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| President Buhari's |
But I believe we can also learn from the obstacles we have overcome and the progress we made thus far, to help strengthen the plans that we have in place to put nigeria back on the path of progress.
We affirm our belief in democracy as the form of government that
best assures the active participation and actual benefit of the people.
Despite the many years of hardship and disappointment the people of this
nation have proved inherently good, industrious tolerant, patient and
generous.
The past years have witnessed huge flows of oil revenues. From 2010
average oil prices were $100 per barrel. But economic and security
conditions were deteriorating. We campaigned and won the election on the
platform of restoring security, tackling corruption and restructuring
the economy. On our arrival, the oil price had collapsed to as low as
$30 per barrel and we found nothing had been kept for the rainy day.
Oil prices have been declining since 2014 but due to the neglect of
the past, the country was not equipped to halt the economy from
declining.
The infrastructure, notably rail, power, roads were in a decrepit
state. All the four refineries were in a state of disrepair, the
pipelines and depots neglected.
Huge debts owed to contractors and suppliers had accumulated.
Twenty-seven states could not pay salaries for months. In the
north-east, boko haram had captured 14 local governments, driven the
local authorities out, hoisted their flags. Elsewhere, insecurity was
palpable; corruption and impunity were the order of the day. In short,
we inherited a state near collapse.
On the economic front, all oil dependent countries, nigeria
included, have been struggling since the drop in prices. Many oil rich
states have had to take tough decisions similar to what we are doing.
The world, Nigeria included has been dealing with the effects of three
significant and simultaneous global shocks starting in 2014:
A 70% drop in oil prices.
Global growth slowdown.
A 70% drop in oil prices.
Global growth slowdown.
Normalization of monetary policy by the United States federal reserve.
Our problems as a government are like that of a farmer who in a
good season harvests ten bags of produce. The proceeds enable him to get
by for rest of the year. However, this year he could only manage 3 bags
from his farm. He must now think of other ways to make ends meet.
From day one, we purposely set out to correct our condition, to
change nigeria. We reinforced and galvanized our armed forces with new
leadership and resources. We marshaled our neighbours in a joint task
force to tackle and defeat boko haram.
By the end of December 2015, all but pockets and remnants had been
routed by our gallant armed forces. Our immediate focus is for a gradual
and safe return of internally displaced persons in safety and dignity
and for the resumption of normalcy in the lives of people living in
these areas.
EFCC was given the freedom to pursue corrupt officials and the
judiciary was alerted on what Nigerians expect of them in the fight
against corruption.
On the economy, in particular foreign exchange and fuel shortages,
our plan is to save foreign exchange by fast tracking repair of the
refineries and producing most of our fuel requirements at home. And by
growing more food in Nigeria, mainly rice, wheat and sugar we will save
billions of dollars in foreign exchange and drastically reduce our food
import bill.
We resolved to keep the naira steady, as in the past, devaluation had done dreadful harm to the Nigerian economy.
Furthermore,
I support the monetary authority’s decision to ensure alignment between
monetary policy and fiscal policy. We shall keep a close look on how
the recent measures affect the naira and the economy. But we cannot get
away from the fact that a strong currency is predicated on a strong
economy. And a strong economy pre-supposes an industrial productive base
and a steady export market. The measures we must take, may lead to
hardships.
The problems Nigerians have faced over the last year have been many
and varied. But the real challenge for this government has been
reconstructing the spine of the Nigerian state. The last twelve months
have been spent collaborating with all arms of government to revive our
institutions so that they are more efficient and fit for purpose: that
means a bureaucracy better able to develop and deliver policy that means
an independent judiciary, above suspicion and able to defend citizen’s
rights and dispense justice equitably.
That means a legislature that actually legislates effectively and
above all; that means political parties and politicians committed to serving the Nigerian people rather than themselves.
above all; that means political parties and politicians committed to serving the Nigerian people rather than themselves.
These are the pillars of the state on which democracy can take root
and thrive. But only if they are strong and incorruptible. Accordingly,
we are working very hard to introduce some vital structural reforms in
the way we conduct government business and lay a solid foundation on
which we can build enduring change.
