President Muhammadu Buhari, on Wednesday, 20 June 2018, signed the 2018 Appropriation Bill of the Federal Government of Nigeria (FGN) into law. The final assent came 7 months after the presentation of the 2018 Budget to a joint session of the National Assembly on 7 November 2017.
It would be recalled that the President presented a Budget of ₦8.61 trillion to the lawmakers in 2017. Please refer to Deloitte Newsletter. However, this figure has increased by ₦508 billion (6%) to ₦9.12 trillion, due to changes made by the National Assembly.
With proposed revenue of ₦7.17 trillion and total proposed expenditure of ₦9.12 trillion, the 2018 Appropriation Act envisages a budget deficit of ₦1.95 trillion. This represents a 23.1% reduction in the budgeted deficit for 2017.
In line with the Economic Recovery and Growth Plan (ERGP), capital expenditure (inclusive of statutory transfers), constitutes 31.5% (₦2.87 trillion) of aggregate expenditure, compared to 29.2% (₦2.17 trillion) in 2017. Revenue expenditure on the other hand is 68.5% (₦3.51 trillion) of aggregate expenditure, compared to 70.8% (₦2.99 trillion) in 2017.
The 2018 Budget being the largest in Nigeria’s history, has been tagged the Budget of Consolidation. It is aimed at consolidating previous years’ achievements and ensuring growth and stability as Nigeria recovers from a period of economic recession. However, the delayed passage of the Appropriation Bill may affect the ability of the Federal Government to fully implement the 2018 Budget, which has been a major challenge going by past budgets.
Please look out for Deloitte Newsletter on the 2018 Appropriation Act for a detailed review of the 2018 Budget.