naira or 1.77 percent of GDP. This reduction is in line with our plans under the ERGP to progressively reduce deficit and borrowings.

We plan to finance the deficit partly by new borrowings estimated at 1.699 trillion Naira. Fifty percent of this borrowing will be sourced externally, whilst the balance will be sourced domestically. The balance of the deficit of 306 billion Naira is to be financed from proceeds of privatisation of some non-oil assets by the Bureau of Public Enterprises (BPE).

The proposed 8.612 trillion Naira of 2018 Aggregate Expenditure comprises:

1. Recurrent Costs of N3.494 trillion;
2. Debt Service of N2.014 trillion;
3. Statutory Transfers of about N456 billion;
4. Sinking Fund of N220 billion (to retire maturing bond to Local Contractors);
5. Capital Expenditure of N2.428 trillion (excluding the capital component of Statutory Transfers).

Statutory Transfers

456.46 billion Naira was provided in the 2018 Budget for Statutory Transfers. The 5 percent increase over last year’s provision is mainly due to increases in transfer to Niger Delta Development Commission (NDDC) and the Universal Basic Education Commission (UBEC), which are related directly to the size of oil revenue.

Debt Restructuring

We are closely monitoring our debt service to revenue ratio. We shall address this ratio through our non-oil revenue-generation drive and restructuring of the existing debt portfolio. Presently, domestic debt accounts for about 79 percent of the total debt. Our medium-term strategy is to reduce the proportion of our domestic debt to 60% by the end of 2019 and increase external debt to 40 percent. It is noteworthy that rebalancing our debt portfolio will enhance private sector access to domestic credit. In addition, annual debt service costs will reduce as external debts are serviced at lower rates and repaid over a longer period than domestic debt.

Recurrent Expenditure

A substantial part of the recurrent cost proposal for 2018 is for the payment of salaries and overheads in key Ministries providing critical public services such as:

1. N510.87 billion for Interior;
2. N435.01 billion for Education;
3. N422.43 billion for Defence; and
4. N269.34 billion for Health.

The allocation to these Ministries represent significant increases over votes in previous budgets.

Personnel Costs

Personnel costs is projected to rise by 12 percent in 2018. Although we have made substantial savings by registering MDAs on the Integrated Personnel Payroll Information System (IPPIS) platform, the increase is mainly due to provision for staff promotion arrears, and recruitments by the Military, Police Force and para-military agencies. Furthermore, I have directed agencies are not to embark on any fresh recruitment unless they have obtained all the requisite approvals. Any breach of this directive will be severely sanctioned.

Overhead Costs

Overhead costs is projected to rise by 26 billion Naira in 2018, a modest increase of about 12 percent reflecting inflationary adjustments. MDAs are required to adhere to government regulations regarding cost control.

Capital Expenditure

To consolidate on the momentum of the 2017 Budget’s implementation, many ongoing capital projects have been provided for in the 2018 Budget. This is in line with our commitment to appropriately fund ongoing capital projects to completion. By allocating 30.8 percent of the 2018 Budget to capital expenditure, the Federal Government is also demonstrating its strong commitment to investing in critical infrastructure capable of spurring growth and creating jobs in the Nigerian economy.

Key capital spending allocations in the 2018 Budget include:

1. Power, Works and Housing: N555.88 billion;
2. Transportation: N263.10 billion;
3. Special Intervention Programmes: N150.00 billion;
4. Defence: N145.00 billion;
5. Agriculture and Rural Development N118.98 billion;
6. Water Resources: N95.11 billion;
7. Industry, Trade and Investment: N82.92 billion;
8. Interior: N63.26 billion;
9. Education N61.73 billion;
10. Universal Basic Education Commission: N109.06 billion;
11. Health: N71.11 billion;
12. Federal Capital Territory: N40.30 billion;
13. Zonal Intervention Projects N100.00 billion;
14. North East Intervention Fund N45.00 billion;
15. Niger Delta Ministry: N53.89 billion; and
16. Niger Delta Development Commission: N71.20 billion.

As I had previously indicated, we aim to consolidate on our achievements in 2017. We shall meet our counterpart funding obligations. We shall complete all ongoing projects. And we shall carry forward all strategic projects that were budgeted for but which we were unable to kick start due to liquidity challenges, late passage of the budget, prolonged contractual negotiations, and other matters.

Specifically, I would like to bring your attention to the following key projects and programmes that we are determined to implement in 2018:

1. N9.8 billion for the Mambilla hydro power project, including N8.5 billion as counterpart funding;
2. N12 billion counterpart funding for earmarked transmission lines and substations;
3. N35.41 billion for the National Housing Programme;
4. N10.00 billion for the 2nd Niger Bridge; and
5. About N300 billion for the construction and rehabilitation of the strategic roads mentioned earlier.

Consolidating on the Social Intervention Programme

This Administration remains committed to pursuing a gender-sensitive, pro-poor and inclusive growth. We are keenly interested in catering for the most vulnerable. Accordingly, we have retained the 500 billion Naira allocation to the Social Intervention Programme. Under the programme, 100 billion Naira has been set aside for the Social Housing Programme.

Government will also continue to implement the Conditional Cash Transfer (CCT) programme, as well as the National Home-Grown School Feeding programme in 2018. These initiatives are already creating jobs and economic opportunity for local farmers and cooks, providing funding to artisans, traders and youths, as well as supporting small businesses with business education and mentoring.

