₦airaland Forum

Dannyset:
This simply tells you that the PDP govt never accounted for all the money accrued to our Treasury when they were there. A truthful and transparent govt will have and publish X2 of their revenue.

I agree with you absolutely that the PDP government did not disclose all the revenues they generated all through their stay in power. At the same time, I will still like the APC government to fully disclose how they intend to finance an N8trillion budget. We are talking about close to 100% increase in annual federal expenditure here, explanations on where the funds will come from must be made available.

redsconsult:
if within 3months mda can generate over 1.4Trillion naira i think the zerobase 8trillion naira is feasible. and less coruption means more development and more job opportunities.

it wasn't generated, it was transfered to the TSA.
Where will the FG get an extra 3.5trillion with falling oil prices and a weak economy that's not receptive to increase taxation. APC should do their maths well and stop taking us for a jolly ride.

Hmmm... While N2trl is not bad for capital projects, am really interested in the breakdown of the remaining N6trl

Flets:
This government should be reminded that elections are over. Enough of these noises as reality have set in already.

Lets do some simple mathematics.
Nigeria's total crude production currently hovers at 2M barrel per day, but I will assume 2.5M barrel for sake of optimism
Crude oil sells at slightly above $40/ barrel but I will assume $45/ barrel
Most JV agreements with Oil corporations stands at an average of 60% for Nigerian govt.
Cost of production of oil for most companies stand at almost 50% but I will assume 30% (optimist case) and then 70% profit
Only about 52% of total earnings goes to the FG, the remaining goes to state allocations and host state derivation
Assuming an exchange rate 200 naira per dollar and 365 days a year

Federal Government can make approximately 1.8 trillion naira from crude sales for 2016 optimally. Details below
so 2.5Million x $45 x 60% x 70% x 52% x 200 x 365 = 1.8 Trillion Naira

Historically, crude has formed about 70% of our budgets.... following same logic, total budget can only be 2.6 trillion Naira (1.8Trillion/ 70%)

Even if we increase taxes, collapse all tax and duty exemptions and without any diversification efforts by the current government, we will be lucky to add another 1trillion the 2.6 trillion to make it a maximum of 3.6 trillion.

So realistically speaking, 8 trillion FG budget is impossible for 2016. Propagandically speaking, APC govt have said it and they believe their zombies will believe it.

Running budget deficit isn't a crime.

Flets:
This government should be reminded that elections are over. Enough of these noises as reality have set in already.

Lets do some simple mathematics.
Nigeria's total crude production currently hovers at 2M barrel per day, but I will assume 2.5M barrel for sake of optimism
Crude oil sells at slightly above $40/ barrel but I will assume $45/ barrel
Most JV agreements with Oil corporations stands at an average of 60% for Nigerian govt.
Cost of production of oil for most companies stand at almost 50% but I will assume 30% (optimist case) and then 70% profit
Only about 52% of total earnings goes to the FG, the remaining goes to state allocations and host state derivation
Assuming an exchange rate 200 naira per dollar and 365 days a year

Federal Government can make approximately 1.8 trillion naira from crude sales for 2016 optimally. Details below
so 2.5Million x $45 x 60% x 70% x 52% x 200 x 365 = 1.8 Trillion Naira

Historically, crude has formed about 70% of our budgets.... following same logic, total budget can only be 2.6 trillion Naira (1.8Trillion/ 70%)

Even if we increase taxes, collapse all tax and duty exemptions and without any diversification efforts by the current government, we will be lucky to add another 1trillion the 2.6 trillion to make it a maximum of 3.6 trillion.

So realistically speaking, 8 trillion FG budget is impossible for 2016. Propagandically speaking, APC govt have said it and they believe their zombies will believe it.

Very pitiable analysis.

tblacker:
Hmmm... While N2trl is not bad for capital projects, am really interested in the breakdown of the remaining N6trl

Honestly i have a problem with this. N6trl in the drains

seunmsg:
I agree with you absolutely that the PDP government did not disclose all the revenues they generated all through their stay in power. At the same time, I will still like the APC government to fully disclose how they intend to finance an N8trillion budget. We are talking about close to 100% increase in annual federal expenditure here, explanations on where the funds will come from must be made available.

