N8tn =$40bn budget, where does the govt want to get this money with oil prices down like prices of " pure water"?
Another option is to borrow to fund the budget, but IMF/World Bank must ask u to devalue ur currency and introduce austerity measures..
Also with budget, it means that for every N100 budgeted for, N25 goes to capital projects like schools, roads, hospitals, airport etc while N75 out of N100 is for paying politrickians like GMB, 36 ministers and their PAs, First and 2nd Ladies, NASS and political jobbers...75% recurrent expenditure is still a wasteful budget!!

nigerianvenom:


God bless u Flets, u remind me of datolee.

If you indeed subscribed to his analysis to be genuine, then the last administeration has alot of corruption questions to answer if a similar analysis/calculations is to be applied to when the total production was higher than now and a barrel also being all time high of over $100 and ofcourse with the foreign reserve being depleted rather than looking bumper from excess proceeds

My first reaction to this was that it is a classic case of Nigerian journalists misquoting a person. I am still anticipating a clarification from Osinbajo at some point.

I suspect what he actually said was 5 trillion judging from the claim that 2 trillion, representing 40 percent of the budget, would be allocated towards capital expenditure.

bigtt76:
You're very correct and thanks for the valid point made. The report itself was quite ambiguous. A reader would definitely need to rack his or her brain to actually know the middle-class still exists in the country without being told they're not just visible. To me if you not at the top... you just nowhere else but at the lower wrung of the ladder... Sad

Sad and pathetic indeed is case you've just pointed out again but I still believe that they have been captured in that same 110 million population since the dependent children/adolescent population is very huge considering the large pool of infants, toddlers, creche and nursery school pupils, primary school pupils, secondary students both in public and private schools and ofcourse the out of school children/population

Omooba77:


You have said the truth, but how many will heed, because most of us only read, but dont comprehend. Were will N8 trillion come from , even if barrel of oil goes to 150 dollar per barrel; which is not realistic. Taxes and bonds cant get us N4 trillion. I will not be surprised if this government only declare secret revenue generation, without making it public. God will bless Nigeria and take us out of the wood and save us from Lie and propaganda.

what wil u do, wil u commit suicide if more than 8tr is generated, dis is what make me furious over d years that we would have be generating more than 8tr per year, but pdp govt always budget 50% of our earnings, may God always bless PMB

4Play:
My first reaction to this was that it is a classic case of Nigerian journalists misquoting a person. I am still anticipating a clarification from Osinbajo at some point.

I suspect what he actually said was 5 trillion judging from the claim that 2 trillion, representing 40 percent of the budget, would be allocated towards capital expenditure.

8trillion naira is rather bogus sum but I follow you line of thinking because Mr VP now did something funny in his analysis which does not add up!

The tragedy is that many zombies will believe this lying pastor.

nwanna89:
If budget is 8 trillion, govt should try to spend more on capital projects. Lot of decay in infrastructure esp roads. Also i noticed Osinbajo seems to have been put in charge of economic affairs. While he is a well-read man, he is lawyer and is not an expert in that area. So i hope Buhari has plans to put one of the more qualified ministerial nominees in charge of drawing up a budget.

Maybe with 8 trillion naira budget, FG really does have plans to pay 5k and feed school kids

by this your logic all Ibo men must have masters in business admin ba. and you will not build house till you get degree in bricklayer carpentry, plumbing, and electricianing. na wa o. which school you go sef make I go flog your teacher

manutdadex:
well u cant and shouldnt compare china with Nigeria., the chinese power will involve at least 95% of it materials and personell from within so they wil spend way less than us. Am not suporting pdps mismanagement[our political class inclusive apshit]. But we should stop the baseless comparison.

I put that into perspective. It's not a baseless comparison. Check the disparity in megawatt of power achieved with $22 billion and that generated with $35 billion. Even if everything was sourced there, is it fair? Is it fair? Check it naa.

Flets:
This government should be reminded that elections are over. Enough of these noises as reality have set in already.