Regional Spending Priorities for Peace, Security and Development

To maintain peace and security in the Niger Delta for economic and social activities to thrive, the provision of 65 billion Naira for the Presidential Amnesty Programme has been retained in the 2018 Budget. In addition, the capital provision for the Ministry of Niger Delta has been increased to 53.89 billion Naira from the 34.20 billion Naira provided in 2017. This is to further support the development in the region. We will complete all critical projects, including the East-West Road, which has a provision of about 17.32 billion Naira in 2018.

Across the nation, and particularly in the North East region, our commitment to the security of life and property remains absolute. We will ensure that our gallant men and women in arms are properly equipped and well-motivated. The result of our efforts is evident in the gradual return to normalcy in the North East. It is in this spirit that I recently assented to the North-East Development Commission Bill that was passed by this Distinguished House. We expect that this development will consolidate on our ongoing efforts to combat insurgency, reintegrate Internally Displaced Persons and rebuild communities in the North East Region, which have been adversely affected by the insurgency.

Similar attention is being given to efforts to reduce violent crime across the country. The Nigerian Army was recently deployed to combat the growing scourges of cattle rustling and banditry that have plagued our communities in Kaduna, Niger, Kebbi, Katsina and Zamfara States. We will also continue to arrest the incidence of Armed Robbery, Kidnapping and other Violent Crimes across our nation.

We have also increased our focus on cyber-crimes and the abuse of technology through hate speech and other divisive material that is being propagated on social media. Whilst we uphold the Constitutional rights of our people to freedom of expression and association, where the purported exercise of these rights infringes on the liberties of other citizens or threatens to undermine our National Security, we will take firm and decisive action.

In this regard, I reiterate my call for Nigerians to exercise restraint, tolerance and mutual respect in airing any grievances and frustrations. Whilst the ongoing national discourse on various political issues is healthy and welcome, we must not forget the lessons of our past. I trust that the vast majority of our people would rather tread the path of peace and prosperity, as we continue to uphold and cherish our Unity in Diversity.

CONCLUSION

Distinguished and Honourable Members of the National Assembly, you will recall that in my 2017 Budget Speech, I promised a new era for Nigeria and an end to the old ways of overdependence on oil revenues. The statistics and initiatives I mentioned clearly show that this new era has come and the old Nigeria is surely disappearing. We must, therefore, all work together to protect and sustain this CHANGE to create a new Nigeria:

1. A Nigeria that feeds itself;
2. A Nigeria that optimally utilizes its resources;
3. A Nigeria with a diversified, sustainable and inclusive economy.

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 move our great nation forward. I wish to assure you of the strong commitment of the Executive branch to deepen the relationship with the Legislature.

Nigeria is currently emerging from a very difficult economic period. If we all cooperate, and support one another, we can consolidate on our exit from the recession and firmly position Nigeria for economic prosperity. All the projects presented within this Budget have been carefully selected and subjected to extensive consultations and stakeholder engagements. As a Government, we are determined to bring succour to our people, improve their lives, and deliver on our promises to them. 2018 is a crucial year as we strive to ensure that we consolidate our successes and institutionalize the policies and practices that drove this turnaround.

I appeal to you to swiftly consider and pass the 2018 Appropriation Bill.

It is therefore with great pleasure and a deep sense of responsibility, that I lay before this Distinguished Joint Session of the National Assembly, the 2018 Budget Proposals of the Federal Government of Nigeria.

I thank you most sincerely for your attention.

May God bless the Federal Republic of Nigeria.

Speech: VP Osinbajo’s Address at the Lagos Chambers of Commerce Event

I am honoured and pleased to be in your midst today to celebrate the 55th anniversary of the Oil Producers Trade Section (OPTS) of the Lagos Chambers of Commerce and Industry (LCCI).

As the oldest advocacy group for the Oil and Gas industry, the OPTS has a rich heritage of promoting the best interests of the Upstream Oil and Gas sector of the Nigerian economy.

Aside from being the industry’s largest private sector investors and participants, we all owe you a debt of gratitude for these positive contributions through the years.

The theme: Nigeria: An Investor Friendly Destination, aptly describes Nigeria’s current journey of transiting to the next chapter, of maximizing our resources for the development of our nation, and the OPTS platform is an important sounding board for government and several regional non- state actors interested in the oil and gas industry.

Permit me to mention some highlights of the performance of the Industry in the past two years and in the past year. 2016 tested the resolve and resilience of oil producing countries especially OPEC members.

Unlike in 2008 where the oil price decline was driven by demand deterioration, the decline in the oil price from 2014 to 2016 was due to excess supply. So more than ever, we needed closer collaboration within OPEC and externally with the non-OPEC members. Oil market sentiments have improved since the OPEC and non-OPEC declaration, and as prices rose, volatility decreased and net futures and options long positions increased.

In 2016, the Nigeria upstream sector of the oil and gas industry was challenged by the menace of upstream assets vandalism. From a peak production of over 2.30 Million barrels per day recorded at the beginning of 2016, we witnessed a decline to an almost all-time-low of just under 1.0 Million barrels per day due to incessant vandalism. Many indigenous producers suffered perhaps more than other players in the industry.

