Fellow countrymen,

Today is the 14th anniversary of the independence of Nigeria. That is to say that Nigeria has been in existence as an independent sovereign nation for 14 years.

As we cast our minds back over the chequered history of this nation during the past 14 years, we can see clearly the guiding hands of God by whose mercy and kindness and by whose grace we are able to celebrate this 14th anniversary under conditions of comparative peace and prosperity.

Therefore, it behoves us as a nation to offer special prayers to God for his mercies which he has ungrudgingly showed upon us during these 14 years.

On occasions like this, it is customary to take stock of one's achievements and failures and use it as a basis for future planning and activities. This attitude of mind is more relevant in the context of the Nigerian situation today.

The 14th anniversary of our independence which we are celebrating with joy and happiness today is different, in one important respect, from previous anniversary celebrations. It is virtually the end of the Second National Development Plan launched in 1970 to cover the period 1970-74. Although officially this Second National Development Plan was due to come to an end September 30, we have decided to extend it to March 31, 1975, and I consider the occasion of this our 14th anniversary of independence most auspicious for reviewing the success and failure of the federal and state governments in implementing the projects in the plan.

I would, therefore, like to start this review of the nation's performances in the economic, social and political fields by highlighting some of the achievements of the federal and state governments under the Second National Development Plan and later indicate the main features of the Third National Development Plan.

Overall performance

The main preoccupation of the Second Plan was to rehabilitate and reconstruct the wreckage of the civil war and hopefully to achieve progress and even development for the rest of the country. As clearly indicated in the second progress report published a few months ago, the national economy between 1970 and 1974 performed much better than expected.

The growth rate of the national income during the period has been well over 10 per cent even when allowance has been made for inflationary increases in general level of prices. In terms of actual capital expenditure on developmental projects, the governments of the federation have spent a total of ₦2,200 million since the Second Plan was launched in November 1970.

All things considered, this has been a satisfactory performance. I now wish to direct attention to the developments which have taken place in the vital sectors of the national economy.

Agriculture

In agriculture, most of the farms and plantations abandoned during the civil war have been rehabilitated and brought back into production. Furthermore, in recognition of the vital importance of agriculture in the nation's economy, government has intensified its extension service efforts and increased the supply of fertilisers and other requirements to the farmers.

To this end, capital expenditure of about ₦230 million was made between 1970 and 1974. The marketing board system has been reformed, and I am happy to announce that following the approval of the reform measures by the Supreme Military Council, producer prices of all agriculture produce have risen, in several cases by about 100 per cent in the last two years.

In addition, the Nigerian Agricultural Bank was effectively established early in 1973, and, during its first year of operation, it gave about ₦10 million in loans to farmers and farmers’ cooperatives throughout the country. The efforts of government in the development of agriculture has, however, not been limited to providing assistance to the farmers.

In order to ensure that the nation is able to feed itself, various governments in the federation have established food production companies.

Mining

In the mining sector, the major development during the Second Plan Period has been the dominant role which government is now playing by effectively participating in the operations of oil-producing companies. It may not be generally known that the Federal Government is now the majority shareholder in all the foreign oil companies in the country.

In addition to its substantial equity participation in the industry, the Federal Government established early in 1972 the Nigerian National Oil Corporation which is now prospecting for oil in a number of locations, both onshore and offshore. It is the intention to ensure that through these and other efforts, Nigerians will, in the near future, acquire the technical know-how required for running the oil industry, from prospecting and production all the way to refining, transportation and distribution.

During the same period, the Nigerian Mining Corporation was set up by law and charged with the responsibility of identifying, proving and mining of all solid minerals with the exception of coal for which a separate corporation already exists.

Thus, in this sector, we have established a solid foundation on which future development schemes will be based.

Manufacturing

The first major problem that faced the manufacturing sector at the beginning of the Second Plan was that of reconstructing the industrial establishments which were damaged during the civil war. By the middle of the Second Plan period, practically all manufacturing concerns in this category had been reactivated.

For example, the three cement factories in the war-affected areas, especially those of Nkalagu and Calabar, had not only been brought back into production but are now undergoing substantial expansion. As in the other sectors, activities in the manufacturing sector during the Second Plan period have not been limited to the reconstruction of the war-damaged industries.

If I may call attention to only the major projects in which the Federal Government is directly involved, the two salt refineries at Ijoko and Sapele will go into production in the next six months. Before the middle of next year, motor cars assembled at the Volkswagen and Peugeot assembly plants in Lagos and Kaduna will be available on the Nigerian market.

Substantial progress has also been made on the implementation of the second oil refinery at Warri. The Kaduna single super phosphate fertiliser project is now under construction while the Nitrogenous Fertiliser and the Petrochemical Complex are both at final decision stages.

Iron, steel in 1989

As regards the iron and steel project which featured in our First and Second National Development Plans, the intensive geological work undertaken during the Second Plan period has led to the discovery of high quality iron ore. A decision has therefore been made on both the location of the project and the process to be adopted.

If we are able to keep to the present implementation schedule, we should be producing iron and steel in Nigeria by 1980.

During the Second National Development Plan period, the Nigerian Enterprises Promotions Decree was promulgated to give Nigerians the opportunity to own completely or in part important businesses.

