2018 Budget: Nigeria Spent N3.64 Trillion in Eight Months
Nigeria has spent a total of N3.64 trillion from January through August 2018, to finance some of its programmes and projects as captured in the 2018 budget.
The 2018 budget, which was signed by President Muhammadu Buhari, had a total spending of N9.1 trillion made up of N2.87 trillion for capital expenditure, N3.51trillion for recurrent (non-debt) expenditure, while N2.01 trillion was projected to be spent on debt servicing.
The N9.1 tillion budget was expected to be financed from N2.99 trillion to be generated from oil revenue, N31.25 billion from Nigeria Liquefied Natural Gas dividend and N1.17 billion expected to be realised from revenue from minerals and mining.
The Nigerian Government is targeting to generate N658.55 billion from Companies’ Income Tax, N207.51 billion from Value Added Tax, N324.86 billion from Customs duties, while N57.87 billion is expected to come from Federation Account levies.
In the same vein, the government expects N847.95 billion through independent revenue from its agencies, while tax amnesty income, signature bonus and unspent balance from previous years are to provide N87.84 billion, N114.3 billion and N250 billion, respectively
Details of the performance of the 2018 budget as captured in the 2019 Budget Call Circular showed that out of the total appropriation of N9.12 trillion, the sum of N3.64 trillion had been spent in the first eight months of the year.
This, according to the document, which was exclusively obtained by our correspondent, represents a shortfall of about N2.44 trillion over the pro-rated expenditure sum of N6.08 trillion for January to August.
A breakdown of the N3.64 trillion showed that a total of N1.8 trillion had been released for non-debt recurrent expenditure for the payment of salaries, pensions and overheads, among others.
Similarly, the circular, which was signed by the Minister of Budget and National Planning, Senator Udo Udoma, showed that the sum of N1.54 trillion had been released to cover debt service obligations during the eight- period.
It stated that the N3.64 trillion released during the period excluded the N486.29 billion that was released to agencies of government on October 17 this year for the execution of capital projects.
“Of the total appropriation of N9.12 trilliion, N3.64 trillion has been spent by August 2018. A total of N1.83 trillion has been released for non-debt recurrent expenditure for the payment of salaries, pensions, overheads, etc, while N1.54 trillion has been released to cover debt service obligations during the period,” the circular stated.
On the revenue side, the document stated that as of August 31, 2018, the Nigerian Government’s actual revenue was N2.48 trillion, representing an underperformance of 48 per cent.
It stated, “The shortfall of 48 per cent is attributable to the underperformance of both oil and non-oil revenue sources. The shortfall in Companies’ Income Tax collections may be partly due to seasonal factors as most companies remit their income taxes during the second half of the year.
“The slow recovery in economic activities that drive consumption and the lingering security issues contributed to the underperformance of other non-oil revenue sources like Value Added Tax.”
It explained that the delay in the implementation of other revenue initiatives like the restructuring of Joint Venture oil assets and tighter performance management of government-owned enterprises further accounted for the weak non-oil revenue performance.