.We borrowed our way out of two recessions, says President
.Pegs oil price at $57
President Muhammadu Buhari Thursday in Abuja presented to the National Assembly the 2022 Appropriation Bill for an aggregate expenditure of N16.39 trillion
Buhari while addressing the joint session of the NASS described the 2022 Appropriation as Budget of Economic Growth and Sustainability, adding that the 2022 budget is also the first in the nation history, where Ministries, Developments and Agencies (MDAs) were clearly advised on gender responsive budgeting.
He said, “These are part of critical steps in our efforts to distribute resources fairly and reach vulnerable groups of our society,’’ he said.
He maintained that defence and internal security would continue to be the top priority of his administration.
“We remain firmly committed to the security of life, property, and investment nationwide. We will continue to ensure that our gallant men and women in the armed forces, police, and paramilitary units are properly equipped, remunerated, and well-motivated,’’ he said.
On the parameters and fiscal assumptions of the 2022 Appropriation bill, the president told the legislators that 2022 to 2024 Medium Term Expenditure Framework and Fiscal Strategy Paper sets out the parameters for the 2022 Budget is Conservative oil price benchmark of 57 US Dollars per barrel;
Other parameters are Daily oil production estimate of 1.88 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day); an Exchange rate of four 410.15 per US Dollar; and a Projected Gross Domestic Products (GDP) growth rate of 4.2 percent and 13 per cent inflation rate.
“Based on these fiscal assumptions and parameters, total federally-collectible revenue is estimated at N 17.70 trillion in 2022. Total federally distributable revenue is estimated at 12.72 trillion Naira in 2022 while total revenue available to fund the 2022 Federal Budget is estimated at N10.13 trillion.
He said this included Grants and Aid of N63.38 billion, as well as the revenues of 63 Government-Owned Enterprises.
President Buhari said the oil revenue was projected at N3.16 trillion, non-oil taxes are estimated at N2.13 trillion and Federal Government’s Independent revenues are projected to be N1.82 trillion.
According to him, Nigeria is currently emerging from a very difficult economic challenge, saying that 2022 is a crucial year for the completion of his administration’s legacy projects.
He said, “We must continue to cooperate and ensure that our actions are aimed at accelerating the pace of economic recovery so that we can achieve economic prosperity and deliver on our promises to the Nigerian people.
“The fiscal year 2022 is very crucial in our efforts to ensure that critical projects are completed, put to use, and improve the general living conditions of our people?”
“The 2022 Budget will be the last full-year budget to be implemented by this administration. We designed it to build on the achievements of previous budgets and to deliver on our goals and aspirations as will be reflected in our soon-to-be-launched National Development Plan of 2021 to 2025,” he said.
Highlighting the performance of the 2021 budget, President Buhari said by July 2021, Nigeria’s daily oil production averaged one 1.70million barrels (inclusive of condensates) and the market price of Bonny Light crude averaged 68.53 US Dollars per barrel.
“Accordingly, actual revenues were 34 percent below target as of July 2021, mainly due to the underperformance of oil and gas revenue sources.
“Federal Government’s retained revenues (excluding Government Owned Enterprises) amounted to N2.61 trillion against the proportionate target of N3.95 trillion for the period.
“The Federal Government’s share of Oil revenue totaled 570.23 billion Naira as of July 2021, which was 51 percent below target, while non-oil tax revenues totaled 964.13 billion Naira.’’
He noted that the poor performance of oil revenue relative to the budget was largely due to the shortfall in production as well as significant cost recovery by NNPC to cover the shortfall between its cost of importing petrol and the pump price
President Buhari, who commended the legislators for the expeditious consideration and passage of the Supplementary Appropriation Bill 2021, assured the strong commitment of the Executive to strengthen the relationship with the National Assembly
“Let me start by commending you for the expeditious consideration and passage of the Supplementary Appropriation Bill 2021.
“This further underscores your commitment to our collective efforts to contain the COVID-19 Pandemic and address the various security challenges facing our country. I will also take this opportunity to thank you for the quick consideration and approval of 2022-2024
