President Goodluck Jonathan has presented the proposed 2012 budget to the joint session of the National Assembly in a brief presentation ceremony this afternoon. 

In the budget, the president is proposing an expenditure of N4.749 trillion, six percent increase on the 2011’s N4.48 trillion budget.

Capital expenditure, the estimates say, stands at N1.32 trillion (28%); recurrent (non debt) expenditure will gulp N2.472 trillion (72%); statutory transfer N398bn while debt servicing will gulp N560bn.

There is no allocation in the budget for fuel subsidies, confirming that subsidies on petrol will end this year. Although the president avoided mentioning the planned fuel subsidy removal in his speech, indications are that president has disregarded the House of Representatives’ objection to subsidy removal and is going ahead with the policy.

The 2012 budget is based on assumptions of oil production of 2.48 million barrels per day (mbpd) up from 2.3mbpd for 2011; benchmark oil price of US$70/barrel, a cautious revision from the US$75/barrel approved in the 2011 amended budget; exchange rate of NGN155/US$; projected GDP growth rate of 7.2%; and Projected inflation rate of 9.5%.

Allocations to some critical sectors of the economy are as follows: Security – N921.91 billion; Power [including Bulk Trader, Nelmco, and Multi-Year Tariff Order (MYTO)] -N161.42 billion; Works – N180.8 billion; Education [excluding Universal Basic Education Commission, Petroleum Technology Development Trust Fund (PTDF) & Education Trust Fund] – N400.15 billion.

Health – N282.77 billion;and Agriculture & Rural Development – N78.98 billion. Others are: Water Resources – N39 billion; Petroleum Resources – N59.66 billion; Aviation – N49.23 billion; Transport – N54.83 billion; Lands & Housing – N26.49 billion; Science & Technology – N30.84 billion; Niger Delta – N59.72 billion;Federal Capital Territory Administration (FCTA) – N45.57 billionand Communications Technology  – N18.31 billion.

“The 2012 budget is based on a set of assumptions reflecting government’s determination to maintain prudence in the face of continued uncertainties in the external environment,” the president said.

“Over the years, we have listened to very beautiful and impressive budget speeches eloquently delivered in this chamber,” the senate president, David Mark said sounding unimpressed with the performance of the previous budgets.

 “Unfortunately, the implementation has not matched the words as economic policies often lack continuity and projects are needlessly discarded or abandoned. We have what it takes to be a great nation or a world power. But we have never challenged ourselves sufficiently over the years to attain this desired goal,” the senate president added.

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Download the full 2012 budget speech here…

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