My
compatriots,
It
is one year today since our administration came into office. It has been a year
of triumph, consolidation, pains and achievements. By age, instinct and
experience, my preference is to look forward, to prepare for the challenges
that lie ahead and rededicate the administration to the task of fixing Nigeria.
But I believe we can also learn from the obstacles we have overcome and the
progress we made thus far, to help strengthen the plans that we have in place
to put Nigeria back on the path of progress.
We
affirm our belief in democracy as the form of government that best assures the
active participation and actual benefit of the people. Despite the many years
of hardship and disappointment the people of this nation have proved inherently
good, industrious tolerant, patient and generous.
The
past years have witnessed huge flows of oil revenues. From 2010 average oil
prices were $100 per barrel. But economic and security conditions were
deteriorating. We campaigned and won the election on the platform of restoring
security, tackling corruption and restructuring the economy. On our arrival,
the oil price had collapsed to as low as $30 per barrel and we found nothing
had been kept for the rainy day. Oil prices have been declining since 2014 but
due to the neglect of the past, the country was not equipped to halt the
economy from declining.
The
infrastructure, notably rail, power, roads were in a decrepit state. All the
four refineries were in a state of disrepair, the pipelines and depots
neglected.
Huge
debts owed to contractors and suppliers had accumulated. Twenty-seven states
could not pay salaries for months. In the north-east, Boko Haram had captured
14 local governments, driven the local authorities out, hoisted their flags.
Elsewhere, insecurity was palpable; corruption and impunity were the order of
the day. In short, we inherited a state near collapse.
On
the economic front, all oil dependent countries, Nigeria included, have been
struggling since the drop in prices. Many oil rich states have had to take
tough decisions similar to what we are doing.
The
world, Nigeria included has been dealing with the effects of three significant
and simultaneous global shocks starting in 2014:
1.
A 70% drop in oil prices.
2.
Global growth slowdown.
3.
Normalization of monetary policy by the United States federal reserve.
Our
problems as a government are like that of a farmer who in a good season
harvests ten bags of produce. The proceeds enable him to get by for rest of the
year. However, this year he could only manage 3 bags from his farm. He must now
think of other ways to make ends meet.
From
day one, we purposely set out to correct our condition, to change Nigeria. We
reinforced and galvanized our armed forces with new leadership and resources.
We marshaled our neighbours in a joint task force to tackle and defeat Boko
Haram. By the end of December 2015, all but pockets and remnants had been
routed by our gallant armed forces. Our immediate focus is for a gradual and
safe return of internally displaced persons in safety and dignity and for the
resumption of normalcy in the lives of people living in these areas.
EFCC
was given the freedom to pursue corrupt officials and the judiciary was alerted
on what Nigerians expect of them in the fight against corruption. On the
economy, in particular foreign exchange and fuel shortages, our plan is to save
foreign exchange by fast tracking repair of the refineries and producing most
of our fuel requirements at home. And by growing more food in Nigeria, mainly
rice, wheat and sugar we will save billions of dollars in foreign exchange and
drastically reduce our food import bill.
We
resolved to keep the Naira steady, as in the past, devaluation had done
dreadful harm to the Nigerian economy. Furthermore, I supported the monetary
authority’s decision to ensure alignment between monetary policy and fiscal
policy. We shall keep a close look on how the recent measures affect the Naira
and the economy. But we cannot get away from the fact that a strong currency is
predicated on a strong economy. And a strong economy pre-supposes an industrial
productive base and a steady export market. The measures we must take, may lead
to hardships. The problems Nigerians have faced over the last year have been
many and varied. But the real challenge for this government has been
reconstructing the spine of the Nigerian state. The last twelve months have
been spent collaborating with all arms of government to revive our institutions
so that they are more efficient and fit for purpose:
•
That means a bureaucracy better able to develop and deliver policy
•
That means an independent judiciary, above suspicion and able to defend
citizen’s rights and dispense justice equitably.
•
That means a legislature that actually legislates effectively and
•
Above all; that means political parties and politicians committed to serving
the Nigerian people rather than themselves.
These
are the pillars of the state on which democracy can take root and thrive. But
only if they are strong and incorruptible. Accordingly, we are working very
hard to introduce some vital structural reforms in the way we conduct
government business and lay a solid foundation on which we can build enduring
change.
