Policy Brief & Alerts

December 22, 2011

Nigerias Budget For 2012: Inclusive Growth And Job Creation

This brief examines Budget 2012 and highlights key structural and institutional
challenges that have been militating against the achievement of inclusive growth
and employment generation as listed in the budget.

Read →

Publication Date:December, 2011

Volume Number:1 Issue 3

Document Size: 5 pages


On December 13, 2011, the president presented the FY2012 budget to the jointsession of the national assembly. The budget entitled Budget of FiscalConsolidation, Inclusive Growthand Job Creation is anchored on 4 main pillarsnamely: macroeconomic stability, structural reforms, governance andinstitutions, and investment in priority sectors in line with the overalltransformation agenda of the administration. The budget clearly identified andaddressed key structural and institutional challenges that have been militatingagainst the achievement of inclusive growth and employment generation. Therevenue forecast is N3.644trn while planned expenditure is N4.749trn, implyinga deficit of N1.105trn or 2.77% of GDP. This deficit level is lower than the 2.96%recorded in 2011 in line with the Fiscal Responsibility Act 2007, and showsgovernments commitment to fiscal discipline. However, the size of the deficitmay increase if the National Assembly decides to add fuel subsidy to the budget.

 




Related

 

Nigeria Economic Update (Issue 2)

Recent ranking by the World Bank, portrayed Nigeria as having a poor business environment based on the ease of doing business in 2016. Although, Nigeria moved one position forward from previous (2015) ranking, to attain the 169th position out of the 190 global economies reviewed4. This poor rating is resultant of a myriad of factors, including: difficulties in starting a business, enforcing contracts, inaccessibility to credit, tax payment issues, as well as unreliable supply of energy, and labour market regulations. Going forward, improving the efficiency of tax administration by adopting the latest technology to facilitate the preparation, filling and payment of taxes will be beneficial for the business community.

Nigeria Economic Update (Issue 44)

Latest Doing Business report by the World Bank ranks Nigeria as one of the top 10 economies that showed notable improvements in doing business in 2016/2017. Precisely, the report which presents quantitative indicators on business regulation compared across 190 economies and ranked Nigeria 145th - up by 24 positions from the previous report ranking, to reach its highest rank since 2013. This may not be unexpected, given that it is consequent upon various business environment reforms in 2016. Particularly, the Presidential Enabling Business Environment Council (PEBEC) set up in 2016 enacted 31 reforms to improve business(such as improving credit to small and medium-size businesses) all of were enacted into law in May 2017.

Nigeria Economic Update (Issue 40)

OPEC weekly basket price declined by 2.4 percent to $42.68/barrel on September 16, 2016. This was triggered by a rise in US oil reserve, amid an outlook on weak global oil demand. Similarly, provisional data by OPEC reveals a steady decline in Nigerias crude oil production. Notably, production declined by 3.4 percent to 1.47 mbd in August, 2016.