2012 budget is based on the following assumptions:
• Oil production of 2.48 mbpd up from 2.3mbpd for 2011; • Benchmark oil price of US$70/barrel, a revision from US$75/barrel for the 2011 Amended Budget; • Exchange rate of NGN155/US$; • Projected GDP growth rate of 7.2%; and • Projected inflation rate of 9.5%.
PRESIDENT Goodluck Jonathan yesterday presented a budget of N4.749 trillion for next year to a joint session of the National Assembly in Abuja, describing the expenditure profile as “a stepping-stone to the transformation of our economy and country, in our walk to economic freedom.” The figure represents a six per cent increase over the N4.484 trillion appropriated for the current fiscal year.
However, the recurrent expenditure, against public outcry, sustains its high profile in the budget, accounting for 72 per cent of the total spending plan, representing a marginal 2.4 per cent decrease from the 74.4 per share in this year’s appropriation. Essentially, capital expenditure has an allocation of N1.32 trillion, representing a 15 per cent increase over the amount approved in this year’s budget, with the president stressing that the focus would be “on the completion of critical infrastructure projects.” The current expenditure would take N3.429 trillion. According to the President, the 2012 budget was based on crude oil price of $70 a barrel, against the benchmark of $75 a barrel adopted this year, at a projection production level of 2.48 million barrels per day, up from 2.3 million barrels per day for 2011 budget.