President Muhammadu Buhari has proposed a budget of N8.612 trillion for the year 2018.
The President gave the breakdown of the 2018 Appropriation Bill while addressing a joint session of the National Assembly on Tuesday.
President Buhari told the lawmakers that the proposal is based on an oil benchmark of $45 per barrel, an oil production rate of 2.3 million barrels per day, an exchange rate of 3.5 percent, an inflation rate of 12.4 percent and a real GDP growth of 3.5 percent.
According to the President, out of the N8.612 trillion, N3.494 trillion has been proposed for recurrent expenditure, and N2.428 trillion for capital expenditure – excluding the capital component of statutory transfers.
The Buhari administration plans to use N2.014 trillion for debt service, N46 billion for statutory transfers and N220 billion as a sinking fund to retire maturing bonds and pay local contractors.
Total capital expenditure, including the capital component of statutory transfer, is N2.652 trillion.