PUBLIC PRESENTATION OF 2022 FGN BUDGET PROPOSAL - BREAKDOWN & HIGHLIGHTS
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PUBLIC PRESENTATION OF 2022 FGN BUDGET
PROPOSAL – BREAKDOWN & HIGHLIGHTS
Presented by Mrs. (Dr.) Zainab Shamsuna Ahmed
Honorable Minister of Finance, Budget & National Planning,
Federal Government of Nigeria
8 th October, 2021
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 1
OUTLINE
I. Introduction & Background
II. Overview of 2021 Fiscal outcomes & Update on 2021 FGN Budget implementation
III. Updates on Global Outlook and Domestic Developments
IV. Underlying Macroeconomic Assumptions, Parameters & Targets for the 2022
Budget
V. 2022 Budget: Overview of Revenue, Expenditure & Deficit financing
VI. Critical Sectoral Allocations in the Budget
VII. Strategic Revenue Growth Initiatives
VIII. Conclusion
Annex: Selected Projects in the 2022 Budget
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 2INTRODUCTION & BACKGROUND
3INTRODUCTION & BACKGROUND Mr. President laid the FGN 2021 Budget Proposal on October 8, 2020. The National Assembly (NASS) passed the Bill by December 21, and Mr President signed it into law on December 31, 2020. This underscores the Administration’s firm commitment to sustain the return to a predictable January – December fiscal year, as well enact annual finance acts to facilitate implementation of the budget. A supplementary budget of N982.73bn was also passed by the NASS on the 7th of July, 2021, and Mr. President assented to it on the 26th of July, 2021 bringing the total appropriated expenditure for 2021 to N14.57 trillion. Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 4
INTRODUCTION & BACKGROUND …/2 The Nigerian economy lapsed into recession in Q3 2020, after two successive quarters of negative GDP growth, but promptly emerged from the recession with a positive 0.11% GDP growth in Q4 2020. The economy sustained the recovery, with a Q1 Year-on-Year (YoY) GDP growth of 0.51% and a Q2 of 5.01%, fuelled by implementation of government’s Economic Sustainability Plan and helped by the easing of COVID- 19 induced restrictions on economic activities. The growth was mainly driven by the non-oil sector, which rose by 6.74% YoY, masking the deterioration in oil GDP by -12.65% YoY. Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 5
INTRODUCTION & BACKGROUND …/3 Other non-oil performance include trade (22.5% YoY) water supply and waste management (18.5%), ICT (5.5%) and human and health services (4.9% YoY) growth rate The persistent rise of inflation halted in April 2021 after nineteen consecutive months. From a four year high of 18.17% in March 2021, the consumer price index (CPI) which measures inflation moderated for the fourth consecutive month to 17.01% in August 2021, with the downward trend expected to continue through the end of the year. High unemployment/underemployment rates have implications for poverty incidence in the population. NBS’ Q4 2020 estimates put unemployment at 33% and underemployment rate at 22.84%. Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 6
OVERVIEW OF 2021 FISCAL
OUTCOMES & UPDATE ON 2021
BUDGET IMPLEMENTATION
*PROVISIONAL
7OVERVIEW OF 2021 FISCAL OUTCOMES
2021 Budget Parameters Performance
The performance of key budget parameters are as shown in the table below
Aug 2021
Description 2021 Budget
Actual
Oil Price Benchmark (US$/b) 40.0 *65
Oil Production (mbpd) 1.86 ^^1.57
Exchange Rate (N/$) ^379 **410.15
Inflation (%) 11.95 .+17.01
GDP Growth Rate (%) `3.0 ``5.01
Source: OPEC, NNPC, FMFBNP, NBS, BOF
*Average price of Nigerian crude for the period.
^^Average production as at Aug, inclusive of production for repayment of cash call arrears and condensates of about 85kbpd.
** Current Exchange rate at the I&E window
+ Inflation rate as at August, 2021.
`Revised GDP growth rate 2021 is 2.5%; ``Q2 2021 GDP growth rate.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 8UPDATE ON 2021 BUDGET IMPLEMENTATION (JAN – AUG)
Revenue Performance
The fiscal numbers are preliminary and will be updated as the reconciliation process
is concluded.
As at August 2021, FGN’s retained revenue was N3.93 trillion, 73% of target:
• FGN share of oil revenues was N754.2 bllion (representing 56.3% performance
of the prorated sum in the 2021 budget) while non-oil tax revenues totalled
N1.15 trillion (115.7% over and above the target).
• Companies Income Tax (CIT) and Value Added Tax (VAT) collections were
N547.54 billion and N235.77 billion, representing 121% and 148%
respectively of the prorata targets for the period.
• Customs collections was N338.66 billion (99% of the target).
Other revenues amounted to N1.71 trillion, of which FGN Independent revenues
was N691.36 billion while GOEs’ retained revenues was N873.52 billion.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 9UPDATE ON 2021 BUDGET IMPLEMENTATION (JAN – AUG) …/2
Revenue Performance
2021
Budget Pro Rata Actual
Variance
+Suppl. (Jan-Aug) (Jan-Aug)
Budget
Billions of
Billions of Naira
Naira %
AGGREGATE FEDERAL GOVERNMENT
S/N
REVENUE 8,121.41 5,414.28 3,934.73 (1,479.54) -27.3%
FEDERAL RETAINED REVENUES (excl.