The promulgation of the decree was a landmark in the economic history of the country and the implementation of the decree in spite of the initial misgivings and even scepticism at home and abroad was successful beyond expectations. In order to further promote general development in commerce and industry, the Nigerian Bank for Commerce and Industry was established.

Transport

During the period under review, considerable progress was made in developing our land, air and water transportation system. By 1973, about ₦315 million had been spent by the governments of the federation on the various transport modes.

By March 31, 1975, it is expected that expenditure will be at least twice this figure. During the last four years, abut 2,200 miles of roads were reconstructed. Work is now in progress on other roads with a combined length of 1,600 miles.

With respect to civil aviation, the airport at Enugu is being reconstructed while contracts have been awarded for the construction of the airports at Kano, Lagos, Jos and Calabar. The Nigerian Ports Authority during the same period completed the rehabilitation of war-damaged port facilities in Calabar and Port Harcourt.

The Railway Corporation and Nigeria Airways are now in the process of modernising their operations through management improvement and intensified training in Nigeria and overseas.

Education

One of the most important developments in education during the Second National Development Plan period was the constitutional amendment which transferred higher education from the concurrent legislative list to the exclusive federal list.

Other levels of education were also put on the concurrent list. Following this and other changes, the capital allocation of the education sector rose to over ₦360 million, about half of which had been disbursed by early last year.

Physical achievements in education are best illustrated with significant increases in enrolment at the different levels of the educational system. The total enrolment in primary schools rose from 3.4 million in 1970 to about 4.5 million in 1973.

At the secondary school level, various institutions were established. These include 12 Federal Government Colleges for boys and 12 colleges for girls. The Federal Science School was established on its permanent site while Federal Schools of Arts and Science have just opened in Mubi, Ogoja and Sokoto.

In the area of technical education, four new colleges of technology and nine trade centres were established by the state governments. Over the same period, university enrolment rose from 14,500 in 1970/71 to well over 20,000 at the present time.

Indigenous participation

Other notable achievements during the period under review include indigenous participation to not less than 40 per cent in the three leading expatriate-owned commercial banks, the strengthening of the indigenously-owned commercial banks, the introduction of uniform prices for petroleum products throughout the federation, the introduction of uniform income tax, the conversion to decimal currency and the metric system, the changeover to right hand drive, the completion of the National Stadium in time for the Second All-Africa Games in 1973 and the substantial progress made in the construction of the National Theatre Complex.

Some of these are achievements involving delicate negotiations with powerful foreign interests, requiring a speed of action and courage on the part of the Federal Military Government. That the Federal Government has been able to make the necessary decisions and conclude the negotiations does credit not only to our negotiators but also to the realism and good sense of the foreign interests concerned.

We must accept nevertheless that there have been areas in which progress has not been as fast as had been envisaged. We have learnt valuable lessons in such areas and these lessons will be brought to bear in the implementation of the Third National Development Plan.

National reconstruction

An important feature of the period under review has been the speed and effectiveness of the national reconciliation which has made possible the total involvement of all sections of the country in our development efforts.

To complete the process of reconciliation, the Supreme Military Council has decided to release military detainees with immediate effect. Among those to be released is a Portuguese national. This gesture is in recognition of the progressive policy of the new Portuguese government towards its African territories.

External relations

During the period under review, we have adhered  in the sphere of external relation to the same principles since independence. We have maintained close cooperation with our immediate neighbours as well as with other member states of the Organisation of African Unity.

Our policy has been one of upholding the dignity of the African, safeguarding of his interest and promotion of his wellbeing, and protecting him from all forms of oppression and exploitation.

Nigeria has also continued its endeavour to maintain friendly relations with all countries which wish us well and to cooperate with all nations for the promotion of world peace and international understanding.

We believe that the maintenance of peace and stability is essential for effective social and economic development of the countries of Africa and the third world. We have also held the position that economic relations between various regions and countries of the world must be based on the principle of fair and equitable prices for the commodities and raw materials produced by the less developed communities and peoples.

The period under review has witnessed a number of important and historic developments. The struggles in Africa, which we support wholeheartedly, for the eradication of colonialism and oppression of the black man have achieved significant results especially in the new momentum towards independence and freedom for those parts of Africa under Portuguese domination.

The independence of Guinea-Bissau has been formally and fully acknowledged by the world community, and that country has been admitted to the United Nations organisation.

In Mozambique, a transitional government, preparatory to full independence, has been established. Discussions are well in hand about similar progress expected in Angola.

These are significant achievements. The support which Nigeria gives to the struggle for human dignity and eradication of all racialism and colonialism in Africa, and our determination to pursue these goals will continue to be intensified until the whole of Africa is free from this stain of degradation.

For much of the past twelve months, many countries in the region of West Africa have felt some of the harshest effects of severe drought. Areas of Nigeria were also equally affected. Our resources are, of course, limited and our own needs of development are immense.

Nevertheless, in a spirit of brotherly cooperation, we have rendered such assistance to our brother African nations affected by the drought as our own means allow. We intend to pursue such cooperation in other mutually beneficial fields in the days ahead.

You are all aware of the visit of the United Nations organisation when I had the honour and privilege to address that august body as chairman of the Organisation of African Unity. Since then, we have undertaken visits to the Soviet Union and the People's Republic of China.

These visits afforded a singular opportunity to hold useful and beneficial discussions with leaders of these two great countries on bilateral and other matters. During the same period, we received several august visiting heads of states from Africa and other parts of the world.

