Buhari signs Nigeria’s 2023 budget into law

President Muhammadu Buhari has signed Nigeria’s 2023 budget into law, his office has announced.

PREMIUM TIMES reported that the National Assembly had earlier approved the budget totaling N21.83 trillion.

“Speaking at the signing of the eighth and final annual budget of this Administration, the President said that the total expenditure of N21.83 billion represents an increase of N1.32 billion over the initial executive proposal for a total expenditure of N20.51 billion. ”Femi Adesina, the president’s spokeswoman, wrote in a statement on Tuesday.

Read Mr. Adesina’s full statement below.

PRESS RELEASE FROM THE STATE HOUSE

PRESIDENT SIGNS N21.83 BUDGET INTO LAW, SAYS ADEQUATE PROVISIONS MADE FOR 2023 GENERAL ELECTION, TRANSITION PROGRAM, OTHER

President Muhammadu Buhari signed the 21.83 trillion naira 2023 budget along with the 2022 Supplementary Appropriation Bill in Abuja on Tuesday.

Speaking at the signing of this Administration’s eighth and final annual budget, the President said that the total expenditure of N21.83 billion represents an increase of N1.32 billion over the initial executive proposal for a total expenditure of N20.51 billion.

The president explained that the Supplemental Appropriation Act of 2022 would allow the administration to respond to the havoc caused by recent flooding across the country in the infrastructure and agriculture sectors.

As usual, he said that the Minister of Finance, Budget and National Planning will later provide further details of the approved budget and the Finance Law 2022 that supports it.

”We have examined the changes made by the National Assembly to the 2023 Executive Budget proposal.

”The amended fiscal framework for 2023 approved by the National Assembly shows additional revenue of N765.79 billion and an unfunded deficit of N553.46 billion.

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“It is clear that the National Assembly and the executive need to capture some of the additional revenue sources proposed in the fiscal framework. This must be rectified.

“I have also noticed that the National Assembly introduced new projects in the 2023 budget proposal for which it has allocated N770.72 billion. The National Assembly also increased the provisions made by the Ministries, Departments and Agencies (MDA) by N58.550 million”.

President Buhari said his decision to enact the Appropriation Bill 2023 passed by the National Assembly was to allow its implementation to start without delay, considering the imminent transition process to another democratically elected government.

However, he ordered the Minister of Finance, Budget and National Planning to engage with the Legislature to review some of the changes made to the Executive’s budget proposal, expressing the hope that the National Assembly will cooperate with the executive arm of the Government in this sense. .

He urged the National Assembly to reconsider its position on his proposal to securitize the outstanding balance of Federal Government Ways and Means at the Central Bank of Nigeria (CBN).

”As I said, the balance has accumulated over several years and represents funding provided by the CBN as a lender of last resort to the government to enable it to meet obligations to lenders, as well as to cover budget shortfalls in revenue. and/or projected loans.

“I have no intention of hindering the right of the National Assembly to question the composition of this balance sheet, which can still be done even after granting the requested approval.

“However, not granting securitization approval will cost the government around N1.8 trillion in additional interest in 2023 given the spread between applicable interest rates which is currently MPR plus 3% and the negotiated interest rate of 9 % and a repayment period of 40 years”. on the securitized debt of Ways and Means”.

To ensure more effective implementation of the 2022 Capital Budget, President Buhari thanked the National Assembly for approving his request to extend its validity date to March 31, 2023.

The president instructed the Ministry of Finance, Budget and National Planning to work for the early publication of the 2023 capital votes to allow ministries, departments and agencies to start the implementation of their capital projects in time to support efforts to deliver key projects and public services as well as improving the living conditions of Nigerians.

Reiterating that the 2023 Budget was developed to promote fiscal sustainability, macroeconomic stability and ensure a smooth transition to the incoming Administration, the President said that it was also designed to promote social inclusion and strengthen the resilience of the economy.

He promised that adequate provisions have been made in the Budget for the successful realization of the upcoming general elections and the transition program.

In achieving revenue targets for the budget, the President directed MDAs and Government-Owned Enterprises (GOEs) to intensify their revenue mobilization efforts, including ensuring that all taxable organizations and individuals pay the taxes owed.

In order to achieve the laudable targets of the 2023 Budget, the president said relevant agencies should maintain current efforts to achieve crude oil production and export targets.

”To increase available fiscal resources, MDAs must accelerate the implementation of public-private partnership initiatives, especially those designed to accelerate the pace of our infrastructure development.

“This, being a deficit budget, the associated Debt Plan will be sent to the National Assembly shortly.

“I am counting on the collaboration of the National Assembly for the prompt consideration and approval of the Plan.”

Regarding the Finance Bill 2022, the president regretted that its revision approved by the National Assembly has not yet been finalized.

This is because some of the changes made by the National Assembly need to be reviewed by the relevant government agencies. I urge this to be done quickly to allow me to pass the law,” he said.

Among those who witnessed the signing of the budget were the President of the Senate, Ahmad Lawan, and the Speaker of the House of Representatives, Femi Gbajabiamila.

The President thanked the President of the Senate, the Speaker of the House of Representatives, and all the distinguished and honorable leaders and members of the National Assembly for their prompt consideration and approval of the Appropriations Bill.

He also recognized the role of the Ministers of Finance, Budget and National Planning, the Federation Budget Office, the Senior Special Assistants to the President (Senate and House of Representatives), the Chief of Staff, as well as all those who worked tirelessly and they sacrificed so much to produce the Appropriation Act of 2023.

”As I mentioned during the presentation of the Appropriations Bill of 2023, early approval of the budget proposal is essential to ensure the effective delivery of our legacy projects, a smooth transition program and the effective launch of the incoming Administration.

”I appreciate the strong commitment of the Ninth National Assembly to the restoration of a predictable fiscal year from January to December, as well as the mutual understanding, collaboration and compromises between the officials of the Executive and the legislative arms of government.

“These have made possible the rapid consideration and approval of our tax laws in the last four years.”

The President expressed the belief that the next Administration will support the early submission of the annual appropriation bill to the National Assembly to ensure its approval before the start of the fiscal year.

”I strongly believe that the next Administration will also sustain current public financial management reform efforts, further improve the budget process and, in particular, continue the tradition of backing its Appropriation Bills with Finance Bills designed to facilitate its implementation.

“To sustain and institutionalize the achievements of the reforms, we must expedite and conclude the work of the Organic Budget Law so that it enters into force before the end of this Administration.”

Acknowledging that “these are difficult times around the world”, the president concluded his remarks at the ceremony by expressing deep gratitude to Almighty God for His Grace, while praising Nigerians’ continued resilience, understanding and sacrifice in the face of current economic challenges.

“As this Administration comes to an end, we will accelerate the implementation of critical measures aimed at further improving Nigeria’s business environment, enhancing the well-being of our people, and ensuring sustainable economic growth over the medium to long term,” he said.

femi adesina

special adviser to the president

(Media and advertising)

January 3, 2023