I also hope the explanation will come any time soon. One thing I discovered about The President and The V. P is that they are not politicians. So they find it very difficult to keep within themselves whatever their heart conceived. So when things become shaky they begin to have media outlash.
After going tru what the VP said tho and with his kind of person, I think the budget is going to stand at probably 6. something Trillion. I don't think that 8trn is within reach for now. Cos they are just assuming the money can be sourced from Tax and blockage of loopholes without thinking of the resistance thereof.

orontogorah:
but i tot dey said nigeria was broke na...

If the country his broke, so they should sit down and cry about it?

The problem is, were are they going to get money to finance the budget.

MTN shall contribute 1 trillion to the budget. DSTV donate 2Trillion next year after paying 20 years fraud areas. Sai Baba

seunmsg:
How will the government fund an N8trillion budget in a period of low oil earnings? And N2trillion for capital expenditure out of N8trillion is absolutely unacceptable. This information is at best vague, I believe we will get a clearer picture of how the budget will look like in days to come.

Mtn is paying 1.4trl out of it, many more to come in taxes

seunmsg:
How will the government fund an N8trillion budget in a period of low oil earnings? And N2trillion for capital expenditure out of N8trillion is absolutely unacceptable. This information is at best vague, I believe we will get a clearer picture of how the budget will look like in days to come.

They'll definitely get close to that. Buhari seems to be interested in upping our revenue in non-oil sector especially in the changes happening in customs. Just learnt that they make between 1.5-2bn naira now daily since Ali restructure custom.

As a man who wanted Buhari, am also feeling the heat like everyother Nigeria that is witnessing a trying moment in our nation. Let's see what happens.

All these are projections anyways before people come and say Buhari promised them 8 trillion

seunmsg:
I agree with you absolutely that the PDP government did not disclose all the revenues they generated all through their stay in power. At the same time, I will still like the APC government to fully disclose how they intend to finance an N8trillion budget. We are talking about close to 100% increase in annual federal expenditure here, explanations on where the funds will come from must be made available.

MDAs usually are not included in the Federal Government budget. Remember when the House of Reps investigated them and found out that 20trillion un budgeted were spent by this MDAs yearly. Is usually the drain pipes for past administration. So 8trillion naira is not that much if you include other MDAs since the introduction TSA.

Read this:

seunmsg:
The House of Representatives said it has
uncovered what may turn out Nigeria’s biggest
fraud yet, accusing the Jonathan
administration of spending N16 trillion on its
super offices yearly, while the entire country is
given a meagre budget of about N4 trillion.
The claim was made Sunday by the House
Public Accounts Committee.
The committee said while the Nigerian
government complains of revenue for key
projects, the same government has allowed
dozens of powerful offices, graded as
“statutory and extra-ministerial departments”
to spend a minimum of N16 trillion yearly.
The amount spent by the offices are not
regulated, audited or appropriated by the
National Assembly.
Much of the figure are generated by the
respective offices and are deployed at the
whims of their chief executives.
Such statutory offices include the Nigerian
National Petroleum Corporation, NNPC,
Central Bank of Nigeria, National
Communications Commission, Federal Inland
Revenue Services, and Nigerian Ports
Authority.
The revelation came as part of an ongoing
examination of finances of government and its
601 agencies, the House committee said.
The committee, which spoke through its
chairman, Adeola Solomon-Olamilekan, on
Sunday, said when combined with Nigeria’s
official annual expenditure, the country spends
over N20 trillion yearly.
Mr. Solomon-Olamilekan said the N4.3 trillion
budget for 2015, amid an oil crisis, is a “far
cry” which does not include the finances of
“statutory and extra ministerial departments”
which have been running “about N16 trillion”
without public auditing.
“The N4.9tn, N4.6tn or N4.3tn, as the case may
be, is the budget that the whole Nigerians are
listening to but in the true sense of it, the
budget of other statutory and extra-ministerial
departments put together is about N16tn,” he
said.
“So, the total overall budget year in year out is
over N20tn, which the executive arm operates,
but nobody is asking questions as to the
implementation of all these budgets.
“Nobody is bringing information on the implementation of all these budgets; and this is
one area Nigerians need to start asking questions in order to move this country
forward,” he said.
The House committee said the federal government has encouraged the fraud to continue by deliberately refusing to fund the office of the Auditor General of the Federation, to weaken its capacity to check the violation.
The committee said by reducing the budget of office of Auditor General from N1.9 billion to N100 million in 2015, the government deliberately ensured the office no longer had the capacity to audit 601 departments and 144 foreign missions.
The big cut was carried out by the Ministry of Finance, citing falling oil revenues.
“How can we imagine that the capital budget of the office of AGF for the year 2015 was reduced from N1.9bn to N100?
“Can you also imagine an office of the AGF that has 144 foreign missions to audit and as we speak, between 1999 to date, that office has not audited up to 30 of these foreign missions while three quarter of these foreign missions are also revenue generating agencies?
“So, there is nobody to audit the revenue generated and the expenditure they incur.
“The office of the AGF has been short-changed and the budget has been reduced to nothing. As such, the government of the
day is having a field day to carry out whatever its wants to do because they know they have an office that is not functioning,” Mr. Solomon-Olamilekan said.
www.premiumtimesng.com/news/headlines/177768-reps-accuse-jonathan-of-aiding-budget-fraud-says-govt-offices-spend-n16-trillion-yearly.html

