SEPTEMBER 23, 2015 : IFEANYI ONUBA
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President Muhammadu Buhari
The Federal Government on Tuesday began the
process of the preparation of the 2016 budget
for the country.
The fiscal document for 2016 will be based on
six policy thrusts and it is aimed at stimulating
growth and reducing the level of poverty in the
The policy thrust are economic and social
development, infrastructure, governance,
environment, as well as state and regional
Under each pillar, broad policy objectives have
been identified along the Key Performance
Indicators, targets and programmes.
Addressing stakeholders at the validation
workshop on the policy thrust of the 2016-2020
Medium Term Strategic Plan, the Secretary,
National Planning Commission, Mr. Bassey
Akpanyadung, stated that budgeting would no
longer be business as usual.
He said the policy thrust of the government
must be consistent with the zero-based
budgeting system, which will come into effect
With this development, Akpanyadung said the
leadership of the respective Ministries,
Department and Agencies of governments would
need to build their capacities in the areas of
planning, research and statistics.
He said the monitoring and evaluation system
would be strengthened with emphasis on
physical monitoring of projects, adding that the
envelop system of budgeting would no longer be
used in the country’s budgeting process.
The envelop system was introduced by the
Federal Government in 2003 and works by
providing each MDA with a maximum amount for
its capital and recurrent needs for the fiscal
Under the system, the MDAs were left with
money as they wished.
Akpanyadung said, “A comprehensive project
selection criteria will be adopted for admitting
projects into the plan. The principles that will
guide project selection include impact on
employment and welfare, inter-linkages with
other sectors and projects, and alignment with
the post-2015 development agenda.
“The representatives of the MDAs are, therefore,
urged to be guided by these principles in
identifying their projects and programmes.
“The envelop system will no longer be used in
annual budgeting process of the country.”
Explaining the policy objective of the
government, Akpanyadung said it would include,
among others, macroeconomic stability and
efficient resources management, real sector
development, and achieving holistic and
sustainable reform in the education sector.
Others are achieving qualitative and affordable
health care, infrastructure development,
sustainable environment and land use, security
sector governance, good governance, rule of law
and improving efficiency in the public service.
The NPC secretary said under the new
arrangement, the MDAs were expected to
provide well-costed programmes and projects for
enhanced delivery of plans.
Giving a breakdown of the key priority areas, he
said for the economic sector, the focus would be
to reform the oil and gas sector, real sector,
agriculture sector, tourism and creative
industries’ development, strengthening of public
financial management as well as national
planning and statistical system.
For social development, Akpanyadung said the
emphasis was to develop education
infrastructure and capacity building of technical
staff, pro-poor health care services and
infrastructure development, promotion of grass
roots sports and social protection initiatives.
In the area of infrastructure development, he
said that the government would improve
electricity generation, transmission and
distribution, increase gas supply pipelines,
rehabilitate roads as well as embark on railway
network expansion and modernisation.
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