The Faults in the Nigeria's 2017 Budget

The Nigerian economy has been badly hit following the fall in the global oil price. The economy of the west African country is influenced by the price of oil which is the country's biggest export. Oil accounts for more than 60 percent of government revenue. The fall in the global oil price has plunged the country deep into recession for most part of 2016.

President Buhari presenting the budget to the National Assembly

In trying to bring the country out of recession, the Buhari led administration which won the 2015 election promised to diversify the economy and reduce the reliance of the economy on oil. The administration for the second year running have proposed record budgets in their quest to stimulate the economy by increasing the government spending. The National Assembly passed the 2016 budget of 6.07 trillion naira in controversial circumstances in may, 2016.  The 2016 budget was 40 percent higher than the 2015 budget.

The Federal government has proposed a budget of 7.298 trillion for 2017. The budget christened "a budget of recovery and growth", is 20.4 percent higher than the 2016 budget. Again, the budget has drawn comments from a cross section of Nigerians if this budget is the right spending plan Nigeria needs at this time.

In this post and the next series of posts, we will examine the 2017 budgets in details - ministry by ministry, parastatal by parastatal and compare the 2017 budget to the previous budgets and examine the promise it holds for our dear country Nigeria. we hope that at the end of this series, our dear readers will be able to understand the government spending plan and reach a verdict on the effect the budget is going to have on our economy.



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