Macroeconomic Report & Economic Updates

October 4, 2018

Nigeria Economic Update (Issue 38)

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The 2017 budget implementation report shows a paltry average performance in 2017, compared to the projections contained in the budget. The actual oil and non-oil revenue generated were N1.1 trillion and N957 billion respectively, considerably below the projected figures of N2.1 trillion1 and N1.4 trillion. Other revenue sources brought the total revenue generated to N2.7 trillion. However, on the expenditure side, the combination of personnel expenditure and debt repayments amounted to N3.5 trillion, which exceeded total revenue by N885 billion. This implies that Nigeria borrowed to pay salaries and service debts in 2017. As long as the culture of making unrealistic budget projections continues, we expect to record low budget implementation going forward. To address the wide gap between actual and expected budget performance, better forecast of future revenue alongside making less ambitious spending plans is critical.




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