N7trn Budget Can't Make Huge Impact - Osinbajo

Vice President Yemi Osinbajo yesterday confirmed that the Federal Government has proposed about N7 trillion as budget estimate for the 2017 fiscal year but said it could not make a huge difference in a N90 trillion economy like Nigeria’s.

Daily Trust had exclusively reported on Thursday that President Muhammadu Buhari proposed a N7.2 trillion budget for 2017.

Speaking yesterday after visiting two agricultural factories in Sagamu, Ogun State, Osinbajo said the Federal Government believed very strongly that it could not deliver on its economic agenda without a serious partnership with the private sector.



He stated: “Our entire budget size for 2016 is something in the order of just over N6 trillion, and we will probably be moving to about N7 trillion in the 2017 budget. But N7 trillion is certainly not the kind of money. It does sound like a fair amount of money, but certainly, it is not the kind of size that can really make a huge difference in a N90 trillion economy such as we have.

“So, the real issue is that the contribution of the Federal Government is catalytic, the Federal Government can only make some catalytic contributions in terms of infrastructure and some incentives for the private sector.

“The real contribution is going to come from the private sector and that is why these partnerships are absolutely important to us, and what we are looking at is some game-changing type of projects, such as we have here. The types of projects that can make a real difference, because when we are talking about backward integration, the whole rural value chain.”

The vice president said President Buhari had talked very much about diversifying the economy as a way out of the current recession, saying “It’s the right and proper thing to do for the country.”

Osinbajo said: “When we’re saying agriculture is the way to go, from agriculture, we can employ a lot of people and then the whole value chain, from farm to table; we can do so much. That requires serious investment, it requires the types of enterprises where significant amounts of resources will have to come, in order to make that difference. So, we’re trying to partner with the kinds of serious investors, serious businesses that can really make a difference.

“And I think that this project is one such investment that I believe will make a significant difference. From listening here today, especially all about the local products, the crops and grains that are going to be used in this factory; Sourgum, the feed mill factory, wheat; all these are for us right on point. With some of what we’re getting, the better yields coming from the wheat that we see today, we think that what you’re doing is going to be really tied to that, because we must be self-sufficient, even in wheat production.

“We thought that was impossible a few years ago, but what we’re seeing now is that there are actually better yielding seeds that we can lay our hands upon, that can increase the yield, especially in wheat, and I think that this tied very well with that. At the moment, there is a shortage of animal feed everywhere, especially because of the shortage of maize. So, the feed mill is going to be absolutely important in achieving some of our objectives.

“The sorghum mill is really a big attraction, so we think that what you are doing is really spot on, it’s really the right way to go and we’re committed to supporting the Honeywell Group in ensuring that this happens and we’ll do all that’s required to make sure that this projects succeeds. We think that there are very very important synergies with other areas of the economy as well and we naturally expect that lots of jobs will come from this, as that is important to us here will be plenty of industrial opportunities, quality jobs that’ll mean more taxes as well.”