The Federal Government will today
commence the release of capital
expenditure for the 2016 Budget just as it
explained the timeline for implementation
of the fiscal policy document.

Minister of Budget and National Planning,
Udo Udoma, announced this yesterday at
the Presidential Villa while giving a
breakdown of the 2016 budget, christened
‘Budget of Change’.
He said “by tomorrow, some releases
would be made. We are ready to start
releases as far as the budget is
concerned”, adding that his ministry
intends to work closely with the Federal
Ministry of Finance to ensure cash
backing for the capital projects.
He also clarified that the 2016 budget will
run concurrently until May next year
as government intends to return to the
January- December financial year.
According to him: “We intend to take the
budget to where it ought to be, the
January to December financial year which
is much better for implementation. So for
the next year’s budget we intend to get it
to the National Assembly so that it is
passed by the year end”.
Udoma disclosed that the 2016 budget will
include six strategic areas including,
economic diversification, critical
infrastructure and reforms in the oil and
gas sector. Others are the ease of doing
business; policy environment; national
security;
governance and social investment.

“The Strategic Implementation Plan forms
the basis for the preparation and
implementation of the 2016 Budget, as it
documents the key
short-term priorities of the incumbent
administration to place the economy on
this upward trajectory as it is re-
positioned for change,
inclusive growth and sustainable
development”, he said.

A breakdown of the 2016 budget
projections shows that the
fiscal document envisages a net
distributable revenue of N5.72trillion
comprising of main federation account
revenue of N4.303 trillion
and N1.416trillion from the value added
tax pool account.
Of the distributable revenue, net oil
receipts amount to N1.48trillion or 25%
while net non-oil revenue accounts for the
balance of
N4.22trillion or 75%.
The states and local government share of
the distributable pool amount to
N3.24trillion while the federal government
will receive N2.48trillion.

Federal Government’s budgeted revenue is
projected at N3.855trillion largely
contributed by the Internally Generated
Revenue (IGR) of N1.51 trillion, which is
35% increase over the N2.855 trillion for
the 2015 budget.

Growth in government’s revenue is mainly
to be derived from the growth in non-oil
resources from Corporate Tax; VAT and
dividends from government corporations
and independent revenue.

A projection of N1.88 trillion was made on
corporate taxes in the 2016 budget as
against N1.42 trillion in 2015, and VAT
collection of N1.48 trillion in 2016 from
N1.28 trillion last year.

Provisions for expenditure of the N6.06
trillion 2016 budget shows a 35% increase
over the 2015 budget of N5.067 trillion.
Statutory transfer (inclusive of N157
billion capital component is put at
N352.37billion, Debt Servicing including
sinking fund of N1.48
trillion, recurrent (non debt ) expenditure
is put at N2.65trillion.

Capital expenditure (excluding share of
capital in statutory transfers) is put at
N1.59 trillion while the Capital Expenditure
(including share of capital expenditure in
statutory transfer) is put at N1.7trillion.
Some key allocations in the 2016 budget
include: Ministry of power, works and
housing, N456.93billion, transpiration,
N202.34billion,
defence N443.07billion, interiors
N513.65billion, education N403.16billion,
health, N250.06billion, agriculture and
rural development, 75.80billion, solid
minerals N16.73billion, youth and sports
development, N75.79billion, water
resources, N53.30 billion and special
intervention programmes of N500billion.

The budget is predicated on an oil
production benchmark of 2.2million barrels
per day at $38 per barrel and an exchange
rate of N197 naira
to a dollar.

The Budget and National Planning Minister
said government had a plan to actively
support the use of public private
partnerships in the development of
infrastructure and would encourage
ministers to explore concessioning
arrangements for projects like airports,
major roads and other major infrastructure
works.
The government, he said is working to
raise $25billion for the establishment of
an infrastructure fund within three years.
Among priority listed for implementation
by government are: Dualisation of the
Kano-Maiduguri road (sections I-V) for
N13billion;
Lagos-Ibadan Expressway (section1) for
N40billion; N1.1billion for the generation
of 700MW from Zungeru Hydro Power
Project; N18.3 billion for the completion
of Abuja (Idu) – Kaduna 186.5KM single
track rail line; N60 billion counterpart
funding for Lagos- Kano Standard Guage
rail line; N60 billion counterpart funding
for Calabar-Lagos Standard Guage rail line

You people should get to work we are not smiling