President Muhammadu Buhari recently signed the 2018 Appropriation Bill into law.
The 2018 Appropriation Act authorizes the issue from the Consolidated Revenue Fund of the Federation, the total sum of N9.12 trillion of which the sum of N531 billion is for Statutory Transfers; the sum of N2.01 trillion is for Debt Service, out of which the sum of N190 billion only is for the Sinking Fund for maturing loans; the sum of N3.51 trillion is for Recurrent (Non-Debt) Expenditure; while the sum of N2.87 trillion is for contribution to the Development Fund for Capital Expenditure (exclusive of Capital Expenditure in Statutory Transfers) for the year ending on the 31st December, 2018.
There are some notable differences between the 2018 Appropriation bill submitted by the Executive to the National Assembly for consideration and what was passed by the National Assembly and assented to by the President. The total sum of N9.1 trillion in the 2018 Appropriation Act shows an increase of N500billion as against the total sum of N8.6 trillion submitted by the Executive. The National Assembly also made cuts amounting to N347 billion in the allocations to 4,700 projects submitted by the Executive for consideration and introduced 6,403 projects amounting to N578billion.
Further, the National Assembly increased the oil benchmark price proposed by the Executive from $45 to $51 per barrel. However, the oil production volume proposed by the Executive at 2.3 million barrels per day and an exchange rate of N305 to $1 were retained.
It is expected that the Executive may seek to remedy some of the issues raised through the preparation and submission of a supplementary budget to the National Assembly for consideration.
To view or download a copy of the public presentation of the 2018 FGN Budget of Consolidation presented by the Hon. Minister, Budget & National Planning. click here