President Muhammadu Buhari has directed the Ministry of Finance,
Budget and National Planning to release N600 billion for Capital
Expenditure in the next three months.
The President gave the directive in his nationwide broadcast to
mark Nigeria’s 59th Independence Anniversary on Tuesday in
Abuja.
He stated that the directive was informed by his
administration’s desire to significantly increase investments in
the nation critical infrastructure.
According to him, the implementation of the 2019 Capital Budget,
which was only approved in June 2019, will be accelerated to ensure
that critical priority projects are completed or substantially
addressed.
He revealed that the Federal Government had so far released
N1.74trillion for execution of various capital projects in the 2018
fiscal year.
“In this regard, we are significantly increasing investments in
critical infrastructure. Last year, capital releases only commenced
with the approval of the Budget in June 2018.
“However, as at 20th June this year, up to N1.74 trillion had
been released for capital projects in the 2018 fiscal year,’’ he
said.
The president noted that the exchange rate in the last three
years had remained stable, with robust reserves of 42.5 billion
dollars, up from 23 billion dollars in Oct. 2016.
He added that, to maximise impact, the federal government would
continue to increasingly welcome and encourage private capital for
infrastructure development through Public Private Partnerships.
“Through the Road Infrastructure Tax Credit Scheme, which I
initiated in January this year, we are giving incentives to private
sector inflow of over N205 billion in 19 Nigerian roads and bridges
of 794.4km across in 11 States of the Federation.
“As we push to diversify the economy, we still remain focused on
optimising the revenues generated from the oil and gas sector.
“We will, working with the Legislature, soon pass the Petroleum
Industry Bill and amendments to the Deep Offshore Act and Inland
Basin Production Sharing Contracts Act into law, to ensure
Government obtains a fair share of oil revenues, whilst encouraging
private sector investment,’’ he said.
Buhari maintained that his administration would also continue
the fight against illegal bunkering of crude oil and the smuggling
of refined petroleum products across the borders.
He said this would include the diligent prosecution and
conviction of offenders found guilty of these acts.
“Whilst Nigeria remains committed to free and fair continental
and international trade, we will not hesitate to take all necessary
steps to tackle illegal smuggling, transshipment and other
predatory trade practices that destroy jobs in our country,’’ the
president added.
On power, Buhari reiterated his administration’s determination
to reform the power sector to ensure speedy socio-economic
transformation across the country.
“We are resolute in reforming the power sector. In August this
year, we launched the Presidential Power Initiative to modernize
the National Grid in 3 phases: starting from 5 Gigawatts to 7
Gigawatts, then to 11 Gigawatts by 2023, and finally 25 Gigawatts
afterwards.
“This programme, in partnership with the German Government and
Siemens, will provide end-to-end electrification solutions that
will resolve our transmission and distribution challenges,’’ he
disclosed.
According to him, the programme will also localise the
development and assembly of smart meters as well as the operations
and maintenance capabilities of transmission and distribution
infrastructure.
He expressed delight with the improved inter-agency
collaboration between the Ministry of Power and the regulators in
the banking and power sectors to ensure that electricity sales,
billings and collections were automated and become cashless.
“These initiatives are important to ensure that the technical
and collection losses in the sector are substantially reduced.
“I remain confident that Nigerians will have affordable and
uninterrupted electricity supply in the not too distant future.
“Our efforts to improve the power sector will complement other
infrastructure investments projects under the Presidential
Infrastructure Development Fund,’’ he said.
He acknowledged that the fund was investing in the Mambilla
Power Plant project, as well as key economic road infrastructure
such as the Lagos-Ibadan Expressway, Second Niger Bridge and
Abuja-Kano Expressway.
The President expressed optimism that the first set of these
projects remain on track to be completed by 2022.
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