The budget that is expected to be approved and come into force in January 2023 is 19% higher than government spending this year and is also the highest ever recorded by Nigeria, prioritizing fiscal sustainability, economic growth and sustainable development. Security.
As Nigeria still struggles with violent extremism in its northeast and armed attacks in the northwest and central regions leading to the loss of thousands of lives last year, Buhari has allocated the most funds defense and internal security.
At least 5.3 trillion naira ($12.2 billion), or 26% of the proposed budget, is to be spent on capital spending as part of an ambitious plan the national government is banking on to build infrastructure keys and create jobs in Africa’s largest economy where many years of poor governance and corruption have stifled development.
“Budget 2023 was prepared in a very challenging global economy that is weakened by the lingering effects of the COVID-19 pandemic, high inflation, high crude oil prices resulting in the enormous cost (of a subsidy to gasoline) and the negative fallout from the Russo-Ukrainian War,” said Buhari, who is due to step down as president next year after February’s general elections.
With projected economic growth of 3.7% and 16.87 trillion naira ($38.9 billion) in revenue expected from the federal government in 2023, Buhari said Nigeria aims to achieve “higher growth, more inclusive, diverse and sustainable” with the proposed budget.
External borrowing to the tune of 8.8 trillion naira ($20.3 billion) would finance the budget deficit, Buhari said, amid concerns over the country’s high public debt of 41 trillion naira ($96.7 billion) in March. The country also missed rising oil prices with limited crude production blamed on oil theft.
“I assure you that insecurity, especially banditry and kidnappings, will be significantly reduced before the end of this administration. We will redouble our efforts to ensure we leave the legacy of a peaceful, prosperous and secure nation” , he said, adding that the “significant challenges” facing Nigeria “would have been much worse” without government interventions.