President Muhammadu Buhari on Thursday submitted the 2022 Appropriation Bill before the Joint Session of the National Assembly in Abuja.
According to the President, the “Budget of Economic Growth and Sustainability” would have its deficit mainly funded by new borrowings totalling N5.01 trillion, N90.73 billion from Privatization Proceeds and 1.16 trillion Naira drawdowns on loans secured for specific development projects.
While arguing that the nation does not have a debt sustainability problem, but a revenue challenge; President Buhari assured the lawmakers and Nigerians that his administration is determined to tackle the revenue problems and ensure that debts remain sustainable.
He further explained that his government has endeavoured to use the loans to finance critical development projects and programmes aimed at improving Nigeria’s economic environment and ensuring effective delivery of public services to our people.
For President Buhari, the loans acquired have been and will continue to be focused on:
1. The completion of major road and rail projects;
2. The effective implementation of power sector projects;
3. The provision of potable water;
4. The construction of irrigation infrastructure and dams across the country; and
5. The critical health projects such as the strengthening of national emergency medical services and ambulance system, procurement of vaccines, polio eradication and upgrading Primary Health Care Centres across the six geopolitical zones.
Speaking further about infrastructure financing, President Buhari disclosed that there will be some innovations.
According to him, in 2022, the government will further strengthen the frameworks for concessions and public-private partnerships (PPPs).
“Capital projects that are good candidates for PPP by their nature will be developed for private sector participation,” the President asserted.
He also disclosed that the present administration will also explore available opportunities in the existing ecosystem of green finance including the implementation of the nation’s Sovereign Green Bond Programme and leveraging debt-for-climate swap mechanisms.
The president enunciated that the strategies to improve revenue mobilisation will be sustained in 2022 with the goal of achieving four key objectives and they include:
Enhancement of tax and excise revenues through policy reforms and tax administration measures; review the policy effectiveness of tax waivers and concessions; boost customs revenue through the e-Customs and Single Window initiatives; and safeguard revenues from the oil and gas sector.