jonathan s 2012 budget speech before the national assembly

8/3/2019 Jonathan s 2012 Budget Speech Before the National Assembly

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Federal Republic of Nigeria

201 2 BudgetSpeech

Delivered by:

His ExcellencyDr. Goodluck Ebele Jonathan, GCFRPresidentFederal Republic of Nigeria

Before:

A Joint Session of the National Assembly, Abuja

Tuesday, 13 December 2011


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PROTOCOL

1. I am delighted to present the 2012 Federal BudgetProposal before this esteemed Joint Session of theNationalAssembly.ThisProposalcomesattheendofalongconsultativeprocesswithkeystakeholdersandit translates the development plans of governmentunveiled in theTransformationAgenda into concrete

actions.2. Thisbudget is a stepping-stone to the transformation

ofoureconomyandcountryinourwalktoeconomicfreedom. This esteemed Assembly would agree thatthispathwouldneitherbeeasynoruncontested;butwith a sharp focus, hard work, determination and

makingcarefulchoiceswewillovercome.

GLOBALECONOMICDEVELOPMENTS

3. Inthepastyear,theglobaleconomicrecoverysloweddown significantly and downside risks are on theincrease as many countries, particularly in theOrganization for Economic Cooperation andDevelopment (OECD), have faced serious challengesleadingtofiscalretrenchmentandausteritymeasuresinthefaceofhighandrisinglevelsofsovereigndebt.


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4. TheEuro Zone crisis in particular has time andagain

thrown financial markets into turmoil as severalcountries in this economic and monetary union

continuetofacedifficultyinservicingtheirdebts.Onthe other hand, although many emerging anddeveloping countries, like India and China areexperiencingrelativelyrobustgrowth,downsiderisksremain as well. In fact, global growth projection hascontinuouslybeenreviseddownwardandisnow4%

for2012-2013.5. These developments have implications for our

economy as, aside from the impact on the inflow ofForeign Direct Investments, they could also lead tolowerdemandforourprimaryexportcommodity.Wearelivingwitnessestotheextentofvolatilitythatcan

afflict the international oil market with pricesplummetingfromUS$147/barrelinJuly2008toaboutUS$38/barrelfourmonthslater.Thus,althoughtheoilprice is currently over US$100/barrel, there is noguaranteewhatitwouldbeinthefuture.

6. Wecannotsubjectthewell-beingofNigerianstosuchlarge fluctuations and must therefore protectourselves by managing our finances prudentlyincluding by adopting a conservative benchmark oilpriceforourbudgets.


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7. Therearealsouncertaintiesintheareaofinternationalfood prices which make it imperative that we takesteps to safeguard our position through policies thatwould promote food security. So far, the Nigerian

economyhasweatheredthesestormswellbuteffortsneed to be reinforced to ensure macroeconomicstabilityandsustainedeconomicgrowth.

DEVELOPMENTSINTHEDOMESTICENVIRONMENT

8. Thisyearmarkedanothermilestoneinourdemocraticexperience,withthesuccessfulelectionsandpeacefultransition.WenowneedtobuildonthemandatethatNigerianshaveentrustedtoustodeliverthedividendsof democracy through stronger economic reforms todeliver growth and create jobs. I have created an

EconomicManagementTeam(EMT)thatIchair,andan Economic Management Implementation Team(EMIT) chaired by the Coordinating Minister for theEconomyandMinisterofFinance,tohelpusdeliveronthiseconomicagenda.

9.The robust growth recorded in the first half of 2011underscores the resilience of the Nigerian economyand the prudence of our economic policies. Ourgrowth in the 2010-2011 period has been broad-based.


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10. The economy recorded impressive growth of 7.85percent in 2010 and 7.72 percent as of the secondquarter of 2011 compared to 5.2% forecast for sub-SaharaAfrica.Medium-termprospectsarealsobright,

withrealGDPgrowthprojectedtoremainstrongoverthe period. Furthermore, we intend to pursue aprogrammeofgreater fiscaldisciplinecomplementedwith appropriate monetary policy in order to helpstabilizeourdecliningforeignreserve.

