- Debt Servicing To Gulp N6.31trn
- Pegs Oil Benchmark at $70pb; Oil Production — 1.67 million barrels per day
In what marked his last budget presentation in office, President Muhammadu Buhari on Friday laid before the two chambers of the National Assembly, the proposed N20.51 trillion budget for the 2023 financial year, axing provisions for the controversial fuel subsidy from the estimates.
Buhari described the oil subsidy regime as grossly unsustainable.
The President, however, said safety net would be provided for the vulnerable members of the society to cushion the effects of the policy as Nigeria continues to grapple with low revenues, worsened by massive oil theft and insecurity.
Christened budget of Fiscal Sustainability and transition, the 2023 appropriated estimate is a 15.37 per cent increase from the amount budgeted in 2022 as Nigeria, a country neck-deep in debt would service its debt portfolios with a whooping N6.31trn next year.
A total expenditure of N20.51 trillion is proposed for the Federal Government in 2023. This includes 2.42 trillion Naira spending by Government-Owned Enterprises.
The proposed N20.51 trillion 2023 expenditure comprises:
a. Statutory Transfers of N744.11 billion;
b. Non-debt Recurrent Costs of N8.27 trillion;
c. Personnel Costs of N4.99 trillion;
d. Pensions, Gratuities and Retirees’ Benefits of N854.8 billion;
e. Overheads of N1.11 trillion;
f. Capital Expenditure of N5.35 trillion, including the capital component of Statutory Transfers;
g. Debt Service of N6.31 trillion; and
h. Sinking Fund of N247.73 billion to retire certain maturing bonds.
While addressing members of the parliament, Buhari, visibly gripped by emotions, noted that the 2023 transition budget was designed to address critical issues and lay a solid foundation for the incoming administration.
The president said he believes that based on the parameters and fiscal assumptions, the revenue generation should hit about N16.87 trillion.
BUDGET PARAMETERS
According to President Buhari, the parameters for the 2023 Budget include:
Oil price benchmark of 70 US Dollars per barrel;
Daily oil production estimate of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day);
Exchange rate of 435.57 Naira per US Dollar; and
Projected GDP growth rate of 3.75 percent and 17.16 percent inflation rate.
Read Buhari’s Full Speech while presenting the 2023 appropriation Bill, Frday HERE