Lets do some simple mathematics.
Nigeria's total crude production currently hovers at 2M barrel per day, but I will assume 2.5M barrel for sake of optimism
Crude oil sells at slightly above $40/ barrel but I will assume $45/ barrel
Most JV agreements with Oil corporations stands at an average of 60% for Nigerian govt.
Cost of production of oil for most companies stand at almost 50% but I will assume 30% (optimist case) and then 70% profit
Only about 52% of total earnings goes to the FG, the remaining goes to state allocations and host state derivation
Assuming an exchange rate 200 naira per dollar and 365 days a year

Federal Government can make approximately 1.8 trillion naira from crude sales for 2016 optimally. Details below
so 2.5Million x $45 x 60% x 70% x 52% x 200 x 365 = 1.8 Trillion Naira

Historically, crude has formed about 70% of our budgets.... following same logic, total budget can only be 2.6 trillion Naira (1.8Trillion/ 70%)

Even if we increase taxes, collapse all tax and duty exemptions and without any diversification efforts by the current government, we will be lucky to add another 1trillion the 2.6 trillion to make it a maximum of 3.6 trillion.

So realistically speaking, 8 trillion FG budget is impossible for 2016. Propagandically speaking, APC govt have said it and they believe their zombies will believe it.

In addition, APC FG has claimed that 2016 budget will be developed through zero budget based budgeting. Now without ministers who are supposed to draw up the budget components within their ministries ..... how exactly did Osibanjo come up with 8 trillion when zero based budget was the agreed method?


And for those quoting revenues from Gases- NLNG; Inflow from Royalties (Oil and Gas and other ones); Non- Oil revenues; Custom Duties; Fines and Penalties; Licenses etc...... You need to understand that these are not new revenue sources, they have always been there and only contribute about 30% of the budget while crude sales provides the rest. Y'all need to learn, crude earnings - 70%; non-crude earnings - 30%. As such, estimated budget of 2.6 trillion had that all included if non-crude contribution remains at 30%.

In addition, 2015 capital expenditure was 29.7% of total budget, while this government is planning to make 25% of 2016 budget. If take 2trn from 8trn u have a massive 6trn for recurrent expenditure. More than our total yrly budget for the last 10yrs. Are they really serious?

Not really. it only means the rest of the population, abt 70million are living above the "poverty line". I'm sure there is a real difference between that and being wealthy. A large population of the people in the middle class can't exactly be defined as rich. imho.

bigtt76:
That means more tax and less tax exemptions in the coming year.

110 million poor? So the remaining 70 million are rich? How come sir

mrvitalis:
I don't get..... this confusing.... first 8trn budget
.. Only 2trn as capital expenditure?. ... And u say u want 40% capital expenditure?
Or am I missing something?

i thought i was the only one that noticed it, this guys are jokers

make dem giv me 10million naira inside

lagosph:

In addition, 2015 capital expenditure was 29.7% of total budget, while this government is planning to make 25% of 2016 budget. If take 2trn from 8trn u have a massive 6trn for recurrent expenditure. More than our total yrly budget for the last 10yrs. Are they really serious?

Their followers are mathematically and logically challenged!!

mrvitalis:
I don't get..... this confusing.... first 8trn budget
.. Only 2trn as capital expenditure?. ... And u say u want 40% capital expenditure?
Or am I missing something?

many tins are nt adding up; is either he is confuse or he hasn't explained it in details.
Btw, why is current exp. Still bigger, much bigger, than capital exp.? I tot buhari/Apc said he/dey will reverse d trend my making a major adjustment in d budgeting system. This is not d change ppl expected oooh. Ok, let me give them benefit of doubt for a while shaa and all d lucks!

texazzpete:


Your calculations are laughably wrong. But even without going into a detailed rebuttal of your figures, if you claim earnings are at a cap of 3.6tn, how do you account for the budget of 4.4trn for 2015?

As for ministers, you talk like if there are no permanent secretaries in the ministries to do most of the legwork.

Either way, wait for the first draft of the budget to show up before you start babbling.

2015 budget was not based on $40/barrel......

In Buhari's voice: "...Wia is za moni?"

World bank and IMF loans loading...

Flets:


2015 budget was not based on $40/barrel......

And for one, taxes on the oil sector makes up a great portion of our revenue too.
Your biggest miscalculation was running with crude oil sales alone as 75% of our income.

