“Its current fiscal impact has clearly shown that the policy is unsustainable,” Buhari said. The government spent 1.59 trillion naira on fuel subsidies in the six months through June this year. Gasoline subsidies that Buhari said will be removed next year may also negatively impact the budget if retained by the new administration. To achieve the economic growth estimate “would require the commencement of local refining of petroleum products and substantial recovery in oil production, alongside sustained expansion in the non-oil sector,” Ibukunoluwa Omoyeni, an economist at Vetiva Capital Management said.īuhari’s budget is also likely to be supplemented by the incoming administration of the candidate that wins February’s presidential elections to replace him.
“Revenue shortfalls remain the greatest threat to Nigeria’s fiscal viability,” the president said. The government usually falls short of its growth, revenue and deficit targets because of the underperformance of its oil industry. The government has blamed massive levels of theft on the pipelines that crisscross the oil-rich Niger Delta in southern Nigeria. “The 2023 budget estimates are very optimistic considering the current economic and security challenges the country is facing,” Ikemesit Effiong, head of research at SBM Intelligence said.Īfrica’s top oil producer, alongside Angola, has seen production decline steadily since 2020, reaching multi-decade lows this year. That’s 76% more than the 5 trillion naira approved for this year. To plug the funding gap, the government plans to borrow as much as 8.8 trillion naira from domestic and foreign lenders. figuresīudget deficit is forecast at 10.78 trillion naira or 4.78% of GDP, exceeding a legal threshold of 3% stipulated in Nigeria’s fiscal responsibility law The spending plan will drive economic growth, with a 3.75% expansion in gross domestic product forecast for 2023, Buhari said in his budget presentation to lawmakers on Friday.Īdministration expects to raise 16.87 trillion naira in revenue, 1.9 trillion naira of which will be generated from crude sales and taxesīudget assumes an oil price of $70 a barrel and an exchange rate of 435.57 nairaĬountry will pump an average of 1.69 million barrels a day oil, which would represent a nearly 50% increase from September’s production.
0 kommentar(er)