Third National Development Plan

I now turn to the highlights of the Third National Development Plan. The plan will cover the period April 1, 1975 to March 31, 1980. The five national objectives enunciated in the Second National Plan are long term in nature and are therefore reaffirmed for the Third National Plan period.

The plan is designed to bring about a radical transformation of the national economy — federal and states. It will undoubtedly bring about significant improvement in the standard of living of every citizen of our dear country.

National income

During the plan period, the gross domestic product of Nigeria at current prices is expected to grow from ₦13,962 million in 1974/75 to ₦24,235 million in 1979/80, indicating an average compound rate of growth of 11.7 per cent per annum.

However, when account is taken of inflation, the level of the gross domestic product at constant 1974/75 prices will be reduced to ₦21,580.9 million, giving a compound growth rate of about 9.1 per cent per annum. As of now, agriculture and mining account for 72 per cent of the national income.

But this proportion will fall to about 60 per cent in 1980, due to planned activity in other areas such as education, general administration, health, utilities, transport, communication and industry whose shares have correspondingly increased.

The estimated total savings of the public and private sectors during the plan period will amount to ₦49,000 million and a total investment of about ₦30,000 million has been projected for the next five years.

Investment programme

Of this sum, the federal and state governments together with the local authorities, statutory corporations and state-owned companies are expected to invest ₦20,000 million in the various sectors of the national economy. The highlights of this huge public investment programme are:

Agriculture

As the agricultural sector continues to be of crucial importance to the economy because of its role in employment, food production and provision of raw materials for the expanding industrial sector, great importance is attached to it under the Third Plan and a total of about ₦1,400 million has been allocated for development in the sector. This is over six times the allocation of ₦215 million made under the Second National Plan.

The main features of the plan programme in this sector are food and tree crop production, fruits and vegetables production, farm inputs and infrastructural development. Under food crops production, it is proposed to establish 3.6 million acres of cereals and 1.5 million acres of root crops like yams and cassava.

Of special importance is the national accelerated food production programme which is regarded as a prerequisite for the green revolution in Nigeria. This programme seeks to bring improved practices to farmers through a coordinated inputs package approach closely supervised by trained officials.

For tree crops, it is planned to establish, among others, 290,000 acres of cocoa, 420,000 acres of oil palm and 135,000 acres of rubber. Substantial provisions have also been made both for the distribution of fertilisers and other chemicals to farmers and for irrigation facilities.

The planned target for fertiliser distribution is 960,000 tonnes while a total of 1.4 million acres of land is planned for irrigation.

Industry

A sum of ₦6,000 million has been allocated by the federal and state governments for the development of industry during the Third Plan period. This compares favourably with the ₦200 million provided for the industrial development in the Second National Development Plan.

The objective of policy here is to make Nigeria self-sufficient in petroleum products, petrochemicals, pulp and paper, sugar and so on. In terms of specific projects, two new oil refineries will be established at Warri and Kaduna while Port Harcourt refinery will be expanded, all to ensure that enough refined petroleum is available for a long time to come.

The combined capacity of these three refineries will be 245,000 barrels a day. In addition, an export-oriented refinery will be established with a total daily capacity of 600,000 barrels. These projects will cost over ₦100 million between 1975-80. Oil pipelines will be constructed from Warri to Ibadan and Kaduna, complete with considerable storage facilities. Government will go into marketing and tanker service as well as direct and joint exploration activities.

For a long time, associated natural gas has been flared in the oil fields of this country. In order to end this wastage of a vital natural resource, two liquefied natural gas projects will be implemented during the Plan period at a total cost of ₦2,100 million.

Cement has been in short supply in the country for the past several years. But since limestone deposits are available in the country, government has decided to expand capacity of existing cement plants, notably at Sokoto, Calabar and Ukpilla, and also establish three new plants in Ashaka, Yandev and Shagamu. A total provision of about ₦220 million has been made for these cement projects.

Apart from these direct production activities of government in the areas of industry, the Nigerian Industrial Development Bank and the Bank for Commerce and Industry will be given adequate resource to enable them finance viable industrial projects from the private sector.

Power

Inadequate and unreliable supply of electricity has been the source of frequent complaints by both commercial and private users of electric power. During the Third Plan period, a determined and sustained effort will be made to solve this problem once and for all. To this end, existing transmission and distribution facilities will be improved and extended at a cost of about ₦163 million.

Specific projects designed for this purpose include, among others, the provision of second transmission lines between Benin and Lagos, and between Kainji and Lagos. In addition, the Onitsha-Aba transmission line will be extended to Port Harcourt and Calabar.

Nigeria is currently consuming about 500 megawatts of electricity. By 1980, electricity requirement is expected to be in the order of 1,400  megawatts. Consequently, a programme for generating 1,500 megawatts by 1980 has been prepared for implementation during the Third Plan period.

This means that at the end of the Plan period, firm generating capacity will be slightly ahead of demand. The projects in this area will include the installation of four additional generating units at Kainji, the Gongola hydro-electric power projects, the Sapele and Eket thermal plants and the Afam and Warri power extension projects.

In order to cater for the power needs of those who live in the rural areas, ₦30 million has been provided for implementing a rural electrification programme which will benefit rural communities throughout the country.

