Overview

The document is a presentation by Senator Udoma Udo Udoma, the Honourable Minister of Budget & National Planning, on the 2018 Budget Breakdown, presented on Tuesday, 14th November, 2017. It provides an overview of Nigeria's 2018 budget proposal, termed the 'Budget of Consolidation,' which aims to build on the achievements of the 2016 and 2017 budgets and advance the goals of the Economic Recovery & Growth Plan (ERGP) 2017-2020. The presentation outlines the background and context, including the Nigerian economy's recession in Q2 2016 due to lower oil prices and insufficient fiscal buffers, followed by reforms and an expansionary fiscal stance that helped the economy emerge from recession by Q2 2017. It reviews the 2017 budget performance, noting that the budget was presented to the National Assembly on 14th December 2016, signed into law on 12th June 2017, with recurrent implementation starting in January 2017 but capital implementation delayed until June. Key performance indicators for the 2017 budget as of Q3 2017 include: GDP growth rate (1.5% target, 0.55% actual), oil production (2.2 mbpd target, 1.9 actual), oil price (44.5 USD/bbl target, 52 actual), inflation rate (15.74% target, 15.98% actual), exchange rate (305 N/$), revenue (N5.08 trillion budget, N3.29 trillion actual, 86% of prorata), expenditure (N7.44 trillion budget, N4.87 trillion actual, 87% of prorata), capital expenditure (N2.17 trillion budget, N0.34 trillion actual, 47% of prorata), and fiscal deficit/GDP (-2.18% target, -1.46% actual). Revenue performance details show oil revenues performed almost to target, with oil production averaging 1.9 mbpd against 2.2 mbpd projected, and oil revenues amounting to N1.6 trillion vs N1.6 trillion prorata budget. Non-oil revenue performance indicates low collections for CIT (N407.59 billion actual vs N807.82 billion budget, 67% of prorata), VAT (N95.57 billion actual vs N181.44 billion budget, 53% of prorata), customs (N207 billion actual vs N208.17 billion budget, 99% of prorata), and independent revenues (N155.14 billion actual, 20% remitted by GOEs). Expenditure outturns show recurrent expenditures running ahead of budget and debt service obligations met. The 2018 budget revenue proposals and some projects are mentioned, with the conclusion emphasizing consolidation.

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