Easy to understand breakdown of 2018 budget proposal

-President Muhammadu Buhari presents 2018 appropriation bill to the National Assembly.

Federal government seeks legislative approval for N8.612 trillion as 2018 budget.

President Muhammadu Buhari on Tuesday presented the 2018 budget draft of N8.612 trillion to a joint session of the National Assembly.

The budget was tagged ‘budget of consolidation’ which according to the president’s presentation, is to boost Nigeria’s economic recovery and growth.

The proposed budget represents a 16 percent increase compared to the 2017 budget.

Here is a simple breakdown of the 2018 budget estimate.

ASSUMPTIONS, PROJECTIONS

• Benchmark crude oil price-US$45 per barrel
• Oil production estimate – 2.3 million barrels per day
• Exchange rate – N305/US$ for 2018
• Real GDP growth of 3.5 percent
• Inflation Rate of 12.4 percent

EXPENDITURE ESTIMATES

The proposed aggregate expenditure of N 8.612 trillion (16 percent above 2017 budget estimate)
will comprise

• Recurrent Costs of N3.494 trillion
• Debt Service of N2.014 trillion
• Statutory Transfers of about N456 billion
• Sinking Fund of N220 billion (to retire maturing bond to local contractors)
• Capital Expenditure of N2.428 trillion (excluding the capital component of statutory transfers).

RECURRENT EXPENDITURE

A substantial part of the recurrent cost proposal for 2018 is for the payment of salaries and overheads in key ministries providing critical public services such as:

• N510.87 billion for Interior
• N435.01 billion for Education
• N422.43 billion for Defence
• N269.34 billion for Health

CAPITAL EXPENDITURE

Key capital spending allocations in the 2018 Budget include:
• Power, Works and Housing: N555.88 billion
• Transportation: N263.10 billion
• Special Intervention Programmes: N150.00 billion
• Defence: N145.00 billion
• Agriculture and Rural Development N118.98 billion
• Water Resources: N95.11 billion
• Industry, Trade and Investment: N82.92 billion
• Interior: N63.26 billion
• Education N61.73 billion
• Universal Basic Education Commission: N109.06 billion
• Health: N71.11 billion
• Federal Capital Territory: N40.30 billion
• Zonal Intervention Projects N100.00 billion
• North East Intervention Fund N45.00 billion
• Niger Delta Ministry: N53.89 billion
• Niger Delta Development Commission: N71.20 billion.

READ ALSO: 2018 Budget: Why we dropped the protest against Buhari – PDP

PROJECTS AND PROGRAMMES TO BE IMPLEMENTED IN 2018

• N9.8 billion for the Mambilla hydro power project, including N8.5 billion as counterpart
funding
• N12 billion counterpart funding for earmarked transmission lines and substations
• N35.41 billion for the National Housing Programme
• N10.00 billion for the 2nd Niger Bridge
• About N300 billion for the construction and rehabilitation of strategic roads

SPENDING PRIORITIES FOR PEACE, SECURITY AND DEVELOPMENT

• N65 billion for the Presidential Amnesty Programme has been retained in the 2018 Budget
• Capital provision for the Ministry of Niger Delta increased to N53.89 billion from the N34.20 billion provided in 2017
• Completion of East-West Road, with a provision of about N17.32 billion in 2018