But thankfully, largely due to sustained engagements with the Niger Delta and the new Niger Delta vision, our production has ramped up to about 2.1 million barrels per day, from our 2016 crude oil production average of about 1.8 million barrels and that figure includes condenses.

Petroleum products supply and distribution to the nation is fairly stabilized since the giant leap of May 2016 market liberalization.

However, with the prevailing change in the macroeconomic conditions, this is being achieved at higher cost, especially to NNPC as the supplier of the last resort.

We continue to channel more energy towards resolving our downstream issues, once and for all and we have also made tremendous progress in fulfilling the repayment terms of the new sustainable funding framework for Joint Venture cash call operations. This will not only sustain our JV operations but is also a key enabler for incremental production from our JV operations and a pathway towards incorporating our JVs.

In the area of Local Content, in the year 2016, the country witnessed a steady increase in participation of Nigerians in oil and gas contracts by about 180%, and we expect that the numbers will increase in 2017 and beyond.

When all these highlights of the industry are taken together, we can see both progress and challenges.

Our challenges include that of security & environment, institutional capacity, funding of investments, high industry technical costs, obsolete legislation & fiscal regimes, downstream sector issues and infrastructure constraints.

There are often various factors that contribute to create these challenges. These factors obviously underpin our own approach and considerations we have made in reforming and repositioning our oil and gas industry.

Reforming the Industry, you are well aware, His Excellency, President Muhammadu Buhari launched in October 2016, the roadmap for the repositioning of the Nigeria Oil and Gas Industry. The roadmap has very specific time-focused targets and like the many other steps taken in the sector since the inception of the present administration, we remain focused on making necessary, even if dramatic policy shifts in this sector to grow, deepen and open up the business and opportunities in Nigeria’s oil and gas sector.

All studies conducted on the Nigerian petroleum sector since 1999, agree that the issue that the role of Government in the oil and gas sector needs to be better clarified whilst the policy, regulatory and commercial institutions need to be given a refocused mandate to ensure better sector governance, transparency of regulations and operations, accountability of the institutions, and removal of opaqueness around the industry.

For these reasons, we have begun to address these issues with an overhaul of sector policies. We have developed and obtained the approval of the Federal Executive Council for a new National Oil and Gas Policy, and a new fiscal policy has been developed and its approval by FEC is underway.

We have taken a root and branch effort to reform, which is the basis of these policies and in order to ensure the sustainability of the policies, Nigeria is in the process of legislating these critical policy positions within the next few months.

The strategic objective of the new oil policy is to:

Create a market driven oil and gas industry,
Maximize production and processing of hydrocarbons,
Move away from oil as a source of income, to oil as a fuel for economic growth,
Minimize the environmental footprint of oil exploration and production,
Manage the balance between depleting oil resources vs renewable energy,
In the gas space, our policy interventions aspire to move the economy from oil to gas,
Diversify the gas supply options within Nigeria, to ensure security of supply,
Extend gas penetration in the domestic market in order to facilitate the growth of the electric power, agricultural, and industrial sectors gain a presence for Nigerian gas in international markets,
Operate a gas industry with a clear division of roles between private and public sectors,
Public sector policy making; implementation and regulation,
Private sector investment and operations,
End and commercialize gas flaring and address environmental issues,
Provide an enabling environment for increased private sector participation in the gas sector.

To clarify the rules guiding investment in the gas sector, the new fiscal policy sets out to address Nigeria’s energy trilemma of addressing energy availability, enhancing energy accessibility and promoting energy availability

It will enhance fiscal neutrality, create a fiscal basis that will encourage investments and market developments, while emplacing competitiveness and cost efficiency for the benefit of both government and the industry operators.

Hitherto, the Nigerian downstream infrastructure had been solely financed by government because of the social and economic impact, high investment requirements and long gestation period.

Due to competing needs for government resources from other public sector services, most oil and gas infrastructure development projects should be financed and managed through private sector participation.

It is in the light of this, that comprehensive reforms are ongoing to fast track the development of private sector led downstream infrastructure, for effective competition and efficient service delivery.

We will continue to address Niger Delta issues and build a peaceful and prosperous Niger Delta, with emphasis on job creation for our teaming unemployed youths, investment in infrastructure, energy and promotion of sustainable livelihood.

Other key areas in our focus include; hydrocarbon tracking, cost reduction and restructuring our parastatals. All in all, if our government’s orientation and doctrinal positions are anything to go by, the future portends even greater private sector leadership and participation in the oil and gas sector.

The oil industry stands to benefit greatly from our on-going Ease of Doing Business reforms. On Tuesday, the World Bank released its latest report, in which Nigeria achieved the unprecedented step of climbing 24 places in the rankings, and earning a place on the list of ten most improved economies in the world.

This is fantastic news, but by no means an excuse for us to slow down. Instead we’re taking it as the very reason why we need to ramp up our reforms, for the benefit of Nigeria. There is still work to be done in reducing bureaucratic bottlenecks in the award of contracts and generally in obtaining approvals – in your case from National Petroleum Investment Management Services (NAPIMS). It is for this reason – the creation of a business environment that catalyzes business activity and investment –that this year alone we have issued an Executive Order focusing on improving the business environment, and launched two National Action Plans designed to be short-term interventions aimed at implementing specific business environment reforms. The second National Action Plan is on-going, and we expect that it will yield results across every sector of the economy, including the OPTS.