11.Thenon-oil sector continues to be themain driver ofgrowth with increased crop production, growth inwholesale and retail trade and increased financialsectoractivitiesbackedbythebankingsectorreforms.Contributionsbytheoilsectorcontinuetoimproveasaverage daily oil production rose to 2.45 millionbarrels per day in the second quarter of 2011

compared to 2.35 million barrels per day in thecorrespondingperiodin2010.

12. At the same time, food inflation has been on adownwardtrendfrom14.1%inOctober2010to9.7%inOctober2011,butitisstillamatterofconcernas

our objective is to move to low or mid-single digitinflation.

REVIEW OF IMPLEMENTATIONOF THE2011 BUDGET

SOFAR


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13.Weareapproachingtheendofapeculiarfiscalyearforour nation. The 2011 Elections, the subsequentinaugurationofanewAdministrationlastMayandthe

passageofthe2011AmendmentBudgetinMay2011allaffectedtheimplementationofthebudgetin2011.Provisional data on the implementation of the 2011Budget as at October 2011 indicate that revenueperformance improved during the year over thesituationin2010.

14. Oil revenue receipts achieved the targeted levels as aresult of relatively higher oil prices and productionlevels than benchmarked while non-oil receipts,though short of the projection for the period, aretending towards the set targets for 2011.As ofmid-November,about67%ofthereleasedfundshadbeen

utilizedandweexpectittoreach70%bytheendofDecember which is fairly good considering thecircumstances.Youwillagreewithmethat2010and2011 Budgets were relatively expansionary, and wemustnowinjectadoseofcaution.

15.With the support of the National Assembly, theGovernmentisdeterminedtopursueaprogrammeoffar-reaching fiscal consolidation so as to reduce ourdeficit and domestic borrowing tomoremanageablelevels.

16.We have introduced measures to actualize thisprogrammeinthe2012fiscalyearbothintheareasof


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improved revenue collection, recurrent expenditurereduction and increasing the share of capitalexpenditure in aggregate spending, in contrast withthetrendofrecentyears.

PRIORITIESOFTHE2012BUDGET

17. At a time when rating agencies are downgradingcountriesglobally,theOutlookonNigeriawasrecently

upgradedfromnegativetostablebyFitchRatings;thiswas largely a reflection of two things: a) the neweconomic programme, including the Medium-TermFiscal Framework that government has put in placewith important reforms and a clear programme offiscal consolidation; b) the successful politicaltransitionfollowingthe2011elections.

18. In furtherance of its efforts, the government has

significantly scaled up the flow of resources to keyareas of priority including Security, Infrastructurerenewal and development (including power androads),humancapitaldevelopmentandfoodsecurity

to give amore inclusivegrowth andattention to jobcreation.Yet,thereismuchthatstillneedstobedone.The Transformation Agenda spells out the strategicdirectionofmyAdministration.

19. In this respect, being the first budget under thisAgenda,the2012Budgethasbeendesignedwith the


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theme: fiscal consolidation, inclusive growth andjobcreation.

20. To achieve the above objectives, we have established

fourmainpillars,namely,(a)Macroeconomicstability;(b)Structuralreforms;(c)Governanceandinstitutions;and(d)Investinginprioritysectors.

MacroeconomicStability21. Governmentisdeterminedtopursuepoliciesthatwill

ensureastablemacroeconomicenvironmentthroughastrongandprudentfiscalpolicy,manageabledeficits,sustainabledebt-GDPratioofnomorethan30%,andsingle digit inflation, thereby promoting real growth.

We believe that these measures would engender astable and competitive exchange rate and help toreverse the declining trend of our internationalreserves.

22. Ourdomesticdebtprofilehasrisensharply inrecentyears,currentlystandingatabout16.4%ofGDP.This

cannot be allowed to continue and become a newburdenonourchildren.Soinadditiontolookingattheexpendituresideofournationalbalancesheet,wearealsopayingstrongattentiontotherevenueside.


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23. In this regard, we have initiated steps to increaserevenues by blocking leakages from various sources,improvecorporatetaxcollection,andboostinternallygeneratedrevenue.Wealsobelievethatweshouldbe

able to earn a lot more revenue from the maritimesector. As part of the on-going port reforms,government will work vigorously to increase ourrevenuefrommaritimeandrelatedactivities.

