President Muhammadu Buhari on Thursday submitted Nigeria’s 2022 appropriation bill to federal legislators.
The N16.39 trillion budget is dubbed the “Budget of Economic Growth and Sustainability.”
Ripples Nigeria provides you with key breakdown from the 2,168-page document.
The total fiscal operations of the Federal Government is expected to result in a deficit of N6.26 trillion in 2022.
In fact, the deficit, which will be financed mostly through borrowing, is more than the whole 2016 budget which was N6. 06 trillion.
High cost of governance
Despite the dwindling revenue, Nigeria’s high cost of governance, again, showed up in the budget as the country plans to spend as much as N6.83 trillion on non-debt recurrent expenditure in 2022, 41.7 percent of the total budget.
The figure is higher than the N5.35 trillion budgeted for capital expenditure.
Oil revenue is projected at N3.16 trillion in the budget proposal, making it the single largest source of expected revenue for 2022. It also marks an upgrade from the N2.01 trillion that was budgeted for this year (2021).
Non-oil revenues are estimated to rake in N2.13 trillion, up from N1.49 trillion in 2021 while Independent revenues are projected to contribute N1.82 trillion.
Oil revenues may struggle yet again next year if Nigeria’s production challenges linger and the expensive petrol subsidy continues to erase the gains of higher oil prices.
The budget proposal is predicated on an oil price of $57 per barrel and daily oil production of 1.88 million barrels a day. This includes condensates of 300,000 to 400,000 daily.
A large chunk of expected revenue will be going into servicing debt pegged at N3.61 trillion.
With a GDP projection of 4.2 percent in 2022 budget, President Muhammudu is expecting the highest economy growth in eight years.
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