• Special Economic Zone gets N46.39bn
• N2.1bn for concession of Ajaokuta Steel Company
• To borrow N850bn from domestic sources
• Spent N450bn on capital projects in 2017 budget
The Federal Government has proposed to expend N295 billion for the construction and rehabilitation of major roads nationwide in the 2018 budget.
Minister of Budget and National Planning Sen. Udoma Udo Udoma stated this on Tuesday, during the Public Presentation of the 2018 Budget Proposal in Abuja.
Udoma also said that N10bn was also proposed as Federal Government’s counterpart funding for the construction of the 2nd Niger Bridge in the South East.
The sum of N8.612 trillion is proposed as the expenditure for the 2018 fiscal year with an overall deficit of N2.005 trn ,which represents 1.7 per cent of the country’s Gross Domestic Product (GDP).
However, the government said that the budget deficit will be financed mainly by borrowing N1.699trn from domestic and foreign sources.
From the domestic source, the government is expected to borrow N850bn and N849bn from the foreign sources.
A total of N306bn is expected from privatization and N5bn from sale of other government’s property to finance the deficit.
The minister said that the Nigerian economy lapsed into recession in Q2 2016 precipitated by sharply lower oil prices, and without sufficient fiscal buffers, following years of inappropriate policies, fiscal leakages and inefficient spending.
“We introduced a number of economic and institutional reforms, as well as the implementation of an expansionary fiscal stance. These were set out in our Strategic Implementation Plan; and are now part of the Economic Recovery & Growth Plan (2017-2020) (“ERGP”), he said.
Udoma pointed out that the well-targeted 2016 budget expenditure and ongoing 2017 budget implementation, combined with the reforms, provided the stimulus for the economy to emerge from recession by the end of Q2 2017.
FGN’s oil revenues and customs revenue performed almost to target.
Although the non-oil sector accounts for over 90% of nominal GDP, FG’s non-oil tax revenues are low, adding that oil production averaged 1.9mbpd against 2.2mbpd projected.
Oil revenues amounted to N1.6 trn vs N1.6 Q3 prorata budget; while collections for CIT and VAT were N407.59bn and N95.57bn, respectively, implying performance of 67% and 53% respectively of prorata budgets.
Customs revenue was N207bn out of N208.17 bn prorated as at Q3, i.e., 99%, while Independent Revenues of N155.14bn that is 20% has been remitted by GOEs.
On the 2017 budget, the minister said, “Despite the delay in the passage of the budget, we have been able to spend N450bn as at 31st October, 2017. Spending on capital has been prioritised in favour of critical ongoing infrastructural projects, such as power, roads, rail, agriculture. The N100 bn Sukuk Bond raised in October, for instance, was deployed to construction of 25 roads around the country.”
He added that the capital expenditure in the budget was designed to be funded by borrowings; hence, as the planned borrowings materialise spending will be stepped up.
The government has also proposed N2.1bn for concession of Ajaokuta Steel Company under the supervision of the Federal Ministry of Mines and Steel Development. It will also spend N544 million for the establishment of mega regulatory agency for the sector and N450m for the reclamation of abandoned mining sites.
Giving a further breakdown the minister said that N35.41bn is also proposed for Federal Government National Housing Programme asides the N500bn social housing scheme.
The roads projects captured in the 2018 budget include: Lagos-Shagamu-Ibadan Dual Carriageway; Ilorin-Jebba-Mokwa-Bokani Road, Abuja-Abaji Road, Kano-Maiduguri Road, Enugu-Port-Harcourt Dual Carriageway, Odupkani-Itu-Ikot Ekpene Road, Sokoto-Tambuwal-Jega-Kontagora-Makera Road.
Dualisation of Obajana Junction to Benin, Calabar-Ugep-Kastina Ala Road, Onitsha-Enugu Dual Carriageway, Abuja-Kaduna-Zaria-Kano Dual Carriageway ,Beni-Ofosu-Ore-Ajebandele-Shagamu Expressway Phase III.
Damaturu-biu Road In Yobe/Borno States, Onitsha – Owerri Road And Onitsha Eastern Bypass, Hadejia-nguru Road In Jigawa State Phase II, Otuocha – Anam- Nzam- Innoma-iheaka- Ibaji Section of Otuocha – Ibaji-Odulu-Ajegwu In Anambra & Kogi States, Ibadan-Ilorin Section II In Oyo State, Bodo-Bonny Road With A Bridge Across The Opobo Channel In Rivers State, Apapa – Oshodi Express Way in Lagos Phase II Sections I & II.
Others are; Dualization Of Kano-Katsina Road Phase 1, Oshogbodo-Oweto Road
Nasarawa -Loko Road in Nasawara State, Lambata-Bida Road in Niger State
Dualisation of Sapele-Ewu Road: Section I: Sapele-Agbor In Delta State, Dualisation of Suleja-Minna Road Phase Ii, Dualisation of Yenegwe Road Junction-Kolo-Otuoke-Bayelsa Palm, Yola-Hong-Mubi Road In Adamawa State, Abak-Ekparakwa-Ete-Ikot Abasi Road, Zaria-Pambeguwa (Danbobo) Road In Kaduna State and
9th Mile-Enugu-Port Harcourt Dual Carriageway in Enugu/Benue states.
On health, the sum of N6bn is proposed for Strategic Joint Venture Investments in selected Tertiary Health Institutions with Nigerian Sovereign Investment Authority (NSIA), N8.9bn for procurement of RI vaccines and devices, N3.5bn for Counterpart funding including global fund, health, and GAVI, N1bn for Health Emergencies & Contagious Diseases Outbreaks (e.g meningitis, measles, yellow fever, monkey pox, etc), N1bn for Midwives Service Scheme and N1.2 bn Polio Eradication Initiative.
Meanwhile, the government has also given some insight into some of the expenditure for Water Resources, which include: N3.5bn Zobe Water Supply Project – Phase I & II, N2bn for Partnership for Expanded Water, Sanitation and Hygiene (PEWASH)
N1bn for Special Intervention for North East and IDPs – Portable of Portable Water
Over N50bn for water supply, rehabilitation of dams, and irrigation projects nationwide.
The ministry of Industry, Trade & Investment was also allocated N46.39bn for its
Special Economic Zone Projects ongoing and planned Special Economic Zone Projects across the geopolitical zones to drive manufacturing / exports.
The economic zones are: Completion of Upgrade of Calabar and Kano Free Trade Zones, Completion of Lekki Model Textile and Garment Industrial Park, Completion of feasibility Studies, Master Planning, Engineering Design, EIA and other pre-development Costs in Enugu, Gombe, Nnewi, Kwara, Abuja, Bauchi, Rivers/Bayelsa, Edo/Delta, Taraba/Adamawa, Benue/Plateau, Sokoto/Kebbi, FGN investment in Enyimba Industrial Park, Funtua Cotton Cluster, and Ibom Deep Sea Port and City.
Mathew Dadiya, Abuja