President Muhammadu Buhari on Tuesday, December 22, presented a 2016 budget proposal of 6.07 trillion Naira.
Nigeria’s 2016 Budget is based on a crude oil benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016.
Check out a short summary of Nigeria’s national budget for 2016:
GDP Growth Rate Projection: 4.37%
Revenue Projection: 3.86 Naira
Deficit: 2.22 trillion Naira (equivalent to 2.16% of Nigeria’s GDP)
Oil Related Revenues: 820 billion Naira
Non-oil Revenues: 1.45 trillion Naira
Projected Independent Revenues: 1.51 trillion Naira
Capital Expenditure: 1.8 trillion Naira (30% of total budget)
Deficit will be financed by a combination of domestic borrowing of N984 billion, and foreign borrowing of N900 billion, in total N1.84 trillion.
There is a proposed a 9% reduction in non-debt recurrent expenditure, from N2.59 trillion in the 2015 Budget to N2.35 trillion in 2016.
The budgeted N300 billion for Special Intervention Programs, takes the total amount for non-debt recurrent expenditure to N2.65 trillion.
The Efficiency Unit set up by the current Administration, together with effective implementation of GIFMIS and IPPIS, will drive a reduction of overheads by at least 7%, personnel costs by 8% and other service wide votes by 19%.
A total breakdown:
GDP Growth Rate Projection |
4.37% |
Revenue Projection |
3.86 Naira |
Deficit |
2.22 trillion Naira (equivalent to 2.16% of Nigeria’s GDP) |
Oil Related Revenues |
820 billion Naira |
Non-oil Revenues |
|
Projected Independent Revenues |
1.51 trillion Naira |
Capital Expenditure |
1.8 trillion Naira (30% of total budget) |
Works, Power and Housing |
433.4 billion Naira |
Transport |
202.0 billion Naira |
Interior |
53.1 billion Naira |
Special Intervention Programs |
300 billion Naira |
Education |
369.6 billion Naira |
Defence |
294.5 billion Naira |
Health |
221.7 billion Naira |
Ministry of Interior |
145.3 billion Naira |
Foreign and Domestic Debt Service |
1.36 trillion Naira |
Sinking Fund towards the retirement of maturing loans |
113 billion Naira |
Non-debt Recurrent Expenditure |
2.65 trillion Naira |