Nigeria's president has announced plans to raise spending by 20% next year by borrowing heavily amid falling oil prices..
In his first budget since his election victory in March, Muhammadu Buhari said
he would spend $31bn (£20.8bn) in 2016 on infrastructure and the economy.
However, Nigeria has been hard hit by the falling price of oil.
Petroleum exports make up 90% of total overseas revenue, according to the Opec oil cartel.
The country's budget deficit is expected to double to 2.2 trillion naira ($11bn, £7.4bn) next year and Buhari said the government would seek funding overseas of 900bn naira as well as 984bn naira domestically.
Oil prices have fallen from about $55 a barrel since the beginning of the year to around $36-$37 and Mr Buhari said that of the 3.9 trillion naira revenue forecast for 2016, just 820bn will come from crude.
Mr Buhari said: "This huge decline is having a painful effect on our economy. Consumption has declined at all levels. In both the private and public sectors, employers have struggled to meet their salary and other employee related obligations."
The president pledged to improve tax collection and invest in other industries including mining and agriculture. "The Nigerian economy needs to move away from dependency on oil," he said.
Nigeria's unemployment rate is growing, up from 8.2% in the second quarter to 9.9% between July and September according to official figures. Inflation is also rising, hitting 9.4% in September, on fuel shortages and higher food prices.
However, Mr Buhari said he expected Nigeria's economy to grow by 4.4% next year.
"The 2016 budget, as outlined, is designed to ensure that we revive our economy, deliver inclusive growth to Nigerians and create a significant number of jobs," he said.
BBC reportage-
I pray that what he has planned comes to pass otherwise........hmmm!
Lord please come to our rescue in Nigeria
ReplyDelete*Larry was here*
The only question this budget asks Nigerians is that will u prefer to be in a mortgage apartment in ikoyi or banana island or continue to live in ajegunle and hv ur 100 naira I your pocket to drink beer and carry ashawo which one is better
DeleteI don't really understand all these grammer
ReplyDeleteOk oh
ReplyDeleteLet's watch n see
What an excuse. I think its time we diversify to agriculture and others... Abegii
ReplyDeleteWe are in God's hands.
ReplyDeleteWarrever mehn!...
ReplyDeleteAm tired of this budget whatever!...
Stella no amebo gist?...
I am travelling by road to the east, few cars on the road,which is very unusual few people travelling, everyone looking for money, worst Christmas ever
ReplyDeleteWho wants to travel to the east when it's not settled
DeleteWith all the pro Biafran going up and down and disturbing the peace of the ones who want to come and rest
Please I stayed back because of that. I'm not ready for any higi haga
Best I enjoy my holiday here in peace
It is only God that can bring it to pass that's if he'd not lick anyone a****.
ReplyDeleteHowever, he needs people of integrity to achieve it and control mechanism must play lead role since everything has been mapped out/planned.
Long live Biafra!
Let's just assume that he's using this 2015 to recover loots n set things right. By 2016, let's hope for a significant economic growth and better 2016. Make I never talk first till next year. "Change" my people must see n feel, however I don't know if it will be - or +.
ReplyDeleteStella let me re-phrase that for you:
ReplyDelete"I pray that what he has planned come to pass in Jesus name, Amen!!
You may thank me now.
This Mr President's proposing borrow get as e be. Huge debts on their neck already. #nobemyneck
ReplyDeleteIt's the most wonderful time of d year
ReplyDeleteI love you effortlessly, my Odi
DeleteCherish!
Hmm I pray so to ooh stella
ReplyDeletePlease can someone direct me to the link where a meat seller posted for advert. I have searched and searched and can't seem to find him/her
ReplyDeleteThanks
Stella please and please post this
Don't I just love Buhari for his 2016 budget! Pegging oil revenue at $38 per barrel albeit tentative is being dramatically optimistic in the face of dwindling oil fortune. With entrants like America into the oil export market, the price will be pushed downhill. I am not going to mention how cheap Russia markets it's oil, leaving China to divorce Nigeria in the international trade marriage. To cushion the less than14% oil revenue to service capital and recurrent expenditure is the burden of tax to be borne by the Nigerian populace. Non-oil revenue projected at twice the oil revenue will see an increase in VAT, CIT and Federation Account levies. In the wake of deficit, he would go a borrowing to the tune of N2 trillion. The attendant effect would be servicing more debts and mortgaging the happiness of the next generation. My suggestion is that they should fine MTN another N1.4 trillion (without rebate) to offset the deficit rather than borrow. Against our faith leanings is a looming harsh economic reality. Make una no use all una money flex Xmas o. Nepa don increase tariff, toll gate dey next year , I don turn the budget upside down, I never see petroleum subsidy.