In closing, let me reflect briefly on the issue of the slow but steady emergence of a post-oil world order. All around us there is evidence along these lines, of a world that is coming to terms with the fact that fossil fuels are going out of fashion. I’m certain that this is an issue you’ve had to agonise over and grapple with as oil producing companies.

Around the world, countries are increasingly setting deadlines to wean their cars and machines off petrol and diesel, in favour or clean, renewable energy. It is no longer a question of if but when. And it is for this reason that so-called ‘oil-rich’ countries have an obligation to prepare for a destiny beyond oil. It is in this context, that the mantra of ‘we need oil to set ourselves free from oil’ makes maximum sense.

As you yourselves adjust to the reality of the dwindling significance of fossil fuels, we solicit your cooperation and support for our own clean energy economy efforts as well. We would like to see you invest more in research and development initiatives focused on renewable energy; in generally envisioning and laying the foundation for a post-oil world.

The thinking about the swiftly emerging future, more than any concerns about a disappearing present, is what should most readily occupy our minds and thoughts on, as oil producers. It is certainly what should occupy the hearts and minds of all countries around the world, especially the so-called ‘oil rich’ ones like ours.

On this note, let me again express my appreciation to the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry (LCCI), for extending this invitation to me to celebrate your 55th anniversary with you. No doubt, the five-and-half decades ahead are guaranteed to witness more business model disruption and technological innovation than the five-and-half behind you.

I wish you a successful navigation of the exciting times and seasons ahead.

Happy 55th anniversary and thank you.

Released by:

Laolu Akande
Senior Special Assistant to the President on Media & Publicity
Office of the Vice President
2nd November, 2017

Press Release: VP Osinbajo’s Address at The 2-Day Organised Workshop For Justices and Judges in Abuja.

There is no question at all that corruption is our nation’s single greatest challenge. Indeed the notion that security was a more serious challenge was exploded, when in the last administration, it became clear that the escalation of the Boko Haram insurgency in the Northeast was on account of the fact that billions of dollars allotted to the purchase of arms for our military, was cynically embezzled by senior military and civilian government officials.

The reason why Nigeria built no major new roads or no new infrastructure in the last 6 years, despite earnings from oil in excess of $100 dollars a barrel, is largely because of corruption. In the last administration, two weeks before the elections, cash in excess of N100billion and over $250 million, was released in a few days ostensibly for security purposes. The aggregate sum released was more than some States earned in a whole year. That is the enormity of the embezzlement that we are talking about.

Corruption threatens our security, health, education and even our corporate existence. GAVI, the global fund for provision of vaccines for the poorest in developing countries, stopped providing funds to Nigeria for alleged mismanagement of funds by the Ministry of Health officials between 2011 and 2013. Nigeria had to refund $2.2million. These were vaccines and drugs meant to fight AIDS, TB, and Malaria, amongst the poorest of the poor of our country.

The enormous resources in the hands of perpetrators today is used to subvert justice, to bribe pliable senior government officials, to bribe in some cases judicial officers, to subvert the legislative process and, of course, even to subvert the press. The problem with corruption is that it is a cancer. It may be terminal if not checked. The failure of African States, civil wars and destruction of lives and livelihoods, is the result of failure of institutions largely caused by endemic systemic corruption.

It is because of the existential nature of the threat of corruption, that collaboration between the Judiciary, the Executive and of course the Legislature is imperative.

In working together, all of us in these institutions, the Judiciary, Executive and Legislature, are mindful that by the nature of systemic corruption all institutions are affected one way or the other. But we must come together and we are coming together, as a patriotic gesture to rescue our nation from looming disaster.

At the swearing in of the last batch of Senior Advocates, His Lordship, the Chief Justice of the Federation, announced one of the most far reaching plans by the judiciary to effectively and promptly try corruption cases. First, his Lordship directed all courts in Nigeria to designate courts to exclusively hear and determine corruption and financial crime cases expeditiously.

And secondly, the constitution of the Corruption and Financial Crime Cases Monitoring Committee headed by the Honourable Justice Salami, and deservedly his Lordship was commended both locally and internationally.

That plan is a crucial component of the anti-corruption agenda, proposed by the executive because impunity seems magnified when the trial of alleged perpetrators of corruption never seems to end. That such individuals can afford the best legal assistance only deepens the sense of hopelessness that the corrupt will never be punished.

With the Chief Justice’s new initiatives, alongside the earlier practice directions issued by the Supreme Court and those issued by the Court of Appeal, and the Administration of Justice Act, and again, the recent Supreme Court decision which stopped the dilatory tactic of staying proceedings in criminal cases on account of interlocutory applications, there is certainly great hope that corruption cases will be concluded and concluded promptly.

All nations that have successfully confronted corruption did one thing in common: the administration of the justice system changed its attitude to the investigation and trial of corruption cases. And this is important because it is not just about the Judiciary, clearly not. Investigations must be conducted properly and thoroughly before cases go to court. When cases go to court, what is presented is the best case the prosecution can present.

But most of the countries that have successfully dealt with corruption have had to dispense with needless technicality and focused on the offence. In the case of public officers, they recognized that there can be no real explanation for a public officer, whose pay is public knowledge, to have cash and assets several times more than his earning, let alone his savings. And the reason why people can never understand the way that cases are decided sometimes, is because it goes contrary to common sense. If somebody earns in excess of what he should possibly even safe in several life times, freeing him by technicality can never make sense. It will always seem as if something has gone wrong with the system.