Transport

The total financial provision for the national transport system is ₦4,100 million. The bulk of this sum is allocated to the road programme which will cost ₦3,400 million. A highlight of this programme is the takeover by the Federal Government of about 10,000 miles of trunk B roads from the state governments.

Consequently, the federal road mileage will increase from about 7,000 miles to 17,000 miles. The aim here is to ensure that the nation is provided with a rational and fairly dense network of arterial highways of first-class quality. This takeover will also enable the state governments to develop rural and local authority roads as links between the national network and rural areas where agricultural activity is concentrated.

Rail

The Third Plan has made a provision of nearly ₦400 million for the improvement of the rail system. Specifically, railway tracks with wide gauge will be laid with heavier rails. Gradients and curves will be reduced.

Air transport

A total of ₦390 million has been allocated to air transportation, covering the development programmes of the Nigeria Airways and the Civil Aviation Department. In the airways programme, immediate attention is being given to domestic and West African routes. For this purpose, seven medium/short haul jets will be purchased.

It is also proposed to extend or build two hangers in Lagos and Kano to facilitate the maintenance of aircraft within the country.

The main item in the civil aviation programme is the development of airports and the provision of navigation aids and communications equipment. A total of 18 airports will be developed and adequately equipped during the Plan period.

Water transport

The share of water transport in the proposed capital outlays in the Third Plan is ₦387 million, distributed among Nigerian National Shipping Line, Nigerian Ports Authority; and inland and coastal waterways. The main feature of the shipping programme is the acquisition of 19 new vessels to enable the National Shipping Line carry about 30 per cent of the nation's total sea-borne traffic.

The port programme is designed to avert the possibility of port congestion. In this connection, six new berths will be constructed in Lagos and other ports will be developed. The inland waters programme is composed of craft replacement, dredging, inland navigational aids, development of river ports, dockyard improvement and the provision of ferry terminals.

Communications

This is a sector where existing facilities have lagged seriously behind requirements. It is expected that the facilities will be greatly expanded during the Plan period. The provisional allocation amounts to ₦774 million divided between ₦715 million for telecommunications and ₦59 million for postal services.

The objective in this sector is to provide adequate, efficient and reliable telecommunications and postal services without which the general development of the economy will be seriously impaired. The communications programme also includes a substantial expansion of postal facilities. A target of 10,000 postal establishments has been set for the Third Plan period.

The Nigerian Eternal Communications has a programme of ₦16 million covering the improvement of international telephone services, the introduction of limited automatic dialling service, and the improvement of telex services.

The proposed installation of a second antenna at the Lanlate Satellite Earth Station will extend the direct communication coverage of this station to nearly two thirds of the global structure.

Education

The importance of this sector derives from the need to ensure an adequate supply of high level manpower to meet the development needs of the economy. A total of nearly ₦2,000 million has therefore been allocated to the sector.

In the area of primary education, government has accepted Universal and Compulsory Primary Education as a matter of policy. The aim is to ensure that all children of primary school age go to school.

When the scheme starts in 1976, there should be about 7.4 million children in primary schools. By 1980, the last year of the Plan, total enrolment is expected to have risen to 11.5 million.

To accommodate such a large number of children, it has been estimated that about 36,000 classrooms will be required in 1976/77. The total number of classrooms will reach 151,000 by 1980. Given the national importance of the scheme, the Federal Government has decided to bear both its recurrent and capital costs.

The success of the Universal Primary Education scheme depends on the availability of teachers. The provision of teacher training facilities has therefore been planned as an integral part of the scheme, It is estimated that a total of 60,000 teachers will be required in 1976, rising to about 280,000 In 1982.

In addition, about 8,000 additional teacher educators will be required during the Plan period. This implies that substantial provision must be made for teacher training institutions. The sum of ₦200 million has therefore been earmarked for this purpose. As an emergency measure, the existing 156 teacher training colleges in the country will be substantially expanded and 62 additional colleges will be established. The aim is to produce 97,000 additional teachers by 1976.

Secondary education will also be expanded to absorb a greater production of primary school leavers. The highlights of the programme are the establishment of six Federal Schools of Arts and Science and the completion of the programme of Federal Government colleges for boys and girls in the states.

The state governments have ambitious programmes for building new colleges along comprehensive lines with adequate physical facilities to permit, ultimately, the intake of 1,000 students per institution. In addition, existing colleges will be reconstructed and re-equipped with a view to upgrading their quality.

The total investment in secondary education is about ₦615 million. But apart from this capital programme, government will reduce fees in secondary schools and peg them at the same level throughout the country.

Technical education is considered as top priority in view of the skilled manpower requirements of the economy. About ₦202 million will therefore be spent in this area. The Yaba College of Technology will be expanded and three new colleges of technology will be established by the Federal Government. The state governments also propose to set up new colleges of technology, and new technical and vocational schools.

In the area of higher education, substantial provisions have been made for the expansion of existing universities. In addition to this expansion programme, four new universities will be established. The overall aim is to increase university enrolment from the present level of over 20,000 to 53,000 by 1980.

Greater attention will be paid to the distribution of students among the major disciplines so as to give greater emphasis to the study of science and technology.

There will be a big programme of scholarships as well as loans to students during the Third Plan period. An allocation of ₦126 million has been made to this programme. The Federal Government alone intends to award nearly 20,000 scholarships in the next five years. Two other important aspects of the education programme are adult education and special education for the physically handicapped.