An
important first step has been to get our housekeeping right. So we have reduced
the extravagant spending of the past. We started boldly with the treasury
single account, stopping the leakages in public expenditure.
We
then identified forty-three thousand ghost workers through the Integrated
Payroll and Personnel Information system. That represents pay packets totalling
N4.2 billion stolen every month. In addition, we will save Twenty-Three Billion
Naira per annum from official travelling and sitting allowances alone.
Furthermore,
the efficiency unit will cut costs and eliminate duplications in ministries and
departments. Every little saving helps. The reduction in the number of
ministries and work on restructuring and rationalization of the MDAs is well
underway. When this work is complete we will have a leaner, more efficient
public service that is fit for the purpose of changing Nigeria for the good and
for good.
As
well as making savings, we have changed the way public money is spent. In all
my years as a public servant, I have never come across the practice of padding
budgets. I am glad to tell you now we not only have a budget, but more
importantly, we have a budget process that is more transparent, more inclusive
and more closely tied to our development priorities than in the recent past.
30% of the expenditure in this budget is devoted to capital items. Furthermore,
we are projecting non-oil revenues to surpass proceeds from oil. Some critics
have described the budget exercise as clumsy. Perhaps. But it was an example of
consensus building, which is integral to democratic government. In the end we
resolved our differences.
We
have, therefore, delivered significant milestones on security, corruption and
the economy. In respect of the economy, I would like to directly address you on
the very painful but inevitable decisions we had to make in the last few weeks
specifically on the pump price of fuel and the more flexible exchange rate
policy announced by the central bank. It is even more painful for me that a
major producer of crude oil with four refineries that once exported refined
products is today having to import all of its domestic needs. This is what
corruption and mismanagement has done to us and that is why we must fight these
ills.
As
part of the foundation of the new economy we have had to reform how fuel prices
had traditionally been fixed. This step was taken only after protracted
consideration of its pros and cons. After comprehensive investigation my
advisers and I concluded that the mechanism was unsustainable.
We
are also engaged in making recoveries of stolen assets some of which are in
different jurisdictions. The processes of recovery can be tedious and time
consuming, but today I can confirm that thus far: significant amount of assets
have been recovered. A considerable portion of these are at different stages of
recovery. Full details of the status and categories of the assets will now be
published by the Ministry of Information and updated periodically. When
forfeiture formalities are completed these monies will be credited to the
treasury and be openly and transparently used in funding developmental projects
and the public will be informed.
On
the Niger Delta, we are committed to implementing the United Nations
Environment Programme report and are advancing clean-up operations. I believe
the way forward is to take a sustainable approach to address the issues that
affect the delta communities. Re-engineering the amnesty programmes is an
example of this. The recent spate of attacks by militants disrupting oil and
power installations will not distract us from engaging leaders in the region in
addressing Niger Delta problems. If the militants and vandals are testing our
resolve, they are much mistaken. We shall apprehend the perpetrators and their
sponsors and bring them to justice.
The
policy measures and actions taken so far are not to be seen as some experiment
in governance. We are fully aware that those vested interests who have held
Nigeria back for so long will not give up without a fight. They will sow
divisions, sponsor vile press criticisms at home and abroad, incite the public
in an effort to create chaos rather than relinquish the vice-like grip they
have held on Nigeria.
The
economic misfortune we are experiencing in the shape of very low oil prices has
provided us with an opportunity to restructure our economy and diversify. We
are in the process of promoting agriculture, livestock, exploiting our solid
mineral resources and expanding our industrial and manufacturing base. That
way, we will import less and make the social investments necessary to allow us
to produce a large and skilled workforce.
Central
Bank of Nigeria will offer more fiscal incentives for business that prove
capable of manufacturing products that are internationally competitive. We
remain committed to reforming the regulatory framework, for investors by
improving the ease of doing business in Nigeria.
