Nigeria: Breakdown of 2016 Budget

President Muhammadu Buhari on Tuesday presented the 2016 budget proposal of 6.07 Trillion Naira to the Nigeria's National Assembly. 

The budget is based on a $38 per barrel benchmark for crude oil at an estimate of 2.2million barrels per day. 

The presence of the President at the budget presentation today also speaks some confidence as it has been a while since a president present the budget himself. Budget presentation in the last administration was mostly done by the Minister of Finance. 

While delivering his address, President Buhari reiterates his administration's commitment to allay the suffering of Nigerians.  "I know the state of our economy is a source of concern for many. This has been further worsened by the unbridled corruption and security challenges we have faced in the last few years. From those who have lost their jobs, to those young people who have never had a job, to the people in the North East whose families and businesses were destroyed by insurgents, this has been a difficult period in our nation’s history, lessons that we must not forget or ignore, as we plan for the future."

The President also listed thr core areas to be addressed by the budget proposal. "This Budget proposal, the first by our Government, seeks to stimulate the economy, making it more competitive by focusing on infrastructural development; delivering inclusive growth; and prioritizing the welfare of Nigerians. We believe that this budget, while helping industry, commerce and investment to pick up, will as a matter of urgency, address the immediate problems of youth unemployment and the terrible living conditions of the extremely poor and vulnerable Nigerians."

Below is a breakdown of the budget proposal. 

• GDP Growth Rate Projection - 4.37%

• Revenue Projection - 3.86 Naira

• Deficit - 2.22 trillion Naira (equivalent to 2.16% of Nigeria’s GDP)

• Oil Related Revenues - 820 billion Naira

• Non-oil Revenues - 1.45 trillion Naira

• Projected Independent Revenues - 1.51 trillion Naira

• Capital Expenditure - 1.8 trillion Naira (30% of total budget)

• Works, Power and Housing - 433.4 billion Naira

• Transport - 202.0 billion Naira

• Interior - 53.1 billion Naira

• Special Intervention Programs - 300 billion Naira

• Education - 369.6 billion Naira

• Defence - 294.5 billion Naira

• Health - 221.7 billion Naira

• Ministry of Interior - 145.3 billion Naira

• Foreign and Domestic Debt Service - 1.36 trillion Naira

• Sinking Fund towards the retirement of maturing loans - 113 billion Naira

• Non-debt Recurrent Expenditure - 2.65 trillion Naira

The government says it has strategies which are and will continue to be in use to maintain a macroeconomic stability and also manage the oil prices shock being experienced presently.