24. Startingin2012forthemediumterm,weshallfocus

oncuttingrecurrentexpendituretosustainablelevelsthrough reducing waste, inefficiency, corruption andduplication in government. Recent reviews of publicexpenditures provide a basis for taking suchmeasures. In order to make capital spending moreeffective, government is introducing a new templateforanalyzingthefinancialandotherfactorsincluding

the economic rates of return, job creation, andenvironmentalsustainability.

25. Similarly, Government will continue to prioritize itsexpenditureswhilefocuswillbeonthecompletionofviableon-goingcapitalprojects.Itisourintentionto

fundandbringthelargeportfolioofon-goingprojectstocompletioninthenextfewyearswhilealsotakingon flagship projects already identified in theTransformationAgenda.


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26. From2012,therewillalsobearobustprogrammetostrengthen our oil reserves base, and increase oilexplorationactivitiesinidentifiedinlandsedimentarybasins, outside the Niger Delta, with the requisite

potentialfortheproductionofoilandgas,particularlytheChadBasin.

StructuralReforms

27.My Administration is pressing forward with keystructural reforms. We are implementing theprivatizationofthepowersectorbasedonthe PowerRoadmapwhich Iunveiled last year.We believe thatthe power sector can benefit from liberalization andprivatization by attracting investors in the samemannerasthetelecommunicationssectorhasdone.Inthesamevein,governmentwillcomeupwithpolicies

to encourage investment in the downstream sectorthrough liberalization so as to create jobs for ourpeople.

28.We have also embarked on reforming our ports andcustomsandweintendtocontinuevigorouslyonthis

pathsoastoreducethecostofdoingbusinessforourprivate sector actors. No longer are we going to becontentedforclearanceofgoodsinourportstotake3-4weekswithattendantdemurrageandcostswhileittakes48hourselsewhere.


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29. Inthisregard,IhavesetupaCommitteechairedbytheCoordinatingMinisterfortheEconomyandMinisterofFinancewithamandatetoremovethebottlenecksatourportsandanotherCommitteemadeupofprivate

sectorusers of theports tomonitor implementation.We also intend to work hard to improve theinfrastructureattheports.Otherimpedimentssuchasthosearisingfrombureaucraticandcostlypaperworkwillalsoberemoved.

30.With regard to the petroleum sector, the FederalGovernment is conscious of the need to bring thePetroleumIndustryBilldebate to conclusionsoastogive investors the comfort and policy certainty thatthey require. My Administration is determined tobring this matter to closure by engaging with allstakeholders and I therefore call on the National

Assemblytoworkwithusinthisregard.GovernanceandBuildingInstitutions

31. Our reforms can only endure if they are founded onstrong systems and institutions that promote

transparency and we are taking steps to strengthenours.Asyouareaware,wehavealreadyresumedthepublicationofrevenuesallocatedtothethreetiersofGovernment as this will promote transparency andaccountabilityinthemanagementofpublicfunds.


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32. Similarly, the recent passage of the Freedom of

InformationActhasfurtherstrengthenedthehandsofcitizensinmonitoringtheactivitiesofgovernmentand

IacknowledgetheroleoftheNationalAssemblyandcivilsociety,inmakingthisareality.Thefightagainstcorruption is a collective responsibility and myAdministration will strengthen our anti-corruptionagencies such as the EFCC and ICPC to enable themdischargetheirmandate.Finally,werecognizethatwe

can only succeed in our effort to transform theeconomyifwehaveavibrantcivilserviceandwefullyintendtoembarkonreformingthepublicserviceforoptimalservicedelivery.

Investinginprioritysectors:CreatingJobs

33. Against the background of the above reforms, thisAdministration will promote job creation andinclusivegrowthbyinvestingincriticalinfrastructure,human capital development and security includingmore support for the police, defence and counter-terrorism operations. We shall also give priority

attention to Information and CommunicationsTechnology, Solid Minerals development,Manufacturing, Aviation and Creative industries inordertofurtherdevelopthesesectorsthatareknowntobesourcesofgrowthandjobcreation.