I think what most nations recognise, what most judiciaries, and what most administration of justices systems recognise is that even the whole process of the decision-making process, must make sense. If it doesn’t make sense, then we undermine the very fundament of the judiciary and justice, and if this undermined, then everything is undermined.

Why should terrorism or homicide cases be more strictly viewed than corruption cases? Clearly the misery and loss of lives on account of corruption far exceeds that of any other single crime. There is no question at all that if you look at the extent of damage caused by corruption, it surely is a crime against humanity without a doubt. If you look at the sheer loss of lives on account of what we’ve seen even in our own country, there is no question at all that it is possibly the worst sort of crime that can be committed. So it must be taken seriously.

This seminar is one which, clearly, is a step in the right direction, and just as my Lordship, the Chief Justice has said, the timing is exactly right, we are re-jigging the entire system. The Chief Justice has laid down the rules and has encouraged everyone to follow suit. There is no question at all, that this is the time for us to open a new page in the entire anti-corruption fight.

I am extremely pleased to see that their Lordships are all on board, everyone is on board, and the Executive is determined to support in every way, whatever it is that is required we will provide to ensure that all of the cases that need to be heard and investigations that need to be done are done. This is the collaboration of all of us; the Executive, the Judiciary and the Legislature must see this as a fight for the soul of our nation.

Thank you very much, may I therefore, with his words, declare this conference open.

Laolu Akande
Senior Special Assistant to the President (Media & Publicity)
Office of the Vice President
25 October, 2017

Press Release: President Buhari To Participate In ECOWAS Task Force Meeting On Common Currency In Niamey

President Muhammadu Buhari will Tuesday depart for Niamey, Republic of Niger, to participate in a meeting on common currency for the West African sub-region.

Member countries of the ECOWAS Task Force on Common Currency are ‎Nigeria, Cote d’Ivoire, Ghana and Niger.

The Minister of Finance, Mrs Kemi Adeosun and the Central Bank of Nigeria governor, Mr Godwin Emefiele, will also join the President at the meeting.

President Buhari will return to Abuja same day after the meeting.

FEMI ADESINA
Special Adviser to the President
(Media & Publicity)
October 23, 2017.

Press Release: President Buhari Orders Dismissal Of Abdulrasheed Maina From Service

President Muhammadu Buhari has directed the immediate disengagement from service of Mr Abdullahi Abdulrasheed Maina, former chairman of the Presidential Task Force on Pension Reforms.

In a memo to the Head of the Civil Service of the Federation, the President equally demanded a full report of the circumstances of Maina’s recall and posting to the Ministry of Interior.

The report is to be submitted to the office of the Chief of Staff to the President, Mallam Abba Kyari, before the end of work today, Monday, October 23, 2017.

FEMI ADESINA

Special Adviser to the President,
(Media and Publicity)

October 23, 2017

Press Release: Achievements Of The Buhari Administration

The Buhari Administration has recorded concrete achievements which are there for all to see, contrary to the opposition’s statement that the Administration is running on propaganda and lies.

President Muhammadu Buhari, represented by the Minister of Information and Culture, Alhaji Lai Mohammed, made the assertion at the opening of the two-day Nigeria Governors’ Forum Conference for Media Handlers of States’ Chief Executives in Abuja on Monday.

”For our Administration, our achievements are there for all to see. We are delivering in the broad areas that formed the plank of our policies: Security, fight against corruption and the economy, which includes the massive provision of infrastructure, ease of doing business and agriculture, just to mention a few,” he said.

Providing facts and figures, the President listed the Administration’s achievements in ending subsidy and yet ensuring the availability of petroleum products; in raising power generation, transmission and distribution, in the massive provision of infrastructure; in tackling insecurity and making a success of the agriculture revolution, among others.

“Those who accused this Administration of ‘propaganda and lies’ in the fuel supply sector, for example, did not tell Nigerians that whereas they paid between 800 billion and 1.3 trillion Naira as ‘subsidy’ yearly in their time, without making the products available even at regulated prices, this Administration is not paying any subsidy, yet all products are currently available at competitive
prices and fuel queues are now history. In their time, they paid subsidy of 3.7 billion Naira daily in 2011; 2.2 billion Naira daily in 2012 and 2013, and 2.5 billion Naira daily in 2014, all for products that were never available.

“Those who accused this government of ‘propaganda and lies’ also said we have not achieved anything in the power sector. Comment is free, facts are sacred, as they say. When this Administration assumed office on 29 May 2015, available power on the grid totalled 2,690MW, transmission capacity was around 5,000MW and distribution capacity was 4,000MW.

“As at 4 September 2017, the available power that can be put on the grid was 6,619MW; the transmission capacity was simulated at 6,700 MW (up from 5,000 MW in 2015) but the distribution capacity was 4,600 MW, which was what was put on the grid. On September 12, 2017, production of power reached an all-time level of 7,001MW,” he said.

President Buhari said it is an irony that those who presided over a budget of 18 billion Naira for roads, 5 billion Naira for power and 1.8 billion Naira for Housing in 2015 are now accusing those who spent 198.25 billion Naira on roads, 91.2 billion Naira on power and 71.559 billion Naira on housing in the following year of non-achievement.