An important first step has been to get our housekeeping right. So
we have reduced the extravagant spending of the past. We started boldly
with the treasury single account, stopping the leakages in public
expenditure.
We then identified forty-three thousand ghost workers through the
integrated payroll and personal information system. That represents pay
packets totaling N4.2 billion stolen every month. In addition, we will
save twenty-three billion per anum from official travelling and sitting
allowances alone.
Furthermore, the efficiency unit will cut costs and eliminate
duplications in ministries and departments. Every little saving helps.
The reduction in the number of ministries and work on restructuring and
rationalization of the MDAs is well underway. When this work is complete
we will have a leaner, more efficient public service that is fit for
the purpose of changing Nigeria for the good and for good.
As well as making savings, we have changed the way public money is
spent. In all my years as a public servant, I have never come across the
practice of padding budgets. I am glad to tell you now we not only have
a budget, but more importantly, we have a budget process that is more
transparent, more inclusive and more closely tied to our development
priorities than in the recent past. 30% of the expenditure in this
budget is devoted to capital items.
Furthermore, we are projecting non-oil revenues to surpass proceeds
from oil. Some critics have described the budget exercise as clumsy.
Perhaps. But it was an example of consensus building, which is integral
to democratic government. In the end we resolved our differences.
We have, therefore, delivered significant milestones on security,
corruption and the economy. In respect of the economy, I would like to
directly address you on the very painful but inevitable decisions we had
to make in the last few weeks specifically on the pump price of fuel
and the more flexible exchange rate policy announced by the central
bank. It is even more painful for me that a major producer of crude oil
with four refineries that once exported refined products is today having
to import all of its domestic needs. This is what corruption and
mismanagement has done to us and that is why we must fight these ills.
As part of the foundation of the new economy we have had to reform
how fuel prices had traditionally been fixed. This step was taken only
after protracted consideration of its pros and cons. After comprehensive
investigation my advisers and I concluded that the mechanism was
unsustainable.
We are also engaged in making recoveries of stolen assets some of
which are in different jurisdictions. The processes of recovery can be
tedious and time consuming, but today I can confirm that thus far:
significant amount of assets have been recovered. A considerable portion
of these are at different stages of recovery. Full details of the
status and categories of the assets will now be published by the
ministry of information and updated periodically.
When forfeiture formalities are completed these monies will be
credited to the treasury and be openly and transparently used in funding
developmental projects and the public will be informed.
On the Niger delta, we are committed to implementing the united
nations environment programme report and are advancing clean-up
operations. I believe the way forward is to take a sustainable approach
to address the issues that affect the delta communities. Re-engineering
the amnesty programmes is an example of this.
The recent spate of attacks by militants disrupting oil and power
installations will not distract us from engaging leaders in the region
in addressing niger delta problems. If the militants and vandals are
testing our resolve, they are much mistaken. We shall apprehend the
perpetrators and their sponsors and bring them to justice.
The policy measures and actions taken so far are not to be seen as
some experiment in governance. We are fully aware that those vested
interests who have held nigeria back for so long will not give up
without a fight. They will sow divisions, sponsor vile press criticisms
at home and abroad, incite the public in an effort to create chaos
rather than relinquish the vice-like grip they have held on nigeria.
The economic misfortune we are experiencing in the shape of very
low oil prices has provided us with an opportunity to restructure our
economy and diversify. We are in the process of promoting agriculture,
livestocks, exploiting our solid mineral resources and expanding our
industrial and manufacturing base. That way, we will import less and
make the social investments necessary to allow us to produce a large and
skilled workforce.
Central bank of Nigeria will offer more fiscal incentives for
business that prove capable of manufacturing products that are
internationally competitive. We remain committed to reforming the
regulatory framework, for investors by improving the ease of doing
business in Nigeria.
Meanwhile, the first steps along the path of self-sufficiency in
rice, wheat and sugar – big users of our scarce foreign exchange – have
been taken. The labour intensive farming enterprise (life), will boost
the economy and ensure inclusive growth in long neglected communities.
Special intervention funds through the bank of agriculture will provide
targeted support. Concerns remain about rising cost of foods such as
maize, rice, millet, beans and gari.