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34. Let me now comment on a few sectors. TheAgricultural sector is being totally transformed toenable us move from traditional farming to modernagricultureasabusinessbothforoursmallandlarge-

scalefarmers.Ourobjectiveistoensurefoodsecuritywhilst also promoting exports in agriculture valuechains wherewe have a comparative advantage.Weintendtoprocessandaddvaluetodifferentcropssuchasrice,cassava,sorghum,oilpalm,cocoa,cottonetc.

35. Thisapproachiscentraltoourtransformationstrategy.Accordingly,thisAdministrationhasadoptedenablingmeasures to support the development of privatesector-driven marketing institutions, and push forpoliciesthatwouldpromoteouragriculturetocreatejobs.

36. To unleash the potential of this sector, the FederalMinistry of Financehasput in placeamechanism toshare riskswith the banking sector by guaranteeing70%of the principal of all loansmade for supply ofseedsandfertilizerbytheprivatesectorthisseason.In addition, to get the inputs to farmers at an

affordablecost,wearesubsidizingtheinterestrateonthese loans to bring it down from 15% to 7% perannum. The Minister of Agriculture and the CentralBank are collaborating to extend these services forcreditavailabilityforthemediumterm.


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37.We are introducing further fiscal policy measures tosupportthedevelopmentoftheagriculturalsector.Inthis respect, the duty on machinery and certainspecified equipment for the sector will, effective

January 31st 2012, attract zero duty.Wewill furtherlookatsupportivefiscalpoliciesforthericeandwheatsectorstostimulatedomesticproduction.

38. Government is also introducing policies to encouragethesubstitutionofhighqualitycassavaflourforwheat

flourinbread-baking.Bakerieswillhave18monthsinwhich to make the transition, and will enjoy acorporate tax incentive of 12% rebate if they attain40% blending. With effect from March 31st 2012,importationofcassavaflourwillbeprohibitedsoastofurthersupportthisprogramme.

39. All equipment for processing of high quality cassavaflour and composite flour blendingwill enjoy a dutyfreeregimeasincentivetobakersforcompositeflourutilization. Consultationswith the sector to ensure asmoothtransitionareon-going.

40. Itiscommonwisdomthatthebestwaywecangrowoureconomyandcreatejobsforourpeopleisforustopatronize Nigerian-made goods. This is why we areintroducingenablingpoliciestodrivethisprocess.Inthisregard,weareintroducingfiscalpolicymeasuresthat will encourage the purchase and utilization oflocallyproducedcommodities.


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41. From July 1st 2012,wheat flourwill attract a levy of

65%tobringtheeffectivedutyto100%,whilewheatgrain will attract a 15% levy which will bring the

effectivedutyto20%.

42. Similarly,therewillbealevyof25%onbrownricetobring it to 30%. In addition, to encourage domesticrice production, a levy of 40% will be placed onimported polished rice leading to an effective duty

rate of 50%. Effective December 31st 2012, all ricemillersshouldmovetowardsdomesticproductionandmillingofrice,asthelevyof50%willbefurtherraisedto 100%. Let me add here that no waivers orconcessions will be entertained for rice and wheatimportation.

43.We have also commenced implementation of thePowerRoadmapwhichaimstocreatearobustpowersectorthroughtheprivatizationofthegenerationanddistribution of power as well as create an enablingenvironment for investment. Institutionalarrangements have been made for a Bulk Trader

company to intermediate between power producersand distributors in a market setting, thereby givingIndependent Power Producers (IPPs) the confidencetoinvestingenerationcapacity.


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44. Government, in collaboration with our developmentpartners has created a credit risk managementinitiativetoprovidePartialRiskGuarantees(PRG)togivecomforttogasproducersinrespectofpayment.

Similarly,effectiveJanuary31st2012,equipmentandmachineryinthepowersectorwillattractzeroduty.

45. TheGovernmentrecognizestheprovisionofaffordable

housingasasocialneedand,also,averitablesourceof socio-economic development and job creation.

Owningonesownhomeisabasicaspirationofeveryhumanbeing,andourpeoplearenodifferent.

46. To this end, based on a new housing policy,Government is working with our developmentpartners to create an effective mortgage financesysteminthecountryandtodevelopvaluechainsin

the building materials segment. This will give thenecessary stimulant to the sector to accelerate itsdevelopment and also help to reduce the cost ofconstruction, thereby energizing the constructionindustry.