GOEs) 6,772.58 4,515.05 3,061.21 (1,453.84) -32.2%
A
1 Oil Revenue 2,011.02 1,340.68 754.16 (586.52) -43.7%
2 Share of Dividend (NLNG) 208.54 139.03 78.20 (60.82) -43.7%
3 Minerals & Mining Revenue 2.65 1.77 2.44 0.67 38.2%
4 Non-Oil Revenue: 1,488.92 992.62 1,148.35 155.74 15.7%
i CIT 681.72 454.48 547.54 93.07 20.5%
ii VAT 238.43 158.95 235.77 76.82 48.3%
iv Customs Revenues 508.27 338.85 338.66 (0.19) -0.1%
v Federation Account Levies 60.51 40.34 26.38 (13.97) -34.6%
B 4,410.28 2,940.19 1,951.57 (988.61) -33.6%
1 FGN Independent Revenue 1,061.90 707.93 691.36 (16.57) -2.3%
FGN Drawdowns from Special
2 435.00 290.00 131.60 (158.40) -54.6%
Accounts/Levies
Signature Bonus / Renewals / Early
3 677.02 451.34 245.27 (206.08) -45.7%
Renewals
4 Domestic Recoveries + Assets + Fines* 32.68 21.78 - (21.78) -100.0%
Electronic Money Transfer Levy (formerly
5 500.00 333.33 9.82 (323.51) -97.1%
Stamp Duty)*
6 Grants and Donor Funding 354.85 236.57 (236.57) -100.0%
7 GOEs Retained Revenue 1,348.84 899.22 873.52
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 10UPDATE ON 2021 BUDGET IMPLEMENTATION (JAN – AUG) …/3
Expenditure Performance
On the expenditure side, N8.14 trillion (or 84%) has been spent out of the
N9.71 trillion prorata budget. This performance is inclusive of expenditure
estimates of the GOEs but exclusive of Project-tied Loans.
Of the expenditure,
N2.87 trillion was for debt service, and
N2.57 trillion for Personnel cost, including Pensions.
As at August 2021, N1.759 trillion had been expended for capital. Of this,
N1.723 trillion represents 81% of the provision for MDAs’ capital, and N36.01
billion as GOEs capital expenditure.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 11UPDATE ON 2021 BUDGET IMPLEMENTATION (JAN – AUG) …/4
Expenditure Performance
2021
Budget Pro Rata Actual
Variance
+Suppl. (Jan-Aug) (Jan-Aug)
Fiscal Items Budget
Billions of
Billions of Naira
Naira %
S/N AGGREGATE FGN EXPENDITURE 14,570.76 9,713.84 8,144.90 1,568.94 -16.2%
FGN EXPENDITURE (excl. GOEs and
12,512.23 8,341.49 7,845.77 495.72 -5.9%
Project-tied Loans)
A Statutory Transfers 496.53 331.02 331.02 0.00 0.0%
B Recurrent Expenditure 9,089.68 6,059.79 6,054.87 4.92 -0.1%
1 Non-Debt Recurrent Expenditure 5,765.30 3,843.53 3,186.47 657.06 -17.1%
Non-Debt Recurrent Expenditure (excl.
4,752.06 3,168.04 2,923.35 244.69 -7.7%
GOEs)
i Personnel Costs (MDAs) 3,046.46 2,030.98 2,171.60 (140.62) 6.9%
ii Personnel Costs (GOEs) 701.16 467.44 162.91
iii Pensions & Gratuities including Service
504.19 336.13 237.74 98.39 -29.3%
wide pension
iv Overheads (MDAs) 382.58 255.06 235.22 19.84 -7.8%
v Overheads (GOEs) 312.08 208.05 100.21
vi Other Service Wide Votes 403.82 269.21 240.88 28.33 -10.5%
vii Presidential Amnesty 65.00 43.33 37.92 5.42 -12.5%
viii Special Intervention Programme 350.00 233.33 - 233.33 -100.0%
2 Debt Service 3,324.38 2,216.25 2,868.40 (652.15) 29.4%
i Domestic Debt 2,183.49 1,455.66 1,386.74 68.92 -4.7%
ii Foreign Debt 940.89 627.26 674.03 (46.77) 7.5%
iii Sinking Fund 200.00 133.33 - 133.33 -100.0%
iv Interest on Ways & Means - 807.64 (807.64)
C Aggregate Capital Expenditure 4,984.55 3,323.03 1,759.01 1,564.02 -47.1%
Capital Expenditure (MDAs + Others) 3,939.27 2,626.18 1,723.00 903.18 -34.4%
GOEs Capital Expenditure 335.59 223.73 36.01 187.72
Multi-lateral/Bilateral Project-tied loans 709.69 473.12 473.12
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 12UPDATE ON 2021 BUDGET IMPLEMENTATION (JAN – AUG) …/5
Deficit and Deficit Financing
2021
Budget Pro Rata Actual
+Suppl. (Jan-Aug) (Jan-Aug)
Fiscal Items Budget
Billions of Naira
FISCAL BALANCE (6,449.35) (4,299.56) (4,610.41)
-
FINANCING ITEMS 6,449.35 4,299.56 4,610.407
Sales of Government Property -
Privatisation Proceeds 205.15 136.77
Multi-lateral / Bilateral Project-tied Loans 709.69 473.12
Restructured Loans 39.63
Foreign Aid / Grant (in Cash) 6.00
New Borrowings 5,488.88 3,659.25 4,610.41
Domestic Borrowing (including CBN) 2,744.44 1,829.63 4,610.41
Foreign Borrowing 2,744.44 1,829.63
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 13UPDATES ON GLOBAL OUTLOOK
AND DOMESTIC DEVELOPMENTS
14BUDGET 2021: GLOBAL, REGIONAL & DOMESTIC DEVELOPMENTS
Global Africa Nigeria
The global economy is Despite the adverse impact of COVID– Nigeria’s economy posted a
projected to grow 6.0 percent 19 pandemic, Egypt grew at 3.6% in 5.01% year-on-year growth in
in 2021 and 4.9 percent in 2020 owing to high domestic the second quarter of 2021
2022. consumption. Real GDP growth is
signaling a rebound.
