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.
General Muhammadu Buhari is president of Nigeria and delivered this speech on Democracy Day, May 29, 2016.
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