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Buhari presents N20.51trn 2023 budget to National Assembly

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Buhari presents N20.51trn 2023 budget to National Assembly

President Muhammadu Buhari on Friday presented a budget proposal of N20.51trillion for 2023 fiscal year to the joint session of the National Assembly

Tagged Budget of Fiscal Sustainability and Transition, it is about N750billion higher than N19.76trillion earlier proposed in the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF/FSP and also higher than N17.23 trillion aggregate expenditure for 2022 by N3.28trillion.

President Buhari, however, made a lower projection of budget deficit by pegging it at N10.78trillion against N11.30trillion proposed in the MTEF/FSP documents.

The N10.78trillion deficit as explained by the President will be funded by projected N8.80trillion new borrowings and proceeds from privatised assets and others.

“We plan to finance the deficit mainly by new borrowings totalling N8.80 trillion, N206.18 billion from Privatization Proceeds and N1.77 trillion drawdowns on bilateral/multilateral loans secured for specific development projects/programmes”, he said.

He also earmarked N3.6trillion to fund fuel subsidy from January to June next year with warning that the subsidy regime must stopped in saving the Nation’s economy from avoidable bleedings on yearly basis.

Critical assumptions and parameters upon which the projected N20.51trillion 2023 budget is based as stated by the President are oil price benchmark of 70 US Dollars per barrel, daily oil production estimate of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day), exchange rate of N435.57 per US Dollar; and projected GDP growth rate of 3.75 percent and 17.16 percent inflation rate.

Added to the parameters as critical components of the budget as presented by President Buhari are N744.11billion for Statutory Transfers , N8.27trillion for Non-debt Recurrent Costs, N4.99 trillion for personnel costs, N854.8 billion for pensions and gratuities of retirees.

Others are N1.11 trillion for overheads cost, N5.35trillion for capital expenditure including the capital component of Statutory Transfers, N6.31 trillion for Debt Service and N247.73 as Sinking Fund to retire certain maturing bonds.

President Buhari explained further that based on the parameters, total federally-collectible revenue is estimated at 16.87 trillion Naira in 2023 fiscal year.

“Total federally distributable revenue is estimated at N11.09 trillion in 2023, while total revenue available to fund the 2023 federal budget is estimated at N9.73 trillion. This includes the revenues of 63 government-owned enterprises.

“Oil revenue is projected at 1.92 trillion Naira, Non-oil taxes are estimated at N2.43 trillion, FGN independent revenues are projected to be N2.21 trillion. Other revenues total N762 billion, while the retained revenues of the GOEs amount to N2.42 trillion.

“The 2023 Appropriation Bill aims to maintain the focus of MDAs on the revenue side of the budget and greater attention to internal revenue generation,” he said.

As a way of ending the lingering strike by the Academic Staff Union of Universities, ASUU and revitalizing Tertiary Institutions in the country, President Buhari earmarks N470billion for that purpose.

“The government notes with dismay the crisis that has paralysed activities in the public universities in the country. We expect the staff of these institutions to show a better appreciation of the current state of affairs in the country.

“In the determined effort to resolve the issue, we have provided a total of N470.0 billion in the 2023 budget from our constrained resources, for revitalization and salary enhancements in the tertiary institutions.

“Distinguished Senators and Honourable members, it is instructive to note that today government alone cannot provide the resources required for funding tertiary education.

“In most countries, the cost of education is jointly shared between the government and the people, especially at the tertiary level. It is imperative therefore that we introduce a more sustainable model of funding tertiary education.

“The government remains committed to the implementation of agreements reached with staff unions within available resources.

“This is why we have remained resolute that we will not sign any agreement that we would be unable to implement. Individual institutions would be encouraged to keep faith with any agreement reached in due course to ensure stability in the educational sector”, he said .

Also, the hope of Nigerians for constant electricity supply as declared by the President will come to reality in 2025 based on fast improvements being made in that direction particularly with projected additional 7,000 megawatts by 2024.

He said: “We have transformed Nigeria’s challenging power sector, through bespoke interventions such as the Siemens Power Program, with the German government under which over 2 billion US Dollars will be invested in the Transmission Grid.

“We have leveraged over billions of US dollars in concessional and other funds from our partners at the World Bank, International Finance Corporation, African Development Bank, JICA as well as through the Central Bank of Nigeria, working with the Finance Ministry, to support the power sector reforms.

“The Central Bank has also been impactful in its interventions to roll out over a million meters to on-grid consumers, creating much needed jobs in assembly and installation.

“Our financing interventions have recently been complemented with the takeover of four electricity distribution companies and the constitution of the Board of the Nigeria Electricity Liability Management Company.

“On the generation side, we have made significant investments in and incremental 4,000MW of power generating assets, including Zungeru Hydro, Kashimbila Hydro, Afam III Fast Power, Kudenda Kaduna Power Plant, the Okpai Phase 2 Plant, the Dangote Refinery Power Plant, and others.

“Our generation efforts are making the transition from a reliance on oil and diesel, to gas as a transitional fuel, as well as environmentally friendly solar and hydro sources.

“Under the Energising Education Programme, we have commissioned solar and gas power solutions at Federal Universities and Teaching Hospitals at Kano, Ebonyi, Bauchi and Delta States. Similarly, our Energising Economies Programme have taken clean, sustainable power solutions to the Sabon-Gari Market in Kano, Ariaria Market in Aba, and Sura Shopping Complex in Lagos.”

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Buhari presents N20.51trn 2023 budget to National Assembly

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