Nigeria’s President, Muhammadu Buhari has presented N20.51 trillion 2023 budget estimate to a joint session of the National Assembly.
According to the Nigerian number one man, the budget includes 2.42 trillion Naira spending by Government-Owned Enterprises.
In his words, Buhari said the appropriation tagged “Budget of Fiscal Sustainability and Transition,” was designed to address critical issues and lay a solid foundation for the incoming administration.
The proposed total expenditure for the coming year is put at N20.51 trillion with a crude oil benchmark price of $70 per barrel and daily oil production estimate of 1.69 million barrels per day.
It is imperative to note that the 2023 budget is about 15.37 per cent higher than the amount budgeted in 2022.
Remarkably, while inflation rate is projected to average 17.16% in 2023, up from the revised average of 16.11% for 2022, the exchange rate is projected at N435.57 per dollar.
Meanwhile, the GDP growth rate is projected at 3.75 per cent and it is expected to moderate to 3.30% in 2024 before picking up to 3.46% in 2025.
In the appropriation bill, while total federally-collectible revenue is estimated at 16.87 trillion Naira in 2023, total federally distributable revenue is estimated at 11.09 trillion Naira.
The president stated that a total revenue available to fund the 2023 Federal Budget is estimated at 9.73 trillion Naira and that includes the revenues of 63 Government-Owned Enterprises.
Oil revenue is projected at 1.92 trillion Naira, Non-oil taxes are estimated at 2.43 trillion Naira, FGN Independent revenues are projected to be 2.21 trillion Naira. Other revenues total 762 billion Naira, while the retained revenues of the GOEs amount to N2.42 trillion Naira.
Meanwhile, in what came to Nigerians as a shocker, Buhari announced the discontinuation of the oil subsidy regime from next year.
Harping on the development, the President described the oil subsidy regime as grossly unsustainable in the current reality of low revenues occasioned by oil theft and insecurity.
In a bid to assuage Nigerians, Buhari said safety net would be provided for the vulnerable members of the society to cushion the effects of the policy.
The Nigerian leader emphasized the need for the government to find new ways of generating revenues, noting that additional measures of reducing cost of government would be implemented.
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