Highlights of 2009 Appropriations Bill
By
Dec 2, 2008, 15:24

Aggregate expenditure for 2009 is N2.87trillion comprising:
• N140.7billion for Statutory Transfers
• N283.6billion for Debt Service
• N1.649trillion for Recurrent (Non-Debt) Expenditure
• N796.7 billion for Capital Expenditure

This aggregate expenditure represents a 4.45% increase over the N2.748trillion initially appropriated in 2008 and an 8.42% increase over the 2008 Amended Budget’s level of expenditure of N2.647trillion.

The capital vote of N796.7 billion is significantly higher than the actual capital expenditure of N491billion in 2007.

Key Assumptions
• Oil production of 2.292mbpd
• Benchmark oil price of US$45/barrel
• Joint Venture cash calls of US$5billion
• GDP growth rate of 8.9%
• Inflation rate of 8.2%

The 2009 Budget provides 91% of the capital vote to five key priority sectors, namely:
• N361.2billion for Critical Infrastructure, including capital allocations of N88.5billion for Power, N15.4billlion for Aviation, N26.5billion for Petroleum Resources, N129.3 billion for Works, N35.2billion for Transport and N48.7billion (out of a capital vote of N64.45billion) for critical infrastructure within the Federal Capital Territory;
• N131.9billion for Human Capital Development including N39.6billion for Health, N33.6billion for Education, N32.6billion for MDGs Conditional Grants, N19.7billion for MDGs Quick Wins Projects and N6.3billion for MDGs Capacity Building;
• N91.8billion for Land Reform and Food Security focusing on Agriculture and Water Resources;
• N67billion for Security; and
• N77.12billion on the Niger Delta, comprising N27.12billion for the NDDC and N50billion on the newly created Ministry of the Niger Delta including provisions for enhancing critical infrastructure, environmental protection, youth development and grass-root empowerment.

Key projects to be funded by the 2009 Budget include:
• POWER: N3.5billion for the Mambilla Hydro-electric power generation project, N21.5billion for other Generation projects (including N6.5billion for the completion of the Niger Delta Power Holding Company’s NIPP projects), N32billion for Transmission projects, and N19.25billion for Distribution projects;

• PETROLEUM RESOURCES: N903.9million for the Trans-Sahara Gas Pipeline, N6.7billion for the Calabar-Umuahia-Ajaokuta Gas Pipeline, N10.3billion for the Ajaokuta-Abuja-Kano pipeline and N1.1billion for the Gas Supply Pipeline to PHCN Delta IV;


• WORKS: N10.7billion for Access Roads to 6 NNPC refineries and ports, N56.86billion for highways construction and rehabilitation, N4.3billion for the construction of the 2nd Niger Bridge at Onitsha and N3.6billion for the Guto/Bagana Bridge across the River Benue (both bridges are being constructed through PPP arrangements) and provisions for several other Presidential Initiative and Priority road projects;

• TRANSPORT: N12.4billion for the completion of the Ajaokuta-Warri line to the Delta Steel Jetty; N8.3billion for the modernisation of locomotives, coaches and wagons, rehabilitation works and procurement of railway equipment, and N8.4billion for the dredging of the Lower River Niger;


• HEALTH: Healthcare projects including N6.5billion on the sector’s response to HIV/AIDS, N3billion on Midwifery Services Scheme, N7.7billion on maternal and children’s health, and N6billion on polio eradication;
• AGRICULTURE AND WATER RESOURCES: N4.6billion on the development of livestock production infrastructure, N15billion on the supply of fertiliser, N6.5billion on tractor service PPP schemes, N9.2billion on the construction and rehabilitation of dams, and N11.6billion on water supply and sanitation;

• DEVELOPMENT OF THE NIGER DELTA: the new Ministry will invest N28.4billion on the East-West Road to improve accessibility to the region, N92.8million on projects to improve and restore the environment and N18.6billion on other projects, particularly the establishment of two sophisticated skills acquisition centres to help the youths from the region acquire practical skills relevant to the energy and petrochemicals industry.


Measurable targets and outputs

• SECURITY: the Police are investing N5.738billion in a new initiative in enhancing security and community policing in 7 cities across the Nation, namely Abuja, Lagos, Kano, Ibadan, Port Harcourt, Maiduguri and Onitsha. The Nigerian Police Force is committed to reducing crime by 40% in these 7 cities over the next year. The Interior Ministry is investing N1.8billion in prison infrastructure rehabilitation to improve the security of the prisons and provide better facilities for reorienting convicted felons for rehabilitation into society.

• WORKS & HOUSING: the Ministry proposes in 2009 to complete the construction and rehabilitation of 3,293km length of roads. Under the FERMA programme, 10,676km of Federal roads will be kept in motorable condition under the Retainership Programme, and 20,000km of roads will undergo emergency repair work. The Zonal Intervention Roads project will cover a total of about 2,400kms of roads. This Administration is also committed to accelerating the enhancement of road works by maintaining 10,000km of roads every year for the next three years.

• POWER GENERATION: We are increasing investment in power generation by enhancing NNPC’s ability to provide 1.2billion SCF of gas to the domestic market, so as to ensure that this Administration can deliver 6000 MW of power by the end of 2009.

• FOOD SECURITY: in 2009, the Ministry of Agriculture and Water Resources will increase land under cultivation by 5%, by optimising 220,000hectares of irrigated land and irrigating 12,000hectares of arable land. This will result in an increased yield of between 50-250% depending on the type of crop. The Ministry also intends to increase fish production from 650,000metric tonnes to 1.5million metric tonnes. The ultimate objective is an overall increase of 8% in agriculture’s contribution to GDP.

• HEALTH: The Ministry of Health is completing the modernisation of the Teaching Hospitals in Calabar, Awka and Ife; completing the modernisation of 7 Specialist Hospitals in Kaduna, Lagos, Kano, Calabar, Enugu, Maiduguri and Abeokuta; and scaling up investment in its polio eradication programme.

• FCT: the Government is investing over N11.3billion to accelerate the completion and furnishing of the Foreign Affairs Headquarters to enable the Ministry relocate to its new premises by 2009, freeing up their existing accommodation for use by other MDAs in need of office accommodation. This is in addition to the Shehu Shagari Complex and the Federal Ministry Building Phase II (Bullet House) which will all be completed, furnished, ready for occupation in the 2009 fiscal year. The FCT will also invest N5.1billion in the construction of water treatment plants, N10.8billion on completing various road projects, N3.5billion for Abuja Technology Village, and N11billion for the Abuja Metro rail project.

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