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.”