Fellow Nigerians,

On the occasion, today, of our 24th anniversary as a free nation, I am taking the opportunity to report to you progress on the policies and activities of this administration. As is well known, the most urgent problem facing this government when it assumed office, was the grave economic state of the country. Accordingly, our major preoccupation has been to restore Nigeria's economic balance.

The decline started when external obligations could not be met on a regular basis. As our external reserves dwindled, procurement of essential food and raw material imports became increasingly difficult. This led to shortages, factory closures and serious unemployment. Our initial policy measures were, therefore, designed to limit expenditure, increase foreign reserves and at the same time boost agricultural and industrial production. Figures available so far indicate that these measures are achieving the desired results.

The previous government spent two hundred and fifty-three million naira (₦253 million) more than it earned between January and June last year. This year, we have spent two hundred and forty-nine million naira (₦249 million) less than we earned during the same period. Our foreign reserves at the end of June this year stood at one thousand and thirty-one million naira (₦1,031 million) against seven hundred and eighty-two million naira (₦782 million) at the end of June last year. From January to August this year, we repaid one thousand, one hundred and fifty-four million naira (₦1,154 million) in settlement of debts inherited.

These trends reflect the positive impact of various exchange control measures, particularly those directed at minimising waste and malpractices and limiting foreign exchange allocation to the basic survival needs of the economy. The present policy under which the Central Bank pays for current imports on the basis of open account, and bills for collection as and when due, is to be maintained as a way of restoring international confidence in our external payments system.

At home, control of government expenditure at federal and state level has been effective. Public sector salaries are paid generally on time and on a regular basis. The Federal Government borrowing from Central Bank has been reduced by more than half. Before this administration came into being, the economy was almost ruined by illegal trafficking in the naira which not only made it convertible outside Nigeria but also encouraged the looting of the treasury by government leaders. In addition, there was too much money in circulation which, at the beginning of the year was put at about six billion naira, a level that further aggravated inflation in the country. To compound the problem, there were elements busy counterfeiting the naira.

Therefore, this administration if it ever hoped to revive the economy had to change the Nigerian currency. The new naira notes which were then introduced between April and May this year, as well as the sealing of the Nigerian borders were to ensure that the illegal lodgments of large sums of naira abroad were rendered valueless. Furthermore, the measure provided an opportunity to establish and maintain an optimum money supply level for the country, which means there is now less money to spend on non-essential items. One of the things we can justifiably be proud of at this stage is the restoration of confidence in the naira. Appropriate legislation has been approved to deal with currency malpractices.

Fellow Nigerians, the government is very much aware of the continued hardship and suffering borne by our people. But the problem must be tackled at the root if we are to attain solvency and prosperity. We will have to balance earnings with spending. We can never go back to the extravagant carefree days. Our only salvation is sound economic management.

Industrial revival

In pursuance of this policy, we are giving the industrial sector a new impetus. A sizeable proportion of the foreign exchange allocation in 1984 went for purchase of raw materials, machinery and spare parts. Contrary to past practice, raw material licences were given only to bona fide manufacturers and assemblers and some of the factories and plants which were closed or were about to do so at the inception of this administration are being revived. Initial delays in utilisation of licences due to Form M and commercial bank formalities are being gradually sorted out. Total value of import licences issued in the past nine months for raw materials, machinery and spare parts is about two billion, five hundred million naira (₦2.5 billion). It is expected that by the time all licences already issued have been fully utilised, the current shortage of manufactured goods should be considerably reduced. In addition, thousands of retrenched workers would be recalled to their jobs.

Meanwhile, government efforts to revive power supply for industry has resulted in a great increase in output of power from nine hundred megawatts (900 mw.) at the beginning of the year to one thousand, four hundred megawatts (1,400 mw.) by mid September. The power stations at Afam, Sapele, Delta, Kainji and Ijora in Lagos are being supplied with needed spare parts to increase their generating capacity. Also, new power projects in progress at Jebba, Shiroro and the Lagos Thermal Station at Egbin are being progressively implemented. When they are completed the generating capacity of the national grid will more than match the economy's requirements.

Fuel supply to industry and for general transportation has also improved beyond comparison. Depots and filling stations up and down the country have regular supplies. Smuggling and illegal lifting of our petroleum products have been curbed. The cumulative benefits of these measures to industry will begin to be felt for the rest of the year and the first half of next year. Retrenchments suffered were a painful result of the last government's misdeeds. To save itself, industry had to shed some staff. It is a choice of losing thousands of jobs now or millions of jobs later. This would have been the result of the impending economic collapse. The government expects that the worst is over and it is a question of how soon management of private industry can reverse the trend to speedily restore some of the jobs lost.

Food prices

While government has ensured, through importation, a steady supply of food and household commodities to complement local production, distribution, however, still causes enormous problems. Prices are only now beginning to come down due largely to pent-up demand and increasing on-the-farm storage by some farmers who refuse to sell their total output in order to hedge against possible shortages before next year's harvest. In the face of this scarcity, two distribution systems exist side by side. Beside the traditional system of channelling products to consumers through distributors has arisen a new system of direct sales to consumers through state governments and reputable companies with nationwide distribution networks as a way of minimising hoarding and excessive profiteering. So far, the results have been mixed. No one is more worried about the high food prices than members of the Supreme Military Council (SMC) and I. However, government is determined to reduce the length of the distribution chain and contain prices during the period of scarcity. Let the hoarders do their worst. We will do our best. The permanent solution lies, of course, in increased agricultural output to meet the growing needs of our large population.

Agriculture

Accordingly, agriculture and related activities are accorded the highest priority by this administration. The primary objective is attainment of self-sufficiency in food. In order to evolve an effective coordinated agricultural policy, the new river basin and rural development authorities are working in close liaison with state government extension services and local farmers.

