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Running a country, like most things in life, requires a budget. On Thursday, October 7, 2021, the country got a presentation from Buhari on what it would cost to keep Nigeria ‘working’ in 2022.
The presentation was tagged a “Budget of Economic Growth and Sustainability.” According to the president, this budget is meant to diversify Nigeria’s economy, develop infrastructure, improve security and do so many other great things you’ve probably heard before.
But something you’ve definitely not heard is the content of this particular budget. In 2022, Nigeria plans to spend ₦16.3 trillion naira, even though it plans to make only ₦10.1 trillion.
To achieve this already suspect plan, the government will have to borrow about ₦5 trillion. Nigeria currently has a public debt of over ₦33.1 trillion.
There are so many other things in the 2022 budget, but all we’re thinking of now is how much each of us will have to pay when our debtors come to collect.
Budget breakdown
A budget usually contains how much you make and how much you plan to spend. In Nigeria’s budget, our earnings are classified as “revenue” while our spendings is called”expenditure”. The difference between how much we make and how much we earn is the “budget deficit”.
This is what Nigeria’s 2022 budget looks like:
Revenue –
In 2022, Nigeria plans to make ₦10.1 trillion.
The federal government wants to make ₦5.3 trillion from oil sales and value added tax, while government enterprises like the Nigerian National Petroleum Corporation (NNPC) are supposed to make ₦1.7 trillion.
The government wants to make ₦1.8 trillion from other taxes. Dividends from the Bank of Industry (BOI) should come from ₦195 billion and ₦300 billion should come from special funds.
The government also wants to earn ₦63 billion from foreign aid and ₦710 billion will come from other sources.
Expenditure –
In 2022, Nigeria wants to spend ₦16.3 trillion. ₦6.8 trillion will be to pay for expenses like salaries while ₦4.8 trillion will be to build roads and other infrastructure. Nigeria will use ₦3.9 trillion to pay back debts while ₦768.2 billion will be used to pay for some very important things like pensions.
Deficit –
Nigeria needs ₦6.2 trillion to complete its budget. The government will borrow ₦5 trillion. ₦1.1 trillion will come from loans tied to projects and ₦90 billion will come from the sale of some assets.
Remember, this is a budget, and it is only a plan. Nigeria may not make or spend up to the amount in this budget. But anything you see, just try to take it like that.
