President Muhammadu Buhari presenting the budget to the National Assembly

President Muhammadu Buhari has disclosed that the sum of N65 billion has been provided for the Niger Delta Development Commission (NDDC) in the 2019 Budget.

Buhari made this known on Wednesday while presenting the budget N88.83 trillion before the joint session of the National Assembly.

He said the provision was necessary to maintain peace in the Niger Delta region.

He also disclosed that N45 billion had been earmarked for the North East Intervention Fund, while the sum of N10 billion was earmarked as take off grant for North East Development Commission.

“To maintain the peace in the Niger Delta, the provision of N65 billion for the Presidential Amnesty Programme has been retained in the 2019 budget.

“Similarly, the sum of N45 billion has been provided for the North East Intervention Fund as well as the sum of N10 billion as take off grant for the North East Development Commission,” he said.

Buhari also stated that other critical areas of the economy were captured for a holistic impact.

“To further support small and medium scale enterprises which is the focus of our industrialisation drive we have set aside the sum of N15 billion for the recapitalisation for the Bank for Agriculture and Industry.

“In addition, the sum of N10 billion is provided as a grant to the Bank of Industry for the purpose of subsidising rate charged on loans for small and medium scale enterprises.

“This is intended to ensure single digit interest loan from Bank of Industry.

“To have value from monies expended by government over time and to avoid duplication and waste, our focus will be to complete existing projects.

“Accordingly, provisions have been made to carry over projects that are not likely to be fully funded under the 2018 budget to the 2019 capital budget.

“The allocation to Special Intervention Project has been N500 billion consisting of N350 billion recurrent and N150 billion recurrent,” he said.

The president noted that the budgetary provisions for the various areas reflected the government’s continued determination to ensure gender sensitivity and pro-poor growth.

He assured that his administration would build an inclusive government for generations to come.

The News Agency of Nigeria (NAN) reports that Buhari on Wednesday unveiled a federal budget proposal of N8.83 trillion for the 2019 fiscal year.

The 2019 total budget estimate is N300 billion lower than the N9.1 trillion being implemented for the current fiscal year.

The sum of N4.04 trillion or 50.31 per cent is earmarked for Recurrent Expenditure and N2.03 trillion representing 22.98 per cent for capital projects.

Other estimates are N492.36 billion for Statutory Transfers, N2.14 trillion for Debt Servicing and N120 billion as Sinking Fund.

The 2019 budget proposal is based on an oil production estimate of 2.3 million barrels per day and an exchange rate of N305 per dollar.

Other benchmarks are Real Gross Domestic Product (GDP) growth rate of 3.01 per cent and inflation rate of 9.98 per cent.

The total projected revenue is N6.97 trillion, which is three per cent lower than the 2018 estimate of N7.17 trillion.

The expected income consist of oil revenue projected at N3.73 trillion, and non-oil revenue estimated at N1.39 trillion.

Meanwhile, estimate from non-oil revenue consists of N799.52 billion from company income tax; N229.34 billion from value added tax, and customs duties of N302.5 billion.

“Other revenues expected in 2019 include various recoveries of N203.38 billion; N710 billion as proceeds from the restructuring of government equity in joint ventures, and other sundry incomes of N104.1 billion.

The N8.83 trillion proposed expenditure for 2019 includes grants and donor funds amounting to N209.92 billion.

The budget deficit is projected to decrease to N1.86 trillion or 1.3 per cent of the GDP in 2019 from N1.95 trillion projected for 2018.

On sectoral allocation, the Ministry of Interior would get N569.07 billion, Defence-N435.62 billion, Education-N462.24 billion and Health-N315.62 billion.

The 2019 estimate is lower than the 2018 budget of N9.1 trillion, but higher than the N8.6 trillion originally proposed by the Executive to the National Assembly.