Nigerian President Muhammadu Buhari has presented a budget estimate of N16.39 trillion (about $39 billion) for 2022 fiscal year.Addressing the joint session of the National Assembly on Thursday in Abuja President Buhari said that the 2022 to 2024 Medium Term Expenditure Framework and Fiscal Strategy Paper had set out the parameters for the 2022 Budget.
He said that a total expenditure of N16.39 trillion was proposed for the Federal Government in 2022, comprising Statutory Transfers of N768.28 billion, Non-debt Recurrent Costs of N6.83 trillion; Personnel Costs of N4.11 trillion, Pensions, Gratuities and Retirees’ Benefits N577.0 billion and Overheads of N792.39 billion.
According to President Buhari, N5.35 trillion is earmarked Capital Expenditure, which covers Debt Service of N3.61 trillion, Sinking Fund of N292.71 billion to retire certain maturing bonds.
He explained that the total fiscal operations of the Federal Government will result in a deficit of N6.26 trillion, representing 3.39 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act 2007.
“We plan to finance the deficit mainly by new borrowings totalling 5.01 trillion Naira, 90.73 billion Naira from Privatization Proceeds and 1.16 trillion Naira drawdowns on loans secured for specific development projects,” he said.
According to the parameters and fiscal assumptions of the 2022 budget, a conservative oil price benchmark of $57 per barrel of crude oil was proposed, while daily oil production estimate of 1.88 million barrels is estimated.
The exchange rate of N410.15 per US dollar is planned while the GDP growth rate of 4.2 percent and 13 percent inflation rate are projected for 2022.
On estimated revenue, total federally-collectible revenue is estimated at N17.70 trillion in 2022, total federally distributable revenue is estimated at N12.72 trillion in 2022, while total revenue available to fund the 2022 Federal Budget is estimated at N10.13 trillion.
Oil revenue is projected at N3.16 trillion, Non-oil taxes are estimated at N2.13 trillion and FGN Independent revenues are projected to be N1.82 trillion.
Speaking on controversial huge debt burden of the country, President Buhari said that Nigerians had a right to be concerned about recent borrowings by the Federal Government.
But he stated that the debt level of the present administration was within sustainable limits. “Borrowings are targeted at specific strategic projects and can be verified publicly,” he said.