47.It is awell-known fact that government alone cannotsolve the infrastructure problem, which is why wehave invited the private sector and internationalinvestorstopartnerwithusthroughthePublicPrivatePartnership(PPP)arrangements.


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48. AsestimatedintheFirstNationalImplementationPlanoftheNigeriaVision20:2020,weneedN32trillionforthe execution of capital projects over a four year-period, of which the private sector is to contribute

N13 trillion. In this respect, we are creating theenabling environment to attract private investmentsbyhavingaclearregulatoryframework.

49. Government will, in addition to ongoing criticalinfrastructureprojects,executenewflagshipprojects

with positive multiplier effects across the countrythroughPPParrangementsinthenextthreeyears.50. In our continuing effort to improve on our human

development index, we are conscious of the need toavoid the trapof focusing on economic growth as anendinitself,butrather,ameanstoimprovedhuman

development through ensuring better health care,educationandwealthcreation.

51. Tothisend,myAdministrationwillcontinuetoinvestinthesesectorstoimproveonthequalityofeducationforourchildrenespecially younggraduates fromour

educational institutions, support Public-PrivatePartnershiparrangementsforskillsdevelopmentandimprovethequalityofourhealthservicedelivery.

52. Fellow Compatriots, we recognize that we can only

achieve the developmental goals in a secure and


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peaceful environment. Accordingly, safeguarding thesovereignty,independenceandterritorialintegrityofthecountryisattheheartofongoingreformsinthesecurity sector. As you are aware, we have since

commenced strategic programmes to upgrade theskills of officers in the security agencies whilemodernizing security infrastructure across thecountry.

THE2012BUDGET53. The 2012 budget is based on a set of assumptions

reflecting Governments determination to maintainprudenceinthefaceofcontinueduncertaintiesintheexternal environment. Accordingly, the budget isbasedonthefollowing:

Oil production of 2.48 million barrels per day(mbpd)upfrom2.3mbpdfor2011;

Benchmark oil price of US$70/barrel, a cautiousrevision from the US$75/barrel approved in the2011AmendedBudget;

ExchangerateofNGN155/US$;ProjectedGDPgrowthrateof7.2%;andProjectedinflationrateof9.5%.

2012RevenueandExpenditureProfile


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54. Based on the above assumptions, the Gross federallycollectible revenue is projected at N9.406trillion, ofwhich the total revenue available for the FederalGovernments Budget is forecast at N3.644 trillion,

representinganincreaseof9%overtheestimatefor2011. Non-oil revenue is projected to growsignificantly in 2012 as recent efforts to reformrevenuecollectingagenciesandtheimplementationofinitiatives to further develop non-oil sectors areexpectedtoyieldresults.

55. The aggregate expenditure proposed for the 2012fiscal year is N4.749 trillion, which is a modestincreaseof6%overtheN4.484trillionappropriatedfor 2011. I am pleased to note, however, that thedeclining shareof capital is being reversed so itwillaccount for about 28% of total expenditure in 2012

comparedto26%in2011.Weintendtocontinueonthispathsothatby2015,itwillhaverisentoalmost33%.

56. This underscores the need to intensify our efforts tocurtailrecurrentexpenditure,whichwehavealreadyembarked upon under the policy of fiscal

consolidationasevidentfromtheMedium-TermFiscalFramework.Theshareofrecurrentexpenditureinthe2012 Budget proposal is 72%, down from 74.4% in2011, andwe intend to continue on this downwardtrendupto2015.


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57. TheaggregateexpenditurecomprisesN398billionforStatutory Transfers, N560 billion for Debt Serviceunderscoring the real need to address the risingdomestic debt profile, and N2.472 trillion for

Recurrent(Non-Debt)Expenditure.Weareconsciousof the need to control the cost of governance.Governmentwillstreamlineagencieswithoverlappingmandatesasawaytorealignpublicexpenditure.

58. Inthisrespect,IhavereceivedthepreliminaryReportofthetaskforcewhichIsetupforthispurposeandweshall implement relevant recommendations. We arealso pursuing the biometric verification of workersandpensionersaspartofourefforttocontrolcost.

59. CapitalexpenditurehasanallocationofN1.32trillion

representing a 15% increase over the amount

approvedinthe2011Budget.Theemphasisisonthecompletionofcriticalinfrastructureprojects.

