Nigeria To Boost Expenditure as Oil Deficit Widens

Nigeria To Boost Expenditure as Oil Deficit Widens

Nigerian President, Muhammadu Buhari announced plans to raise the government spending to $31b, up 20% in 2016 through extensive borrowing at home and abroad amid falling oil prices, reported BBC News. The money is earmarked for boosting the economy and critical infrastructure like power and housing. The country’s budget deficit is thus expected to double to $11b.

President Buhari said: “This huge decline [in oil revenue] is having a painful effect on our economy. Consumption has declined at all levels. In both the private and public sectors, employers have struggled to meet their salary and other employee related obligations.” The planned budget expenditures are meant to “ensure that we revive our economy, deliver inclusive growth to Nigerians, and create a significant number of jobs,” he added.

According to Gulf News, the new budget is to lessen the country’s dependence on oil and deliver an estimated 4.37% growth in 2016.

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