Nathaniel Zaccheaus, Abuja
President Muhammadu Buhari has presented the 2023 budget estimates tagged, “Budget of Fiscal Stability and Transition” to the joint session of the National Assembly.
The Budget has a total figure of N20.51trn, an increase of N750bn as against the N19.76 trillion projected in the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper, passed by the National Assembly.
The total federally-collectible revenue is estimated at N16.87trn in 2023.
Oil price benchmark was pegged at $70 per barrel; with a daily oil production estimate of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day).
The exchange rate was pegged at N435.57 per dollar; with projected GDP growth rate of 3.75 per cent and 17.16 per cent inflation rate.
The expenditure comprises of a statutory transfers of N744.11bn, non-debt recurrent costs of N8.27 trn, personnel costs of N4.99 trn, pensions, and gratuities and retirees benefits of N854.8bn.
Overheads projection is put at N1.11 trn; capital expenditure of N5.35 trn, including the capital component of statutory transfers; debt service of N6.31 trn; and sinking fund of N247.73bn to retire certain maturing bonds.
Buhari disclosed that the sum of N470 bn intervention had been provided for in the 2023 budget estimates to fund tertiary institutions.
He urged members of the Academic Staff Union of Universities (ASUU) to show understanding in government efforts to address their plights.
The President noted that Government alone cannot provide the resources required for funding tertiary education.
He said the Federal Government would not sign any agreement that would be difficult to implement, with ASUU.
Buhari also said that in line with the plan to accompany annual budgets with Finance Bills, partly to support the realization of fiscal projections, current tax and fiscal laws/regulations are being reviewed to produce a draft Finance Bill 2022.
With this, he assured that once ongoing consultations are completed, the Finance Bill 2022 would be submitted to the National Assembly to be considered alongside the 2023 Appropriation Bill.
Buhari said, “Total federally distributable revenue is estimated at N11.09 trn in 2023, while total revenue available to fund the 2023 Federal Budget is estimated at N9.73 trn.
This includes the revenues of 63 Government-Owned Enterprises. Oil revenue is projected at N1.92trn non-oil
taxes are estimated at N2.43 trn, FGN Independent revenues are projected to be N2.21 trn.
Other revenues total N762bn, while the retained revenues of the GOEs amount to N2.42trn.
The President said, “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. Sustenance of revenue diversification strategy would further increase the non-oil revenue share of total revenues.
“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.
2023 Budget: Treat oil theft as treason, reps urges Buhari
“In the determined effort to resolve the issue, we have provided a total of N470.0 bn in the 2023 budget from our constrained resources, for revitalization and salary enhancements in the tertiary institutions.
“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.”
The President of the Senate, Ahmad Lawan proffered suggestions on how to reverse the increasing trend of deficits in the nation’s budget.
Lawan said the nation’s economy is still challenged by dearth of revenues, and the idea of deploying revenues from the Oil and Gas to support the diversification into real sectors like Agriculture, Manufacturing, Mining, etc is now under serious threat.
He said oil thieves have declared war on the country and its people and if necessary measures are not taken to stop the thieves immediately, the economy will be devastated.
He advised that deficit can be reduced by stopping the theft, and also other options should be considered to source more revenues for government.
Lawan said, “The large scale and massive stealing of our Oil, is concerning, as this reduces drastically the revenues available to the Government.
“With conflicting figures, projections have put our losses from this malaise at between 700,000 to 900,000 barrels of crude Oil per day, leading to about 29 to 35 per cent loss in Oil revenue in the first quarter of 2022.
This represents an estimated total fall from N1.1trn recorded in the last quarter of 2021 to N790bn in the first quarter of this year.
“The situation has worsened. Recently, the loss of our Oil has reached 1 million barrels per day.
“Translated into monetary terms, our loss is monumental. The figures show we are not able to meet the OPEC daily quota of 1.8million barrels per day.
“Mr. President, I consider the Oil thieves the worst enemies of our country. The thieves have declared war on our Country and our people.”
“The Senate President suggested taking off some of the major revenue generating agencies from direct funding by placing them on cost of collection of revenues, as we did for Federal Inland Revenue Service (FIRS), Nigeria Customs Service.
In this regard, Lawan said agencies like Nigeria Ports Authority, (NPA), Nigeria Communications Commission, (NCC), Nigeria Maritime Administration and Safety Agency, (NIMASA), etc can be given encouraging cost of collections of revenues.
Lawan also called for the completion of the ongoing legacy projects of the Buhari government, adding that the menace of flooding in many parts of the country has been particularly worrisome and has devastated homes, and disrupted families, lives and livelihoods.
