President Muhammadu Buhari has presented the 2019 budget proposal to a joint session of the National Assembly (NASS).

President Muhammadu Buhari

Buhari, who was accompanied to the National Assembly by Vice President Yemi Osinbajo and members of the Federal Executive Council, FEC, unveiled a budget of N8.83 trillion for the 2019 fiscal year.

The News Agency of Nigeria, NAN, reports that the 2019 total budget estimate was N300 billion lower than the N9.1 trillion being implemented for the current fiscal year.

The President said N4.04 trillion or 50.31 percent was earmarked for recurrent expenditure and N2.03 trillion representing 22.98 percent earmarked for capital projects.

Other estimates are N492.36 billion for statutory transfers; N2.14 trillion for debt servicing and provision of N120 billion as sinking fund.

He explained that the sinking fund would be used to “retire maturing bonds to local contractors”.

The 2019 budget proposal is based on an oil production estimate of 2.3 million barrels per day and an exchange rate of N305 to a dollar.

Other benchmarks are: real Gross Domestic Product, GDP, growth rate of 3.01 percent and inflation rate of 9.98 percent.

The total projected revenue, according to the president, was N6.97 trillion, which was three per cent lower than the 2018 estimate of N7.17 trillion.

Buhari said the expected income consisted of oil revenue projected at N3.73 trillion, and non-oil revenue estimated at N1.39 trillion.

“The estimate from non-oil revenue consists of N799.52 billion from company income tax; N229.34 billion from value added tax, and customs duties of N302.5 billion.

“We have reduced our expectations from independent revenue to N624.58 billion.

“Other revenues expected in 2019 include various recoveries of N203.38 billion; N710 billion as proceeds from the restructuring of government equity in joint ventures, and other sundry incomes of N104.1 billion,” he said.

The president explained that the total N8.83 trillion proposed expenditure for 2019 included grants and donor funds amounting to N209.92 billion.

Buhari said although the 2019 estimate was lower than the 2018 budget of N9.1 trillion, it was higher than the N8.6 trillion originally proposed by the executive to the National Assembly.