ReplyDeleteWell said,
Deleteaside from fining MTN trillions.
Lmao. I like your sarcasm. Aptly put.
The crude oil market is flooded. So, woe to the country that doesn't refine it's own crude. Its like, no one is buying plantain, yet you go to the market, sell it at a low price and buy expensive plantain chips n come home. So, why not fry your chips at home n sell the ones you can outside. Atleast you can cater for yourself.
The fiscal policies of the government will be very hard. The monetary policies of CBN will pillage the country. The government is a hypothetical govt of trial and error.
The things killing free trade here has to do with the forced policies of the CBN too. Our stock exchange is failing, our money has nothing backing it's value, so it's on a free fall.
any country not selling natural resources turn to manufacturing and production(aided by huge population to help production and aa big market to sell) or turn to tourism(e.g England makes so much from the EPL, their castles and history; Canada makes much from Niagara alone) unfortunately, to produce, you need power supply and raw materials which Nigeria isn't proficient in. Tourism needs organisation, good roads/lifestyle and security(gueSs how much terrorism cost Paris). Even if we invest in Agriculture, we need quality control to enable exportation.
At this sad time in our statehood, we need to be creative and not be forceful. And as much as Buhari is trying to sanitise the country, he is not a creative, vibrant man of ideas. He is also not diplomatic or tactical. He always orders this and that. I have no doubt he means to make good of the borrowing but he is inept by virtue of his exposure and ways of handling issues. He thinks you can just force things to move into place. And economics doesn't work that way. Look into history and see kings and leaders that tried same and how they failed. that's why I never supported him nor his socialist party. I knew that the economy was very delicate at that moment and we don't need forceful policies to break it. Let's cross our fingers and wait for the next experiment n pray it works too. Amen
Well said @BonaParte NN
Delete@ BonaParte NN, I like your submission/analysis of the prevailing economic forces in foreign trade. Your plantain/chips analogy succinctly drives home the message. He is only concerned with the short term offshoots.
DeleteIt will surely come to pass in Jesus name
ReplyDeleteI pray his plans works well next year. We really need some reviving in our country Dear Lord.
ReplyDeleteWell, we have to Forge ahead with what we have. Only God knows where our excess crude money is hiding. Stella help us find am ooo
ReplyDeleteAmennnnnnnnnnnnnnnn! Still planning for almost 10months. May God grant him divine wisdom&directions,Dear Jesus pls fix this.
ReplyDeleteThis is very serious. The govt is facing an upheaval task of stabilising the economy and then moving forward. We need to pray for this govt and they- APC should work out their salvation and quit blaming GEJ for all their misadventure
ReplyDeletea.k.a EDWIN CHINEDU AZUBUKO said...
ReplyDelete.
We are in hell already nobi lie....
.
.
***CURRENTLY IN JUPITER***
Okay
ReplyDeleteIt's well, nobody don even do Christmas 4 me uptill now, 1 day to Christmas hmmmmmmm worst Christmas ever
ReplyDeleteGod heal our land
ReplyDeleteBonaparte and Kehinde I like intelligent people like you guys.
ReplyDeleteNigerians are highly educated folks with over 50% of the population having a minimum of BSc. Yet this not not translate to anything good in the economy. Why? I wonder.
Having said that, there are a lot of educated people who can put 1 and 1 together to make 2. So how can the APC government feed us with this fraud they call the budget? Economics students in the house, please direct me if I am wrong, but should a budget not be explicit? Is this the paper that was served to the house of assembly with high level figures? Where will the internal funding for the budget come from? If MTN has been fined this huge sum which makes up a major part of the entire budget, why are we still looking to borrow so much and ensure that the next generation curses the day they were born as Nigerians? And this country that has never given anything to the populace is still planning to take more from us? Why oh why?
It is now very clear that Buhari did not go to school. If not this fraud for a budget will not even make it to the papers.
@ Anonymous 13.48pm. Thanks for seeing through the bogus document. Funding the budget internally comes from heavy taxation to further burden Nigerians who are already under the weight of harsh economic policies. And where they keel over, the government will borrow to cushion it. Cutting an arm to fix a leg.
Delete@kehinde stop misleading people, the budget tends to reduce tax in some aspects of the economy and enforce payment. Over 70 % of Nigerians don't pay tax and yet you want good roads etc. We all need to change this irresponsible attitude.
DeleteThe only question this budget asks Nigerians is that will u prefer to be in a mortgage apartment in ikoyi or banana island or continue to live in ajegunle and hv ur 100 naira I your pocket to drink beer and carry ashawo which one is better?
ReplyDelete