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SEE Full breakdown of 2017 budget

  • Budget size: N7.298tn

(20.4% higher than 2016 estimates)

Assumptions, projections

  • Benchmark crude oil price – $42.5 per barrel
  • Oil production estimate – 2.2 million barrels per day
  • Average exchange rate – N305 to the US dollar.
  • Aggregate revenue available to fund the federal budget is N4.94tn
  • Deficit – N2.36tn (about 2.18% of GDP)
  • The deficit will be financed mainly by borrowing which is projected to be about N2.32tn.
  • 067tn of borrowing will be sourced from external sources while, N1.254tn will be borrowed from the domestic market.

Expenditure Estimates

The proposed aggregate expenditure of N7.298tn will comprise:

  1. Statutory transfers – N419.02bn
  2. Debt service – N1.66tn
  • Sinking fund – N177.46bn (to retire certain maturing bonds)
  1. Non-debt recurrent expenditure – N2.98tn
  2. Capital expenditure of N2.24tn (including capital in Statutory Transfers)

 

Recurrent Expenditure

A significant portion of recurrent expenditure has been provisioned for the payment of salaries and overheads in institutions that provide critical public services. The budgeted amounts for these items are:

  • 37bn for the Ministry of Interior;
  • 01bn for Ministry of Education;
  • 87bn for Ministry of Defence; and
  • 87bn for Ministry of Health.

Capital Expenditure: N2.24tn (30.7% of total budget)

These capital provisions are targeted at priority sectors and projects.

Key capital spending provisions in the Budget include the following:

  • Power, Works and Housing:   N529bn;
  • Transportation:   N262bn;
  • Special Intervention Programmes:
  • Defence:                     N140bn;
  • Water Resources:   N85bn;
  • Industry, Trade and Investment: N81bn;
  • Interior:                     N63bn;
  • Education                     N50bn
  • Universal Basic Education Commission: N92bn
  • Health: N51bn
  • Federal Capital Territory:   N37bn;
  • Niger Delta Ministry:      N33bn; and
  • Niger Delta Development Commission: N61bn;

 

  • N100bn provided in the Special Intervention programme as seed money into the N1tn Family Homes Fund that will underpin a new social housing programme.
  • N14bn allocated as counterpart funding for the Lagos-Kano, Calabar-Lagos, Ajaokuta-Itakpe-Warri railway, and Kaduna-Abuja railway projects.

 Statutory Transfers

  • Budgetary allocation to the Judiciary increased from N70bn to N100bn (to enhance the independence and efficiency of the judiciary)
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