Buhari Presents 2016 Budget to the National Assembly

President Muhammadu Buhari on Tuesday presented the 2016 budget before the national assembly, delivering a balanced, strong and impressive speech.

The house of Representatives chamber where the presentation took place was packed full. The senate president, Bukola Saraki, Speaker, Yakubu Dogara, vice president Yemi Osinbajo, members of the Federal cabinet, APC national chairman, members of the diplomatic Corp were all seated, and listened with rapt attention as Buhari delivered his budget speech. But even more than that, as the president put it, it was a speech crafted “directly to the men and women who placed us here.”

“The confidence of many might be shaken but I stand before you today promising that we will secure our country, rebuild our economy and make the Federal Republic of Nigeria stronger than it has ever been,” said Buhari after enumerating the challenges Nigeria faces locally and internationally.

As Sen. Saraki said in his opening remarks, it was the first time in three years that the Nigerian president personally performed the task. The former minister of Finance and coordinating minister of the economy, Ngozi Okonjo-Iweala, simply laid the budget estimates before the Assembly in the last two times. Dogara, the Speaker, make a joking reference to it in his closing speech, saying with the way things were going, we could have seen a situation where the budget estimates are simply “emailed or tweeted to the national assembly”.

The President presented a N6.08 trillion expansionary budget proposal, comprising of N1.8 trillion for capital spending (approximately 30 per cent). Last year’s capital budget was just about N557bn representing just about 12 percent of the total budget.

The budget assumes a crude oil price of $38 per barrel. Last year’s projection was $53 per barrel. Also, it is based on a projection that Nigeria will produce 2.2million barrels per day. The government is projecting a revenue of N3.86 trillion, which means that there will be a deficit of N2.22 trillion representing 2.16 per cent of GDP.

President Buhari announced that the government is looking at a growth rate next year of 4.37%. He announced several measures in his speech that the government will take like reduction in tax rates for small businesses and partnering with states and local governments to recruit, train and deploy half a million NCE holders in our schools,among others.

President Buhari apologised for the fuel crisis in the nation as well as the challenges in accessing for ex by Nigerians.

“I know many people will say we have heard this before. Indeed trust in government is at an all time low. Oursactions will speak for us. We will not betray the trust reposted in us,” Buhari said.

And Nigerians will be watching.