“Because of the increased spending in these areas, the massive debts owed to contractors are being settled so they can recall workers who were laid off and re-open closed work sites. As a matter of fact, during the implementation of the 2016 budget, we paid 103 construction companies executing 192 projects, and they, in turn, employed 17,749 people directly and 52,000 people indirectly in works.

“So far this year, 47.169 billion Naira has been paid to 62 contractors working on 149 projects to continue work on roads and bridges and keep people at work. Similar payments are being made to supervising consultants and to contractors in Housing and Power Sectors of the Ministry,” he said.

The President also said highlighted the achievements that have been recorded by his Administration in the area of the Economy, wondering whether it is ‘propaganda and lies’ that headline Inflation has now fallen for the eighth consecutive month; that foreign exchange reserves are up to $32 billion, from $24 billion a year ago: that oil production is at nearly 2 million barrels per day and that Home-grown School Feeding Programme now being implemented in 17 States is benefiting more than 3 million public primary school children and more than 30,000 cooks across 20,000 schools.

He said close to 200,000 youths are now benefiting from the N-Power Programme, which recruits unemployed graduates to work as teachers, agricultural extension workers, and health extension workers; that the Government Enterprise & Empowerment Programme (GEEP), which provides micro-credit to farmers, traders, and artisans, now has in excess of 1 million beneficiaries, with women accounting for 56% of that number, and that at about $1.8 billion, the capital inflows in the second quarter of 2017 were almost double the $908 million in the first quarter.

“If our achievements are based on ‘propaganda and lies’, as they claim, why is our agricultural revolution achieving so much success: We have commissioned the 120,000 MT per annum WACOT Rice Mill in Argungu, Kebbi State. We have commissioned the 60,000 MT per annum Edo  State Fertilizer Company Limited. What about the commissioning of OLAM’s 750,000 MT per annum Integrated Poultry Facility in Kaduna State? Do you know that 15 moribund Fertilizer Blending Plants have now been revived and in operation across Nigeria, under the Presidential Fertilizer Initiative, creating 50,000 direct jobs and 70,000 indirect jobs?” the President asked.

He said when the Administration assumed office in 2015, Boko Haram was active in at least 10 states, could stroll into Abuja at a time and target of their own choosing to cause maximum havoc, in addition to holding territories and collecting taxes. “Today, Boko Haram has been so degraded that it lacks the capacity to carry out any organized attack, while also increasingly losing the capacity to even attack soft targets. Importantly, Boko Haram no longer holds any territory. The same vigour is being used to address the herdsmen-farmers’ clash, kidnapping for ransom and other crimes,” the President said.

He said the biggest challenge facing government information managers is how to project the achievements of their principals against the background of worsening cases of disinformation and fake news, adding that the best way to tackle the problem is to remain focused, refused to be distracted or intimidated and also to use facts and figures to counter the purveyors of disinformation and fake news.

Segun Adeyemi
SA To Hon Minister of Information and Culture
Abuja
23rd Oct 2017

Speech: Vice President Osinbajo At Financial Times Africa Summit, London

Let me begin by saying, it is a special pleasure and privilege to be here with you this morning. And I think the Financial Times deserves every commendation for providing this platform, for discussing the region’s investment climate with a global audience. I am also grateful for the invitation to deliver this Keynote Address.

I am told that this year’s summit seeks to focus our attention on what is working in Africa in the hope of drawing broader lessons that could benefit the continent as a whole.  I have also been asked to speak very briefly on our ease of doing business efforts in Nigeria.

Regarding the question that FT asks,  What makes Africa work?, I am pleased to say that searching for answers is not as exasperating as it might have been even a decade ago. Today we can demonstrate with clear examples that what makes Africa work are the ingenuity and resilience of the people, especially its 70% youth population, leadership and good governance, allowing the private sector and markets to function, focusing on infrastructural development, and the incredible opportunities that abound.   Somehow everyone has a hunch that if you are not around when Africa truly gets going, it would be much like the skeptics who stood on the side-lines in the 1990s convinced that China was going nowhere. How wrong they were!

Strong visionary leadership committed to good governance has proved to be critical where our economies have recorded successes.

Nigeria earning 60% less revenue than 5 years ago, last year still invested N1.3T in infrastructure , the largest capital spend in its history and will increase that in the 2018 budget . Good governance, prudent management of resources, means that you can do more with far less. Ethiopia delivered its light rail and within Addis Ababa ahead of schedule, and Ethiopia/Djibouti rail with no cost overruns. Rwanda has shrugged off the tragedy of genocide of barely 20 years ago, delivering on infrastructure and earned its place as the second easiest place to do business in Africa. Ghana is galloping away with GDP growth figures this year of in excess of 8%.

Across the entire continent there is a commitment to providing much needed infrastructure in the form of power stations, ports, rail networks, roads, that not only bring down the cost of doing business but also actively engage the private sector in funding, in operation and or ownership. And I would come back to this point.

Nigeria recently announced the commencement of the process of concessioning its major airports with a view to attracting world class investors and, of course, world class operators.

But, perhaps, most importantly, Africa now recognizes the limitations of governments, in cash and capacity, to run businesses. The wisdom today is in letting the private sector invest wherever it can, and in practically any sector of the economy even in those that once carried the halo of national security assets such as telecoms and power. Consequently we have seen the emergence of dynamic pan-African investors, who on account of their track records are even able to borrow commercially cheaper than Governments.

