As Dr. Ngozi Okonjo-Iweala promised, Nigeria’s 2012 budget came out on time. Science and Technology got N31 billion while the newly created communication technology ministry obtained N18 billion. The government actually increased the allocation for broad science and technology sector. For 2011, the total budget for Science and Tech was N28 billion. When you add up the 2012 numbers for both S&T and the new ICT ministry, government has allocated N49 billion for technology for 2012. That is impressive!
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;
- Agriculture & Rural Development – N78.98 billion.
- 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 billion
- Communications Technology – N18.31 billion.
The 2012 Budget is based on the following assumptions:
- 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%.
Aggregate expenditure proposed for the 2012 fiscal year is N 4.749 Trillion, an increase of 6%over N 4.484 Trillion appropriated for 2011.
Recurrent expenditure proposed for 2012 budget will consume a whopping 72% of the expenditure.
Capital expenditure proposed is a modest 28%.
Fiscal deficit is projected at about 2.77% of GDP in the 2012 Budget compared to 2.96% in 2011.
Editor’s Note: Updated with the pie chart from Budgit.