Nigeria’s President Muhammadu Buhari presented the 2023 Federal Government budget proposals to the National Assembly on October 7, 2022. The president proposed N20.51 trillion for next year — the final budget of his administration. The budget reflects the serious challenges the country currently faces and provides key reforms necessary to address them. Some of the challenges include insecurity, rising inflation and interest rate, food insecurity and climate change issues.
In the budget, the oil benchmark was fixed at $70 per barrel which is lower than the $73 per barrel fixed in the Medium-Term Expenditure Framework (MTEF). Other assumptions and parameters include an exchange rate of ₦435.57 per USD, inflation rate of 17.16%, projected growth rate of 3.75%, and oil production of 1.69 million barrels per day.
The total revenue available to fund the 2023 federal budget is estimated at 9.73 trillion Naira (this includes the revenues of 63 Government-Owned Enterprises) which results in a budget deficit of ₦10.78trillion. Moreover, projected oil revenue is ₦1.92 trillion and non-oil revenue of ₦7.81 trillion in the budget showing that the federal government expects to be less dependent on oil revenue to fund its budget.
On the other hand, a total expenditure of ₦20.51 trillion was proposed (this includes ₦2.42 trillion spending by Government-Owned Enterprises). The expenditure comprises statutory transfers of ₦744.11 billion; non-debt recurrent costs of ₦8.27 trillion; personnel costs of ₦4.99 trillion; pensions, gratuities, and retirees’ benefits of ₦854.8 billion; overheads of ₦1.11 trillion; capital expenditure of ₦5.35 trillion; debt service of ₦6.31 trillion; and sinking fund of ₦247.73 billion to retire certain maturing bonds.
The deficit of ₦10.78 trillion (representing 4.78 percent of estimated GDP) is expected to be financed by new borrowings of ₦8.80 trillion, ₦206.18 billion from privatization proceeds and ₦1.77 trillion drawdowns on bilateral/multilateral loans.
In the budget, the oil benchmark was fixed at $70 per barrel which is lower than the $73 per barrel fixed in the Medium-Term Expenditure Framework (MTEF). Other assumptions and parameters include an exchange rate of ₦435.57 per USD, inflation rate of 17.16%, projected growth rate of 3.75%, and oil production of 1.69 million barrels per day.
The total revenue available to fund the 2023 federal budget is estimated at 9.73 trillion Naira (this includes the revenues of 63 Government-Owned Enterprises) which results in a budget deficit of ₦10.78trillion. Moreover, projected oil revenue is ₦1.92 trillion and non-oil revenue of ₦7.81 trillion in the budget showing that the federal government expects to be less dependent on oil revenue to fund its budget.
On the other hand, a total expenditure of ₦20.51 trillion was proposed (this includes ₦2.42 trillion spending by Government-Owned Enterprises). The expenditure comprises statutory transfers of ₦744.11 billion; non-debt recurrent costs of ₦8.27 trillion; personnel costs of ₦4.99 trillion; pensions, gratuities, and retirees’ benefits of ₦854.8 billion; overheads of ₦1.11 trillion; capital expenditure of ₦5.35 trillion; debt service of ₦6.31 trillion; and sinking fund of ₦247.73 billion to retire certain maturing bonds.
The deficit of ₦10.78 trillion (representing 4.78 percent of estimated GDP) is expected to be financed by new borrowings of ₦8.80 trillion, ₦206.18 billion from privatization proceeds and ₦1.77 trillion drawdowns on bilateral/multilateral loans.
This infographic shows the beneficiaries of Nigeria's president Buhari cash transfer programmes since 2015 - present (October 2022).