60. Based on the above, the fiscal deficit is projected at

about2.77%ofGDPinthe2012Budgetcomparedto2.96%in2011.Thisiswithinthethresholdstipulated

in the Fiscal Responsibility Act, 2007 and clearlyhighlightsourcommitmenttofiscalprudenceasawaytocreatemorespacefortheprivatesector.


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61. This will also have a salutary effect on our domesticdebt profile, which has risen significantly in recentyears. We are determined to rein in domesticborrowing,andthroughthis,ensurethatourdebtisat

asustainablelevel.62. As I mentioned earlier, government has made

significant progress in putting the finances of thenation on a sound footing and laying the foundationforrapidandsustainableeconomicgrowth.

63. Allocationstosomecriticalsectorsoftheeconomyare

as follows: Security - N921.91 billion; Power[includingBulkTrader,Nelmco,andMulti-YearTariffOrder (MYTO)] -N161.42 billion; Works - N180.8billion; Education [excluding Universal BasicEducation Commission, Petroleum Technology

DevelopmentTrust Fund (PTDF) &EducationTrustFund]-N400.15billion;Health-N282.77billion;andAgriculture & Rural Development - N78.98 billion.Othersare:WaterResources-N39billion;PetroleumResourcesN59.66billion;Aviation-N49.23billion;Transport-N54.83billion;Lands&Housing-N26.49

billion; Science& Technology - N30.84 billion;NigerDelta - N59.72 billion; Federal Capital TerritoryAdministration (FCTA) - N45.57 billion andCommunicationsTechnology-N18.31billion.


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FiscalPolicy

64. Fellow compatriots, youwill agree that the budget isnotanendinitselfbutrather,aninstrumentforthepromotion of economic growth, wealth creation,poverty reduction and service delivery to thecitizenry.Governmentdesiresthatweshouldbegintoexperience a commensurate increase in gainfulemployment and social well-being of Nigerians with

therateofeconomicgrowth.65. ThisBudgetseekstoact,notonlytocreatejobs,butto

also lay a solid foundation for sustainable economicgrowth which would deliver the dividends ofdemocracytoourpeople.Inthisrespectasyoumayrecall,IhostedaretreatinOctoberthisyearwiththe

organizedprivateSector(OPS)atwhichanumberofissues including fiscal policy were extensivelydiscussed.

66. IwishtoreiterateherethattheprincipalobjectiveofmyAdministrationsfiscalpolicyintheareaoftariffs

and trade is to promote industrialization and thegrowthofthemanufacturingandagriculturalsectorsoftheeconomyandabovealltogenerateemploymentforNigerians.


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67. Aspartoftheprocesstorealizethisobjective,wehavecommencedthereviewofthe2008-2012CustomsandExcise Tariffs to correct identified anomalies andintroduce policies that will help in the promotion of

industrialization in the country when the review isconcluded.Inaddition,toensurealevel-playingfieldfor businesses, this Administration, beginning fromthe2012fiscalyear,willwherenecessary,onlygrantconcessionsorwaiversonasectoralbasis.Thefocusof any concessions will be on expanding domestic

production for local consumption and boostingexports, development of value chains, and boostingemployment.

68. The Export Expansion Grant (EEG) scheme has, over

the years, contributed significantly in thediversificationoftheeconomythroughthepromotion

of non-oil exports. Efforts have therefore reached anadvancedstagetoreviewandstreamlinetheSchemeto make it more effective as an instrument for thepromotion of non-oil exports. We shall alsoaggressively pursue economic diplomacy within theframework of ECOWAS to ensure that the ECOWAS

Trade Liberalization Scheme (ETLS) achieves itsobjectiveofpromotingintra-ECOWAStradeandthatit is not used as a vehicle for dumping goods in theregion.Inparticular,weshallreviewtheapplicationofthe ECOWAS Trade Liberalization Scheme (ETLS) totheoilpalmandothersectors.