Adequate provisions have been made to ensure that people falling within these categories are well cared for. For this purpose, a federal teacher's college for special education would be established.

Health

The Plan allocation for the health sector amounts to ₦659 million. The objective in this sector is to provide adequate and effective health delivery system, both curative and preventive, for the rising population of Nigeria.

A major project in the health programme is the establishment of a teaching hospital in each state of the federation. This is meant to improve the standard of hospital services and to expand facilities for the training of doctors and other medical personnel.

Correspondingly, it is proposed that each of the existing medical schools or faculties should be expanded so that by 1980, annual enrolment in each will be 1,000 medical and dental undergraduates.

The health programme also includes the establishment of training schools for paramedical personnel. In this connection, it is planned to establish schools of physiotherapy, radiography, laboratory technology, dental hygiene and an institution for the training of dispensary assistants.

These schemes should provide an adequate number of paramedical personnel to support the planned hospital programme.

Other major projects in this sector relate to the initial phases of a malaria eradication programme for which ₦30 million has been allocated, and the building of a large number of hospitals and health centres throughout the federation. It is expected that by the end of the Plan period, there will be one hospital bed for every 1,000 of the population.

Labour and social welfare

The Plan allocation to this sector is ₦153 million. A very important project in the sector is the National Youth Employment Programme. This is a country-wide project designed to train youths, particularly school leavers, in special skills which are in great demand in the national economy. In this way, unemployment among young school leavers will be curtailed.

In the area of social welfare, it is proposed to establish youth camps for providing recreational facilities for Nigerian youth. Four centres of 500 campers each are planned at a cost of ₦8 million. Other projects include rehabilitation centres for beggars, the destitute, and the disabled, and a number of remand homes, approved schools and similar institutions for the reform of delinquent youths.

There is also a large programme of sports development. The National Stadium will be expanded to provide additional facilities such as a cricket pitch, squash and badminton courts, and training pools. Other projects include a campaign centre for sportsmen and the construction of sports stadia in  all state capitals and in most administrative headquarters in the the states.

Information

The main elements in this sector are radio/television broadcasting and library services. The total plan allocation is ₦201 million. The Nigerian Broadcasting Corporation will be reorganised and expanded. Additional facilities include a second channel to decongest the existing single channel and the installation of four more transmitters to improve both domestic and external broadcasting.

When completed, it will be quite easy to receive transmissions from Radio Nigeria, not only within the federation, but also in every part of the world. Furthermore, before the end of the Plan period, Nigerian Broadcasting Corporation television will start transmitting colour programmes which will not be limited to Lagos as hitherto, but will be extended to every part of Nigeria.

Emphasis will also be given to library development. In concrete terms, the headquarters of the National Library will built in Lagos and state branches will be established. Also, the Federal Government will establish a newspaper corporation which will publish a newspaper of the highest standard.

It is also intended to establish a national news agency to gather, process and sell news locally and cooperate with international news agencies. In addition, there are projects aimed at promoting Nigeria's culture. In this connection, provision has been made for cultural centres in all parts of the country.

Regional development

This sector covers a large number of activities including housing, water supplies, sewerage, town and country planning, cooperatives and community development.

The main objectives here are to improve spatial and environmental planning, accelerate the provision of basic urban facilities, promote the general development of the rural areas and make Nigeria not only clean but also beautiful.

The total plan allocation made to this sector is ₦3,200 million. The programme is dominated by housing which accounts for nearly N2,000 million.

Water supply projects also feature prominently in the regional development programme. A total provision of ₦521 million is made for water projects. These projects include large schemes involving the construction of dams, treatment plants, storage tanks and extensive distribution facilities designed to supply several million of gallons of water per day to the large urban centres. For the rural communities, there are schemes based on wells and boreholes to supply water for both human and animal consumption.

Defence and security

The total allocation to the Armed Forces sector, amounts to ₦2,200 million distributed among the Armed Forces, the Police Force and the Prisons Department. The major projects in the programme of the Armed Forces are the provision of arms, equipment, vehicles, office, barracks accommodation, hospitals and schools as a means of facilitating the completion of the reorganisation programme started under the Second National Plan.

Police

The size of the Police Force will be doubled during the Plan period so as to enable it perform its functions more effectively. Measures will also be taken to provide supporting facilities such as equipment, barracks, vehicles, quarters and offices.

Some specific buildings which will be constructed include the Criminal Investigations Department Headquarters, Special Branch Headquarters, a new police college and other training schools.

Prisons

The main problem confronting the Prisons Service is that of over-congestion arising from inadequate accommodation for inmates. An important part of the programme, therefore, is the provision of adequate accommodation and the provision of equipment and other facilities. Furthermore, in consonance with the philosophy of reformation and rehabilitation, new prison farms, industries and workshops will be established in order to give prisoners both agricultural and industrial skills.

General administration

The total provision for this sector is ₦854 million. The aim is to provide adequate administrative infrastructure at all levels with a view to making the machinery of government more efficient. The bulk of the programme is in the construction of offices and quarters and the provision of training facilities.

Private sector

The private sector programme will, as in other plans, constitute an integral part of the Third Plan. Because of the nature of the sector, the projects and programmes cannot be articulated in detail and with any degree of certainty.

