The Federal Government yesterday, said it is expecting about N866.2 billion, or 41.7 per cent oil revenue as well as about 11.8 per cent revenue from independent sources to fund the N9.1 trillion 20018 budget.
The Buhari administration said it also expects about 9.9 per cent from joint venture oil and gas equity restructuring and 9.2 per cent from Corporate Income Tax (CIT).
Other funding sources include recoveries from stolen assets (7.2 per cent), Nigeria Customs Service (4.5 per cent), Value Added Tax (2.9 per cent), grants and donor funding (2.8 per cent), signature bonus (1.6 per cent), tax amnesty (1.2 per cent) and other sources (7.2 per cent).
Giving a breakdown of the ‘2018 Budget of Consolidation’, in Abuja, Minister of Budget and National Planning, Udoma Udoma, said that funding would also come from government restructuring of its equity holding in the oil and gas joint ventures, recovery of stolen assets, increased tax revenues and higher income from Nigeria Customs Service.
Besides, he said, overall deficit component of the budget, which amounted to about N1.95 trillion (about 1.74 per cent of the country’s gross domestic product (GDP), would be financed mainly by N1.6 trillion projected to come from borrowing. Out of the figure, about N793 billion is expected to be sourced domestically, while about N849 billion would come from foreign borrowing.
Another N306 billion, according to the minister, would come from privatisation proceeds and additional N5 billion would be realised from the sale of other government property to finance the deficit.
The 2018 Budget, the minister said, was designed to consolidate on the achievements of the “2016 Budget of Change” and “2017 Budget of Recovery & Growth”, would advance the delivery of the goals of Nigeria’s Economic Recovery and Growth Plan (ERGP) 2017–2020.
Highlights of the N9.12 trillion Appropriation Act signed by President Muhammadu Buhari on Wednesday showed that about N2.01 trillion, or 21 per cent, would go for debt service, with provision to retire maturing bond to local contractors increased by 7 per cent, from N177 billion in 2017 to N190 billion.