A breakdown of the 2022 Appropriation bill was presented by the Minister of Finance, Zainab Ahmed, at a public presentation on Friday.
This comes a day after President Muhammadu Buhari presented the proposed budget of N16.39 trillion before the National Assembly/
The proposed budget was titled, “Budget of Economic Growth and Sustainability”.
According to the president, the 2022 budget is also the first in Nigeria’s history, where MDAs were clearly advised on gender-responsive budgeting.
Fiscal Fundamentals
The 2022 to 2024 Medium Term Expenditure Framework and Fiscal Strategy Paper sets out the parameters for the 2022 Budget as follows:
a. Conservative oil price benchmark of $57 per barrel;
b. Daily oil production estimate of 1.88 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day);
c. Exchange rate of four 410.15 per US Dollar; and
d. Projected GDP growth rate of 4.2 percent and 13 percent inflation rate.
2022 Revenue Estimates
Based on these fiscal assumptions and parameters, total federally collectible revenue is estimated at N17.70 trillion in 2022.
Total federally distributable revenue – 12.72 trillion Naira
Total revenue available to fund the 2022 Federal Budget – 10.13 trillion Naira ( including Grants and Aid of N63.38 billion as well as the revenues of 63 Government-Owned Enterprises).
Oil revenue is projected at N3.16 trillion.
Non-oil taxes are estimated at N2.13 trillion.
FGN Independent revenues are projected to be N1.82 trillion.
Planned Expenditure
A total expenditure of N16.39 trillion is proposed for the Federal Government in 2022. The proposed expenditure comprises:
a. Statutory Transfers – N768.28 billion;
b. Non-debt Recurrent Costs of N6.83 trillion;
c. Personnel Costs of N4.11 trillion;
d. Pensions, Gratuities and Retirees’ Benefits N577.0 billion;
e. Overheads of N792.39 billion;
f. Capital Expenditure of N5.35 trillion, including the capital component of Statutory Transfers;
g. Debt Service of N3.61 trillion; and
h. Sinking Fund of N292.71 billion to retire certain maturing bonds.
Budget Deficit
The total fiscal operations of the Federal Government is expected to result in a deficit of N6.26 trillion.
This represents 3.39 percent of estimated GDP, slightly above the 3 percent threshold set by the Fiscal Responsibility Act 2007.
