2017 budget proposal by President Muhammadu Buhari

14 Dec 2016
Financial Nigeria


The president said the 2017 budget of N7.298 trillion is 20.4 per cent higher than the 2016 budget.

Nigerian President Muhammadu Buhari

President Muhammadu Buhari has presented the 2017 Appropriation Bill to a joint session of the National Assembly today, stating the federal government’s fiscal plan to spend N7.298 trillion in 2017. The president said the 2017 budget is 20.4 per cent higher than the 2016 budget.

A breakdown of the 2017 budget shows total government revenue is expected to be N4.94 trillion, consisting of oil revenue (N1.85 trillion), non-oil revenue (N1.73 trillion), independent revenue (N870 billion), various recoveries (N505 billion), and mining (N210.9 billion).

The benchmarks for the 2017 budget are: oil price – $42.5 per barrel; oil production – 2.2 million barrels of oil per day; and exchange rate – N305 per dollar.

The 2017 budget is expected to have a deficit of N2.36 trillion, which is 2.18 per cent of Nigeria’s GDP. The deficit will be financed by total borrowings of N2.23 trillion, consisting of external borrowing (N1.067 trillion) and internal borrowing (N1.25 trillion).

Total expenditure consists of Recurrent Expenditure (N2.98 trillion), Capital Expenditure (N2.24 trillion), Debt Service (N1.66 trillion), Statutory Transfers (N419.02 billion), Sinking Fund (N177 billion).

A breakdown of capital expenditure shows that Power, Works and Housing will receive N529 billion; Transportation, N262 billion; Social Spending, N150 billion; Defence, N140 billion; Water Resources, N85 billion; Industry/Trade and Investment, N81 billion; Interior, N63 billion; Education, N50 billion; Universal Basic Education, N92 billion; Health, N51 billion; Federal Capital Territory, N37 billion; Niger Delta Ministry, N33 billion, and Niger Delta Development Commission, N61 billion.

Under recurrent expenditure, Personnel cost will account for N1.83 trillion; Interior, N487 billion; Education, N391 billion; Defence, N325.87 billion; and Health, N252.87 billion.

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