The Federal Military Government (FMG) is extremely happy with the public response to go back to the land. The weather has been generally good this year. However, most of Borno, Sokoto and parts of Kaduna and Kano states have experienced drought for the second year running. Late season rains came too late to save many farmlands. As soon as details have been assessed, federal aid will be available to these areas.

Elsewhere, there are reports of wonderful harvests and abundant foodstuffs. Overall, the performance of the agricultural sector indicates substantial output. Maize, sorghum, cassava and yam harvests are quite good throughout the country. So are the prospects for rice, beans and groundnuts. These harvests should soon begin to affect prices.

The government will give impetus to the current momentum in agricultural production especially in cereals which now form the bulk of our food imports.

Since the announcement of new incentives, there has been a number of enquiries from many parts of the world from reputable companies wishing to participate in Nigerian agriculture. Many international firms with local connections have also responded to such a remarkable degree that several relatively large projects are taking off next year. An Agricultural Investment Bureau has been set up in the Federal Ministry of Agriculture to, among other things, provide technical information to the new ventures. For the moment, our attention is focused on meeting local demands. But, given good weather, we expect to start exporting certain categories of produce in a few years thereby broadening our foreign exchange revenue base.

Indiscipline

One of the objectives of this administration when it took over the reins of government nine months ago was to exterminate from the body politic, the social, moral and economic indiscipline that pervaded the country in the preceding four years and which led to the collapse of the Second Republic. For years, Nigerians have been self-critical about our lack of discipline which threatened our future as a prosperous nation. To reverse this trend we have embarked on a deliberate national consciousness and mobilisation campaign known popularly as the War Against Indiscipline (WAI). The objective was to set up basic norms and standards for an orderly society.

The administration is happy with the response of Nigerians generally in accepting the doctrines underlying the WAI as a catalyst for a better and greater tomorrow. Apart from certain physical manifestations such as promoting the queuing culture, the WAI Brigade and WAI Squad established for the Nigerian youths, the campaign attempts to inculcate a conscious work ethic and to revive the latent spirit of nationalism and patriotism in our people. We, as a government, are convinced that indiscipline is the foul source from which many of the country's worst ills flow and we are determined to fight it and to set an example to the rest of the country.

There is a lot going for Nigeria. The country is immensely resourceful and there are opportunities for everybody provided we all pursued our goals in a lawful and orderly manner. A number of new laws have been passed to combat certain categories of economic and social crimes. If left unchecked these criminal activities would have wrecked the nation. The government has considered criticisms on the severity of the sentences. But all one has to do is to avoid deliberately committing any of these offences. Let me assure you that this administration will not fight shy of any measures which would assist it to achieve its goals speedily. The process of cleansing and redirecting the country is a continuous one.

Fellow Nigerians, I have said on a number of occasions that this administration is committed to a leadership of service and sacrifice. We have not taken power in order to accumulate wealth. We are determined to divorce the elite of this country from its senseless greed. Members of the public service, in particular, must give the country committed and selfless service in return for the heavy investment in their well-being which Nigeria makes day-in-day-out. The services must abandon its corruption, incompetence and slow pace of executing programmes.

As for the ordinary people, I wish to plead with you for patience and understanding of what is in your real interest. To give an example. You ought not to queue to buy sugar or salt only to sell it to a hoarder. The minor gain you make in this transaction will be more than wiped out by what you have to pay for other necessities. It is also important for all of us to appreciate the value of producing the goods we need. No people can prosper if the majority wait for a handful to produce so that they can hawk. The days of easy money and reckless spending are over. We make no false promises, because there is a limit to what the government can do for you. But there is no limit to what you can do for yourself.

The administration wishes the country to realise the necessity for firmness, justice and even-handedness. These principles — not callousness — dictate the tough measures we are taking. To insist on probity and contribution of everyone to their wellbeing and that of the community is not mean or hard-hearted. Nor is it or intolerant to demand restraint, discipline and respect for truth. The scale of economic destruction done on the country is still unfolding.

Recoveries

So far, one hundred and twelve million, one hundred and twenty-nine thousand, four hundred and eighty-two naira, sixty-seven kobo (₦112,129,482.67) and one million, six hundred and eighty-eight thousand, one hundred and eighty-five pounds, eighty pence sterling (£1,688,185.8) have been recovered by the various investigation panels and on the orders of the Special Military Tribunals on the Recovery of Public Property. Naturally, not all of this money belongs to the FMG. Part of these recoveries were loots from state governments. These state governments will receive their funds after proper verification.

In addition the sums of three hundred and forty-eight million, six hundred and forty-four thousand, eight hundred and fourteen naira, nine kobo (₦348,644,814.9k) and forty-eight million, seventy-three thousand, seventy-seven naira, forty-four kobo (₦48,073,77.44) have been recovered from the defunct FEDECO and National Assembly respectively. These amounts enabled the government to finance urgent social services, and the purchase of industrial machinery and spare parts.

Detainees

Meanwhile, after careful deliberations, the FMG has ordered the immediate release of two hundred and fifty (250) detainees including some businessmen. Further details will be given by the Supreme Headquarters after the holiday. I wish to assure the nation that this exercise will be a continuous one. While we will not hesitate to send those found with cases to answer before the Special Military Tribunals, no person will be kept in detention a day longer than necessary if investigations so far have not incriminated him.

Conclusion

Fellow Nigerians, because of the economic situation, independence celebrations this year are being observed with the minimum cost. It is an occasion to count our blessings and to resolve, with God's help, to remove obstacles in our way to becoming a happy and prosperous nation. Thank you.

May God be with us.