The Federal Government of Nigeria has proposed an unprecedented sum of 6 Trillion Naira for the 2016 budget. The proposed sum has been approved by the Federal Executive Council (FEC).
The proposed budget also sets the benchmark price of oil at $38 dollars, a realistic benchmark in the face of falling oil prices.
The increased amount is reportedly for capital expenditure. The Minister of Budget and National Planning, Udo Udoma said yesterday, “So we are looking at a budget of about N6 trillion. Last year’s budget, including the supplementary, was about N5 trillion.
“Most of the increases, all the increases actually will be spent on capital because there is the need to increase the capital spending because of our infrastructure issues we have to address,”
There is also speculation that fuel subsidy will be scrapped in the 2016 budget.