Aliko Dangote, is, of course, an excellent example with investments in cement manufacturing in 10 African countries and is about to complete a 650,000 barrels per day Refinery in Lagos, Nigeria, the largest single line Refinery in the world and larger than all four of government-owned refineries put together; a dedicated 550 kilometre subsea pipeline passing through major gas processing hubs across the country bringing crude to that refinery. He is also investing in a 3 million Metric Tonnes fertilizer plant in the location, the largest single line in the world.

Although the sizes of investments differ, the subtext is the same: the confidence of local African investors in the opportunities available on the continent.

In broadband infrastructure for example, Funke Opeke, the Nigerian-born broadband entrepreneur’s MAIN ONE company launched West Africa’s first privately owned submarine cable. The cable was built over a 2-year period and the initial investment of $240 million was financed entirely by African investors and the project broke even just over 2 years after launch. Even during the economic turbulence, in 2016, private capital recognized the potential in infrastructure investments. General Electric (GE) infused $186M of investment in Phase 1 of the Nigerian Fast Power Program, and entered into an MOU with  seven States in the North of Nigeria where radiation is highest, to supply 1000 MW of solar power across  the  states. GE is also finalizing the documentation for the concession of our Lagos-Kano narrow gauge rail line, which will focus on cargo transportation from the Apapa Port northwards passing through several economically strategic cities Northwards to Kano. This involves a total investment of USD2.2B.

And the opportunities are enormous indeed. Let me tell you another quick story. Nigeria’s 180 million people, over 50 million have no access to power. As part of our diversifying power sources to improve access we started a programme of providing solar power in several thousand homes in rural villages. We started in Wuna a village just outside Abuja. Wuna is an agrarian community. It is not on the grid, and had no other source of power. To charge their phones, an entrepreneur with a small generator runs a service in the village. So you take your phone to his shop once a day or so, and you pay a small fee for charging. Life in Wuna shuts down at about 7pm until daylight.  But working with a PPP model, the government owned NDPHC partnered with Azuri technology, a private solar company, to provide a domestic solar solution.

Azuri had provided the same end to end service in East Africa. A solar home system,  including a payment system. The system costs N1,900 a month ( about 7 dollars a month) . For the first time in its existence,  the village now has running water that is solar-powered and the school has power. The school hall is now used as a community hall in the evenings. Each home has 4 points of light. Children can now stay up and do some studying at night. Many of Wuna’s women can  process their millet and yams at night now.  New jobs have been created, solar installers, maintenance, payment systems. One guy has lost his business in Wuna, the phone charger. Every household can now charge their phones. The point is that there are millions of homes waiting for solar power. There are opportunities for very many Azuris.

The opportunities in our power sector are immense, especially as we open up the sector further. Nigeria’s National Electricity Regulatory Commission in August issued  the eligible customer directives and will this month issue directives on independent metering. The eligible customer regime allows a willing seller willing buyer arrangements in the sale of power, which effectively breaks the monopoly of the distribution company; supplier-buyer exclusively. While the independent metering directive allows independent entities aside from registered power distribution companies to sell and install meters to customers and be paid directly as collections are made from metered customers. This deepening of the privatization of the power sector is bound to create a fresh bounce in investment activity.

The story of investors in agriculture in Nigeria is also worth hearing. Carlos, is a Mexican farmer and proprietor of San Carlos farms, possibly the largest banana and pineapples farm in Mexico. He partnered with local investors to replicate his hugely successful fruit and vegetable farms in Mexico in Nigeria.  The idea was to grow for export. He currently farms close to 5000 hectares across 6 States. After his first harvest, he exported nothing but turned in a decent profit .  His partners asked him what the magic was. His answer, ‘we cannot even satisfy the local demand,’

Besides, according to him it was even more lucrative to sell locally than to export. Agricultural production, or manufacture of  fast moving goods in a market the size of Nigeria and the adjoining ECOWAS market is quite frankly a no- brainer.

Fahad Awadh, a 29-year old entrepreneur from Tanzania who set up a cashew processing facility in Tanzania also underscores the immense opportunities in the agriculture value chain. The factory brings international standards and traceability to the cashew nuts. The company’s flagship processing facility in Zanzibar has an installed capacity of 2,500 Tons per annum, and recently raised a $500,000 investment from the Africa Enterprise Challenge Fund to establish another processing facility in Mtwara, south-eastern Tanzania

But If I were a betting man I would surely put my money on African businesses that   demonstrate an awareness of  how technology will be an  exponential catalyst for  business.  All over Africa telephony and technology are unearthing literally riches that were hitherto unknown. Kenya’s M-pesa has become the largest mobile telephony payment solution in the world. The story of how MTN in Nigeria became the largest mobile network in Africa in less than a decade is still the stuff of legendary investment stories.  But the point to note is that those who missed that pioneer  telecoms  opportunity typically assumed that the Nigerian market was large but not rich enough to translate the numbers to cash. How wrong they were.

Today, companies such as Flutterwave a payment solutions company, Andela a software development engineering company, Jobberman,  an on-line human resource company, and Konga, an on line mall , are poignant examples of how young African entrepreneurs are using technology disruptively to create profit in various business lines. And evidently, smart money all over the world is paying attention.