The Euro Area is projected to projected to hit 5.3 % in 2022.
rebound to a 4.6% growth in Economic activities in Sub Saharan The non-oil sector is a significant
2021. The recovery is Africa region are expected to pick up in contributor to the economic
anticipated to be driven by 2021 and 2022 albeit unevenly. GDP is performance in Q2,2021 with
pent up demand and higher projected to expand by 3.4% in 2021 growth of 6.74% in real terms..
household incomes. and 4.1% in 2022
China's economy is projected .The IMF has reviewed upward
to tick up 8.1% in 2021 and South Africa is projected to recover Nigeria’s GDP growth forecast to
5.7 % in 2022 from -7.0% decline and grow by 2.5% and 2.6% in 2021 and
4.0% in 2021 and 2.2% in 2022
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 2022 respectively. 15BUDGET 2022: GLOBAL, REGIONAL & DOMESTIC DEVELOPMENTS…/2
Estimate Projections § The IMF expects that Advanced
Real GDP annual 2020 2021 2022 economies will rebound from the 4.6%
percent change 2020 pandemic induced contraction.
World Output -3.2 6.0 4.9
Advanced Economies -.4.6 5.6 4.4
United States -3.5 7.0 4.9 § Growth is projected at 5.6% in 2021 &
Euro Area -6.5 4.6 4.3 4.4% in 2022.
Emerging Market & -2.1 6.3 5.2
Developing Countries
China 2.3 8.1 5.7 § Low income developing countries’
India -7.3 9.5 8.5 GDP Growth is projected to accelerate
Brazil -4.1 5.3 1.9 by 3.9% in 2021, and 4.9% in 2022.
Sub – Saharan Africa -1.8 3.4 4.1
Nigeria -1.8 2.5 2.6
South Africa -7.0 4.0 2.2
§ These projections indicate global
Low: Income Developing 0.2 3.9 5.5 economy will recover from COVID 19
Countries induced contraction in 2021 Growth is
projected to moderate beyond 2022.
Source: IMF, World Economic Outlook Update, July, 2021
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 16UNDERLYING MACROECONOMIC
ASSUMPTIONS,
PARAMETERS & TARGETS FOR THE
2022 BUDGET
17KEY ASSUMPTIONS & BUDGET-FRAMEWORK
Projections
The key parameters, as well as other macroeconomic projections, driving the
medium-term revenue and expenditure framework are presented in the table below.
2021
2020
Description 2020 Actual 2021 Budget Revised 2022 2023 2024
Budget
Forecast
Oil Price Benchmark (US$/b) 28.0 43.0 40.0 40.0 57.0 57.0 55.0
Oil Production (mbpd) 1.80 1.79 1.86 1.86 1.88 2.23 2.22
Exchange Rate (N/$) 360.0 379.0 379.0 379.0 410.15 410.15 410.15
Inflation (%) 14.15 13.20 11.95 15.00 13.00 11.00 10.00
Non-Oil GDP (N'bn) 131,155.5 142,128.4 132,592.2 154,102.1 169,697.4 185,558.3 203,799.2
Oil GDP (N'bn) 8,691.9 10,195.6 10,102.2 14,500.5 14,684.6 15,594.7 17,976.6
Nominal GDP (N'bn) 139,517.5 152,324.1 142,192.1 168,602.6 184,382.0 201,153.0 221,775.8
GDP Growth Rate (%) (4.20) (1.90) 3.00 2.50 4.20 2.30 3.30
Imports 8,988.3 25,560.0 13,439.8 30,348.5 33,188.8 36,207.5 39,919.6
Nominal Consumption (N'bn) 117,913.74 119,919.29 118,887.27 136,568.11 149,349.40 162,933.91 179,638.41
Source: Ministry of Finance, Budget & National Planning; NNPC; CBN, BOF; NBS
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 18KEY ASSUMPTIONS & BUDGET-FRAMEWORK …/2 Projections Consumption is projected to surge in the medium term growing from a revised N136.57 trillion in 2021 to N149.35 trillion by 2022, about 9.36% increase. This growth momentum is projected to be sustained reaching N179.64 trillion in 2024. Nominal GDP is projected to rise from N168.60 trillion in 2021 to N184.38 trillion in 2022 and then up to N221.78 trillion in 2024. Real GDP growth forecast is 4.2% in 2022. Inflation is expected to remain above single digit in the medium-term given structural issues impacting cost of doing business, including high food distribution cost. The steady decline is however expected to be sustained, seeing inflation rate drop to 13% in 2022 and 10 % by 2024. Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 19
KEY ASSUMPTIONS & BUDGET-FRAMEWORK …/3 Projections Although Nigeria’s total production capacity is 2.5 mbpd, current (year to date) crude production is about 1.4mbpd (slightly short of the OPEC+ production quota), and an additional 300,000bpd of condensates, totaling about 1.6mbpd. Oil production is projected to average 1.88 million barrels per day (including condensates) in 2022. The Energy Information Administration (EIA) expects that global oil production will increase to match rising levels of global oil consumption. OPEC crude production is projected to average 28.34 million barrels per day in 2022 higher than 26.94 million barrels per day forecast for 2021. World Bank forecasts that crude oil prices will rise gradually from an average of US$60 pb in 2022 to $61 pb in 2023, and US$61.9 pb in 2024. EIA sees 2022 oil prices averaging $66.04 per barrel. Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 20
JUSTIFICATION FOR OIL PRICE AND PRODUCTION ASSUMPTIONS
The realities of 2021 portend sustained OPEC Supply Cuts, ongoing vaccination, and
rebounding Global GDP led by Emerging Economies.
In consultation with NNPC & other stakeholders, our base oil price scenario in the
Medium Term is (2022: $57/bbl, 2023: $57/bbl, 2024: $55/bbl) and this is premised
on the averages of leading forecasting institutions, factors affecting market
fundamentals, global economic recovery, plans by governments and market
sentiments.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 212022 BUDGET:
OVERVIEW OF REVENUE,
EXPENDITURE & DEFICIT FINANCING
22RATIONALE FOR THE REVISION OF THE 2022-2024 MTFF The underlying drivers of the 2022 fiscal projections, such as oil price benchmark, oil production volume, exchange rate, GDP growth, and inflation rate remain unchanged as in the previously approved 2022-24 MTEF&FSP. However, there have been key changes in the medium-term fiscal framework. The revision was necessitated by the need to reflect the new fiscal terms in the Petroleum Industry Act (PIA) 2021, as well as other critical expenditures in the 2022 Budget. The fiscal effects of PIA implementation are assumed to kick in by mid-year 2022. The revised 2022-24 Fiscal Framework is this premised on hybrid of January- June (based on current fiscal regime) and July-December (based on PIA fiscal regime), while 2023 and 2024 are now fully based on the PIA. Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 23
RATIONALE FOR THE REVISION OF THE 2022-2024 MTFF
The key impacts are as follows:
Gross Federation Revenue projection decreased by N341.57 billion, from
N8.870 trillion to N8.528 trillion.
