President Muhammadu Buhari on Tuesday, December 22, presented a 2016 budget proposal of 6.07 trillion naira.
Nigeria’s 2016 budget is based on a crude oil benchmark price of $38 per barrel and a production estimate of 2.2 million barrels per day for 2016.
Check out a short summary of Nigeria’s national budget for 2016:
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 deficit will be financed by a combination of domestic borrowing of N984 billion, and foreign borrowing of N900 billion, in total N1.84 trillion.
There is a proposed a 9% reduction in non-debt recurrent expenditure, from N2.59 trillion in the 2015 budget to N2.35 trillion in 2016.
The budgeted N300 billion for Special Intervention Programs, takes the total amount for non-debt recurrent expenditure to N2.65 trillion.
The Efficiency Unit set up by the current administration, together with effective implementation of GIFMIS and IPPIS, will drive a reduction of overheads by at least 7%, personnel costs by 8% and other service wide votes by 19%.