President Muhammadu Buhari in a Joint Session of the National Assembly on Friday, 7th October 2022, presented the sum of N20.51 Trillion as the proposed 2023 Budget estimate
The President, in his address described the 2023 Budget as the “Budget of Fiscal Sustainability and Transition” which is designed to maintain fiscal viability and ensure smooth transition of the incomingadministration. According to him, the expenditure policy for 2023 is designed to achieve the strategic objectives of the National Development Plan (2021 to 2025), which includes macroeconomic stability; human development; food security; improved business environment; energy sufficiency; improved transport infrastructure; and industrialization focusing on Small and Medium Scale Enterprises (SMSEs).
Highlighting the 2023 Budget parameters and fiscal assumptions, President Buhari explained that the 2023-2025 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) set out these parameters as follows:
- 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.
Speaking on the total expenditure of N20.51 trillion proposed by the Federal Government for 2023, President Buhari stated that the total expenditure comprised of N2.42 trillion for Government Owed Enterprises (GOEs); N744.11 billion for Statutory Transfers; N8.27 trillion for Non-debt Recurrent Cost; N4.99 trillion for Personnel Cost; N854.8 billion for Pensions, Gratuities and Retirees’ Benefits; N1.11 trillion for Overheads; N5.35 trillion for Capital Expenditure including capital component of Statutory Transfers; N6.31 trillion for Debt Service; and N247.73 billion for Sinking fund to retire certain maturing bonds.
Speaking on the budget of GOEs, President Muhammadu Buhari expressed dismay over the actions of some Committees of the National Assembly who pass budgets of GOEs that are at variance with what he has approved and communicate the changes directly to the MDAs. He asked that the National Assembly return the budget to the Presidency when passed.
President Buhari in his budget presentation address also noted with dismay the on-going strike action by the Academic Staff Union of Universities (ASUU) which has crippled activities in public tertiary institutions. He mentioned that the Federal Government has provided the sum of N470 billion in the 2023 budget for revitalization and salary enhancements in the tertiary institutions as an effort to resolve the crisis
On the Finance Bill 2022, he noted that it will be presented to the National Assembly for consideration and passage once ongoing consultations are completed.
In conclusion, President Buhari noted that the 2023 budget proposal was a product of inter-agency collaboration, extensive stakeholder consultations and productive engagements and commended the efforts of the media, the organized private sector, Civil Society Organizations and Development Partners for their contributions in the process of preparing the Budget.
Click here to view the President’s 2023 Budget Presentation Address