Meanwhile,
the first steps along the path of self-sufficiency in rice, wheat and sugar –
big users of our scarce foreign exchange – have been taken. The Labour
Intensive Farming Enterprise will boost the economy and ensure inclusive growth
in long neglected communities. Special intervention funds through the Bank of
Agriculture will provide targeted support. Concerns remain about rising cost of
foods such as maize, rice, millet, beans and gari. Farmers tell me that they
are worried about the cost of fertilizers, pesticides and the absence of
extension services. The federal and state governments are on the same page in
tackling these hurdles in our efforts at increased food production and
ultimately food security.
I
would like to take this opportunity to express my appreciation for the
increasing role that our women are playing in revitalizing the agricultural
sector. Modern farming is still hard and heavy work and I salute our Nigerian
women in sharing this burden. In this respect I am very pleased to announce
that the government will shortly be launching the national women’s empowerment
fund, which I have approved to provide N1.6 billion in micro-finance loans to
women across the nation to assist in rehabilitating the economies of rural
communities, particularly those impacted by the insurgency and conflict.
With
respect to solid minerals, the minister has produced a roadmap where we will
work closely with the world bank and major international investors to ensure
through best practices and due diligence that we choose the right partners.
Illegal mining remains a problem and we have set up a special security team to
protect our assets. Special measures will be in place to protect miners in
their work environment.
For
too long, ours has been a society that neglects the poor and victimizes the
weak. A society that promotes profit and growth over development and freedom. A
society that fails to recognize that, to quote the distinguished economist
Amartya Sen “poverty is not just lack of money. It is not having the capability
to realize one’s full potential as a human being.”
So,
today, I am happy to formally launch, by far the most ambitious social
protection programme in our history. A programme that both seeks to start the
process of lifting many from poverty, while at the same time creating the
opportunity for people to fend for themselves. In this regard, Five Hundred
Billion Naira has been appropriated in the 2016 budget for social intervention
programmes in five key areas. We are committed to providing job creation opportunities
for five hundred thousand teachers and one hundred thousand artisans across the
nation. 5.5 million children are to be provided with nutritious meals through
our school feeding programme to improve learning outcomes, as well as enrolment
and completion rates. The conditional cash transfer scheme will provide
financial support for up to one million vulnerable beneficiaries, and
complement the enterprise programme – which will target up to one million
market women; four hundred and sixty thousand artisans; and two hundred
thousand agricultural workers, nationwide. Finally, through the education grant
scheme, we will encourage students studying sciences, technology, engineering
and maths, and lay a foundation for human capital development for the next generation
I
would like to pay a special tribute to our gallant men and women of the armed
forces who are in harm’s way so that the rest of us can live and go about our
business in safety. Their work is almost done. The nation owes them a debt of
gratitude.
Abroad,
we want to assure our neighbours, friends and development partners that Nigeria
is firmly committed to democratic principles. We are ready partners in
combating terrorism, cyber crimes, control of communicable diseases and
protection of the environment. Following on the Paris Agreement, COP 21, we are
fully committed to halting and reversing desertification. Elsewhere, we will
intensify efforts to tackle erosion, ocean surge, flooding and oil spillage
which I referred to earlier by implementing the United Nations Environment
Programme (UNEP) report.
We
are grateful to the international community notably France, the US, UK and
China for their quick response in helping to tackle the recent Ebola outbreak
in our sub-region. We also acknowledge the humanity shown by the Italian and
German governments in the treatment of boat people, many fleeing from our
sub-region because of lack of economic opportunity. We thank all our partners
especially several countries in the EU.
We
appreciate the valuable work that the UN agencies, particularly UNICEF, ICRC,
the World Food Program have been doing. We must also appreciate the World Bank,
the Gates Foundation, the Global Fund and Educate A Child of Qatar for the
excellent work in our health, education and other sectors.
Fellow
citizens let me end on a happy note. To the delight of all, two of the abducted
Chibok girls have regained their freedom. During the last one year, not a
single day passed without my agonizing about these girls. Our efforts have
centred around negotiations to free them safely from their mindless captors. We
are still pursuing that course. Their safety is of paramount concern to me and
I am sure to most Nigerians. I am very worried about the conditions those still
captured might be in. Today I re-affirm our commitment to rescuing our girls.
We will never stop until we bring them home safely. As I said before, no girl
should be put through the brutality of forced marriage and every Nigerian girl
has the right to an education and a life choice.
I
thank you and appeal to you to continue supporting the government’s efforts to
fix Nigeria.
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