The President. Muhammadu Buhari on Thursday, 7 October 2021, presented the sum of N16.39 trillion as the proposed 2022 Budget estimates in a Joint Session of the National Assembly.
The President, in his address, termed the 2021 Budget as the “Budget of Economic Growth and Sustainability” which is designed to build on the achievements of previous budgets and deliver on the Federal Government’s goals reflected in the designed National Development Plan of 2021 to 2025 and will focus on:
a. Diversifying the economy, with robust MSME growth;
b. Investing in critical infrastructure;
c. Strengthening security and ensuring good governance;
d. Enabling a vibrant, educated, and healthy populace;
e. Reducing poverty; and
f. Minimizing regional, economic and social disparities
According to him, the 2022 Budget is also the first in Nigeria’s history where MDAs have been clearly advised on gender-responsive budgeting as part of the Federal Government’s efforts to distribute resources fairly and reach vulnerable groups in the society.
Highlighting the Parameters and Fiscal Assumptions contained in the 2022 Budget, the President explained that the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) set out these parameters as follows:
- Benchmark Oil Price of $57/barrel;
- Daily Oil Production estimate of 1.88 Million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day;
- Exchange rate of N410.15/$; and
- GDP growth projected at 4.2% and inflation rate at 13%
Furthermore, President Buhari informed lawmakers that the Finance Bill 2022, which partly supports the realization of fiscal projections, current tax and fiscal laws is currently being reviewed and will be transmitted to the National Assembly.
Giving a breakdown on the Aggregate expenditure of N16.39 Trillion, the President noted that the sum of N768.28Trillion has been allocated for Statutory Transfers; N6.83Trillion as Non-debt Recurrent Costs; N4.11 Trillion as Personnel Costs; N577.0 Billion as Pensions, Gratuities and Retirees Benefits; N792.39 Billion as Overheads; N5.35 Trillion as Capital Expenditure (Including the capital component of Statutory Transfers); N3.61 Trillion as Debt Service; and N292.71 Billion as Sinking Fund (to retire certain maturing bonds).
In conclusion, President Muhammadu Buhari applauded what he described as the patriotic, and collaborative support of the National Assembly in its effort to deliver on socio-economic development and dividends of democracy to Nigerians and added that the 2022 fiscal year is critical for project completion and improving the living conditions of citizens.
Click here to view the President’s 2022 Budget Presentation Address
