Nigeria approves 3-year budget plan, projects low growth in 2019

Minister of Budget and National Planning Senator Udoma Udo Udoma addressing the Management Staff  during assumption of Office at Budget And National Planning
Minister of Budget and National Planning Senator Udoma Udo Udoma addressing the Management Staff during assumption of Office at Budget And National Planning

The Federal Executive Council (FEC) on Wednesday in Abuja approved the Medium Term Expenditure Framework (MTEF) and Fiscal Strategic Paper (FSP) for 2017 to 2019.

The Minister of Budget and National Planning, Udoma Udo-Udoma, made this known while briefing State House correspondents after the Federal Executive Council (FEC) meeting which was presided over by President Muhammadu Buhari.

He revealed that there was extensive consultation with governors and Non-Governmental Organisations (NGOs) before the document was presented to FEC for the approval.

According to him, it is on the basis of the approved MTEF that the 2017, 2018 and 2019 budgets will be fashioned.

Mr. Udo-Udoma said “Today, the Federal Executive Council approved Medium Term Expenditure Framework and Fiscal Strategy Paper for 2017 to 2019, that is, the MTEF and the FSP for the next three years.

“As you know, the Fiscal Responsibility Act requires the executive to prepare the MTEF and send it to the National Assembly for consideration.

“And it is on the basis of the MTEF that the next budget will be fashioned.

“So, in short, we have started the process of preparing the 2017 budget.

“Before the MTEF was presented to FEC for consideration, there was extensive consultation with the private sector, governors and NGOs.”

According to him, the government intends to intensify efforts in pursuing manpower driven economy in the 2017-2019 MTEF.

He said with the MTEF, the government intended to pursue gender sensitive, pro-poor and inclusive social intervention schemes similar to the 2016 social intervention programmes.

“We intend to intensify effort to diversify the economy, we intend to go on with the implementation of ongoing reforms in public finance, we intend to enhance the environment for ease of business so as to generate private sector and private investment.

“We also intend to continue to pursue gender sensitive, pro-poor and inclusive social intervention schemes similar to what we did in 2016, our social intervention programmes are going to be sustained.”

He noted that the Federal Government had fixed 42.5 dollars per barrel and 2.2 million barrel per day production of crude oil as assumptions for the 2017 budget.

“Let me share with you some of the key parameters and assumptions which will be underpinning the 2017-2019 MTEF.

“Oil price benchmark: We intend to use 42.50 dollars as reference price in 2017. We are projecting 45 dollars in 2018 and 50 dollars in 2019.

“So, we are keeping to the very conservative in terms of the reference price of crude oil, even though we are expecting it to go higher than this. But, we are keeping to an extremely conservative price scenario.

“In terms of oil production, we are keeping to the same level of this year for 2017 and that is 2.2 million barrels per day.

“For 2018, 2.3 million barrels per day; and for 2019, 2.4 million barrels per day.

“In terms of growth rate, we are targeting 3 per cent growth rate in 2017 and 4.26 per cent growth rate in 2018 and a 4.04 per cent growth rate in 2019.

The minister explained that the 2019 rate was slightly lower than 2018 because 2019 would be an election year.
The Minister of Trade and Industry, Okechukwu Enelamah, also disclosed that FEC had ratified the World Trade Organisation’s Trade Facilitation Agreement.

According to him, the agreement seeks to reduce the cost of doing business among members of the WTO
He said “Council also approved the ratification of the World Trade Organisation (WTO) Trade Facilitation agreement.

“This is an agreement approved by all members of WTO in the ministerial conference that was held in 2013.
“What that agreement seeks to do is basically to lower the cost of trade generally for everybody.

“There was clear understanding that everybody benefits from lowering the cost of doing trade, it is particularly beneficial to developing countries that want to be able to access the international market.

“Nigeria was one of the countries that approved the agreement then, and we have been going through the process to ratify the agreement so that it would come into effect.

“The idea is that the agreement will come into effect when it is ratified by two thirds of all the countries that approved it originally; we think that will happen sometimes this year.’’

(NAN)

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  • truthBEtold

    “I won’t be surprised if the man arrested for naming his dog Buhari is arraigned before Justice Okon Abang. There is nothing beyond this government”- Mr. Deji Adeyanju, Twitter, 20th August, 2016.