Farmers tell me that they are worried about the cost of
fertilizers, pesticides and the absence of extension services. The
federal and state governments are on the same page in tackling these
hurdles in our efforts at increased food production and ultimately food
security.
I would like to take this opportunity to express my appreciation
for the increasing role that our women are playing in revitalizing the
agricultural sector. Modern farming is still hard and heavy work and I
salute our Nigerian women in sharing this burden. In this respect I am
very pleased to announce that the government will shortly be launching
the national women’s empowerment fund, which I have approved to provide
N1.6 billion in micro-finance loans to women across the nation to assist
in rehabilitating the economies of rural communities, particularly
those impacted by the insurgency and conflict.
With respect to solid minerals, the minister has produced a roadmap
where we will work closely with the world bank and major international
investors to ensure through best practices and due diligence that we
choose the right partners. Illegal mining remains a problem and we have
set up a special security team to protect our assets. Special measures
will be in place to protect miners in their work environment.
For too long, ours has been a society that neglects the poor and
victimizes the weak. A society that promotes profit and growth over
development and freedom. A society that fails to recognize that, to
quote the distinguished economist amartya sen ‘poverty is not just lack
of money. It is not having the capability to realize one’s full
potential as a human being’.
So, today, I am happy to formally launch, by far the most ambitious
social protection programme in our history. A programme that both seeks
to start the process of lifting many from poverty, while at the same
time creating the opportunity for people to fend for themselves. In this
regard, five hundred billion naira has been appropriated in the 2016
budget for social intervention programmes in five key areas.
We are committed to providing job creation opportunities for five
hundred thousand teachers and one hundred thousand artisans across the
nation. 5.5 million children are to be provided with nutritious meals
through our school feeding programme to improve learning outcomes, as
well as enrolment and completion rates.
The conditional cash transfer scheme will provide financial support
for up to 1 million vulnerable beneficiaries, and complement the
enterprise programme – which will target up to 1 million market women;
four hundred and sixty thousand artisans; and two hundred thousand
agricultural workers, nationwide.
Finally, through the education grant scheme, we will encourage
students studying sciences, technology, engineering and maths, and lay a
foundation for human capital development for the next generation
I would like to pay a special tribute to our gallant men and women
of the armed forces who are in harm’s way so that the rest of us can
live and go about our business in safety. Their work is almost done. The
nation owes them a debt of gratitude.
Abroad, we want to assure our neighbors, friends and development
partners that Nigeria is firmly committed to democratic principles. We
are ready partners in combating terrorism, cyber crimes, control of
communicable diseases and protection of the environment. Following on
the Paris agreement, COP 21, we are fully committed to halting and
reversing desertification.
Elsewhere, we will intensify efforts to tackle erosion, ocean
surge, flooding and oil spillage which I referred to earlier by
implementing the United Nations Environment Programme (UNEP) report.
We are grateful to the international community notably France, the
US, UK and China for their quick response in helping to tackle the
recent Ebola outbreak in our sub-region. We also acknowledge the
humanity shown by the Italian and German governments in the treatment of
boat people, many fleeing from our sub-region because of lack of
economic opportunity. We thank all our partners especially several
countries in the EU.
We appreciate the valuable work that theUN agencies, particularly
UNICEF, ICRC, the World Food Program have been doing. We must also
appreciate the World Bank, the Gates Foundation, the Global Fund and
Educate A Child of Qatar are for the excellent work in our health,
education and other sectors.
Fellow citizens let me end on a happy note. To the delight of all,
two of the abducted chibok girls have regained their freedom. During the
last one year, not a single day passed without my agonizing about these
girls. Our efforts have centred around negotiations to free them safely
from their, mindless, captors. We are still pursuing that course. Their
safety is of paramount concern to me and I am sure to most Nigerians.
I am very worried about the conditions those still captured might
be in. Today I re-affirm our commitment to rescuing our girls. We will
never stop until we bring them home safely. As I said before, no girl
should be put through the brutality of forced marriage and every
Nigerian girl has the right to an education and a life choice.
I thank you and appeal to you to continue supporting the government’s efforts to fix Nigeria.
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