President Buhari has signed the N21.8tn budget for 2023

This is six days after the National Assembly passed the measure, which represents a N1.32 trillion increase over the president’s N20.51 trillion budget request.

President Muhammadu Buhari has signed the Appropriation Bill, 2023, which has a value of N21.83 trillion, into law.

The President said the overall expenditures of N21.83 trillion, which are a rise of N1.32 trillion over the initial Executive Proposal for a total expenditure of N20.51 trillion, represent the eighth and last yearly budget signed by this administration.

President Buhari says that the 2022 Supplementary Appropriations Act will let the government fix the damage done by the recent floods across the country to infrastructure and agriculture.

He also said that the Minister of Finance, Budget, and National Planning will give more information about the approved budget and the 2022 Finance Act later on.

The revised fiscal framework for 2023 from the National Assembly projects extra income of N765.79 billion and a deficit of N553.46 billion that can’t be paid for.

“It is obvious that some of the proposed extra revenue sources must be included in the fiscal framework by the National Assembly and the executive.” This has to be fixed.

“I’ve also noticed that the National Assembly included new initiatives in the 2023 budget proposal, for which it has allocated N770.72 billion.” The Ministry, Department, and Agency (MDA) provisions were enhanced by N58.55 billion by the National Assembly.

President Buhari explained why he signed the 2023 Appropriation Bill into law as voted by the National Assembly. He said it was because he wanted its implementation to start right away because the process of changing to a new democratically elected government was coming up soon.

While expressing his hope that the National Assembly will work with the Executive branch of government in this regard, he nonetheless gave the Minister of Finance, Budget, and National Planning instructions to consult with the Legislature about some of the changes made to the executive budget proposal.

He encouraged the National Assembly to reevaluate its stance on his proposal to securitize the unpaid Ways and Means of Balance at the Central Bank of Nigeria (CBN) for the Federal Government (FGO).

“As I mentioned, the balance has accrued over a number of years and represents funds supplied by the CBN to the government as lender of last resort to allow it to satisfy obligations to lenders as well as address budgetary shortfalls in projected revenues and/or borrowings,” he said.

I have no desire to restrict the National Assembly’s ability to question the makeup of this balance, which it may still do even after giving the sought-after consent.

The difference between the applicable interest rates, which are currently MPR plus 3% and the negotiated interest rate of 9%, and the 40-year repayment period on the securitized debt of Ways and Means will cost the government an additional N1.8 trillion in interest in 2023 if the securitization approval is not granted.

President Buhari thanked the National Assembly for agreeing to his plan to make the capital budget for 2022 valid until March 31, 2023. This would make sure that the budget would be used more effectively.

The President instructed the Ministry of Finance, Budget, and National Planning to work toward the early release of the 2023 capital budget in order to support efforts to deliver important projects and public services as well as improve the living conditions of Nigerians. This will allow Ministries, Departments, and Agencies to begin the implementation of their capital projects in good time.

The president emphasised that in addition to promoting fiscal sustainability, macroeconomic stability, and a seamless transition to the future administration, the 2023 budget was also created to support social inclusion and boost the economy’s resilience.

He assured that adequate funding has been included in the budget to ensure the smooth operation of the next general election and the transition plan.

The President instructed MDAs and Government Owned Enterprises (GOEs) to step up their revenue mobilisation efforts, including making sure that all taxable entities and people pay any outstanding taxes, in order to meet the budget’s revenue goals.

The President stated that pertinent agencies must maintain existing efforts toward the achievement of crude oil production and export targets in order to accomplish the desirable goals of the 2023 budget.

“MDAs are to speed the implementation of public-private partnership programmes, notably those aimed at fast-tracking the pace of our infrastructural development,” he stated. “To augment existing budgetary resources.”

This budget has a deficit; a corresponding borrowing plan will soon be sent to the National Assembly.

“I rely on the National Assembly’s support for a prompt review and approval of the plan.”

The President expressed disappointment that the examination of the Finance Bill 2022, as it was enacted by the National Assembly, has not yet been completed.

“This is due to the requirement for the relevant government agencies to assess some of the amendments made by the National Assembly.” “I encourage that this be completed quickly so that I can sign it into law,” he said.

Ahmad Lawan, the president of the Senate, and Femi Gbajabiamila, the speaker of the House of Representatives, were present when the budget was signed.

The Speaker of the House of Representatives, the President of the Senate, and all renowned and honourable leaders and members of the National Assembly were praised by the President for the swift deliberation and passage of the appropriations bill.

He also thanked 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 Office of the Chief of Staff, and everyone else who worked hard and made big sacrifices to make the 2023 Appropriation Act.

“Early passage of the budget plan is essential to enable effective execution of our legacy projects, a smooth transition programme, and an effective take-off of the future administration, as I indicated during the presentation of the 2023 Appropriations Bill.”

“I value the 9th National Assembly’s steadfast dedication to restoring a dependable January to December fiscal year, as well as the mutual respect, teamwork, and interactions between officials of the Executive and Legislative branches of government.

Over the past four years, “they have made it feasible for our fiscal measures to be quickly considered and passed.”

In order to assure its passage before the start of the fiscal year, the President expressed confidence that the following administration will continue to send the annual appropriations measure to the National Assembly early.

“I am confident that the new administration will continue the existing efforts to reform public financial management, advance the budgeting process, and, in particular, continue the practise of assisting its appropriation bills with finance bills created to speed up their implementation.

“We must move quickly and finish work on the Organic Budget Law for it to be operational by the end of this administration if we are to sustain and institutionalise the reforms’ gains.”

The President ended his speech at the ceremony by recognising that “these are trying times internationally” and expressing his sincere gratitude to Almighty God for His grace, while also praising Nigerians for their continued resiliency, understanding, and sacrifice in the face of these difficulties.

As the current administration comes to an end, he declared, “We will quicken the implementation of essential measures targeted at further strengthening the Nigerian business environment, promoting the welfare of our people, and ensuring sustained economic growth over the medium- to long-term.”