Infrastructure,
represented by the Ministry of Power, Works and Housing and Ministry of
Transportation, and Defence, will take the bulk of federal capital spending in
2018, according to a proposal submitted by President Muhammadu Buhari to the
National Assembly Tuesday.
The three
ministries will get money more than the 12 other sectors combined.
Dubbed the
‘Budget of Consolidation,’ President Buhari said the budget would consolidate
on the achievements of previous budgets and deliver on Nigeria’s Economic
Recovery and Growth Plan (ERGP) 2018 – 2020.
Giving a
further breakdown of the budget, Mr Buhari said that 30.8 percent (or N2.652
trillion) of the budget will be allocated to capital expenditure while N3.494
trillion is budgeted for recurrent expenditure.
Details of
the budget proposal revealed that the Power, Works and Housing has the highest
capital project proposal with N555.88 billion.
The
president listed some projects which will be executed under this sector in 2018
to include the Mambilla hydro power project and the National Housing Programme.
Transportation
sector comes second with a projected allocation of N263.10 billion for capital
projects.
Specifically,
N12 billion counterpart funding is earmarked for transmission lines and
substations, N10.00 billion for the 2nd Niger Bridge; and N300 billion for the
construction and rehabilitation of the strategic roads.
The third
sector to attract most in capital expenditure proposal is Special Intervention
Programmes with N150.00 billion and Defence, fourth with N145.00 billion.
Other
sectors are Agriculture and Rural Development, N118.98 billion; Water
Resources: N95.11 billion; Industry, Trade and Investment, N82.92 billion;
Interior: N63.26 billion; Education N61.73 billion; Universal Basic Education
Commission, N109.06 billion; Health, N71.11 billion; Federal Capital Territory,
N40.30 billion; Zonal Intervention Projects, N100.00 billion; North East
Intervention Fund, N45.00 billion; Niger Delta Ministry, N53.89 billion; and
Niger Delta Development Commission, N71.20 billion.
Details of
the budget proposal revealed that a significant increase is being projected in
the revenue accruable from the oil and non-oil sectors.
“Based on
the above fiscal assumptions and parameters, total federally-collectible
revenue is estimated at 11.983 trillion Naira in 2018. Thus, the three tiers of
Government shall receive about 12 percent more revenues in 2018 than the 2017
estimate.
“Of the
amount, the sum of 6.387 trillion Naira is expected to be realised from oil and
gas sources. Total receipts from the non-oil sector are projected at 5.597
trillion Naira.
“The Federal
Government’s estimated total revenue is 6.607 trillion Naira in 2018, which is
about 30 percent more than the 2017 target. As we pursue our goal of revenue
diversification, non-oil revenues will become a larger share of total revenues.
In 2018, we project oil revenues of 2.442 trillion Naira, and non-oil as well
as other revenues of 4.165 trillion Naira.
“Non-oil and
other revenue sources of 4.165 trillion Naira, include several items including:
Share of Companies Income Tax (CIT) of 794.7 billion Naira, share of Value
Added Tax (VAT) of 207.9 billion Naira, Customs & Excise Receipts of 324.9
billion Naira, FGN Independently Generated Revenues (IGR) of 847.9 billion
Naira, FGN’s Share of Tax Amnesty Income of 87.8 billion Naira, and various
recoveries of 512.4 billion Naira, 710 billion Naira as proceeds from the
restructuring of government’s equity in Joint Ventures and other sundry incomes
of 678.4 billion Naira.”
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