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ProfRem
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Nigeria’s President, Muhammadu Buhari has presented the 2017 appropriation bill to a joint session of the National Assembly.
The budget proposal is 7.298trillion which represents a total of 20.4% increase over the 2016 estimate.
The president during the budget presentation said the nation will borrow 2.23 trillion to fund to 2017 budget proposal.
Here are three major obstacles that may hinder full implementation of President Muhammadu Buhari's budget of recovery and growth:
Here are three major obstacles that may hinder full implementation of President Muhammadu Buhari's budget of recovery and growth:
Crude Oil Price: The budget placed oil price benchmark at $42.5 per barrel. Presently, Brent crude oil which Nigeria trade on, has hit $55.31 per barrel, its highest level since July 2015. The renewed price surge came after Organization of Petroleum Exporting Countries, OPEC, and other producers over the weekend in Vienna reached first output cut deal since 2001.
Any cut or drop in the global price of crude oil below the 2017 benchmark may send a wrong signal to the implementation of the budget.
Niger Delta Bombing: The budget proposed 2.2 million per barrel output of oil production. This may be cut short if President Muhammadu Buhari-led federal government failed to find lasting solution to the bombing and destruction of pipeline installation in the oil rich regions - Niger Delta by the Avengers and other agitators.
Corruption - Padding and Insertion – The 2016 budget was characterised by massive fraud and insertion from the executive and the legislative arms. With hopes that President Muhammadu Buhari will keep a close tap on the 2017 budget, the padding and illegal insertion should d=reduced drastically, else, it will be a massive blow on the 2017 estimates.
The budget proposal is 7.298trillion which represents a total of 20.4% increase over the 2016 estimate.
The president during the budget presentation said the nation will borrow 2.23 trillion to fund to 2017 budget proposal.
Here are three major obstacles that may hinder full implementation of President Muhammadu Buhari's budget of recovery and growth:
Here are three major obstacles that may hinder full implementation of President Muhammadu Buhari's budget of recovery and growth:
Crude Oil Price: The budget placed oil price benchmark at $42.5 per barrel. Presently, Brent crude oil which Nigeria trade on, has hit $55.31 per barrel, its highest level since July 2015. The renewed price surge came after Organization of Petroleum Exporting Countries, OPEC, and other producers over the weekend in Vienna reached first output cut deal since 2001.
Any cut or drop in the global price of crude oil below the 2017 benchmark may send a wrong signal to the implementation of the budget.
Niger Delta Bombing: The budget proposed 2.2 million per barrel output of oil production. This may be cut short if President Muhammadu Buhari-led federal government failed to find lasting solution to the bombing and destruction of pipeline installation in the oil rich regions - Niger Delta by the Avengers and other agitators.
Corruption - Padding and Insertion – The 2016 budget was characterised by massive fraud and insertion from the executive and the legislative arms. With hopes that President Muhammadu Buhari will keep a close tap on the 2017 budget, the padding and illegal insertion should d=reduced drastically, else, it will be a massive blow on the 2017 estimates.
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