President Buhari presents expansionary 2018 budget

07 Nov 2017
Financial Nigeria

Summary

The 2018 budget reduced the deficit to N2.01 trillion, compared to N2.36 trillion in 2017.

Nigerian President Muhammadu Buhari

Nigerian President Muhammadu Buhari today presented the 2018 federal appropriation bill to the joint-sitting of the National Assembly in Abuja. Dubbed the “Budget of Consolidation,” the budget plans to raise total expenditure to N8.6 trillion in 2018, from N7.44 trillion in 2017.

The 2018 budget represents 16 percent expansion over the current year’s budget.

Key projections of the 2018 budget include: crude oil production of 2.3 million barrels per day; oil price of $45 per barrel; exchange rate of N305 to $1; inflation rate of 12.4% and GDP growth rate of 3.57%.

The 2018 budget reduced the deficit to N2.01 trillion, compared to N2.36 trillion in 2017. Oil revenue projection was set at N2.44 trillion; non-oil revenue at N4.17 trillion; and debt service at N2.01 trillion.

Out of the total N8.6 trillion expenditure plan, recurrent expenditure was N6.18 trillion. From the total recurrent expenditure, non-debt was N3.49 trillion. N2.43 trillion was allocated to capital expenditure, maintaining the 30% threshold that President Buhari had maintained in the previous two appropriation bills.

President Buhari in his budget speech said the public debt portfolio would be rebalanced in 2018. Currently, 79% of the total debt is constituted by domestic debts. He said this will reduce to 60% next year, with external debt – currently 21 percent of the total debt – rising to 40% in 2018.


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