President Muhammadu Buhari is proposing a budget of between N7tr and N8tr for 2016, according to a document from the office of Vice-President Yemi Osinbajo seen by Reuters on Friday.
Last year’s budget was N4.4 tr.
Nigeria is facing its worst economic crisis in years brought about by the sharp fall in crude prices, as oil exports account for 70 percent of government revenue.
The document, used as the basis for a presentation by Osinbajo to the cabinet during a two-day retreat, proposed capital expenditure of N2tr next year, up from N1.3tr in 2015, but did not say how it would be funded.
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The document presented to them, bearing the title “The Economy – Where We Are Today”, laid out the extent to which the country has been hit by plunging oil prices, stating that in May foreign reserves hit a 10-year low of $29.6bn.
A page headed “How can we get out of a possible recession?” outlined the need for a “massive infrastructure building” programme for roads, rail and power, along with “expansionist” fiscal and monetary policies.
The presentation by Osinbajo, who heads the National Economic Council (NEC), stated that this would be paid for by a N25bn infrastructure fund and a N2.5tr “special intervention fund”.
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But it gave no details of where this money would come from.
2 comments
Wow! Nigeria is finally doomed. 8 trillion budget, how? where is the money coming from, I thought Oga said Nigeria is broke, He can not pay the ministers. Jonathan’s budget was 4 trillion and Nigeria was called the largest economy in Africa and an emerging economy in the whole wide world. When there is falling oil prices, and the naira is free falling the APC government is doubling the budget from 4 trillion to 8 trillion, haba without any effort to support the naira or strengthen the economy. And again where is the source of the funding?
U need to realise that 4 trillion is nothing considering the state of our economy and population. IMF and world Bank said last year that nigeria will never achieve anything with that kind of budget. I live in uk and the council budget for the year is close to 4 trillion. And about being broke, yes nigeria is broken because it’s wealth is in individual pockets and several waivers on what should ve been income to the govt. So it’s achievable with right people in place. If people can ve several billions while can’t nigeria has trillions