For example, Flutterwave, saw an investment of 10 million USD, and Konga an impressive 25 million USD, the second biggest amount raised by an African start-up business on the continent. And Andela attracted equity investment from Facebook’s Mark Zuckerberg.

Over the last few decades, the global perception of Africa has evolved from a “Hopeless Continent” to the “Africa Rising” rhetoric, to a pride of “Lions on the Move”. But, however one chooses to slice it, the African growth story is real. Major global analysts appear united in the view that Africa has the highest number of economies projected to grow above 5% by 2030 .

Although in the last few years we have seen a number of African economies experience major economic challenges including Nigeria due to the crash in resource prices on the global market, and as a result, Africa’s real GDP grew at an average of 3 percent a year between 2010 and 2015, considerably slower than the 5.4 percent from 2000 to 2010.  And although FDIs and other capital flows to Africa have slowed and accessing global markets is tough. Yet, this overall picture is misleading.

When you unpack the average growth rate of the African region, you find a good number of outlier growth stories, such as Ghana, which as mentioned recently recorded a 9% year-on-year growth in GDP for the second quarter of 2017 – I believe that is about the highest in the world. In 2016, many other African economies maintained high growth rates – for example, Ethiopia and Cote d’Ivoire grew by approximately 7%; while Kenya, Mauritius, Rwanda and Senegal grew by about 6% on average. The rest of Africa posted accelerating growth at an average annual rate of 4.4 percent in 2010 to 2015, compared with 4.1 percent in 2000 to 2010.

All told despite the obvious fact that other human development indices have not advanced apace with growth figures,  I think it Is evident that the continent’s fundamentals are genuinely strong.

Permit me then to speak briefly about some of the specific efforts that we are making in Nigeria to enable the private sector thrive.  Specifically and in addition to on-going investments in production and infrastructure some which I have referred to, we are undertaking extensive  ‘ease of doing business’ reforms. To start with, we have worked assiduously to improve macroeconomic conditions.  After a continuous slide in growth since 2014, the trend of growth in GDP has turned around with a modest growth of 0.55% in the second quarter of this year while inflation, though still somewhat high,  has declined from its peak of 15.7% in January 2017 to about 16% today.

The outlook going forward is quite positive based on improvements in oil prices and production and the trend of leading indicators such as positive purchasing managers indices, a revived stock exchange and increasing foreign exchange reserves.  Moreover, the uncertainties in the foreign exchange market have abated with the introduction of a new window for investors and exporters (NIFEX) which  gives more transparency and guarantees repatriation of funds. NIFEX relies entirely on market, on greater transparency and on guarantee of availability of funds. The results have been encouraging as the inflows of capital in the second quarter of 2017 of about $1.8 billion were almost double the amount of $908 million imported in the first quarter of the year.

Indeed, investor interest remains undoubtedly strong with announced investments of $22.42 billion from January to August 2017 in 41 projects across 22 states. And I would like to emphasize this, that Nigeria is a large economy and several of the states are huge economies of their own. And going by the investments that are going directly to the states, it is evident that investors are recognizing that dealing with some of the states in Nigeria, they simply have the capacity to be able to do whatever forms of business they have.

Importantly, for the first time, coordinated  efforts are underway to make it easier to do business in Nigeria.  Through systemic changes, we are repositioning regulators as facilitators of business, and are steadily improving transparency and efficiency of service delivery by the public sector.

In the first stage, reforms were introduced under a 60-day national action plan focused on eight areas that make it easier to register businesses, obtain construction permits, get credit, pay taxes, get electricity, trade across borders, facilitate entry and exit of people and register property.

Practical examples of success include leveraging the use of technology to fast track  business registration and payment of taxes, a functioning tried and tested 48 hour electronic visa procedure, and an Executive Order mandating greater transparency and efficiency across all government agencies. The reforms have led to reduction in cost and time, as well as greater transparency for small and medium sized enterprises in particular.

These reforms are complemented by a welcoming attitude to investment. To properly guide investors and make it easier for them to access required information, the  National Investment Promotion Commission will be releasing a Compendium of Investment Incentives in Nigeria by the end of this month.  Similarly, we have recently reviewed and revised our pioneer status programme which gives five year tax holidays across eligible sectors. And of course in some cases, tax holidays can also be negotiated in excess of the five year period.

Following the 70% success rate achieved in the first phase of the ease of doing business reforms, we recently embarked on a second national action plan which will have 11 areas of focus and will run for 60 days from October 2017.

The Nigerian government is intent on bringing about rapid, sustainable and inclusive growth in order to improve the lot of our dynamic and hardworking people of Nigeria.  We realise that the scale of the challenge is huge given our large and rapidly growing population and the relentless march of progress in other parts of the world. We are nevertheless determined and optimistic that Nigeria will along with the rest of the continent will bring about an Africa that works for all its people and contributes to global growth and prosperity.

The lessons that Africa has learnt in the past few years, is simple, there is no African exceptionalism , what makes Africa work, is what makes economies work any where, honest visionary leadership and good governance, letting the private sector and markets lead,  diversification from resource based revenues and developing the potential of the Human Resources available within the continent.

And I am convinced that what makes Africa works, is what will work anywhere else and I think that we have tried to demonstrate that in so many African economies especially in the past few years.

Thank you very much.

Laolu Akande

Senior Special Assistant to the President on Media & Publicity

Office of the Vice President

9 October, 2017