Budget: FG targets N394bn from development partners
President Muhammadu Buhari
The Federal Government is targeting an inflow of $2bn (N394bn) in 2016 from its development partners such as the European Union, Department for International Development, and the World Bank, among others.
The amount is expected to be sourced through a window identified as the Official Development Assistance.
The $2bn ODA inflow being targeted for next year represents an increase of $700m or 53.8 per cent over the inflow of $1.3bn in the current fiscal year.
These figures were contained in the Medium Term Plan 2016-2020 prepared by the National Planning Commission and submitted to the Ministries, Departments and Agencies of government for validation.
The final monetary estimates for the 2016 budget are still being worked out by the respective government agencies and may be ready by mid-November, according to the timeline stipulated by the document.
In the document, which was obtained by our correspondent in Abuja, the government said it would be focussing on six policy thrusts aimed at stimulating growth and reducing the level of poverty in the economy.
The policy thrusts are economic, social development, infrastructure, governance, environment, state and regional development.
An analysis of the document reveals that from the $2bn being targeted as ODA inflow in the 2016 fiscal year, the sum of $1.5bn (N295.5bn) is being planned to be allocated for basic social services.
When compared to the $705m that was allocated for the same purpose in the current year, the $1.5bn indicates an increase of $795m.
According to the document, some of the social development programmes expected to be implemented by the administration of President Muhammadu Buhari are welfare schemes, and conditional cash transfer.
Others are school feeding programmes, pro-poor health care services through health care insurance scheme and the development of educational infrastructure as well as capacity building for technical staff.
In the area of infrastructural development, the document stated that the Federal Government through an Infrastructure Development Fund would be galvanising investments in electricity generation, distribution and transmission, as well gas supply pipeline.
Other areas where investments will be attracted are road rehabilitation and construction, rail network expansion and modernisation as well as real sector development.
Specifically, in the area of infrastructure, the document stated that the priority was to increase installed generation capacity from 7,000 megawatts to 10,000MW.
There are also plans to increase the transmission capacity from 5,000MW to 12,000MW. In the same vein, the distribution capacity is expected to be increased from 6,000MW to 10,000MW.
In terms of rail and road expansion, the document stated that the Federal Government would in 2016 improve the condition of federal roads from the current 31 per cent to 31.5 per cent.
It also said that more narrow and standard gaugelines would be constructed, thus increasing the kilometres of the rail network from 4,017 kilometres to 4,600 kilometres.
Through the promotion of private sector investments in infrastructure, the document stated that the government would be creating 150,000 new jobs for Nigerians.
Vice President Yemi Osinbajo had during the 45th Annual Accountants Conference and 50th anniversary celebration of the Institute of Chartered Accountants of Nigeria stated that the Federal Government would invest more in social sectors to reduce the level of poverty in the country.
He listed other areas where investment would be stimulated to include the school feeding scheme, conditional cash transfer and reflating the economy of the states to boost development.
Osinbajo said that the multiplier effects of the introduction of these programmes would help to create 1.14 million new jobs and increase food production by 530,000 metric tonnes per annum.
On the conditional cash transfer programme, he said this was another avenue for alleviating poverty.
He said the programme was intended to support 25 million poorest households to incentivise vaccination, education and production.
The multiplier effects of the introduction of the programme, he noted, would include lifting millions out of poverty; putting millions into rural production; and boosting rural economy.
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