2019 Budget Breakdown
Here is a simple break down of the 2019 budget. If you are above 18 years, this should interest you.
I made it as simple as possible. No economic jargons. So that you understand those things you saw in the news and so you know how to plan your life.
👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽
1. Budget size is N8.83Trillion Naira. This is the total amount the government is expected to spend in #Budget2019
2. A quarter (1/4) of this amount will be used to pay debt.
Truth is Nigeria is owing so many debts. Like so many. Therefore, around N2.14 Trillion Naira will be used to offset part of these debts we are owing.
What will now be left of the budget will be: N8.83 T - N2.14 T = N6.69T
3. Budget for capital expenditure is N2.031 trillion.
Capital expenditure means the money that will be used to fund projects such as construction of roads, bridges, hospital equipments, etc.
if Nigeria decides to construct any major project by next year, that’s the amount allocated for it.
So what’s left will now be N6.69 T - N2.031T = N4.65 T
4. Recurrent expenditure is N4.04 trillion.
Unlike capital expenditures where you pay just once, this is allocated for stuffs that may keep reoccurring and you have no choice but to settle.
Stuffs like salaries, wages, services fees, etc.
So what’s left will be N4.65 T - N4.04 T = N619 B
5. Sinking fund is N120 B.
You know even after paying the debt at No. 1, we will still be owing some money.
So see this money as something that is kept aside as savings to later pay back other entities we are currently in debt to.
So what's left will be N619 B - N120 B = N499 B
6. Last but not the least is what they call Statutory transfer. This is set at N492.36 B.
This is the money that is paid to Senators and House of Rep members. Even if Nigeria is burning, one naira out of this money must not be touched. They must be paid.
So what’s left will be N499 B - 492.36 B = N6.64 B which will be kept in case of emergency.
So how and where does Nigeria get money to fund this budgets? you may ask.
Usually, we fund budgets through many components but the most reliable means we have at the moment is via Crude Oil. As such, we plan most of our projects around the money we get from this sector.
Ceteris Paribus, [all things being equal]. here's how Nigeria plans to get the money.
👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽
Global Oil prices are falling. Many countries are leaving the Oil Market to renewable energy. The current price globally is around $45 per barrel but Nigeria is "hoping” it will rise to $50 per barrel in 2019.
How? I don’t know. But we are still hoping.
Now if oil prices don't rise as our hopes, we'll have a big problem.
We then have to go and borrow, else we won't be able to fund the budget.
Secondly, we can only fund this budget if we keep producing 2.3 million barrels per day.
Currently, we can barely produce 1.9 million barrels per day.
But you know what, we are hoping that if Jesus could raise dead Lazarus back to life, It won’t be hard for Him to help raise production limit from below 1.9 to above 2.5 bpd.
Thirdly, we can only fund this budget without stress it inflation rate is around 9.98%.
CBN governor said we should expect inflation rate to rise to 11.4% and IMF even said it would rise to 15.5%.
But don't worry, IMF are just empty heads they don’t know anything.
We are hoping it won’t go that high. We serve a living God and He will keep it at 9.98% for us Nigerians (Can I get an Amen!!!)
Fourthly, we are hoping dollar will be be roughly N305 / $1 which may or may not be possible. But let’s hope it does.
And Number 5: that GDP growth rate will be at 3.01% when the current reality is that GDP growth rate is barely Up to 1.8%.
But we are hoping it will be doubled. By the way, we are a prayerful nation nau. We will prophesy and pray our GDP up from 1.8% to 3.01%.
So this is my own opinion: 2019 doesn't look like the year where things will change for the
economy of Nigeria.
And sorry to disappoint you. This post is not a campaign against the government of #Buhari. Who seems clueless and lacks the ability to unite and lead a divided nation. Neither is this a promotional campaign for Atiku who joined APC to dethrone GEJ and now back with PDP with lots of promises. This is a reality check for Nigeria and us all as Nigerians. It’s beyond #PDP and #APC. Even the vibrant Sowore of #AAC assuming he succeed clinching the Presidential seat, will be humbled by the heap of challenges 2019 poses for this country.
At the same time, VOTE WISELY!!!
Going by the look of things in Nigeria with respect to global affairs, I don’t expect any major events.
All you can possibly do now is to better your lot. Change the direction of your life and find a way to defy gravity by working on yourself.
Agnostic to the current and prevalent conditions within the country at the moment, it’s time you rise and shake yourself from the dust of the earth. If you haven’t.
I know that on the 31st of December a lot of people gathered again in church waiting to cross over to a new year.
Praying and Kabashing for things to change. Shaking and Rolling. Rolling and Shaking. Oh that was very nice, but DO NOT stop at that. Your personal efforts, hard and determination are required after the prayers
Hope is not a strategy. Having faith is good but without work, it is all dead exercise.
For overtime, Hope deferred makes the heart sick. You are growing old and you ain’t as fresh as you think no more.
The times have changed my friend. Understand the times you live in.
I may not have the solution to all our problems in this country but I have a solution for you.