However, given the aggregate planned investment in the economy of ₦30,000 million during the Plan period, and a programme of ₦20,000 million for the public sector; it is estimated that the balance of ₦10,000 million will represent private sector investment. This implies an average yearly investment of ₦2,000 million which is about double the present level of about ₦1,000 million, The projected level of private saving is quite adequate to finance this level of investment.

Financing the Third National Development Plan

As I indicated earlier in this address, estimated public sector investment during the Third Plan Is ₦20,000 million out of which it is estimated that the size of the Third Plan programmes of the state governments will be ₦6,500 million. On the basis of available data and by applying existing revenue allocation formula, the projected revenue surplus of all the states is about ₦1,000 million which must be regarded as grossly inadequate as a basis for implementing their development programmes.

Indeed, if we are to rely on existing revenue allocation formula, no state government, except two, will be in a position to finance even a single year's programme on the basis of the projected budget surplus.

A situation such as this would normally make nonsense of the very ambitious Plan I have taken care to outline in this address.

Therefore, in order to give credibility to the development programmes of the state governments, the Supreme Military Council has considered it necessary that the existing revenue sharing arrangements should be modified to ensure that each state government is enabled to finance at least 66⅔% of its programmes from its own independent tax effort and from statutory allocations from federally collected revenues.

Whatever gap exists thereafter will be bridged, as in the past, through combination of loans and conditional grants from the Federal Government or its financing agencies.

The Supreme Military Council, after approving the size of the Third National Programme as already outlined, has decided that no unit of the federation will be handicapped from fully implementing the projects under its supervision by lack of adequate funds.

The Supreme Military Council is satisfied that revenue allocation should be properly conceived not as a constitutional exercise but as a means of financing development programmes; that being the case, Plan periods as approved from time to time by the government, and not constitutional reforms and review, should be adopted as a logical timeframe for reviewing the sharing of revenues among the governments of the federation.

The council is also of the view that revenue allocation in the federation has to be regularly reviewed to ensure at all times that all levels of government are enabled to perform their allotted development and governmental functions subject only to the totality of the resources available to government.

This need becomes even more urgent in a dynamic economy such as ours where the importance of revenue sources can and does undergo rapid changes in a very short time.

It is a fact of history that revenue from produce dominated the 1950s while oil revenue now takes the pride of place. It follows from the foregoing that the old notion of entrenching percentage or fractional revenue shares of governments in a permanent constitutional document must, in our circumstances, be regarded as obsolete and therefore be discarded.

The need to give the force of law to revenue allocation arrangements to be worked out from time to time would be met by incorporating the formula in appropriate decree or legislation.

In the light of the recurrent budget surpluses of the Federal Government and the states and in the light of the foregoing, the objective of any revenue sharing exercise at this time should be to augment substantially the revenue destined for the Distributable Pool Account.

The Supreme Military Council has decided that this should be done by de-emphasising the derivation principle in respect of both oil and non-oil revenues and by transferring more revenue from the Federal Government to the states via the Distributable Pool Account.

As a practical application of the foregoing principle therefore, as from the 1st of April, 1975 all portions of customs and excise duties, formerly payable to state governments on the basis of derivation, would be payable to the Distributable Pool Account; the percentage of royalties, payable to state governments on the basis of derivation, would be reduced from 45% to 20% and the Federal Government will surrender its entire share of both onshore and offshore royalties into the Distributable Pool Account.

Allocations to state government from the Distributable Pool Account will be on the formula of 50% on the basis of population and 50% on the basis of equality.

It is estimated that as a result of the foregoing decision, there will be an increase of about ₦2,000 million in the distributable pool account between 1975-1980. Further, the states as a group will now have a recurrent budget surplus of about ₦4,000 million (vis-à-vis ₦1,000 million under existing revenue allocation formula) of a development programme of about ₦6,500 million.

This means that the states will be able to finance about two-thirds of their approved capital programmes from assured and independent revenues made up of statutory allocations from the Federal Government and through their tax efforts.

This decision by the Supreme Military Council involves sacrifice on the part of the Federal Military Government and on the part of all the states. This sacrifice, which is of great magnitude, is an eloquent witness to the desire of the military regime to strengthen our national unity and emphasise in a practical way our desire to promote even development throughout the federation and ensure an ever-rising living standard for our people.

I wish to emphasise here that this realistic decision taken in order to strengthen our national unity underscores the need for us to be guided at all times in everything we do by nationalistic, unselfish considerations. It was the nationalistic, non-partisan spirit adopted by all members of the Supreme Military Government that has made this possible.

Implementation

By now, some of you must be wondering whether government has got the organisation and manpower required for translating these huge programmes into reality. I would like to assure you that we are totally committed to the implementation of various projects and schemes in the Third Plan. Of course, we are aware of the difficulties and problems that will inevitably arise in the process of Plan implementation.

However, special implementation arrangements are being worked out. For example, the procedure for contracting and for the purchase of bitumen, structural steel products and other building materials will be reviewed to achieve maximum efficiency.

Given peace and stability and the support of all of you, I am confident that we shall successfully implement this huge programme which has been designed for improving the lot of all of you, the good people of Nigeria.

