Buhari Outlines Record Spending Plan of 20.5 Trillion Naira for 2023
By Bashir Olanrewaju
Nigeria plans to spend a record 20.5 trillion naira in 2023, 18 percent more than the current year’s, according to budget proposals made to lawmakers on Friday by President Muhammadu Buhari.
With expected revenue projected at 16.87 trillion naira, deficit spending of some 10.78 trillion naira is expected to reach 4.78% of gross domestic product, exceeding the official cap of 3 percent for the second straight year. The deficit may even expand further given that the government met less than 60 percent of revenue targets set for the current year.
Buhari’s spending estimates are based on an oil output of 1.69 million barrels per day, a price of 70 dollars a barrel and an exchange rate of 435.57 naira per dollar.
The government plans to end controversial fuel subsidies by the middle of next year, estimated to take about a third of this year’s budget, to free up funding for infrastructure and basic services, Buhari said.
“Its current fiscal impact has clearly shown that the policy is unsustainable,” Buhari said.
The appropriation bill will have to be approved by both legislative chambers of parliament before it is signed to become law by the president.