    Mr. Adeyanju, who is a young and rising bright star in Nigeria’s political firmament, is absolutely right.

    When the likes of Mrs. Oby Ezekwezile, the former Minister of Education and a hitherto great supporter and friend of the Buhari administration can publicly proclaim that …“President Buhari does not deserve to be President”, then you know that this government has indeed gone beyond the pale, that the meltdown has started and that the corpses are beginning to smell. —- Femi Fani Olukayode

    • Commentsfile..!!!

      You de quote Fani Kayode?
      No wonder its hard for you to
      stick to the topic! he de do like
      you too…

  • Jobless Youth

    Hello people, I am an unemployed youth. I need loans to start pure water business. Pls is there any Japanese Surgeon or Business man out there? If you are reading this pls donate for mankind. Buhari’s govt is only concerned with pilgrimage to Hajj …Nigeria has the highest pilgrims almost twice that of the rest of Sub Saharan Africa…even when its economy is weakest.

  • Lord Vader

    terrible growth story; population growth is about 2.5 – 3%; to double income requires 10% average gdp growth over 7 years. at this rate, if you have a strategy that only achieves 4% growth, over the next 10 years it will actually take you 17.5 years to double income. this is a terrible game plan. yes it is conservative but the market and decision makers need to see a more forceful strategy from the FGN and states, not talk of emergency powers. even if i granted you such powers, if your ambition is tepid, it will not boil the water required to make great Eba for the Nigerian people! I’m deeply disappointed.

    • Commentsfile..!!!

      listen to what the minister said
      and stop this quick analysis …
      the Govt. has a spending projection
      and sure of their line of action.. which
      is continuous pumping money into the
      system to open up the space for an economic
      growth of your projection.. only the Govt. can take
      such a big risk in a mono economy.
      this ministers don put food for fire for Nigerians
      But everyone de cry!… una won chop half done??
      wait small na mek better food done na… haba.

      • Gabriel Olasebikan

        It is not about what the minister said,but about discerning what the minister said. Brains are for discerning.

  • emmanuel kalu

    From the very start, their budget is already of the mark. how can they be projecting 2.2 million barrel per day, when right now, they can’t even maintain 1.8 million. if you start the budget on wrong projection or assumption, then the economy stands no chance to grow.

    • Commentsfile..!!!

      they foresee a calm in the oil industry
      cos there r means to resole all the impending
      problems that has been hindering production.
      its a well advised move…

  • kayode Olufade

    Income still based largely on crude oil. Means no plans on diversification income.

    • thusspokez

      Income still based largely on crude oil.

      These people have no clue. The rest of the world in investing in clean energy and alternative sources of energy and petroleum by-products. China is aggressively marketing its building of nuclear power stations around the world. India, now the largest importer of Nigerian petroleum, is increasing its number of nuclear power stations.

      Further, the use of petroleum by-products like plastics are slowly being reduced and replaced with quicker bio-degradable products. The long-term effect of this, is continual reduction of World consumption of petroleum. Sadly these Nigerian planners are living in cuckoo land and still banking on petroleum as the sole source of revenue.

  • favourtalk

    This is a good news, we are now in a better nation and society, we shall surely move forward .

  • St

    Nonsense useless cabinet, so the plan for the next 2 years is still for us to depend on Crude Oil, no plan on IGR, no plans on getting anything from Agriculture…. Wait o, wetin com be the change??

  • thusspokez

    According to him, the government intends to intensify efforts in pursuing manpower driven economy in the 2017-2019 MTEF.

    Is there any economy that is not manpower driven? These Nigerians like to use meaningless phrases obviously, to mesmerise their largely illiterate and semi-illiterate population.

    “We intend to intensify effort to diversify the economy,

    I have heard this since I was in my mother’s womb.

  • thusspokez

    The Minister of Trade and Industry, Okechukwu Enelamah, also disclosed that FEC had ratified the World Trade Organisation’s Trade Facilitation Agreement.

    I wonder if the National Assembly had time to review and discus the agreement before it was ratified — in pursuance of good governance?

    • joe

      National Assembly? Made up of folks like Saraki, Melaye, Oduah, Buruji, Dogara,…. Anini, Osunbor, Oyenusi, Shina Rambo, Shekau, ..Etc?? 🙂