If I have tended to concentrate on the Third National Development Plan, it is because I have always believed that the anchor of political stability in any nation is rapid economic growth and prosperity, and that the Federal Military Government can make no greater contribution to the wellbeing of the teeming millions of this nation than to order and arrange our economic affairs in such a way that great resilience is built into the nation's political fabric.

This is not saying that development in the political and social fields is not equally important in the life of a nation. In fact, I am keenly aware that you expect to hear from me the Federal Military Government's position on such important topical national issues as the 1973 national population census exercise, the new revenue allocation formula, and the financing of the Third National Development Plan, eradication of corruption from our public life, creation of more states in the federation, and the whole question of arrangements for a peaceful and orderly return to civilian rule.

I wish, therefore, to deal briefly with each of these questions, which, as you all know, form part of the Federal Military Government's nine-point political programme.

National Population Census

In announcing the provisional results of the 1973 national population census in May this year, I informed the nation that the National Census Board had set up an expert committee to review these results with a view to arriving at final and reliable census figures.

The committee of experts, otherwise known as the 1973 Census Data Review Committee, has since made various arrangements and carried out some exercises for the accomplishment of its work. One of these exercises, conducted in August this year, was the post-enumeration check, which involved the actual counting of persons in approximately 5 per cent of all enumeration areas in the whole country, chosen by well-established scientific methods.

Reports from states indicated that the exercise was a success. I would like to take this opportunity to express my thanks to the people for their cooperation during that exercise.

The Census Data Review Committee of the National Census Board had also worked out a set of criteria to be applied for the validation of the 1973 census figures. The criteria would be applied consistently and uniformly to the data collected during the 1973 headcount and the post-enumeration check exercise, with a view to arriving at final and reliable census figures.

The procedures and processes of validating census data entail thorough scrutiny and reconciliation of all key census documents. There are over 15 million such documents. Because of the workload involved, the exercise may not be completed before the end of this calendar year, as indicated earlier in my broadcast on the occasion of the release of the preliminary census results.

Nonetheless, the committee is working flat out to ensure that the completion of their work is not long delayed.

Introduction of a new revenue allocation formula

The question of a new revenue allocation formula has been dealt with when I spoke earlier on about the financing of the Third Plan.

Settlement of the question of the creation of more states

When the states were created in 1967, I promised that if there were good and sufficient grounds to warrant the creation of more states in the federation, the Federal Military Government would not hesitate to do so. During the course of the past year or so, I have received representations from practically every state in the federation by people who want states of their own.

While I do not believe that we can solve the problem of minorities in this country solely by creating more states, I am of the firm view that in order to further bring the government nearer to the people, and ensure even development, a few more states should be created. I therefore wish to state categorically here that the Federal Military Government is committed to the creation of more states in the country before the return to civilian rule. Further pronouncements will be made on the matter in due course.

Eradication of corruption in our national life

In my 10th independence anniversary broadcast, I stressed the need for this nation to observe stringent moral standards, and gave an undertaking that the Federal Military Government will intensify the drive against corruption in whatever quarters it may exist — civilian or military. Today, four years later, I regret to say that corruption is still very much with us.

Many think that not much has been done to seriously tackle the problem, and there are those who even think that reporting cases of corruption is being deliberately discouraged. What government sought to discourage, however, is the use of methods that can do a lot of damage to the innocent and erode public confidence in the government and its functionaries.

What government has always sought to encourage is the use of the time-honoured procedure of reporting to the appropriate government agencies known cases of corruption.

In its efforts to deal with corruption in the Armed Forces, it may not be generally known that special tribunals had been set up and had dealt with reported cases of corruption. This has led to taking painful but necessary action against some members of the Armed Forces, including some very senior officers.

With the reorganisation and strengthening of the Force Central Criminal Investigations Department Headquarters, that arm of government is in a greater position than ever before to investigate with ever-increasing degree of sophistication reported cases of corruption: and as such, greater use should be made of that agency by those who have reliable information about cases of corruption.

I wish to reaffirm the determination of the Federal Military Government to discharge its responsibilities on this subject of corruption. Proven cases of corruption will be firmly dealt with.

National security

I have on many occasions in the past drawn your attention to the need for continued peace and stability in the country. This nation is greater than any of us or any of its component units. There is not a single one of us who does not need this country more than the country needs him. It follows, therefore, that the nation's survival as a united, virile entity and its real development and progress should, of necessity, be the concern of all of us, over and above both our personal narrow interests and the interests of particular groups or sections.

No nation can make rapid progress in a situation of instability, and it is a firm determination of the Federal Military Government that Nigeria should develop and make progress on all fronts at a rapid pace. It is for this reason that I appeal, once again, to you all to steer clear of activities likely to disturb the peace and stability of this nation.

Let us work together to bring about changes which we may consider desirable in a smooth, restrained and orderly manner. We cannot afford another upheaval.

I wish to make it adequately clear, however, that I will go to any length and will employ all means at my disposal, and do everything that is within my power to defend this nation, ensure its survival as a united and strong entity, and guarantee peace to its ordinary citizens.

I wish at this juncture to extend special greetings to all members of the Armed Forces for a life of service and dedication to their country. I wish to assure them that the Federal Military Government is ever mindful of their needs, and will continue to work tirelessly for the improvement of their lot, as well as that of members of their families.

In this connection, the salary and wages of the members of our Armed Forces as well as their conditions of service will be reviewed shortly as has been done for members of the civil services by the Udoji Commission.