nwanna89:
If budget is 8 trillion, govt should try to spend more on capital projects. Lot of decay in infrastructure esp roads. Also i noticed Osinbajo seems to have been put in charge of economic affairs. While he is a well-read man, he is lawyer and is not an expert in that area. So i hope Buhari has plans to put one of the more qualified ministerial nominees in charge of drawing up a budget.

Maybe with 8 trillion naira budget, FG really does have plans to pay 5k and feed school kids

he is constitutionally in charge of the economy, that aside, he is also an expert in law, he went to business school also.

Hope say our5k de that budget abi? I no wan hear story

7footre:
Hope say our5k de that budget abi? I no wan hear story

I wonder o

chinchum:
wonderful, roughly 3 thrillion extra is no joke, i believe if Government tackle the loop holes it can finance the budget.

Exactly we should all be happy about this if Nigeria can raise 8 trillion for budget,that means almost all loophole are blocked

I look at some comments, I see hypocrisy. U guys wail u want free feeding for school kids, 5k for unemployed as promised during campaign. Now a budget of 8trillion is being proposed and u scream propaganda. Do u think government is run d way u guys recklessly run ur individual savings?
What u demand for as promised during campaign is being reflected in that budget. As for those asking where they want to fund the budget from.... if only u know how reckless and how "kleptocratic" the previous government was, u would kn funding won't be an issue. do u have problems with 2 trillion for capital projects? Take away the 5k for the unemployed wailers and feeding for school kids, u will see 2 trillion will almost be 60% of that budget. You think 2 trillion is small? Just check the figures used in building monuments, edifices and world class developmental projects around the world. If pdp in the last 16yrs was able to sincerely plant in 1 trillion yearly to capital projects, we would have been better than dubai. Sai Buhari. Click like if u believe positive change has come.

DelGardo:
The vice president of Nigeria is traditionally in charge of the economy.

The economy under Jonathan was in tatters because Jona had no clue and Sambo was a ghost worker.

Osinbajo, on the other hand, seems to have a good grip on things. Long may it continue.

Change is here.

praise singer. are you related to oliver the coque?

7 to 8Tn budget, that's a huge leap even when oil proces are rock bottom. I wonder where the money wpuld come from, but I hope and pray this will come to pass. God bless Nigeria!

Flets:
This government should be reminded that elections are over. Enough of these noises as reality have set in already.

