From ADETUTU FOLASADE-KOYI, Abuja
The Federal Government will spend a total of N4.77 trillion in the 2014 fiscal year with the consolidated capital budget for next year projected at N1.45 trillion.
Recurrent expenditure for next year is N2.373.291 trillion while the total budget, net of SURE-P is expected to be N4.495.115 trillion. If the SURE-P budget of N274.340 billion is included, government will now spend a total of N4.769.455 trillion.
As contained in the 2014-2016 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), President Goodluck Jonathan submitted to the National Assembly, federal revenue for next year is projected at N10,519.27 trillion out of which N6,814.43 trillion is gross oil revenue, while non-gross oil revenue is N3,288.58 trillion.
For next year, the government targets N250.71 billion from non-Federation Account levies, another N156.16 billion from Education Tax and N9.390 billion from National Information Technology Development Fund.
The 2014 budget is predicated on sale of 2.2883 million barrels of oil per day with the oil benchmark at $74 per barrel and an exchange rate of N160 to the dollar.
As contained in the MTEF/FSP, the Excess Crude Account (ECA) fell from $9 billion to $5 billion within two years. Government explained that, “the balance in the Excess Crude Account (ECA) increased from $4.22 billion in August 2011 to about $9 billion at the end of 2012. This has, however, declined to about $5 billion in June 2013, following series of draw-downs to meet the revenue shortfalls arising from the disruption to oil production, with the ECA performing precisely the type of buffering it was designed to perform.”
“Sequel to extensive consultations with the Nigerian National Petroleum Corporation (NNPC) and taking account of the lingering challenges of crude oil theft, illegal bunkering and production of shut-ins which have continued to pose a challenge to government’s finances, but with some expectation that government’s remedial action will bear some fruit, we have projected crude oil production for 2014 at 2.3883 million barrels per day. This figure is lower than the 2.526mbpd budgeted in 2013.
“It is hoped that government’s efforts at tackling the problem will yield further results in the medium term…
“Accordingly, we propose a benchmark oil price of $74 per barrel for 2014, $75 per barrel for 2015 and $76pb for 2016; having taken into account of the outlook of weakening future prices occasioned by rising oil and unconventional supplies, as well as slow economic recovery.
“Implementation of the 2013 budget is on course. As at the end of the second quarter of 2013, a total of N600 billion has been released for implementation of capital projects with cash backing of N598.89 billion due to the revenue challenges occasioned by reduced inflows from oil and non-oil revenue sources.
“Of this amount, actual utilisation as at end of July 2013 was 71.5%. The pace of implementation is expected to pick up in the course of the year. In addition, another N250 billion has been released in the thid quarter capital warrant, bringing the total for the year so far to N850 billion.
Meanwhile, there would be no new capital projects for next year while Senate will, today, confront the Presidency over the comments attributed to the Minister of State for Finance, Yerima Lawal Ngama, that the N4.987 trillion 2013 budget is no longer implementable. Deputy Minority Leader, Senator Abdul Ningi, will, today, raise a motion on the matter in the chamber.
The Federal Government will spend a total of N4.77 trillion in the 2014 fiscal year with the consolidated capital budget for next year projected at N1.45 trillion.
Recurrent expenditure for next year is N2.373.291 trillion while the total budget, net of SURE-P is expected to be N4.495.115 trillion. If the SURE-P budget of N274.340 billion is included, government will now spend a total of N4.769.455 trillion.
As contained in the 2014-2016 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), President Goodluck Jonathan submitted to the National Assembly, federal revenue for next year is projected at N10,519.27 trillion out of which N6,814.43 trillion is gross oil revenue, while non-gross oil revenue is N3,288.58 trillion.
For next year, the government targets N250.71 billion from non-Federation Account levies, another N156.16 billion from Education Tax and N9.390 billion from National Information Technology Development Fund.
The 2014 budget is predicated on sale of 2.2883 million barrels of oil per day with the oil benchmark at $74 per barrel and an exchange rate of N160 to the dollar.
As contained in the MTEF/FSP, the Excess Crude Account (ECA) fell from $9 billion to $5 billion within two years. Government explained that, “the balance in the Excess Crude Account (ECA) increased from $4.22 billion in August 2011 to about $9 billion at the end of 2012. This has, however, declined to about $5 billion in June 2013, following series of draw-downs to meet the revenue shortfalls arising from the disruption to oil production, with the ECA performing precisely the type of buffering it was designed to perform.”
“Sequel to extensive consultations with the Nigerian National Petroleum Corporation (NNPC) and taking account of the lingering challenges of crude oil theft, illegal bunkering and production of shut-ins which have continued to pose a challenge to government’s finances, but with some expectation that government’s remedial action will bear some fruit, we have projected crude oil production for 2014 at 2.3883 million barrels per day. This figure is lower than the 2.526mbpd budgeted in 2013.
“It is hoped that government’s efforts at tackling the problem will yield further results in the medium term…
“Accordingly, we propose a benchmark oil price of $74 per barrel for 2014, $75 per barrel for 2015 and $76pb for 2016; having taken into account of the outlook of weakening future prices occasioned by rising oil and unconventional supplies, as well as slow economic recovery.
“Implementation of the 2013 budget is on course. As at the end of the second quarter of 2013, a total of N600 billion has been released for implementation of capital projects with cash backing of N598.89 billion due to the revenue challenges occasioned by reduced inflows from oil and non-oil revenue sources.
“Of this amount, actual utilisation as at end of July 2013 was 71.5%. The pace of implementation is expected to pick up in the course of the year. In addition, another N250 billion has been released in the thid quarter capital warrant, bringing the total for the year so far to N850 billion.
Meanwhile, there would be no new capital projects for next year while Senate will, today, confront the Presidency over the comments attributed to the Minister of State for Finance, Yerima Lawal Ngama, that the N4.987 trillion 2013 budget is no longer implementable. Deputy Minority Leader, Senator Abdul Ningi, will, today, raise a motion on the matter in the chamber.
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