ABUJA, Nigeria (AP) 鈥 Nigerian President Muhammadu Buhari is launching an ambitious plan to grow the West African nation's economy and end its security woes with record government expenditure during the next fiscal year.
The record 20.5 trillion naira ($47.3 billion) proposed expenditure 鈥渞eflects the serious challenges鈥 faced by Nigeria and contains 鈥渒ey reforms necessary to address them,鈥 Buhari told lawmakers when presenting the budget in the capital city of Abuja on Friday.
The budget expected to be approved and take effect in January 2023 is 19% higher than this year鈥檚 government expenditure and is also Nigeria's highest ever, prioritizing fiscal sustainability, economic growth and security.
As Nigeria still battles violent extremism in its northeast and armed attacks in the northwest and central regions, resulting in the loss of thousands of lives in the last year, Buhari allocated the most funds to defense and internal security.
At least 5.3 trillion naira ($12.2 billion), or 26% of the proposed budget, is to go into capital expenditure in an ambitious plan that the nation's government is banking on to build key infrastructure and create jobs in Africa's biggest economy where many years of bad governance and corruption have stifled development.
鈥淭he 2023 budget was prepared amidst a very challenging world economy that is weakened by the lingering effects of the COVID-19 pandemic, high inflation, high crude oil prices resulting in the huge cost of (a gasoline subsidy) and negative spillover effects of the Russia-Ukraine war,鈥 said Buhari who is to leave office as president next year after general elections in February.
With projected economic growth of 3.7% and 16.87 trillion naira ($38.9 billion) in expected federal government revenue in 2023, Buhari said Nigeria is aiming to achieve 鈥渉igher, more inclusive, diversified and sustainable growth鈥 with the proposed budget.
External borrowings to the tune of 8.8 trillion naira ($20.3 billion) would fund the budget deficit, Buhari said, amid concerns over the country鈥檚 high public debt of 41 trillion naira ($96.7 billion) as of March. The country has also missed out on rising oil prices with limited crude production blamed on oil theft.
鈥淚 assure you, insecurity, especially banditry and kidnapping, will be significantly curtailed before the end of this administration. We will redouble our efforts to ensure we leave a legacy of a peaceful, prosperous and secured nation,鈥 he said, adding that the 鈥渟ignificant challenges鈥 Nigeria faces 鈥渨ould have been much worse鈥 if not for the government's interventions.