Lets do some simple mathematics.
Nigeria's total crude production currently hovers at 2M barrel per day, but I will assume 2.5M barrel for sake of optimism
Crude oil sells at slightly above $40/ barrel but I will assume $45/ barrel
Most JV agreements with Oil corporations stands at an average of 60% for Nigerian govt.
Cost of production of oil for most companies stand at almost 50% but I will assume 30% (optimist case) and then 70% profit
Only about 52% of total earnings goes to the FG, the remaining goes to state allocations and host state derivation
Assuming an exchange rate 200 naira per dollar and 365 days a year

Federal Government can make approximately 1.8 trillion naira from crude sales for 2016 optimally. Details below
so 2.5Million x $45 x 60% x 70% x 52% x 200 x 365 = 1.8 Trillion Naira

Historically, crude has formed about 70% of our budgets.... following same logic, total budget can only be 2.6 trillion Naira (1.8Trillion/ 70%)

Even if we increase taxes, collapse all tax and duty exemptions and without any diversification efforts by the current government, we will be lucky to add another 1trillion the 2.6 trillion to make it a maximum of 3.6 trillion.

So realistically speaking, 8 trillion FG budget is impossible for 2016. Propagandically speaking, APC govt have said it and they believe their zombies will believe it.

Hence the MTN fine to make-up the shortfall

speedyGonzales:
8 trillion budget! hahaha! these APC are trying to kill me with laughter! well, we will see, if you can do it, then bravo for you!

Seems you guys just want to be blind. How many times will someone tell you that TSA is now in placed. So MDAs that were not captured in our yearly's budgeted will now be included instead of generating and speanding our money independently as was done by past administration. Almlsot 16trillion were spent un appropriated for by this almsot 500 MDAs but with the TSA, they'll be captured together in the year's budget.

kel4soft:
Seems you guys just want to be blind. How many times will someone tell you that TSA is now in placed. So MDAs that were not captured in our yearly's budgeted will now be included instead of generating and speanding our money independently as was done by past administration. Almlsot 16trillion were spent un appropriated for by this almsot 500 MDAs but with the TSA, they'll be captured together in the year's budget.

well, I said bravo if they can really! but to be honest I am not that gullible! TSA will help but 8 trillion is no child's play. and your 16 trillion claim is just conjecture, there is no real substance!

DrownedFish:
it wasn't generated, it was transfered to the TSA.
Where will the FG get an extra 3.5trillion with falling oil prices and a weak economy that's not receptive to increase taxation. APC should do their maths well and stop taking us for a jolly ride.

whether generated or transfered the truth of the matter is that there is 1.4t naira in tsa account and there is sanity in d system.

orontogorah:
but i tot dey said nigeria was broke na...

nigeria is broke, but not to waste d lean resources on ministers and few elite like ur clueless corrupt ogogoro hero did

TonyeBarcanista:
Where will they get the money to fund the budget? I hope nobody is considering loan?

It is very disappointing hearing this from you. Is it unimaginable to say that the reign of waste of the PDP resulted in an unofficial annual budget of > N8trillion?
After all, subsidy provision of N500b skyrocketed to about N2trillion under GEJ.

speedyGonzales:
well, I said bravo if they can really! but to be honest I am not that gullible! TSA will help but 8 trillion is no child's play. and your 16 trillion claim is just conjecture, there is no real substance!

In my honest opinion it should be higher than 8trillion since these MDAs not captured in our 2015 budget will now be reflected in our 2016 budget. On the 16trillion naira, it may be over bloated but not really far from the truth considering NNPC and Federal Inland Revenue are the new entrants to this TSA.

orontogorah:
but i tot dey said nigeria was broke na...

nigeria is broke, but not to waste d lean resources on ministers and few elite like ur clueless corrupt ogogoro hero did, again, before may29, nigeria was broke, but now because money is not missing again, we can have a budget of 10t naira a year, all d loopholes block,

kel4soft:
In my honest opinion it should be higher than 8trillion since these MDAs not captured in our 2015 budget will now be reflected in our 2016 budget. On the 16trillion naira, it may be over bloated but not really far from the truth considering NNPC and Federal Inland Revenue are the new entrants to this TSA.

I don't see any evidence of your claim... especially since the TSA has not really been around that long and we do not have anybody with real economic understanding in the current administration yet!

TonyeBarcanista:
Where will they get the money to fund the budget? I hope nobody is considering loan?

dis is d much reason we voted out ur clueless corrupt hero, is even much more realizable to fund 10t budget when corruption is not there, all loopholes wil be block, guy nigeria is moving forward