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2023: Nigeria’s President Buhari, presents ₦20.51 trillion budget of ‘Fiscal Consolidation and Transition’ to National Assembly

Published

2 years ago

October 7, 2022

Nigeria’s President Muhammadu Buhari, has presented the country’s 2023 budget tagged “Budget of Fiscal Consolidation and Transition” to the joint session of Nigeria’s National Assembly.

The N20.51 trillion worth budget had oil, which is Nigeria’s major revenue source benchmarked at $70 per barrel, putting Nigeria’s budget deficit will widen to 4.78%.

President Buhari said the 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 PMS Subsidy and negative spillover effects of the Russia-Ukraine war.”

Nigeria pegged daily oil production estimate of 1.69 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day); exchange rate of 435.57 Naira per US Dollar; the projected GDP growth rate of 3.75 percent and 17.16 percent inflation rate.

Nigeria’s current fiscal life is faced with rising public debt, industrial-scale oil theft, and the big white elephant – fuel subsidy. Thus inciting doubt among observers on the country’s ability to meet its financial projection according to the budget.

President Buhari hinted that the country will eventually stop payment of fuel subsidy will rise to 20.51 trillion naira ($47.4 billion) next year, up 18.4% from this year.

“Petrol subsidy has been a recurring and controversial public policy issue in our country since the early eighties. However, its current fiscal impact has clearly shown that the policy is unsustainable,” Buhari said in his last budget speech before the election.

Nigeria’s economy is projected to grow 3.7% next year, up from 3.55% this year while annual inflation is forecast to remain in double digits, averaging 17.16%.

With the general elections due for February and March 2023 and the change of leadership in the West African country, a lot might be rightly judged as uncertain considering Nigeria’s complex and peculiar nature.

Related Topics:2023 BUDGET Featured Nigeria

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Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”