Nigerian govt to use N559 billion recovered loot to fund 2017 budget – Minister

Senator Udoma Udo Udoma
Minister of Budget and National Planning Senator Udoma Udo Udoma [Photo Credit: Channels TV]

The federal government said on Monday it would use a fraction of the looted funds recovered so far to finance part of the 2017 budget.

The Minister of Budget and National Planning, Udoma Udoma, said this at the 2017 budget breakdown in Abuja.

He said the total revenue projected was N5.08 trillion, with 11 per cent (about N559 billion) coming from the recoveries made.

“On recoveries, we are being extremely conservative; what is in the budget is what we know about already.

“So, if more comes, we will use it.

“Know that recoveries of looted funds are not the most dependable way to finance the budget because of the legal processes that have to be concluded before it can be spent.

“So, the money quoted in the budget is the one we have already recovered and in our pocket to spend as we wish.’’

He said the total revenue projected exceeded the 2016 projection by 30.26 per cent, adding that oil revenue projection was put at 41.7 per cent compared to 19 per cent in 2016.

Mr. Udoma added that the high revenue expectation from oil was driven by Joint Venture Calls (JVC) cost reduction, higher production and price, exchange rate as well as additional oil-related revenues.

According to him, Company Income Tax (CIT) will contribute 15.9 per cent, Value Added Tax (VAT) 4.8 per cent, Independent Revenue 15.9 per cent and others 5.2 per cent.

He also said the projected budget deficit which stood at N2.36 trillion remained relatively low at 2.18 per cent of the Gross Domestic Product, GDP.

“This is within the 3 per cent threshold stipulated in the Fiscal Responsibility Act (FRA).

“The budget is to be financed mainly by borrowings which have been projected at N2.32 trillion.

“Of this amount, N1.07 trillion is intended to be sourced externally, while N1.25 trillion will be sourced domestically.’’

Mr. Udoma stated that N35 billion is expected as revenue from the outright sale of government property and privatisation of state-owned enterprises.

He said to generate the projected revenue, the Federal Inland Revenue Service (FIRS) and Customs had been challenged to improve their efficiency and broaden their reach to achieve the set targets in the 2017 budget.

He said the Federal Government would strive to maximise the revenues it could generate from the oil and gas sector because the foreign exchange generated from the sector was critical for plans to diversify to the non-oil sectors.

“It is important that we use what we have to get what we need and want and what we have is oil.

“It is important that we make sure there is peace in the Niger Delta so that we can achieve the maximum from that resource,” he said.

The N7.44 trillion budget was signed into law by the Acting President, Yemi Osinbajo, on June 12, a month after it was passed by the National Assembly.

Referred to as the ‘budget of recovery’, the budget was first presented on December 14, 2016, to the two chambers of the National Assembly by President Muhammadu Buhari at an estimate of N7.30 trillion.

The lawmakers, however, increased it by N143 billion.



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  • emmanuel

    Is this projected recovered loot or that which Magu and Malami do not know how much it is? These people have no shame or class. I am sure they only slotted that figure into the budget, because they know they would not implement more than fifty percent of it, so funding with this portion will not come to play, thereby achieving the propagandist scheme, which they are known for.

    • True Cross Riverian

      Emmanuel it’s enough now. Are you a paid agent?. I’ll prefer it if you’re a paid agent and not a bitter soul. How can a young man be so bitter?. You can have serious metabolic issues or even develop cancer. Please stop it. Rather than spend your time on social media , get yourself engaged. I want to believe you’re not a paid agent. God bless you

      • chiemex

        e de pain you enter marrow? Your Sai Baba has failed completely!

        • Steel

          I wonder what you guys definitionof failure is? We are seeing road maps being put in place in every sectors to drive Nigeria greatness of tomorrow. Show me any tangible achievement of any govt now or in the past – Obama, Lin Kwan yu of Singapore, Tony Blair, Clinton, Mandela etc in just 2 yrs in office even where a healthy economy was on ground to build on. The best possible are plans & policies & intentions which will engender outcomes in time. Lagos as an example stated this dev plans under Tinubu. But in his 8yrs nothing concrete was really visible until fashola and now ambode building on the Tinubu foundation. That’s how it works in the real world. If the govts b4 now has laid a veritable foundation and not use nigeria as a looting vineyard, it would be been sailing for any serious govt now. Whether it’s PMB or anyone else. So get a grip people!