Friday, June 22, 2018 11:20 AM /Budget and National Planning
The Nigerian economy lapsed into recession in Q2 2016 precipitated by sharply lower oil prices, and without sufficient fiscal buffers following years of inappropriate policies, fiscal leakages and inefficient spending.
This necessitated a number of economic and institutional reforms as well as the implementation of an expansionary fiscal stance.
The implementation of a number of reforms, including significant spending on critical infrastructure provided the stimulus for the economy to emerge from recession by the endofQ22017.
The 2018 Budget is designed to Consolidate on the achievements of the 2016 Budget of Change & the 2017 Budget of Recovery & Growth, and advance delivery of the goals of Nigeria’s Economic Recovery and Growth Plan(ERGP)2017–2020.
The 2018 Budget was presented to the National Assembly by His Excellency, Mr. President on 7th November, 2017.
It was passed by the National Assembly on the 16th of May, 2018, transmitted to the President on 25th May, 2018 and assented to by Mr. President on 20th June, 2018.
Aggregate releases under the 2017 Capital Budget upto June 2018 amountedtoN1.58trillion, the highest for the FGN.
Spending on capital has been prioritised in favour of critical ongoing infrastructural projects, such as power, roads, rail, agriculture. The N100 billlion Sukuk Bond raised in October 2017, for instance, was deployed to construction of 25 priority roads around the country.
Essentially, capital expenditure in the 2017 Budget was designed to be funded by borrowings.