Nigerian President Signs $48.66 Billion Budget for 2023 Into Law

By Obafemi Oredein

Special to Dow Jones Newswires

IBADAN, Nigeria-Nigerian President Muhammadu Buhari signed into law on Tuesday the country's 2023 budget of 21.83 trillion naira ($48.66 billion) after its approval by the National Assembly.

"The 2023 budget provides for aggregate expenditure of NGN21.83 trillion, an increase of NGN1.32 trillion over the initial executive proposal for a total expenditure of NGN20.51 trillion," presidential spokesman Bashir Ahmad said.

Mr. Buhari in October presented a NGN20.51 trillion budget for 2023 to lawmakers, including a large deficit as economic factors in the oil-rich country worsen.

The budget, the eighth and last to be presented by Mr. Buhari's administration, projects revenue of NGN9.73 trillion and a deficit of NGN10.78 trillion. This represents 4.78% of estimated GDP, well above the 3% threshold set by the country's Fiscal Responsibility Act of 2007.

The deficit, Mr. Buhari said, will be financed mainly from new borrowings totaling NGN8.3 trillion and NGN1.177 trillion drawdowns on loans secured for specific development projects and programs.

Crude-oil production in the budget is estimated at 1.69 million barrels a day, with oil-related revenue expected at NGN1.92 trillion while non-oil taxes are estimated at NGN2.43 trillion. Federal government independent revenue are projected to be NGN2.21 trillion.

Financial experts said the budget might have been increased by NGN1.32 trillion due to higher revenue expected from crude oil this year.

The Nigerian National Petroleum Company Ltd. said the fight against oil theft was yielding results as crude oil production reached 1.59 million barrels per day in December. Oil output was less than 1 million barrels a day due to oil theft before December.

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(END) Dow Jones Newswires

01-03-23 0921ET