Deductions for Federally-funded upstream project costs and 13%
Derivation, decreased by N335.3 billion and N810.25 million respectively.
Net Federation Oil and Gas revenue projection thus declined by N5.42
billion from N6.540 trillion to N6.535 trillion.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 24RATIONALE FOR THE REVISION OF THE 2022-2024 MTFF
§ Despite the decline in Federation Account revenue, the FGN’s Retained Revenue is
projected to increase from N8.36 trillion to N10.13 trillion (inclusive of GOEs), largely
based on:
• A projected increase in the retained revenues of Government Owned-
Enterprises (GOEs) by N837.76 billion,
• MDAs Internally Generated Revenue by N697.6 billion;
• The introduction of Education Tax of N306 billion and Dividend of N8.3 billion
from the Bank of Industry as revenue lines; and
• FGN share of oil price royalty of N96.9 billion which is expected to be
transferred to the Nigerian Sovereign Investment Authority based on the
provisions of the PIA.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 25RATIONALE FOR THE REVISION OF THE 2022-2024 MTFF
§ The increase on the expenditure side was motivated by the need to provide for
additional critical expenditures, as well as the need to be present a more
comprehensive FGN Budget. Some of these provisions include:
• N100 billion additional provision for INEC toward advance preparations for
2023 General Elections;
• N400 billion for National Poverty Reduction with Growth Strategy;
• N178.1 billion provision for population and housing census scheduled for
2022;
• N50 billion for Police Operations Fund;
• N37 billion additional provision for MDAs’ Electricity Bills Debts;
• N517.5 billion additional Multi-lateral / Bi-lateral Project-tied Loans;
• N54 billion to NASENI, which represents 1% FGN Share of Federation Account;
and
• N305.99 billion for TETFUND (funded by the Education Tax).
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 262022 BUDGET: REVENUE – WHERE THE MONEY IS COMING FROM?
An Overview of the Revenue Framework
The projected aggregate revenue available to fund the 2022 budget of
N10.13 trillion (inclusive of GOEs) is 24.8% higher than the 2021
projection of N8.12 trillion. Without the GOEs retained revenue, the FGN
revenue is projected at N8.40 trillion.
To promote fiscal transparency, accountability & comprehensiveness,
allocations to TETFUND and the budgets of 63 GOEs are integrated in the
FGN’s 2022 Budget proposal.
In aggregate, 34.9% of projected revenues is to come from oil-related
sources while 65.1% is to be earned from non-oil sources.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 272022 BUDGET: REVENUE – WHERE THE MONEY IS COMING FROM?
An Overview of the Revenue Framework
2021 Budget Passed
by NASS +
FISCAL ITEMS 2022 Proj. VARIANCE
Supplementary
Budget
AMOUNT AVAILABLE FOR FGN BUDGET (excluding GOEs retained
6,772,575,467,981 8,404,067,842,873 1,631,492,374,892
revenue)
a Share of Oil Revenue 2,011,017,892,674 3,153,661,606,881 1,142,643,714,207
b Dividend 208,540,960,000 195,716,305,950 (12,824,654,050)
NLNG 208,540,960,000 187,397,535,000 (21,143,425,000)
Bank of Industry 8,318,770,950 8,318,770,950
c Share of Minerals & Mining 2,650,393,903 2,915,433,293 265,039,390
d Share of Non-Oil Taxes 1,488,924,372,031 2,132,083,163,179 643,158,791,148
Share of CIT 681,718,292,330 909,302,644,947 227,584,352,617
Share of VAT 238,426,227,556 316,691,050,420 78,264,822,864
Share of Customs 508,269,596,837 834,116,601,034 325,847,004,197
Share of Federation Acct. Levies 60,510,255,308 71,972,866,778 11,462,611,469
e Share of Electronic Money Transfer Levy (formerly called Stamp Duty) 500,000,000,000 29,367,152,138 (470,632,847,862)
f Share of Oil Price Royalty - 96,943,894,289 96,943,894,289
g Revenue from GOEs 2,173,860,133,098 2,877,324,761,889 703,464,628,791
h GOEs Operating Surplus (80% of which is captured in Independent Revenue) (825,023,025,138) (1,148,935,483,101) (323,912,457,963)
i Independent Revenue 1,061,898,590,939 1,816,217,091,075 754,318,500,136
j Draw-down from Special Levies Accounts 435,000,000,000 300,000,000,000 (135,000,000,000)
k Signature Bonus / Renewals / Early Renewals 677,015,511,478 280,855,138,079 (396,160,373,399)
l Domestic Recoveries + Assets + Fines 32,675,085,307 26,933,139,822 (5,741,945,486)
m Grants and Donor Funding 354,852,661,650 63,376,918,168 (291,475,743,482)
n Education Tax (TETFUND) - 305,998,000,000 305,998,000,000
AMOUNT AVAILABLE FOR FGN BUDGET (including GOEs) 8,121,412,575,941 10,132,457,121,661 2,011,044,545,720
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 282022 BUDGET: EXPENDITURE – WHERE THE MONEY IS GOING? An Overview of the Expenditure Framework § The 2022 Aggregate FGN Expenditure (inclusive of GOEs and project-tied Loans) is projected to be N16.39 tn, which is 12.5% higher than the 2021 Budget. § Recurrent (non-debt) spending, estimated to amount to N6.83tn, is 41.7% of total expenditure, and 18.5% higher than the 2021 Budget. § Aggregate Capital Expenditure of N5.35tn is 32.7% of total expenditure. This provision is inclusive of Capital component of Statutory Transfers, GOEs Capital & Project-tied loans expenditures. § At N3.61tn, debt service is 22% of total expenditure, and 35.6% of total revenues. § Provision to retire maturing bonds to local contractors / suppliers of N292.7 bn is 1.79% of total expenditure. This provision is in line with the FGN’s commitment to offset accumulated arrears of contractual obligations dating back over a decade. Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 29
