05 October 2016, Sweetcrude, Abuja – President Muhammadu Buhari on Tuesday sent a draft budget framework for 2017, outlining spending plans for Africa’s biggest economy, to the upper house of parliament for approval.
The figures contained in the document referred to as the Medium-Term Expenditure Framework, MTEF, must be approved by the Senate before the final budget is submitted.
Overall spending for 2017 is expected to reach 6.866 trillion Naira ($22.57 billion), up from this year’s budget of 6.06 trillion – a record sum for the nation.
Nigeria, an OPEC member, slipped into recession for the first time in more than 20 years in the second quarter largely due to low global oil prices. Crude oil sales account for about two-thirds of government revenue.
The problems have been worsened by attacks by militants on oil and gas facilities that have cut oil production, which was 2.1 million barrels per day (b/d) at the start of 2016, by 700,000 b/d.
President Buhari’s plan assumes production of 2.2 million b/d at a price of $42.5 per barrel.
The proposal sent to parliament on Tuesday assumes an exchange rate of 290 Naira to the U.S. dollar and projects gross domestic product (GDP) to grow by 3.02 percent.