President, Muhammadu Buhari, on Tuesday 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.
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

Therefore Nigerians must know that the deficit will be financed by a combination of domestic borrowing of N984 billion, and foreign borrowing of N900 billion totalling N1.84 trillion alledged to be tailored towards mortgaging the future of the nation,whereas its not, Big economies in the world engages in borrowing likewise.
There is a proposed 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 will drive a reduction of overheads by at least 7%, personnel costs by 8% and other service wide votes by 19%
We must alway be looking at the Long Term
of our National budget. If you accept the absence of a big bang, things start falling in place. “This Budget is the first chapter of a series of measures over the next few years, It looks like a step in a longer journey, which is exactly what Budgets should be, rather than an attempt to solve most problems in a single stroke. That is a fundamental shift from the practice of having Budgets as independent events because many of our politicians since Independence believed that strong states lead to a weak nation. This Budget and the Economic Survey reinforce the narrative since the last election that the central government will devolve money and power to state governments. This is great for job creation. This Budget also announces the most impactful overhaul of labor laws since Independence a revamp of our employee pension and health insurance regimes.
Finally, I would say this is a pragmatic Budget that does not play to the gallery, “A Budget in today’s Nigeria will never be unanimously appreciated or unanimously derided. Nigeria needs to create a million jobs every month, contain inflation, reduce fiscal deficit below 4.1% and be attractive to investors by easing the rules and also being consistent with policy. No Budget can score high on all the outcomes that every stakeholder expects. The challenge for the finance minister is real, and there is no silver bullet.” he must make sure we are not Chained as alledged.
Micheal Adeniyi
@9jaclicktivist