According to the report reaching us, Nigeria’s government has agreed a 6.0 trillion naira ($29.8 billion) budget for the coming year, budget and national planning minister Udoma Udo Udoma said on Monday.
“Next year, we are looking at an expansionist budget,” he told reporters after a cabinet meeting in the capital, Abuja.
“We are looking at a budget that will be 1.0 trillion naira more than last year (2015). So, we are looking at a budget of about 6.0 trillion.”
Udoma said 30 percent would go on capital expenditure — up from 15 percent this year.
Nigeria’s economy — Africa’s largest — has been hit hard by falling global crude prices, affecting government spending on much-needed infrastructure projects, and even payment of state sector salaries.
President Muhammadu Buhari has complained the previous administration left the country’s treasury “virtually empty” and has vowed to reclaim “mind-boggling” sums looted by corrupt officials.
The head of state has begun an overhaul of the state-run oil company and forced government departments and agencies to deposit revenues in a single treasury account for better monitoring and transparency.
On oil, the country’s economic mainstay, Udoma said the government was assuming a conservative price per barrel of $38 and production of 2.2 million barrels per day.
But he also said boosting non-oil revenues was key as well as cutting recurrent expenditure and making tax revenue collection more efficient.
Last week, finance minister Kemi Adeosun launched a new Efficiency Unit, designed to cut government waste as a first step towards reducing overheads.