2022 BUDGET REVENUE PROPOSALS – WHERE THE MONEY IS GOING?
An Overview of the Expenditure Framework
2021 Budget Passed
by NASS +
FISCAL ITEMS 2022 Proj. VARIANCE
Supplementary
Budget
STATUTORY TRANSFER 496,528,471,273 768,276,616,043 271,748,144,769
DEBT SERVICE 3,124,380,000,000 3,609,241,188,415 484,861,188,415
SINKING FUND 200,000,000,000 292,711,793,135 92,711,793,135
RECURRENT (NON-DEBT) 5,765,302,234,844 6,829,015,483,447 1,063,713,248,603
a Personnel Costs (MDAs) 3,046,464,689,489 3,494,367,075,514 447,902,386,025
b Personnel Costs (GOEs) 701,162,016,535 617,724,992,745 (83,437,023,790)
c Overheads (MDAs) 382,583,509,504 341,391,843,485 (41,191,666,019)
d Overheads (GOEs) 312,081,710,125 451,001,890,322 138,920,180,198
e Pensions, Gratuities & Retirees Benefits 504,191,130,679 577,362,188,760 73,171,058,081
f Other Service Wide Votes (including GAVI/Immunization) 403,819,178,513 916,867,592,621 513,048,414,108
g Presidential Amnesty Programme 65,000,000,000 65,000,000,000 -
h TETFUND - Recurrent - 15,299,900,000 15,299,900,000
SPECIAL INTERVENTIONS (Recurrent) 350,000,000,000 350,000,000,000 -
AGGREGATE CAPITAL EXPENDITURE 5,233,596,865,028 5,354,313,212,740 120,716,347,713
a Capital Supplementation 763,342,061,374 487,916,999,949 (275,425,061,425)
b Capital Expenditure in Statutory Transfers 249,049,989,627 462,534,376,087 213,484,386,460
c Special Intervention Programme (Capital) 10,000,000,000 10,000,000,000 -
d Amount Available for MDAs Capital Expenditure 2,811,073,054,351 2,139,939,779,019 (671,133,275,333)
e GOEs Capital Expenditure 335,593,381,300 647,079,937,729 311,486,556,429
f TETFUND Capital Expenditure - 290,698,100,000 290,698,100,000
g Grants and Donor Funded Projects 354,852,661,650 63,376,918,168 (291,475,743,482)
h Multi-lateral / Bi-lateral Project-tied Loans 709,685,716,725 1,155,823,207,500 446,137,490,775
i FGN Share of Oil Price Royalty Transferred to NSIA - 96,943,894,289 96,943,894,289
Capital Expenditure (Exclusive of Transfers) -
4,984,546,875,401 1,155,823,207,500
4,891,778,836,653 1,155,823,207,500
(92,768,038,748)
TOTAL FGN BUDGET (Excluding GOEs & Project-tied Loans) 12,512,234,756,833 13,519,393,889,396 1,007,159,132,563
TOTAL FGN BUDGET (Including GOEs & Project-tied Loans) 14,570,757,581,518 16,391,023,917,692 1,820,266,336,174
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 302022 BUDGET - DEFICIT, FINANCING & CRITICAL RATIOS
An Overview of the Deficit, Financing & Critical ratios
2021 Budget Passed
by NASS +
FISCAL ITEMS 2022 Proj. VARIANCE
Supplementary
Budget • Overall budget deficit is
Total Fiscal Deficit (including GOEs and Project-tied Loans)
GDP
(6,449,345,005,577)
142,694,417,135,112
(6,258,566,796,031)
184,381,975,950,038
190,778,209,546
41,687,558,814,926
N6.26 tn for 2022. This
DEFICIT/GDP (including GOEs and Project-tied Loans)
Capital Expenditure as % of Non-Debt Expenditure
(4.52%)
47%
(3.39%)
43%
1.13%
(4%)
represents 3.39% of GDP.
Capital Expenditure as % of total FGN Expenditure 36% 33% (3%) • Budget deficit is to be financed
Capital Expenditure (Inclusive of Transfers, but exclusive of GOEs Capital & Project-
tied loans) as % of FGN Expenditure
33% 26% (7%) mainly by borrowings:
Recurrent Expenditure as % of total FGN Exp (incl. GOEs + Project-tied Loans) 64% 67% 3%
Debt Service to Revenue Ratio (incl. GOEs + Project-tied Loans) 38% 36% (3%) • Domestic sources: N2.51 tn
Deficit as % of FGN Revenue (incl. GOEs + Project-tied Loans) 79% 62% (18%)
ADDITIONAL FINANCING
a Sales of Government Property
-
-
• Foreign sources: N2.51 tn
b Privatization Proceeds
c Non-Oil Asset Sales
205,153,707,813
-
90,731,800,000
-
(114,421,907,813)
- • Multi-lateral /bi-lateral loan
d Multi-lateral / Bi-lateral Project-tied Loans
e Restructured Loans
709,685,716,725
39,627,660,000
1,155,823,207,500
-
446,137,490,775
(39,627,660,000)
drawdowns: N1.16 tn
f Foreign Aid / Grant (in Cash) 6,000,000,000 - (6,000,000,000)
g New Borrowings 5,488,877,921,039 5,012,011,788,531 (476,866,132,507) • And Privatisation Proceeds –
Domestic Borrowing 2,744,438,960,519 2,506,005,894,266 (238,433,066,254)
N90.7 bn
Foreign Borrowing 2,744,438,960,519 2,506,005,894,266 (238,433,066,254)
Sub-Total 6,449,345,005,577 6,258,566,796,031 (190,778,209,546)
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 31OVERVIEW OF NIGERIA’S DEBT SUSTAINABILITY
§ We have had to resort to borrowing to finance our fiscal gaps. However, we
believe that the debt level of the Federal Government is still within sustainable
limits.
