GEJ Presents Nigeria 2012 Budget to National Assembly

The president presented the 2012 budget themed ‘fiscal consolidation, inclusive growth and job creation’ before a joint session of the National Assembly earlier today.

Priority spending areas according to the President will be, “Security, Infrastructure renewal and development (including power and roads), human capital development and food security”.

The president divulged that his Economic Management Team (EMT) and Economic Management Implementation Team (EMIT) were focused on increasing levels of national macroeconomic stability in an otherwise unstable global economic situation. After earlier commenting on the sovereign debt crisis, the president stated that the Nigerian debt-to-GDP ratio will be no more than 30%.
In stating his administration’s displeasure with the current domestic debt profile currently standing at around 16.4% of GDP, the president said, “This cannot be allowed to continue and become a new burden on our children. So in addition to looking at the expenditure side of our national balance sheet, we are also paying strong attention to the revenue side.”

The government plans to increase revenue by “blocking leakages from various sources”, improving tax collection, boosting IGR, and finding more ways to monetize the maritime sector including making the ports more efficient.

On the overwhelming draining effect that recurrent expenditure has on the economy, the President stated, “Starting in 2012 for the medium term, we shall focus on cutting recurrent expenditure to sustainable levels through reducing waste, inefficiency, corruption and duplication in government.”

On structural reforms, the President spoke of plans to liberalize and privatize the power sector in the same manner as the telecommunications sector. The president also spoke on liberalization of the downstream oil and gas sector in order to create jobs.  On the Petroleum Industry Bill, Mr. President stated, “the Federal Government is conscious of the need to bring the Petroleum Industry Bill debate to conclusion so as to give investors the comfort and policy certainty that they require. My Administration is determined to bring this matter to closure by engaging with all stakeholders and I therefore call on the National Assembly to work with us in this regard.”

On Governance and Building Institutions the President stated that the EFCC and ICPC would be strengthened, and he harped on the passing of the FOI act into law.

On Job Creation, the president promised that Youwin (a N 50 Billion executive initiative already being implemented) will create about 100,000 jobs.

One Comment

1. 

   Okokon Etuk

   December 13, 2011 at 5:45 pm

   If these measures are implement, i believe Nigeria’s economy will experience an impressive growth