ABUJA, Nigeria — Nigerian President Muhammadu Buhari on Friday signed his government’s 17 trillion naira ($41 billion) budget for 2022 as Africa’s largest economy battles rising inflation.
The collapse in oil prices last year triggered by the coronavirus pandemic hit the continent’s biggest producer hard, where activity fell 1.8%, according to the World Bank.
Although Nigeria has returned to growth this year, criminal attacks and kidnappings in the northwestern and central states, as well as high food price inflation, have slowed it down.
The government’s spending plans for next year are 26% higher than in 2021.
But the actual increase will be much lower compared to forecast inflation of 17%.
Even as he signed the budget, Buhari attacked the “worrying changes” in the legislature, which added 550 billion naira in extra spending for the coming year.
“I will approach the National Assembly with a request for amendment and/or transfer (money transfer) to ensure that critical projects underway…and those nearing completion do not suffer setbacks due to the reduction in funding,” he said.
The spending plan calls for the economy to grow by 4.2% next year, up from 2.7% in 2021, and foresees a deficit of more than 6 trillion naira to be financed by new borrowing.
“Effective implementation is very essential to achieve our legacy projects, promote social inclusion and build economic resilience,” said Buhari, who does not intend to seek re-election in a presidential election in 2023.
According to estimates by the Austria-based World Data Lab, about 87 million people in Nigeria live below the extreme poverty line of US$1.90 a day.
This represents 41% of the 210 million inhabitants of Africa’s most populous country.
Nigeria also suffers from growing security problems, including criminal gangs known as bandits in the northwest and centre, a jihadist insurgency in the northeast and a separatist movement in the southeast.
