Full details of the 2017 budget- Nigeria

According to the budget office of the federation, the budget for the year 2017 aspresented to the senate is 20.4% higher than 2016 budget.

The budget is tag budget of recovery.
Budget size of N7.2tn

(20.4% higher than 2016 estimates)

Assumptions, projections

• Benchmark crude oil price – $42.5 per barrel
• Oil production estimate – 2.2 million barrels per day
• Average exchange rate – N305 to the US dollar.
• Aggregate revenue available to fund the federal budget is N4.94tn
• Deficit – N2.36tn (about 2.18% of GDP)
• The deficit will be financed mainly by borrowing which is projected to be about N2.32tn.
• 067tn of borrowing will be sourced from external sources while, N1.254tn will be borrowed from the domestic market.

Expenditure Estimates

The proposed aggregate expenditure of N7.298tn will comprise:
Statutory transfers – N419.02bn
Debt service – N1.66tn
Sinking fund – N177.46bn (to retire certain maturing bonds)


Non-debt recurrent expenditure – N2.98tn
Capital expenditure of N2.24tn (including capital in Statutory Transfers)

Recurrent Expenditure (41.3% of the total budget)

A significant portion of recurrent expenditure has been provisioned for the payment of salaries and overheads in institutions that provide critical public services. The budgeted amounts for these items are:

• 37bn for the Ministry of Interior;
• 01bn for Ministry of Education;
• 87bn for Ministry of Defence; and
• 87bn for Ministry of Health.

Capital Expenditure: N2.24tn (30.7% of total budget)

These capital provisions are targeted at priority sectors and projects.

• Key capital spending provisions in the Budget include the following:
• Power, Works and Housing: N529bn;
• Transportation: N262bn;
• Special Intervention Programmes:
• Defence: N140bn;
• Water Resources: N85bn;
• Industry, Trade and Investment: N81bn;
• Interior: N63bn;
• Education N50bn
• Universal Basic Education Commission: N92bn
• Health: N51bn
• Federal Capital Territory: N37bn;
• Niger Delta Ministry: N33bn; and
• Niger Delta Development Commission: N61bn;
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N100bn provided in the Special Intervention programme as seed money into the N1tn Family Homes Fund that will underpin a new social housing programme.
N14bn allocated as counterpart funding for the Lagos-Kano, Calabar-Lagos, Ajaokuta-Itakpe-Warri railway, and Kaduna-Abuja railway projects.

Statutory Transfers
Budgetary allocation to the Judiciary increased from N70bn to N100bn (to enhance the independence and efficiency of the judiciary).