Plan your life and Fix yourself!
Peace ✌🏼
I made it as simple as possible. No economic jargons. So that you understand those things you saw in the news and so you know how to plan your life.
👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽
1. Budget size is N8.83Trillion Naira. This is the total amount the government is expected to spend in #Budget2019
2. A quarter (1/4) of this amount will be used to pay debt.
Truth is Nigeria is owing so many debts. Like so many. Therefore, around N2.14 Trillion Naira will be used to offset part of these debts we are owing.
What will now be left of the budget will be: N8.83 T - N2.14 T = N6.69T
3. Budget for capital expenditure is N2.031 trillion.
Capital expenditure means the money that will be used to fund projects such as construction of roads, bridges, hospital equipments, etc.
if Nigeria decides to construct any major project by next year, that’s the amount allocated for it.
So what’s left will now be N6.69 T - N2.031T = N4.65 T
4. Recurrent expenditure is N4.04 trillion.
Unlike capital expenditures where you pay just once, this is allocated for stuffs that may keep reoccurring and you have no choice but to settle.
Stuffs like salaries, wages, services fees, etc.
So what’s left will be N4.65 T - N4.04 T = N619 B
5. Sinking fund is N120 B.
You know even after paying the debt at No. 1, we will still be owing some money.
So see this money as something that is kept aside as savings to later pay back other entities we are currently in debt to.
So what's left will be N619 B - N120 B = N499 B
6. Last but not the least is what they call Statutory transfer. This is set at N492.36 B.
This is the money that is paid to Senators and House of Rep members. Even if Nigeria is burning, one naira out of this money must not be touched. They must be paid.
So what’s left will be N499 B - 492.36 B = N6.64 B which will be kept in case of emergency.
So how and where does Nigeria get money to fund this budgets? you may ask.
Usually, we fund budgets through many components but the most reliable means we have at the moment is via Crude Oil. As such, we plan most of our projects around the money we get from this sector.
Ceteris Paribus, [all things being equal]. here's how Nigeria plans to get the money.
👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽👇🏽
Global Oil prices are falling. Many countries are leaving the Oil Market to renewable energy. The current price globally is around $45 per barrel but Nigeria is "hoping” it will rise to $50 per barrel in 2019.
How? I don’t know. But we are still hoping.
Now if oil prices don't rise as our hopes, we'll have a big problem.
We then have to go and borrow, else we won't be able to fund the budget.
Secondly, we can only fund this budget if we keep producing 2.3 million barrels per day.
Currently, we can barely produce 1.9 million barrels per day.
But you know what, we are hoping that if Jesus could raise dead Lazarus back to life, It won’t be hard for Him to help raise production limit from below 1.9 to above 2.5 bpd.
Thirdly, we can only fund this budget without stress it inflation rate is around 9.98%.
CBN governor said we should expect inflation rate to rise to 11.4% and IMF even said it would rise to 15.5%.
But don't worry, IMF are just empty heads they don’t know anything.
We are hoping it won’t go that high. We serve a living God and He will keep it at 9.98% for us Nigerians (Can I get an Amen!!!)
Fourthly, we are hoping dollar will be be roughly N305 / $1 which may or may not be possible. But let’s hope it does.
And Number 5: that GDP growth rate will be at 3.01% when the current reality is that GDP growth rate is barely Up to 1.8%.
But we are hoping it will be doubled. By the way, we are a prayerful nation nau. We will prophesy and pray our GDP up from 1.8% to 3.01%.
So this is my own opinion: 2019 doesn't look like the year where things will change for the
economy of Nigeria.
And sorry to disappoint you. This post is not a campaign against the government of #Buhari. Who seems clueless and lacks the ability to unite and lead a divided nation. Neither is this a promotional campaign for Atiku who joined APC to dethrone GEJ and now back with PDP with lots of promises. This is a reality check for Nigeria and us all as Nigerians. It’s beyond #PDP and #APC. Even the vibrant Sowore of #AAC assuming he succeed clinching the Presidential seat, will be humbled by the heap of challenges 2019 poses for this country.
At the same time, VOTE WISELY!!!
Going by the look of things in Nigeria with respect to global affairs, I don’t expect any major events.
All you can possibly do now is to better your lot. Change the direction of your life and find a way to defy gravity by working on yourself.
Agnostic to the current and prevalent conditions within the country at the moment, it’s time you rise and shake yourself from the dust of the earth. If you haven’t.
I know that on the 31st of December a lot of people gathered again in church waiting to cross over to a new year.
Praying and Kabashing for things to change. Shaking and Rolling. Rolling and Shaking. Oh that was very nice, but DO NOT stop at that. Your personal efforts, hard and determination are required after the prayers
Hope is not a strategy. Having faith is good but without work, it is all dead exercise.
For overtime, Hope deferred makes the heart sick. You are growing old and you ain’t as fresh as you think no more.
The times have changed my friend. Understand the times you live in.
I may not have the solution to all our problems in this country but I have a solution for you.
Plan your life and Fix yourself!
Peace ✌🏼
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