Nigeria’s 2018 budget: Who gets what, and why?

Nigeria has detailed its 2018 budget, with a focus on allocating 30.8 per cent towards capital expenditure and a significant portion of N3.5 trillion earmarked for recurrent expenditure. With a key emphasis on infrastructure development and security, the government is gearing up to address pressing needs in the country. Anthony Eke, Acting Divisional Head of Infrastructure and Transport at Diamond Bank, shared his insights on the current state of infrastructure in Nigeria during a recent interview on CNBC Africa. When discussing the prioritization of transport infrastructure and power, Eke highlighted the pressing need for improvements in transportation given the substantial deficit in this area. He underscored the importance of deploying funds towards civil infrastructure, such as roads, which are essential for economic growth and development. Eke also pointed out the allocation of about 200 billion for road projects as a significant step towards addressing infrastructure needs in the country. However, Eke raised concerns about the feasibility of the budget structure, citing discrepancies in factors such as exchange rates and oil production projections. He expressed uncertainty about whether the allocated funds would be sufficient to meet the ambitious infrastructure goals outlined in the budget. Eke emphasized that transparency and effective implementation would be crucial for the success of the budget. One of the major concerns highlighted by Eke was the exchange rate, with implications for budget implementation and economic stability. The discrepancy between the budgeted exchange rate and the prevailing market rate poses a challenge for fund allocation and expenditure. Additionally, fluctuations in oil prices could impact the execution of the budget, particularly in terms of utilizing excess crude oil revenue effectively. As Nigeria gears up for upcoming election activities, Eke stressed the need for proactive measures to address budgetary concerns and ensure financial stability amid potential political uncertainty. The effective utilization of resources and alignment with strategic objectives will be essential for navigating the challenges posed by the evolving economic landscape. In conclusion, while Nigeria's 2018 budget reflects a strong emphasis on infrastructure development, the success of its implementation hinges on addressing key challenges and ensuring transparency in resource management. With ongoing efforts to enhance infrastructure and drive economic growth, the government must navigate potential obstacles and prioritize effective budget execution to achieve sustainable development goals.