National assembly passes budget, raises oil benchmark from $45 to $51 per barrel

The national assembly has passed the 2018 budget after a six-month delay.

The budget was passed after the appropriation committees of the senate and the house of representatives moved for its consideration.

In November, President Muhammadu Buhari presented to a joint session of the national assembly a proposed sum of N8.6 trillion for 2018.

The president had proposed N3.5 trillion as recurrent (non-debt) expenditure, while N2.4 trillion was earmarked for capital expenditure.

But the lawmakers raised the budget by N500 billion. They also increased oil benchmark from $45 to $51 per barrel.

However, they maintained oil production at 2.3 million barrels per day and exchange rate at N305 to a dollar.

Highlights of the proposal are:

• N530,421,368,624 for Statutory Transfer;
• N2,203,835,365,699 for Debt Service;
• N3,512,677,902,077 for Recurrent Expenditure,
• N2,873,400,351,825 for Capital Expenditure,
• Fiscal Deficit of N1,954,464,993,775
• 1.73 percent Deficit to GDP.

But going by the increase, the budget now has N530 billion for statutory transfers, N2.2 trillion for debt service and N3.5 trillion recurrent expenditure, N2.8 trillion and N1.9 trillion for fiscal deficit.