Nigeria's 2016 budget seeks to fulfill social contract: president

Nigeria's 2016 budget, titled "Budget of Change" seeks to help the new government fulfill its own side of the social contract, President Muhammadu Buhari has said.

The Nigerian leader on Friday signed the 2016 Appropriation Bill of 6.06 trillion naira (30.4 billion U.S dollars) into law with an oil benchmark of 38 U.S. dollars per barrel.

The projection was also based on 2.2 million barrels of crude per day production.

The event was witnessed by Vice President Yemi Osinbajo, Senate President Bukola Saraki, Speaker Yakubu Dogara and National Chairman of the ruling party, All Progressive Congress (APC) John Odigie-Oyegun.

In his speech, Buhari expressed pleasure in the signing of the budget and thanked the leadership of the National Assembly for their cooperation.

The budget is intended to signpost a renewal of our commitment to restoring the budget as a serious article of faith with the Nigerian people, Buhari said.

According to him, the administration is committed to ensuring that henceforth the annual appropriation bill is presented to the National Assembly in time for the passage of the Act before the beginning of the fiscal year.

In designing the 2016 budget, the administration made a deliberate choice to pursue an expansionary fiscal policy in spite of the huge decline in government revenues from crude oil exports, the Nigerian leader said.

He said that was why it decided to enlarge the budget deficit at this time, to be financed principally through foreign and domestic borrowings.

The president said all borrowings would however be applied toward growth-enhancing capital expenditures.

He also reassured that in spite of the current difficulties the administration would work extra-hard to achieve its revenue projections.

Buhari observed that Nigerians were experiencing probably the toughest economic times in the history of the nation and added that he was not alienated from the peoples' struggle.

"I read the newspapers and listen to the TV and radio news; I hear your cries; I share your pains," he added.

"I want to commend the sacrifice, resilience and toughness of all Nigerians, young and old, who have despite the hardships continued to have hope and confidence of a great future for Nigerians," he said.

The president said government was working hard to diversify the economy such that the country would never again have to rely on one commodity to survive.

He said the aim was that we could produce the food we eat, make our own textiles and produce most of things we use.

"We intend to create the environment for our young peoples to be able to innovate and create jobs through technology," he added.

He acknowledged that the journey might not be easy but in the interest of many, government had to tread the difficult path.

"But I can assure you this government you have freely elected will work with honesty and dedication day and night to ensure that our country prospers and that the prosperity benefits all Nigerians," he said.

Meanwhile, Minister of Budget and National Planning, Udoma Udo Udoma, told reporters shortly after President Buhari signed the Appropriation Bill, that the 2017 budget would be passed early as the executive planned to submit the bill in October to enable passage before the end of the year.

Udoma said the highlight of the budget would be given later but disclosed that what was signed by the president was slightly lower than what he presented to the National Assembly.

He said revenue assumptions by the executive and legislature were the same as well as the size of the deficit and added that the ministry would set up monitoring committee to ensure effective implementation.

According to him, the ministry has sent a memo for a timetable for the presentation of the 2017 budget. Endit