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69. Forsometimenow,especiallywiththeadventofthe

consolidatedsalarystructure,therehasbeenagitationoverthelopsidednatureofthePersonalIncomeTax

Act and the fact that the tax free allowances wereinadequate. I am pleased to announce that I havesignedthePersonalIncomeTaxAmendmentAct2011into law which amongst others has the benefit ofreducing, on the average, taxes paid by low incomeearnersandprovidingamoreequitabletaxstructure

forindividuals.ThislawalsoprovidesforTaxAppealTribunals to listen to, and address concerns ofindividualtaxpayersasacost-effectiveadministrativeinterventionpriortorecoursetothecourts.

70. Otherfiscalchangestobegazettedshortly,includetax

waivers on all bonds and related instruments issued

by corporate and other tiers of Government, taxrebates as incentive to companies that create jobs,regulations to support taxpayers' self- assessment,andregulationstosupportthegrowingquestofthoseinvolvedinsocialandcommunitydevelopmenttogettaxincentivesforthosedonatingtotheircauses.

71. As you may recall, Government initiated a newmultifacetedNational JobCreation Schemewith theprovisionof seed funding of N50 billion in the2011Budget. Implementation of this programme hascommencedinearnest.


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72. This Administration believes that it is time to giveNigerianyouthsanopportunitytoenjoythedignityofajob,thesupportforinnovation,theconfidencetobean entrepreneur and, the sheer optimism to be anemployer of labour along with the security of anincome that can contribute to our economicdevelopment. We are conscious of the fact that wehavethetaskoftransformingthehugepotentialofouryouths into real, tangible outcomeswhich all of our

peoplecanexperienceandcalltheirown.73. In this respect, Government is focused on stimulating

entrepreneurial activity and setting a framework foryoung people with creative tendencies to showcasetheirbusinessacumen,buildcapacityandcreatejobs.In this spirit, and to move beyond the conventional

paradigmofjobcreation,theGovernment,partneringwith the organized private sector and ourdevelopmentpartners,tookboldstepstoinitiatetheYouthEnterpriseWithInnovationinNigeria (YouWin)programmewhichIlaunchedinAbujainOctoberandhas since been launched also across the six

geopoliticalzones.

74. Thisprogrammeistargetedto,notonlycreateanewgenerationofinnovativerealsectorentrepreneursinNigeria, but, in themedium term, also generate jobsforyouthsacrossthecountry.


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75. I believe that this move will drive the future

technologicalandsocio-economicdevelopmentofourcountry. YouWin will lead to the creation of about

100,000 jobs through support to our youngentrepreneurs.

CONCLUSION

76.Mr. Senate President, Mr. Speaker, DistinguishedSenators, Honourable Members of this esteemedAssembly,theProposalIlaybeforeyouthisdayseeksto sustain sound macroeconomic growth that willtranslatetoachievingsocio-economictransformation,and gainful employment for our people. But, we canonlyprogressinthiscourseandturnourpossibilities

into reality when we diligently adhere to theimplementation of well thought-out and articulateddevelopmentalpolicies.

77. The2012Budget,asourcollaborativeeffort,hastaken

the welfare of Nigerians as top priority. In an

environment of global uncertainties and domesticchallenges, the strong support of the NationalAssembly is invaluable for us to achieve our setdevelopmentalgoals.


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78. As we collectively resolve to create a brighter andenduringfutureforallNigerians-afutureofhopeandprosperitynotlack,fearorhatred,wemustpreparetoovercome any adversity that may arise. Accordingly,

wemust all be determined and committed to followthroughwiththedifficultbutbalancedchoicesthatwemakeinpilotingtheaffairsofthisgreatnation.

79. Finally, Iwishto appreciate theenduringpartnership

between the Executive and the Legislature in

discharging our shared responsibility for nation-building and I note, with thanks, the patriotism,commitment and support that Distinguished andHonourableMembersofthisesteemedAssemblyhaveconsistentlydemonstrated.

80. Onceagain,Iencourageustodialogueopenly,franklyandingoodfaithoverthechallengesthatfaceusasanation.ItismyhopethattheNationalAssemblywillconsider and pass the 2012 Budget Proposalexpeditiously; and I foresee even more productivecollaborationtothebenefitofallourpeople.

81. Iamindeedgratefulforyourkindattention.82.MayGodblessyouall,andblesstheFederalRepublicof

Nigeria.

jonathan s 2012 budget speech before the national assembly

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