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:
A 70% drop in oil prices.
Global growth slowdown.
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, livestocks, 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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