Nigeria budget outlines higher spending

357

Muhammadu Buhari was presenting the first budget since his election
KBC-survey-feedback-poster

By BBC

Nigeria’s president has announced plans to raise spending by 20% next year by borrowing heavily amid falling oil prices

In his first budget since his election victory in March, Muhammadu Buhari said he would spend $31bn (£20.8bn) in 2016 on infrastructure and the economy.

However, Nigeria has been hard hit by the falling price of oil.

Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 22163

Petroleum exports make up 90% of total overseas revenue, according to the Opec oil cartel.

Also Read  Ecobank, KRA launch digital platform for paying levies

The country’s budget deficit is expected to double to 2.2 trillion naira ($11bn, £7.4bn) next year and Buhari said the government would seek funding overseas of 900bn naira as well as 984bn naira domestically.

Oil prices have fallen from about $55 a barrel since the beginning of the year to around $36-$37 and Mr Buhari said that of the 3.9 trillion naira revenue forecast for 2016, just 820bn will come from crude.

Also Read  Dairy farmers urged to embrace technology, value addition

Mr Buhari said: “This huge decline is having a painful effect on our economy. Consumption has declined at all levels. In both the private and public sectors, employers have struggled to meet their salary and other employee related obligations.”

The president pledged to improve tax collection and invest in other industries including mining and agriculture. “The Nigerian economy needs to move away from dependency on oil,” he said.

Nigeria’s unemployment rate is growing, up from 8.2% in the second quarter to 9.9% between July and September according to official figures. Inflation is also rising, hitting 9.4% in September, on fuel shortages and higher food prices.

Also Read  KeNHA kicks off sensitization of Vehicle Load Control Act

However, Mr Buhari said he expected Nigeria’s economy to grow by 4.4% next year.

“The 2016 budget, as outlined, is designed to ensure that we revive our economy, deliver inclusive growth to Nigerians and create a significant number of jobs,” he said.

KBC-You-tube-728x90-New-2

Tell Us What You Think


SHARE