Further, the Armed Forces will be modernised to enable them defend the country against our enemies from within and without.

In the months and years that lie ahead, we shall continue to expect from you total discipline and loyalty, courage and love of your country and your fellow Nigerians.

I wish to seize this opportunity also to appeal once again to the Nigerian workers to continue to exercise patience so that the report recently submitted to the Federal Military Government by the Public Service Review Commission and the recommendations contained in it can be quickly and carefully studied and considered and a government white paper issued on it.

Everything will be done to ensure that by the beginning of the new year, payment of new salaries plus arrears, which may be owed, will be made.

Efforts also be made to ensure there are no unnecessary increases in the prices of goods, particularly foodstuff, as a result of any awards. In all this, the private sector will be kept fully in picture in the interest of industrial peace.

I wish, therefore, to make special appeal to all concerned to continue to demonstrate the restraint shown over the past two years in the interest of industrial peace which is so essential for the rapid progress of the nation. You do not have much longer to wait.

Fellow Nigerians, the military government is aware of the general concern about an announcement of a programme of return to civilian rule following the indications which I gave on the subject in 1970.

Some of those who feel concerned to do so for fear of a return to the political chaos of the past. On the other hand, some of those who are full of expectations do so because of the leadership role with which such a transition may endow them.

Yet others, by their training and by a desire to resuscitate the party political activities of the past from which they derived benefits, have a sense of abhorrence for any form of military administration, no matter how broad-based and unauthoritarian. They will not accept any other form of administration which does not have the characteristic of a parliamentary system.

Four years ago, when I gave 1976 as the target date for returning the country to normal constitutional government, both myself and the military hierarchy honestly believed that by that date, especially after a bloody civil war for which there had been a great deal of human and material sacrifice and from which we had expected that every Nigerian would have learnt a lesson, there would have developed an atmosphere of sufficient stability. We had thought that genuine demonstration of moderation and self-control in pursuing sectional ends in the overall interest of the country would have become the second nature of all Nigerians.

Regrettably, from all the information at our disposal, from the general attitude, utterances and manoeuvres of some individuals and groups, and from some publications during the past few months, it is clear that those who aspire to lead the nation on the return to civilian rule have not learnt any lesson from our past experiences.

In spite of the existence of a state of emergency which has so far precluded political activities, there have already emerged such a high degree of sectional politicking, intemperate utterances and writings which were deliberately designed to whip up ill feelings within the country to the benefit of the political aspirations of a few.

There is no doubt that it would not take them long to return to the old cut-throat politics that once led this nation into serious crisis. We are convinced that this is not what the honest people of this country want. What the country and the ordinary citizens want is peace and stability, the only condition under which progress and development are possible.

Understandably, therefore, a large number of well-meaning Nigerians from all walks of life and from all parts of this country, as well as well-wishers of Nigeria at home and abroad, have called attention to the lack of wisdom and the dangers inherent in adhering to the target date previously announced.

Our own assessment of the situation as of now is that it would be utterly irresponsible to leave the country in the lurch by a precipitate withdrawal which will certainly throw the nation back into confusion.

Therefore, the Supreme Military Council, after careful deliberation and full consultation with the hierarchy of the Armed Forces and Police, have decided that the target date of 1976 is, in this circumstance, unrealistic and that it would indeed amount to a betrayal of trust to adhere rigidly to that target date.

I want to make it abundantly clear, however, that we have not abandoned the idea of a return to civilian rule. We consider it our responsibility to lay the foundation of a self-sustaining political system which can stand the test of time in such a manner that each national political crisis does not become a threat to the nation's continued existence as a single entity and which will ensure a smooth and orderly transition from one government to another.

To this end, the Federal Military Government will appoint in due course a panel to draw up a new draft constitution which, when approved by the government, will be referred to the people for adoption in a manner to be determined.

Meanwhile, the ban on partisan political activities still remains in force. The Federal Military Government proposes to broaden the scope of participation in government by the people. Accordingly, councils comprising persons drawn from a cross-section of the country will be established, both at federal and state levels, to advise the governments.

New blood

Fellow countrymen, we are about to enter a new phase in the life of our country and I have considered it appropriate that new blood should be injected into the governments of the federation at this juncture. The move will, among other things, provide many other Nigerians with the opportunity of serving in government and of acquiring the experience which the country will find useful in the future.

I have accordingly decided to appoint a new set of federal commissioners with effect from January 1, 1975. Although most of the new commissioners will come from members of the Armed Forces and Police, I intend to appoint a few able civilian commissioners into the new cabinet.

I have also decided to reassign the present set of military governors of the states after the launching of the Third Plan and to appoint new ones to replace them thereafter.

Fellow Nigerians, in all that I have said in this speech, the greatest concern of the Federal Military Government is for the welfare and happiness of the common man. If he is to derive benefit from the economic potentials of this country, there must be political stability which will enable him to pursue his interest in peace without molestation or hindrance.

More than ever before, the Federal Military Government is determined to bring the benefits of the wealth of this country to the common man and will not allow its attention to be diverted from fulfilling its duty in this regard by a vocal minority within society.

I appeal to each and every one of you to assist us in this great task by giving of his best at all times. May God continue to guide and protect this nation and to make us worthy to serve her.

Long live one united and strong Nigeria.

May God bless you all.