§ Borrowings are essentially for Capital Expenditure and Human Development,
as specified in Section 41(1)a of the Fiscal Responsibility Act 2007;
§ Having witnessed two economic recessions we have had to spend our way out
of recession, which contributed significantly to the growth in the public debt;
§ It is unlikely that our recovery from each of the two recessions would have
been as fast without the sustained government expenditure funded partly by
debt.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 32OVERVIEW OF NIGERIA’S DEBT SUSTAINABILITY……2
§ To compound matters, the country has technically been at war, with the
pervasive security challenges across the nation; This has necessitated massive
expenditures on security equipment and operations, contributing to the fiscal
deficit; Defence and Security sector accounts for 22% of the 2021 budget!
§ Nigeria’s Budget Deficit/GDP (-4.0%, as at June 2021) and Debt/GDP ratios
(21.6%) are the lowest among Africa’s leading economies;
§ However, Nigeria’s Debt Service/Revenue ratio (73% as at August 2021) is the
highest among same African top economies; This is proof that what we have is
not a classic debt sustainability problem, but a revenue challenge;
§ Tax rates and compliance ratios are significantly higher in these comparator
countries; For instance, Nigeria’s VAT rate of 7.5% is the lowest in Africa, and
less than 50% of the average rate.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 33OVERVIEW OF NIGERIA’S DEBT SUSTAINABILITY……3 Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 34
OVERVIEW OF NIGERIA’S DEBT SUSTAINABILITY…..4
§ It is now critical to fix our revenue challenge, because cutting expenditure is
not currently a viable option, as our Public Expenditure /GDP ratio is also the
lowest among same Africa’s leading economies;
§ We must however continue to rationalise our expenditures as we cannot afford
waste; In reality, our largest expenditure items are currently personnel cost,
debt service and capital expenditure, which between them account for 85% of
the 2022 budget; There is very little scope for cut in any of these over the
medium term;
§ The most viable solution to our fiscal challenge therefore remains to grow our
revenues and plug all leakages.
§ Our target over the medium term is to grow our Revenue-to-GDP ratio from
about 8 – 9 percent currently to 15 percent by 2025. At that level of revenues,
the Debt-Service-to-Revenue ratio will cease to be a critical concern;
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 35STRATEGIC REVENUE GROWTH
INITIATIVES
36INITIATIVES TO IMPROVE FGN REVENUES
§ Revenue generation remains the major fiscal constraint of the Federal
Government.
§ The systemic resource mobilization problem has been compounded by
recent economic recessions.
§ Several measures are being instituted under the Administration’s Strategic
Revenue Growth Initiatives to improve government revenue and entrench
fiscal prudence with emphasis on achieving value for money.
§ These measures include:
Improving the tax administration framework including tax filing and
payment compliance improvements.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 37INITIATIVES TO IMPROVE FGN REVENUES …/2
§ Other measures:
• Evaluation of the process and policy effectiveness of Fiscal Incentives, including:
• Review of Sectors eligible for Pioneer Tax Holiday Incentives under the Industrial
Development Income Tax Relief Act (‘IDITRA’);
• Dimensioning the cost of tax waivers/concessions, and evaluating their policy
effectiveness.
• Setting annual ceilings on Tax Expenditures to better manage their impact on
already constrained government revenues.
• Ensuring that MDAs appropriately account for and remit their internally-
generated revenue
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 38INITIATIVES TO IMPROVE FGN REVENUES …/3
§ Other measures Cont’d:
• Identifying and plugging existing revenue leakages to enhance tax
compliance and reduce tax evasion;
• Leveraging technology and automation; and
• Plugging fiscal drainers like subsidies
§ To further enhance Independent Revenue collection, Government
aims to optimize the operational efficiencies and revenue generation
focus of GOEs
§ Introduction of new and further increases in existing pro heath taxes
for example, excise on carbonated drinks 39
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget ProposalINITIATIVES TO IMPROVE FGN REVENUES …/4
§ GOEs’ revenue performance / remittance will be enhanced through:
Effective implementation of the enhanced Performance Management
Framework, including possible sanctions should they default on their targets;
Tighter Expenditure control including enforcing of Finance Act 2020 provision
limiting GOEs cost-to-revenue ratio to maximum of 50%;
Regular independent monitoring and reporting of revenue and expenditure
performance of GOEs by both the Budget Office of the Federation and the Office of
the Accountant General of the Federation.
Finance Bill, 2021 will contain measures to further advance the SRGI.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 40INITIATIVES TO IMPROVE FGN REVENUES …/5
Independent Revenues • The trend in the graph shows a steady
Remittance (Actual) 2017 – 2021 improvement of our independent
800 revenues over the years.
691.36*
700 • As at August, 2021, we had surpassed all
collections for FGN independent
600 557.34 revenues from 2017 to date. This reflects
519.36 performance of our revenue growth
500 454.34
initiatives for this revenue stream..
400 • At the current run rate, we are now
firmly in a position to surpass the 1
300 trillion mark collection for independent
216.7 revenues. Analysts have always
200 considered our projections unrealistic,
but we have always insisted on the
100 potentials that exist to grow FGN
independent revenues.
