The Federal Executive Council has approved the 2022 Appropriation Bill with a proposed aggregate expenditure of N16.39 trillion made up of the adjustments to the Medium-Term Fiscal Framework 2022-2024; statutory transfers of N768.28 billion; debt service of N3.61 trillion and sinking fund for maturing debts of N292.71 billion Naira.
Others include Recurrent Expenditure (Non-Debt) of N6.83 trillion, inclusive of N350.0 billion for the recurrent component of Social Investment Programme; and Aggregate Capital Expenditure of N5.35 trillion, inclusive of GOEs’ capital expenditure, multilateral/bilateral loan funded projects, Capital Supplementation and Grants/Aid funded projects.
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This represents 33% of the expenditure budget Council noted the changes in the 2022-2024 fiscal projections based on implementation of the Petroleum Industry Act 2021 and other necessary expenditures that should be accommodated in the 2022 Budget, the key 2022 Budget assumptions and targets underlying them, including oil price – $57 per barrel; Oil production – 1.88 mbpd; Exchange rate – N410.15/US$; Oil Revenue – N3.15 trillion; Non-Oil Revenue – N2.13 trillion; FGN’s Independent Revenue of N1.82 trillion; Total Projected FGN Revenue of N10.13 trillion; Debt Service of N3.61 trillion.
Statutory Transfers of N768.28 billion (including N462.53 billion capital component); Personnel costs and Pensions of N4.69 trillion; Overhead costs of N792.39 billion; Capital expenditure (inclusive of capital component of Social Investments of N5.35 trillion.
The resultant deficit of N6.258 trillion which will be financed by new borrowings of N5.012 trillion, drawdowns on Project-tied Multilateral/Bilateral loans – N1.156 trillion; and Privatization Proceeds of N90.73 billion.
Editor: Oloyede Oworu
