Nigerian Budget Deficit and the Crude oil (I)

By Sampson Iroabuchi Onwuka


Several Journalists reporting from Abuja mentioned that Nigerian Federal Government may be in dire need of balancing the National budget of 500 million dollar plunk. The DMO ‘Debt Management Office’ of Nigeria has raised official curtain about its intent on seeking this 500 million dollars through Euro Bond. In the initial budget passed in April 2010, the 500 million dollars was set to be raised internationally and the new issue of auction in Nigeria may serve the purpose.

In an article by Adejuwa Tsun titled ‘2010 – budget – ‘Reps for Show down with Executive’ made out the issue that the President’s revisionary position on the budget and his citations of “shortfalls in the projected revenue” this year, may have resulted from the ‘N507.12 billion Naira addition in the supplementary budget for recurrent expenditure’, which the initial projected earnings provided for.

In terms of 283 .32 billion for ‘wage adjustment’ there is 100 billion set for increase in civil servants wages with direct reference to tertiary Schools in Nigeria. It is difficult to understand why these numbers are tossed around so much that Nigerians don’t even know what is actually going on.

But the National budget for 2010 is already signed by the President, and Members of the house of Rep question the delay. In fact a new row of confrontation with the executive branch is actually expected given the unusual infringement and tendency of FGN to deal break. There is a call that the budget should be dealt with ‘as is’ basis, since promises to LGA were already factored into the budget for the year.