His Excellency, the President of the Federal Republic of Nigeria, Muhammadu Buhari, GCFR, yesterday 7 October 2021, presented the 2022 Federal Government Budget Proposal at the joint session of the National Assembly in Abuja. The proposed Revenue and Expenditure budgets for 2022 are ₦10.13 trillion and ₦16.39 trillion, respectively, resulting in ₦6.26 trillion fiscal deficit.
Below are the key assumptions behind the budget and movements in the proposed fiscal parameters between the approved 2021 and 2022 Budgets:
|Budget Assumption/ Fiscal Parameter||2021 Approved Budget||2021 Supplemenatry Budget||2021 Total||2022 Proposed Budget||Percent Change|
|Benchmark oil price||US$40 per barrel||N/A||US$40 per barrel||US$57 per barrel||43%|
|Oil production volume (bpd)||1.86 million||N/A||1.86 million||1.88 million||1%|
|Inflation Rate (%)||11.95||N/A||11.95||13||9%|
|Average exchange rate||₦379/ US$1||N/A||₦379/ US$1||₦410.15/ US$1||8%|
|GDP growth rate (%)||3||N/A||3||4.2||40%|
|Capital expenditure||₦4.12 trillion||₦0.86 trillion||₦4.98 trillion||₦4.89 trillion||-2%|
|Statutory transfer||₦496.53 billion||NIL||₦496.53 billion||₦768.28 billion||54%|
|Debt service||₦3.12 trillion||NIL||₦3.12 trillion||₦3.61 trillion||16%|
|Recurrent expenditure (non-debt)||₦5.64 trillion||₦0.12 trillion||₦5.76 trillion||₦6.83 trillion||19%|
|Total revenue||₦7.99 trillion||₦0.14 trillion||₦8.13 trillion||₦10.13 trillion||25%|
|Total expenditure||₦13.59 trillion||₦0.98 trillion||₦14.57 trillion||₦16.39 trillion||12%|
|Fiscal deficit||₦5.6 trillion||₦0.85 trillion||₦6.45 trillion||₦6.26 trillion||-3%|
Source: Ministry of Budget and National Planning; 2022 Appropriation Act
The 2022 Budget, which has been themed the “Budget of Economic Growth and Sustainability”, is designed to achieve the following objectives:
- Diversification of the economy, with robust growth of Micro, Small and Medium Enterprises;
- Investment in critical infrastructure;
- Strengthening security and ensuring good governance;
- Enabling a vibrant, educated and healthy populace;
- Reducing poverty; and
- Minimizing regional, economic and social disparities.
The President used the opportunity of the 2022 Budget presentation to announce the preparation of the Finance Bill, 2022 by the Honourable Minister of Finance, Budget and National Planning for passage along with the 2022 Appropriation Bill.
We will publish our 2022 Budget Newsletter after the Honourable Minister of Finance, Budget and National Planning submits the approved detailed budget.
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