0
0 2017
1 20182 2019
3 2020
4 2021
5 6
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 41CRITICAL SECTORAL ALLOCATIONS
IN THE 2022 BUDGET
42CRITICAL SECTORAL ALLOCATIONS IN 2022 BUDGET
Education Sector N1,290.03 billion i.e 7.9% of FGN Budget
N875.93bn N108.10bn N306.00bn
Amount provisioned for Amount Transfers to the
Federal Ministry of provisioned for Tertiary Education
Education and its Universal Basic Trust Fund
agencies (Recurrent & Education (TETFUND) for
Capital expenditure) infrastructure
Commission
projects in Tertiary
(UBEC)
institutions
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 43CRITICAL SECTORAL ALLOCATIONS IN 2022 BUDGET…/2
Health Sector N820.2 billion i.e 5% of total FGN Budget
N711.28bn N54.05bn
N54.87bn
Amount provisioned for Transfer to Basic
Gavi/ Immunization funds,
Federal Ministry of Healthcare
including Counterpart
Health and its Funding for Donor Supported
Provision Fund
agencies (Recurrent & Programmes, Including
(BHCPF)
Capital expenditure, Global Fund 1% of CRF
including Hazard
Allowance)
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 44CRITICAL SECTORAL ALLOCATIONS IN 2022 BUDGET …/3
Amount provisioned for
Defence & Security Sector (N2.41 the Military, Police, Intelligence &
trillion) – (15% of Budget) Para-Miltary (Recurrent & Capital
expenditure)
This include provisions for Works &
Housing, Power (inclusive of PSRP
Infrastructure (N1,451.trillion) 8.9%
Provisions), Transport, Water Resources,
Aviation.
Amount provisioned for Social
Social Development & Poverty Investments / Poverty Reduction
Reduction Programmes (N863 Programmes
billion) - (5.3% of Budget)
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 45CONCLUSION
46CONCLUSION The 2022 Budget is expected to further accelerate the recovery of our economy. We are optimistic of attaining more inclusive GDP growth as we focus on achieving our objective of massive job creation and lifting millions of our citizens out of poverty. Early passage of the 2022 Budget for implementation from January 1 will significantly contribute towards achieving government macro-fiscal and sectoral objectives. However, revenue currently remains our main fiscal challenge. Government remains committed to the effective implementation of the Strategic Revenue Growth Initiatives. Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 47
CONCLUSION …/2
In addition to the Strategic Revenue Growth Initiatives (SRGI), we are
leveraging technology and automation, plugging fiscal drainers and
ensuring more effective Independent revenue monitoring.
Efforts aimed at addressing revenue leakages include:
Concluding the service-wide implementation of Integrated Personnel
and Payroll Information System (IPPIS);
Dimensioning cost of tax waivers and promoting policy dialogue and
transparency around tax waiver regimes;
Elimination of regressive subsidies on petrol price and electricity
tariffs.
Cost-to-income-ratio cap for Government Owned Enterprises with a
view to improving remittances to FGN’s coffers.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 48CONCLUSION …/3 § Achieving government’s budget objectives require bold, decisive and urgent actions. Government is determined to act as may be required. § However, Government remains mindful of the need to provide safety nets to cushion the impact of reform measures on the vulnerable segments of the population. § The goal of fiscal interventions will be to keep the economy active through carefully calibrated regulatory/policy measures designed to boost domestic value-addition, de-risk the enterprise environment, attract external investment and sources of funding, etc. § A list of some key projects included in the 2022 Budget is attached as an Appendix to the presentation. Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 49
CONCLUSION …/4
§ We welcome citizens’ participation in enhancing budget
implementation monitoring via the following platforms:
§ i-monitor
§ Citizens’ Budget Monitoring app (available for free on the google
play store)
§ Key projects in the 2022 Budget are presented in the Annex of this
presentation.
§ Details of the 2022 Executive Budget Proposals are available on the
website of the Budget Office of the Federation –
www.budgetoffice.gov.ng
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 50THANK YOU! www.budgetoffice.gov.ng www.finance.gov.ng 51
ANNEX:
SELECTED PROJECTS IN THE
2022 BUDGET
(INVESTING FOR A RESILIENT FUTURE: CRITICAL INFRASTRUCTURE
& HUMAN CAPITAL)
52SELECTED PROJECTS IN THE 2021 BUDGET
AVIATION RAIL POWER
• N3 billion for safety & Security • N71.67 billion for counterpart N1.25 billion for Rural
critical projects and airport funding for Railway projects Electrification access program
certification Nationwide in federal universities
including:
• N20 billion for construction of
1. Lagos-Kano (Ongoing) N220.5 billion for
Second Run-Way at Nnamdi
2. Calabar-Lagos (Ongoing) multilateral and bilateral
Azikiwe International Airport
3. Ajaokuta-Itakpe-Aladja (Warri ) funded projects (Zungeru,
Abuja.
(Ongoing)
• N600 million Extension & asphalt NEP, Abuja Power Feeding
4. Port Harcourt- Maiduguri
overlay of MMIA runway scheme, Transmission Access
5. Kano-Katsina-Jibiya-Maradi In
Niger Republic (New) Project etc)
• N500 million Construction of new
terminal building in Enugu 6. Abuja-Itakpe and Aladja N200 million counterpart-
(Warri)-Warri Port And
• N500 million Construction of fund for the Mambilla Hydro
Refinery /Warri New Harbour
Abeokuta airstrip
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal
Power project 53SELECTED PROJECTS IN THE 2021 BUDGET …/2
RAIL (Cont’d) POWER (Cont’d)
• Over N4 billion for rehabilitation of various railway N1 billion for the Distribution expansion
tracks including programme projects to utilise the stranded power
from the grid
• N8.86 billion for Nigeria Railway modernization
project Lagos – Ibadan – Kano N114 billion funding (inclusive of multilateral
• N3 billion for the construction of Outreach centres loans) to the REA for the completion of renewable
including supply of equipment. energy interventions and Rural Electrification
projects nationwide
• N500 million for the development of National
Transport Databank N430 million for construction of 215MW LPFO/
Gas Power station Kaduna
• N3 billion Construction & equipping of Driver
Development & Training Centres in 6 geo-political N470 billion for Kashambilla Transmission.
zones
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 54SELECTED PROJECTS IN THE 2021 BUDGET …/3
HOUSING INDUSTRY TRADE & INVESTMENT NIGER DELTA
• N4.3 billion for provision of • N2.5 billion Conditional Grant Scheme N10bn Dualization of East-
Infrastructure & services for • N1 billion for Presidential Enabling West Rd (Sections I-IV)
Housing Programmes Nationwide Business Environment Council
• N10 billion for Social Housing • N500 million for Export Expansion Grant Over 15 billion provided
Scheme (Family Homes Fund) for other critical
• N10.5 billion for Special Economic Zones
infrastructure, Agriculture
Development
• N1.49 billion for Prototype Housing and Health systems projects
scheme in Niger & Lagos states • N1.5 billion Revitalisation of 6No
in the Niger Delta.
