Few days ago, President Buhari presented 2019 National Budget to National Assembly and to Nigerians as a whole.
After the budget presentation, there has been so much talk, with the presidency saying the budget is the best they can come up with.
Meanwhile, we have decided to bring you the simplest breakdown of the budget in case all the grammar you’ve be hearing in the news seems too hard to understand.
Below Are 6 Things You Need To Know About Nigeria’s Budget In 2018:-
1. The Entire Budget Size Is N8.83 Trillion Naira
The Federal Government are expecting to spend N8.83 Trillion Naira in 2019. Too Much money right?
Read on to see how it’s going to be spent and why many Nigerians will still suffer come 2019.
2. Government Will Be Paying Debt With One Quarter (1/4) Of The Total Budget
You must have heard that the country is in serious debt. It’s not a lie, Nigeria is owing too much debts and about N2.14 trillion out of N8.83 trillion total budget size will be used to pay part of the debts the country is owing.
N8.83 Trillion – N2.14 Trillion = N6.69 Trillion
After servicing debts, Nigeria will be left with N6.69 Trillion
3. N2.031 Trillion Is Allocated For Capital Expenditure
Talking about capital expenditure, this is the money that will be spent on big projects such as construction of roads, bridges, health care equipment and lots more.
All the major project that Nigeria will be constructing by next year, N2.031 Trillion is the amount budgeted for them all.
N6.69 – N2.031 Trillion = N4.65 Trillion
Total Money Left Will Be N4.65 Trillion
4. N4.04 Trillion Is Allocated For Recurrent Expenditure
When Capital Expenditure is for capital projects paid for just once, recurrent expenditure is for things reoccurring and must be paid over and over again.
This means, N4.04 Trillion is the money for salaries, wages, service fees and so on.
N4.65 – N4.04 = N619 Billion
Total Money Left Will Be N619 Billion
5. Budget For Sinking Funds Is N120 Billion
After paying debts at No. 1, Nigeria will still be owing some entities.
This sinking funds is the money set aside as savings to be paid back to other bodies we are owing.
N619 Billion – N120 Billion = N499 Billion
Total Money Left Will Be N499 Billion
6. Statutory Transfer Budget Is Set At N492.36 Billion
This is the money meant for our Senators and House Of Reps member and they don’t joke with it.
Whether Federal government likes it or not, this money must be accurately distributed to the senators as at when due.
N619 Billion – N492.36 Billion = N6.64 Billion
Total Money Left Will Be N6.64 Billion, a contingency money in case of any emergency.
How And Where Does Nigeria Get Money To Fund The Budget?
The major reliable means for funding budgets in Nigeria is through crude oil.
Although, we have other means but crude oil seems to be the only sure source among others, therefore everything must be planned according to earnings from it.
We are planning around Crude Oil when the Global Oil prices are currently falling. Some countries are moving away from oil to renewable energy but we are still here not thinking of way forward.
The current global price is $45 per barrel but Nigeria is hoping it will rise to $60 per barrel in 2019 and if it doesn’t rise, we will be in big problem.
To avoid the problem, we will have to go and borrow again.
Also, we can only fund this budget if we keep producing 2.3 million barrels per day.
As it stands now, we can only produce 1.9 million barrels per day but we are hoping on the Lord to help increase 1.9 production limit to 2.3 barrels per day without any tangible plan of action.
Another thing is, we are hoping that dollar will reduce to N305 / $1 in 2019 which is a gamble, it may happen and it might not happen. We dey hope sha!
We are also hoping that our GDP will be at 3.01% when we are currently struggling at 1.8% economic growth rate.
From now to 2019, I wonder the magic that will double the GDP.
With the way things are going, it’s crystal clear that our leaders don’t have solutions to the current situation of the country.
If you understand the breakdown of this budget, you will know that this country has been running under leadership of clueless individuals who would rather fill up their pockets instead finding solutions to National problems.
What do we do? Well, all we can do now as individuals is to plan our lives in a bid to survive against all odds.
Understand that the country you’re in is not built on clear-cut development strategy but built on hope.
It’s good to hope and pray for a better Nigeria but the best thing is to use your head, roll your sleeves and fix up your own life.
What Are Your Thoughts On This?
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