2021 budget: Buhari rolls out infrastructural developmental plans, security

President Muhammadu Buhari, on Thursday, reeled out plans for provisions of critical infrastructure across the country in the 2021 fiscal year.

President Buhari gave the assurance while addressing National Assembly members during the formal presentation of the N13.08 trillion budget proposal tagged: ‘Budget of Economic Recovery and Resilience.’

Under the capital Expenditure, an aggregate sum of N3.85 trillion is expected to be available for capital projects in 2021, including N1.80 trillion for MDAs’ capital expenditure; N745 billion for Capital Supplementation; N355 billion for Grants and Aid-funded projects; N20 billion for the Family Homes Fund; N25 billion for the Nigeria Youth Investment Fund; N336 billion for 60 Government-Owned Enterprises; N247 billion for capital component of Statutory Transfers; and N710 billion for projects funded by Multi-lateral and Bi-lateral loans.

According to Buhari, “The 2021 capital budget is N1.15 trillion higher than the 2020 provision of N2.69 trillion. At 29 per cent of aggregate expenditure, the provision moves closer to this Administration’s policy target of 30 per cent.

“Capital expenditure in 2021 remains focused on the completion of as many ongoing projects as possible, rather than the commencement of new ones. We have also made efforts to ensure equity in the distribution of projects and programmes in the proposed budget.”

He also unveiled plans to provide the National Assembly with a “list of some of the most critical projects which we must work collectively to ensure they receive adequate funding. Until projects reach completion, they do not deliver the dividends of democracy that Nigerians rightly deserve.”

Highlights of the key capital spending allocations in the 2021 Budget include; N198 billion (inclusive of N150 billion for the Power Sector Recovery Plan); Works and Housing – N404 billion; Transportation – N256 billion; Defence – N121 billion; Agriculture and Rural Development – N110 billion; Water Resources – N153 billion; Industry, Trade and Investment – N51 billion; Education – N127 billion; Universal Basic Education Commission – N70 billion; Health – N132 billion; Zonal Intervention Projects – N100 billion; and Niger Delta Development Commission – N64 billion.

Despite the daunting socio-economic challenges facing the country sequel to the COVID-19 pandemic, he observed that the Federal Government has successfully met our debt service obligations.

“We are also up to date on the payment of statutory transfers and staff salaries, while overhead costs have been significantly covered.

“For the first time in recent years, we commenced the implementation of this year’s capital budget in the first quarter. As at 15th September 2020, a total of about N1.2 trillion had been released for capital projects.

“Every Federal MDA has received at least 50 per cent of its 2020 capital expenditure budget, in line with my earlier directives.

“Let me emphasise that revenue generation remains our major challenge. Nevertheless, the Government is determined to tackle the persisting problems with domestic resource mobilisation, as there is a limit to deficit financing through borrowing. The time has come for us to maintain a healthy balance between meeting our growing expenditure commitments and our long-term public financial health.”

According to him, some of the priority agricultural projects achieved in the 2020 fiscal year include; rice and other crops mainly through the Anchor Borrowers Programme and the Presidential Fertilizer Initiative, anchored by the Central Bank of Nigeria and the Nigeria Sovereign Investment Authority, respectively.

“We are also accelerating the construction of 337 rural roads around key agricultural corridors to enhance access to market and reduce post-harvest losses. These efforts have reduced the adverse impact of Coronavirus on our food availability, prices and security.

“We have made progress on the railway projects connecting different parts of the country. The Lagos-Ibadan Line will soon be operational. The Abuja-Kaduna Line is running efficiently. The Itakpe-Ajaokuta Line was finally completed after over 30 years since it was initiated and commissioned in September 2020.

“Arrangements are underway to complete the Ibadan-Kano Line. Also, work will soon commence on the Port Harcourt-Maiduguri Line and Calabar-Lagos Coastal Line, which will connect the Southern and Eastern States to the North, and the South-South as well as South-East to the North, and South-West, respectively.

ALSO READ: No salary for failing to enrol on IPPIS, Buhari threatens

“The Second Niger Bridge is at about 46 per cent completion. We hope to commission the project before the end of our tenure in 2023. We have awarded several contracts to rehabilitate, reconstruct and construct major arterial roads, in order to reduce the hardship to commuters and increase economic activity.

“To bridge the infrastructure deficit, we are also implementing innovative financing strategies to pull in private sector investment. The Infrastructure Company, which I recently approved, will become a world-class infrastructure development vehicle, wholly focused on making critical infrastructural investments in Nigeria.

“This Infrastructure Company will raise funding from the Central Bank of Nigeria, the Nigeria Sovereign Investment Authority, the Africa Finance Corporation, pension funds as well as local and foreign private sector development financiers.

“Under the Road Infrastructure Tax Credit Scheme, we are undertaking the construction and rehabilitation of over 780km of roads and bridges, nationwide, to be financed by the grant of tax credits to investing business. Ongoing projects under this scheme include: Construction and Rehabilitation of Lokoja-Obajana-Kabba-Ilorin Road
Section II (Obajana-Kabba) in Kogi and Kwara States; Construction of Apapa-Oworonshoki-Ojota Expressway in Lagos State; and Construction of Bodo-Bonny road with a bridge across the Opobo Channel in Rivers State.

“To enhance good governance, we strengthened our anti-corruption agencies to ensure they work independently and jointly while respecting the rule of law,” Buhari noted.

In the area of security, he assured that the present administration is working towards addressing emergent cases of insecurity and insurgency, nationwide, with innovative approaches.

NIGERIAN TRIBUNE