NIGERIA'S 2023 BUDGET: BREAKDOWN AND FACTS YOU SHOULD KNOW 

Did you know that the 2023 budget expenditure of N21.83 trillion (US$49 billion) is the highest ever, and that more than half of the money will be financed with new debt?

According to financial analysts, the 2023 budget that was submitted by President Muhammadu Buhari in October 2022 and was passed into law on December 28, is a budget of despair as it could worsen Nigeria’s cycle of deficits and debts, without the possibility of fostering structural transformation, diversifying the economy, promoting sustainable economic growth, and reducing unemployment and poverty. Here are some facts and the breakdown you need to know about the 2023 national budget:

FACT 1

President Muhammadu Buhari in October presented N20.51 trillion budget for 2023 with oil price benchmark of $70 a barrel. However, the Senate increased the 2023 budget by 6.4% (by N1.32 trillion) to N21.83 trillion ($49 billion) after they raised oil price assumption to $75 a barrel on Wednesday, 28 December 2022.

FACT 2

The 2023 budget expenditure of N21.83 trillion (US$49 billion) is the highest ever. More than half of the money budgeted will be financed with new debt. This will mean that the country exceeds the 3% of GDP threshold stipulated by the Fiscal Responsibility Act of 2007 – a pointer to the worsening of the country’s fiscal health.

FACT 3

More than 60% of the 2023 budget will finance debt repayments (N6.31 trillion), personnel costs (N4.99 trillion) and overheads (N1.11 trillion). This leaves very little for spending to revitalise the economy and raise its growth potential.

FACT 4

The 2023 budget is based on an exchange of rate of N435.57 to US$1, compared to over N700 at the parallel market.

FACT 5

Out of the total sum of N21.83 trillion ($49 billion), N967.48 billion was allocated to Statutory Transfers; N6.55 trillion for Debt Service; N8.32 trillion for Recurrent (non-debt) expenditure; while the sum of N5.97 trillion was allocated to contribution to the Development Fund for capital expenditure for the year ending December 31, 2023.

FACT 6

A breakdown of the budget indicated that Ministry of Works and Housing got the highest capital vote of N398.2 billion, followed by Ministry of Defence, which got N285 billion; while Ministry of Agriculture and Rural Development got N248.3 billion.

FACT 7

From the statutory transfers, the National Judicial Council (NJC) was allocated N165 billion; Niger Delta Development Commission (NDDC) got N119.93 billion; Universal Basic Education (UBE), N103.28 billion; Independent National Electoral Commission (INEC), N173.63 billion; National Human Right Commission, N4.5 billion; North East Development Commission, N59.03 billion; Basic Health Care Fund, N51.64 billion; and National Agency for Science and Engineering Infrastructure (NASENI), N51.64 billion.

FACT 8

Similarly, under the statutory transfers was National Assembly Severance / Inauguration of outgoing and incoming 9th and 10th Assembly (Legislators and Legislative Aides), which was allocated N30.17 billion. The National Assembly Office got N30.49 billion; Senate got N33.26 billion; House of Representatives, N51.99 billion; National Assembly Service Commission, N10.55 billion; National Institute for Legislative and Democratic Studies (NILDS), N7.41billion; and Service Wide Vote was allocated N671.3 million.

FACT 9

A further breakdown showed that the Office of Retired Clerks and Permanent Secretaries got N1.05 billion; National Assembly Library Building, N4.25 billion; Constitution Review, N850 million; Completion of NILDS headquarters, N2.5 billion; Construction of National Assembly Service Commission Building, N10 billion; and Public Complaints Commission, N10.69 billion.

FACT 10

For debt service, domestic debts (including Ways and Means) got N4.49 trillion; foreign debt was allocated N1.81 trillion; and sinking fund to retire maturing loans took N247.72 billion

FACT 11

Under recurrent expenditure (Non-debt) the presidency was allocated N76.40 billion, Defence got N1.09 trillion, Ministry of Foreign Affairs got N93.68 billion, while Federal Ministry of Information and Culture got N59.82 billion.

FACT 12

Ministry of Interior was allocated N278.69 billion; Police Affairs, N777.40 billion; Communications and Digital Economy, N32.13 billion; National Security Adviser (NSA), N172.60 billion; and Secretary to the Government of the Federation took N70.08 billion.

FACT 13

Furthermore, for the recurrent expenditure, Federal Ministry of Special Duties and Inter-Governmental Affairs got N4.79 billion; Agriculture and Rural Development, N85.41 billion; while Finance, Budget and National Planning got N29.99 billion.

FACT 14

Ministry of Industry, Trade and Investment was allocated N16.82 billion; Labour and Employment, N15.52 billion; Science, Technology and Innovation, N52.33 billion; Transport, N18.01 billion; Aviation, N9.43 billion; Petroleum Resources, N33.15 billion; and Works and Housing, N34.98 billion.

FACT 15

For the capital expenditure, Presidency was allocated N20.11 billion; Defence got N285 billion; Foreign Affairs, N5.85 billion; Information and Culture, N11.87 billion; Interior, N45.62 billion; Police, N60.64 billion; NSA. N70.33 billion; Agriculture and Rural Development, N248.35 billion; and Finance, Budget and National Planning, N166.74 billion.

FACT 16

Under capital expenditure, also, Science, Technology and Innovation was allocated N132.57 billion; Transport got N74.26 billion; Aviation, N49.41 billion; Power, N56.14 billion; while Ministry of Petroleum Resources was allocated N2, 387,869,567.

FACT 17

Ministry of Mines and Steel Development got N5, 474, 169,278; Federal Ministry of Works and Housing, N398,275,974,098; National Salaries, Incomes and Wages Commission, N65,030,495, 166; Fiscal Responsibility Commission, N188,235,981; Federal Ministry of Water Resources, N83,256,247,735; and Federal Ministry of Justice, N34,181,659,058.

FACT 18

Others were the Independent Corrupt Practices and Related Offences Commission (ICPC), N1,133,712,548; Federal Capital Territory Administration, N15,474,499,132; Federal Ministry of Niger Delta, N11,948,769,209; and Federal Ministry of Youth and Sports Development, N6,223,389,922.

FACT 19

Furthermore, Federal Ministry of Women Affairs was allocated N9,010,121,243; Federal Ministry of Education got N153,735,618,395; Federal Ministry of Health, N134,909,210,815; Federal Ministry of Environment Headquarters, N21,257,480,084; National Population Commission, N31,005,835,945; and Ministry of Humanitarian Affairs, Disaster Management and Social Development, N32,054,601,066.

Sources:

https://theconversation.com/nigerias-2023-budget-is-a-plan-of-despair-and-wont-change-the-tempo-of-the-economy-192659

https://www.thisdaylive.com/index.php/2022/12/29/nassembly-passes-2023-budget-raises-proposed-spending-by-n1-32trn-to-n21-82trn/