Crude oil sales makes up more than 70+% of our exports. It doesn't make up that percentage of our earnings. You should read that up

Flets:
This government should be reminded that elections are over. Enough of these noises as reality have set in already.

Lets do some simple mathematics.
Nigeria's total crude production currently hovers at 2M barrel per day, but I will assume 2.5M barrel for sake of optimism
Crude oil sells at slightly above $40/ barrel but I will assume $45/ barrel
Most JV agreements with Oil corporations stands at an average of 60% for Nigerian govt.
Cost of production of oil for most companies stand at almost 50% but I will assume 30% (optimist case) and then 70% profit
Only about 52% of total earnings goes to the FG, the remaining goes to state allocations and host state derivation
Assuming an exchange rate 200 naira per dollar and 365 days a year

Federal Government can make approximately 1.8 trillion naira from crude sales for 2016 optimally. Details below
so 2.5Million x $45 x 60% x 70% x 52% x 200 x 365 = 1.8 Trillion Naira

Historically, crude has formed about 70% of our budgets.... following same logic, total budget can only be 2.6 trillion Naira (1.8Trillion/ 70%)

Even if we increase taxes, collapse all tax and duty exemptions and without any diversification efforts by the current government, we will be lucky to add another 1trillion the 2.6 trillion to make it a maximum of 3.6 trillion.

So realistically speaking, 8 trillion FG budget is impossible for 2016. Propagandically speaking, APC govt have said it and they believe their zombies will believe it.

In addition, APC FG has claimed that 2016 budget will be developed through zero budget based budgeting. Now without ministers who are supposed to draw up the budget components within their ministries ..... how exactly did Osibanjo come up with 8 trillion when zero based budget was the agreed method?


And for those quoting revenues from Gases- NLNG; Inflow from Royalties (Oil and Gas and other ones); Non- Oil revenues; Custom Duties; Fines and Penalties; Licenses etc...... You need to understand that these are not new revenue sources, they have always been there and only contribute about 30% of the budget while crude sales provides the rest. Y'all need to learn, crude earnings - 70%; non-crude earnings - 30%. As such, estimated budget of 2.6 trillion had that all included if non-crude contribution remains at 30%.

very good calculations. But you failed to add:
MTN 1.4 trl
Alliason 3 trl
others 4 trl.

*smiles* the government will have morethan enough.

DelGardo:


The vice president of Nigeria is traditionally in charge of the economy.

The economy under Jonathan was in tatters because Jona had no clue and Sambo was a ghost worker.

Osinbajo, on the other hand, seems to have a good grip on things. Long may it continue.

Change is here.

My friend Delgardo you are getting it all wrong, we've passed the stage of election, when issues that deals with the economy is raised we must divorce it from politics.
The response of Flet is apt, its extremely impossible to budget 8trillion at this stage and come to think of it, where is the money coming from other than massive borrowing and increase on taxes that will further depreciate the human value of Nigerian poor. I was wondering that Government initially said ZERO BUDGETING an idea you supported how come the change. The debt Mr Buhari will leave for Nigerians to pay in 2019 when he leaves, will take over a 100years. Read the response of FLET below you. Ol'boy how yu dey!

hahahahahaha so funny See how a girl humiliated his man

https://www.youtube.com/watch?v=uo8KE6Ht0Nw

psucc:
N8t and zero based!!! It's damn too high. Anyway I hope they know what that figure stands for. Or it's not Oshiomhole's number!!!!

Let it not be they are banking on loot recovery to come out with thus number o?

I don't want to hear, we did not say it. Osi baba I hope you are not playing another Garba Shehu here o?

ZERO based budget many things will drop by the wayside. I am sorry for corrupt civil servants. There will be justification for everything instead of the former clueless "put 20% on everything in lat year budget" that was the PDP style

Here are some things you need to know about the nigerian budget for 2016 and how it affect an average nigerian.
Firstly point of note that is that the 2016 budget exceeds that of 2015 which makes it Nigeria’s second highest budget since 2000.
quoting the minister of information, two major memos were presented at the FEC meeting, the first was the memo by the attorney general,Abubakar Malami , for a review for the extant taxation laws, in order to improve the legal framework and enhance compliance which was duly approved