2017 BUDGET: FG PLANS TO HIT N6.866tr

· Proposes $42.5 oil benchmark, exchange rate N290/dollar

· Targets 2.2m barrel daily oil production

President Muhammadu Buhari has proposed a budget of N6.866 tril­lion for the 2017 fis­cal year. In the proposed budget, the Federal Government fixed the oil benchmark at $42.5 and the exchange rate of N290 to $1 as well as an oil production target of of 2.2 million barrels per day. These projections are con­tained in the Medium Term Ex­penditure Framework (MTEF) and Fiscal Strategy Paper (FSP) the President sent to the Na­tional Assembly for approval on Tuesday.




The Federal Government also projected N6.847 trillion and N7.117 trillion budgets for 2018 and 2019. It pegged $45 per barrel and $50 per barrel oil benchmark for 2018 and 2019 respectively.

The President’s letter was read on the floor of the House of Representatives by the Speak­er, Hon. Yakubu Dogara. Buhari raised the oil pro­duction target for 2018 to 2.3 million per barrel and 2.4 mil­lion per barrel per day for 2019 while he estimated the ex­change rate at N290 to $1 ex­change rate for 2018 and 2019. The 2017 budget is higher than the N6.060 trillion budg­et for the current year.

 The President said that the revenue for this year will be raised from shared oil revenue of N1.3 trillion, N14.111 billion shared dividend from the Nige­ria Liquefied and Natural Gas (NLNG), N1.064 trillion from the mineral and mining sector; non-oil revenue of N1.508 tril­lion; N902.8 billion company income tax, N282.2 Value Add­ed Tax (VAT), N277.5 billion from Customs and N45.9 bil­lion as the government’s share from the Federation Account. Other sources from which the government will fund the budget are N1.207 trillion in­dependent revenue, N6.549 bil­lion government share of actu­al balance in special accounts, N9.086 trillion as Federal Gov­ernment’s balances in special levies accounts and N50 bil­lion balance from the previous fiscal year. Of the N6.866 trillion 2017 Budget, N1.765 trillion will be for capital expenditure and N2.563 trillion recurrent (non-debt expenditure) and N1.639 trillion for debt servicing. Statutory transfers are allo­cated N370,697,683,756 while N1,639,171,596,716 is ear­marked for Debt Servicing. Apparently to curb militan­cy in the Niger Delta region, Buhari raised the funding of the Presidential Amnesty Pro­gramme from N20 billion in 2016 to N65 billion for 2017.

--> From the MTEF literature, “the thrust of the fiscal year 2017 Budget is to restore the economy to a sustainable in­clusive path. “Thirty-three percent of the projected aggregate revenue to fund the budget will come from oil sources, while the balance, 67 percent is derivable from non-oil sources, in consonance with the government’s renewed focus on diversification of its revenue base,” the document indicated. To receive more updates from Frayokit News, kindly SUBSCRIBE TO OUR NEWSLETTER or follow us on FACEBOOK and on TWITTER
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