President Muhammadu Buhari is seeking to increase Nigeria’s 2022 budget from N13.98 trillion to N16.45 trillion.
His plans were contained in a letter to the Senate President, Ahmad Lawan. The letter was read out by the Deputy Senate President, Ovie Omo-Agege, at the start of plenary on Tuesday.
Mr Buhari will present the 2022 Budget to a joint session of the National Assembly on Thursday.
In the letter, the president sought the Senate’s approval to make some changes in the recently passed Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) – parameters on which the 2022 budget will be framed.
The changes, he said, are in line with the newly enacted Petroleum Industry Act (PIA).
The federal government’s total expenditure for the coming year is projected to increase by N2.47 trillion, from N13.98 trillion to N16.45 trillion.
This includes Government-Owned Enterprises (GOEs) and Project-tied Loans.
Of the additional N2.47 trillion, the president explained N100 billion will be allocated to the electoral umpire, INEC, as additional provision to cater for 2023 general elections.
Another N54 billion to National Agency for Science and Engineering Infrastructure (NASENI) which represents one per cent of the federal government’s share of the federation account.
There will be additional provision of N510 billion in the Service Wide Votes to cater for national poverty reduction with growth strategy (N300 billion) and Police Operations Fund (N50 billion).
Health workers are to get N50 billion for Hazard Allowance. While N80 billion will be allocated for public service wage adjustments and additional N37 billion for MDAs’ Electricity Bills Debt.
The president also said there will be allocation for an additional Capital provision of N1.70 trillion attributed to projected increases in:
– Capital Supplementation by N179.1 billion;
– GOEs Capital by N222.1 billion;
– TETFUND Expenditure by N290.7 billion;
– Multi-lateral / Bi-lateral Project-tied Loans by N517.5 billion; and
– MDAs Capital Expenditure by N390.5 billion (including N178.1 billion provision for population and housing census to be carried out in 2022).
The aggregate deficit (inclusive of GOEs and Project-tied Loans) is projected to increase by N692.0 billion or to 3.42 per cent of GDP from 3.05 per cent of GDP, the president said.
On the Federation Account Revenue, the gross revenue projection decreased by N341,57 billion, from N8.870 trillion to N8.528 trillion.
Also, deductions for federally-funded upstream project costs and 13 per cent derivation decreased by N335.3 billion and N810.25 million respectively.
Net Oil and Gas revenue projection declined by N5.42 billion – from N6.540 trillion to N6.535 trillion.
Mr Buhari noted that the fiscal effects of PIA implementation are assumed to kick in by mid-year 2022.
“The revised 2022-24 fiscal framework is premised on a hybrid of January-June (based on current fiscal regime) and July-December (based on PIA fiscal regime), while 2023 and 2024 are now fully based on the PIA.”
Mr Buhari’s latest budget proposal is over 166 per cent higher than his first in 2016. He had presented a budget of N6.08 trillion in December 2015 for the 2016 fiscal year.
While the last budget signed by his predecessor, Goodluck Jonathan, was at N4.4 trillion.