On Monday, December 7, 2015, Nigeria’s president
Muhammadu Buhari presided over the Federal
Executive Council (FEC), where a total of N6.04
trillion was approved as Nigeria’s expenditure for
2016 budget under the Medium Term Expenditure
Framework (MTEF).
Eyebrows were raised and observers believe the
budgetary provisions far outweigh the country’s
previous budgets, in fact, it remains the highest
by any Nigerian leader ever.
But, there are certain conditions responsible for
this rise (of about 15%) in the budget, as well as
certain changes to the ‘business as usual’
budgets of Nigeria, believed to be Africa’s largest
economy.
Naij.com has identified five stunning facts every
Nigerian should take cognizance of as the west
African nation commences on a year-long
spending.


1. No more kerosene subsidy
Although not clearly stated, the president has
tacitly done away with kerosene subsidy in the
new expenditure of the Nigerian nation as there
was no clear provision for it in the budget
submitted to the council.
Nigerians queuing for kerosene during a certain
period of scarcity. This may reduce in the coming
years.
Although it is yet to be seen how this will
improve the nation’s economy, there are
indications that this new move by the president,
who has been increasingly criticised for his late
submission of the budget, will go a long way in
ensuring that the country does not spend as
much as it used to in that sector of the ecenomy.
2. Two sources have been identified for funding
of the budget
After the approval of the president’s budget
presented at the FEC, the minister of budgetary
and national planning, Senator Udo Udoma
informed that the country is looking at sourcing
funds from two different sources.
He told journalists that Nigeria is looking at
increasing non-oil revenue. This means that more
money will be demanded from the various
government agencies, and their revenues will be
closely monitored by the federal government with
a view to getting more money from them.
President Muhammadu Buhari’s anti-corruption
war will also serve as a source of funding for the
budget.
The minister also informed that the recurrent
budget for this year would be narrowed down
drastically as the country is looking at a situation
where savings from overheads take serious
prominence.
Aside these two major sources identified to fund
the budget for next year, President Buhari’s anti-
corruption battle which is toughening up by the
passing of each day, is expected to be
responsible for about N350.33 billion in 2016.
3. Four key areas top the budgetary allocations
Power, health, education and agriculture are
topmost on the president’s mind for next year’s
spendings as they have taken more priority.
To show his diversification of the economy from
what it used to be seriously dependent on,
agriculture, alongside power, take top spot in the
budget, a situation which the country had not
witnessed in the past budgets in the last 10
years.
Both sectors are likely to gulp a total of
N200billion each, which is about 20 percent of
the total budget.
This clearly shows President Buhari’s reason for
the appointment of former Lagos state governor,
Babatunde Raji Fashola to head the power sector
which has suffered huge setbacks in the country
and his (Fashola’s) subsequent meeting with Dr
Ibe Kachikwu of the petroleum resources ministry.
President Muhammadu Buhari seems to have
entrusted so much into the hands of Babatunde
Fashola
It is believed that the president made the
appointment based on his belief that Fashola
would not hesitate to step on shoes when he
swings into full action n the coming years.
And since the president already stated that it is
unwise and unsafe for the country to keep
depending on the oil and gas sector for survival,
the agriculture sector, under the watchful eyes of
Chief Audu Ogbeh and Senator Heineken
Lokpobiri, will also major role to play in the
diversification of the economy.
4. Nigeria already made provisions to borrow
N1.835.88trillion
Apart from domestically generating fund to
finance the expenditure for the next fiscal year,
the budget indicated that the present federal
administration is to borrow the sum of N1.835.88
trillion. This is further broken down thus: the sum
of N1.2 trillion would be borrowed domestically
while foreign borrowing would be pegged at
N635.88 trillion for the period under review.
Nigeria will need to borrow N1.8trillion to fund
the budget next year.
Although the fresh policies and measures to taken
by the president are in a bid to encourage the
rapid diversification of the Nigerian economy
away from its current over-dependence on the oil
and gas sector, the nation will still have to seek
assistance on how to go about some of its
projects.
The capital projects (the country’s focus for next
year), rather than recurrent expenditures, it was
gathered, will take about 30% of the entire
allocation.
5. Oil price benchmark for 2016 is fixed at $38
per barrel
In the last two years, oil prices have been
consistently inconsistent, with Nigeria, Africa’s
leading oil exporter and producer, suffering a huge
loss during this period.
This is apparently responsible for the cut in the
oil price to an all-time low of $38 per barrel of
crude oil with a projection of 2.2 million
production barrels per day, according to the
framework for the budget.
This graph shows the slumping oil prices has
heavily affected Nigeria’s oil revenues. Source:
NNPC
Although the country is not totally deviating from
oil production and exportation as one of its key
areas, the over-dependence on the sector and the
corruption linked to it in recent years, especially
with the infamous indictment of former petroleum
minister, Mrs Diezani Alison-Madueke in a $
20billion fraud, will seemingly reduce in the
coming years.
Thus, the expectations from the sector is in line
with the economic realities of the moment within
the country.


https://www.naij.com/663618-5-stunning-facts-every-nigerian-know-president-buharis-2016-budget.html?damilare&utm_source=facebook&utm_medium=social&utm_group=free

Nigeria as a country will survive dis prevailing hardship

Nigeria as a country will survive dis prevailing harsh time

k we are waiting till 2016

I Have My Reservation On The Fund Recoveries. 350b Out Of An Aggregate Of About 6trillion. It Should Be More Than That, Looters Deserve No Mercy.
The Truth Has Spoken!