Nigeria’s President Muhammadu Buhari on Tuesday called on government Ministries, Departments and Agencies (MDAs) as well as Government Owned Enterprises (GOEs) to intensify their revenue mobilization efforts to ensure that the objectives of the 2023 budget are achieved.
Buhari made the call while signing into law the 2023 Appropriation Bill, tagged “Budget of Fiscal Sustainability and Transition”, which comprises N21.83 trillion aggregate expenditure.
The President also signed the N819 billion 2022 Supplementary Appropriation Bill passed by the National Assembly last week..
“To achieve the laudable objectives of the 2023 budget, we must achieve our revenue targets. MDAs and Government Owned Enterprises (GOEs) must intensify their revenue mobilization efforts, including ensuring that all taxable organizations and individuals pay taxes due,” Buhari said.
“Relevant agencies must sustain current efforts towards the realization of our crude oil production and export targets,” he said.
Buhari said in order to augment available fiscal resources, “MDAs are to accelerate the implementation of Public Private Partnership initiatives, especially those designed to fast-track the pace of our infrastructural development”.
The 2023 budget is the eighth and final budget of the Buhari administration.
The President’s assent comes barely a week after the National Assembly last Wednesday passed the 2023 budget after raising the figure by over N1.3 trillion to N21.83 trillion, a 6.4 percent increase from N20.5 trillion presented by Buhari in October.
But the legislators could not reach a decision on Buhari’s request for approval to convert N23.7 trillion worth of the Central Bank of Nigeria’s Ways and Means Advances to his government to 40-year bonds at 9 percent interest, including an extra N1 trillion loan to the government from the apex bank.
Buhari, during the budget signing on Tuesday, which was witnessed by Vice President Yemi Osinbajo, Senate President Ahmad Lawan, House of Representatives Speaker Femi Gbajabiamila, and other members of the Federal Executive Council, asked the legislators to reconsider their stance on his request regarding the outstanding Ways and Means Advances.
The President warned that if approval was not granted for the securitisation of the overdrafts, it would cost the government about N1.8 trillion in additional interest in 2023 and a 40-year repayment period on the securitised debt.
Buhari, whose eight-year tenure comes to an end May 29, 2023, said even as his administration draws to a close, his government would accelerate the implementation of critical measures aimed at further improving the Nigerian business environment, enhancing the welfare of the people and ensuring sustainable economic growth over the medium to long term.
He said given that the 2023 budget was a deficit budget, his administration would soon forward the associated borrowing plan to the National Assembly for speedy consideration and approval.
“The 2023 budget that I have the honour of signing into law today provides for aggregate expenditures of N21.83 trillion, an increase of N1.32 trillion over the initial Executive Proposal for a total expenditure of N20.51 trillion. As is customary, the Honourable Minister of Finance, Budget and National Planning will subsequently provide more details of the approved budget and the supporting 2022 Finance Act,” Buhari said.
He said the government had examined the changes made by the National Assembly to the 2023 Executive Budget proposal showing additional revenues of N765.79 billion, and an unfunded deficit of N553.46 billion, noting that the National Assembly and the executive needed to capture some of the proposed additional revenue sources in the fiscal framework.
“This must be rectified. I have also noted that the National Assembly introduced new projects into the 2023 budget proposal for which it has appropriated N770.72 billion. The National Assembly also increased the provisions made by Ministries, Departments and Agencies (MDAs) by N58.55 billion,” Buhari said.
“Nevertheless, considering the imminent transition process to another democratically elected government, I decided to sign the 2023 Appropriation Bill into law as passed by the National Assembly to enable its implementation to commence without delay. I have however directed the Minister of Finance, Budget and National Planning to engage with the Legislature to revisit some of the changes made to the Executive budget proposal, and it is my hope that we will receive cooperation in this regard from the National Assembly,” he said.
Buhari reiterated that early passage of the budget proposal was critical to ensure effective delivery of the government’s legacy projects, a smooth transition programme and effective take-off of the incoming administration.
He promised that the Ministry of Finance, Budget and National Planning would work towards early release of the 2023 capital votes to enable MDAs to commence the implementation of their capital projects early in support of the government’s efforts to deliver key projects and public services as well as improve the living conditions of Nigerians.