Industrial Development Centres.
• N11.99 billion for FGN National
• N1.5 billion National Business Skills
Housing Programme Nationwide
Development Initiative (NBSDI)
• N2.01 billion for new social housing • N1.1bn for One Local Government One
on defunct NITEL site in Iponri Lagos Product scheme (OLOP)
State
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 55SELECTED PROJECTS IN THE 2021 BUDGET …/4
HEALTH SOCIAL INVESTMENTS REGIONAL INTERVENTIONS
§ 54 billion Provisioned for the § N410 billion for FGN Special
implementation of the National N65 billion for reintegration of
Intervention Programme (including
Health Act (BHCPF) Home Grown School Feeding transformed ex-militants under
Programme, Government Economic the Presidential Amnesty
§ N49.4 billion provided for Programme.
Empowerment Programme, N-Power
GAVI/Immunization
Job Creation Programme, Conditional
N46.2 billion for the North
§ N3.12 billion for Polio Eradication Cash Transfers, etc)
East Development Commission
Initiatives • The NSIO is now domiciled in the (NEDC) – Statutory Transfer
Ministry of Humanitarian Affairs and
§ N1.5 billion for the procurement Disaster Management & Social N98.7 billion for the Niger
RI & non-Polio Vaccine & Development Delta Development Commission
operational cost
• Mr. President approved additional (NDDC)
§ N2.66 billion for expanded N300bn for FGN Share of the National
midwives service scheme Poverty Reduction With Growth Strategy.
56
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget ProposalSELECTED PROJECTS IN THE 2021 BUDGET …/5
WORKS
ROADS ROADS (Cont’d) BRIDGES
• Over N168 billion for the • Dualization of Ilorin – Jebba - Mokwa/Bokani Over N54 billion for
Junction Road
construction and rehabilitation Construction & Renovation of
of roads in every geo-political • Rehabilitation Of Nguru-Gashua-Bayamari Road, various Bridge projects
zone of the country, such as: Section I (Nguru-gashua) Phase II
nationwide
• Counterpart Funding for the Dualization • Dualization of Ilorin-Kabba-Obajana Junction to
of Makurdi - Enugu Road Benin (Various Sections) N500m counterpart funding for
construction of joint border
• Counterpart Funding for the Dualization • Rehabilitation of 9th Mile-Enugu-Port Harcourt
Dual Carriageway Including 9th mile bypass bridge at Mfum/Ekok under the
of Akwanga – Jos - Bauchi - Gombe Road
Nigeria/Cameroun International
• Reconstruction of the Outstanding • Upgrading & Rehabilitation of Keffi – Akwanga -
Lafia Road Project
highway and transport
Sections of Benin – Ofosu – Ore –
Ajebandele - Shagamu Expressway facilitation programme
• Rehabilitation of Zaria-Funtua-Gusau-Sokoto-
• Construction of Bodo - Bonny Road Birnin Kebbi C/No. 6029a N4bn Emergency rehabilitation
• Dualisation of Suleja-Minna Road, Niger State & maintenance of 3rd mainland
• Rehabilitation of Yola-Hong-Mubi Road
C/No.6077 bridge. 57
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget ProposalSELECTED PROJECTS IN THE 2021 BUDGET …/6
EDUCATION WATER RESOURCES
N108.1 billion Provided for Universal Basic N41 billion Transforming irrigation in Nigeria project
Education (UBEC) (TRIMING) (multilateral/bilateral funded loan)
N1.2bn for classroom/hostel rehabilitation & Over N24 billion provisioned for Rehabilitation and
furnishing and N500 million allocated for provision completion of ongoing dam projects nationwide
of Security Infrastructure in 104 Colleges including Itisi, Mangu, Auna-Kotangora, and several
earth dams
N392 million for take off grant for the establishment
of 6 Federal Science & Technical Colleges (FSTCs) N1 billion for Partnership for Expanded Water,
Sanitation and Hygiene (PEWASH)
About N4.5 billion for various Scholarship
allowances Over N17 billion for various water supply schemes &
Irrigation projects nationwide viz – Gushwa town,
N2 billion for payment of 5,000 Federal Teachers Zungeru/Wushishi, Gurara II, Hawul, Damaturu, North
Scheme Allowance East IDP water supply projects and Middle Rima Irrigation
project etc
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 58SELECTED PROJECTS IN THE 2021 BUDGET …/7
DEFENCE OTHERS
N22.08 billion Balance payment for procurement of 3 X N1.37 million Provisioned for capital projects for
JF - 17 Thunder Aircraft, support equipment and spares National Commission for Persons with Disability
including targeting Pod for JF – 17, complete with aircraft (NCPD).
arms & ammunition N25 Billion provided for Nigeria Youth Investment
N9.69 billion Procurement of 30/32/35 metre hydro Fund
survey ship & Landing ship tank
N1 billion Procurement of 3 X AW109 Helicopters and
part payment for procurement of 1 X AW139 Helicopter.
N4.4bn for the Completion of Naval War College Nigeria
complex.
N1.4 billion Upgrade of Nigerian Navy Reference
Hospital Ojo.
Office of the Honourable Minister of Finance, Budget & National Planning: Public Presentation of 2022 FGN Budget Proposal 59You can also read
