(Bloomberg) -- Nigerian President Muhammadu Buhari presented a 10.33 trillion-naira($28.5 billion) budget for next year to lawmakers as he looks to boost economic growth in Africa's most-populous nation.
Africa's top oil producer expects a budget deficit of 2.8 trillion naira and will finance it through borrowing from domestic and international markets as it struggles to meet revenue targets. The government plans to spend 2.45 trillion naira servicing existing debts, slightly higher than 2.14 trillion naira budgeted for infrastructure.
Other Key Points:
- The government forecasts the economy will expand by 2.93% next year, driven largely by non-oil output, Buhari said.
- Total revenue is projected at 8.18 trillion naira next year even after Buhari said the government met only 58% of its earnings target as of June.
- The budget is based on oil price of $57 a barrel and a average production of 2.18 million barrels a day. A proposed amendment of the Deep Offshore Oil Act to give the government higher take from crude sales will boost income, Buhari said.
- Lawmakers on Oct. 3 approved an increase in the government's borrowing limit for next year. The West African nation's debt, expressed as a proportion of gross domestic product, is 19.4% with domestic issuance at $55.6 billion and foreign loans at $25.6 billion, according to the Debt Management Office.
To contact the reporter on this story: Ruth Olurounbi in Abuja at rolurounbi4@bloomberg.net
To contact the editors responsible for this story: Rene Vollgraaff at rvollgraaff@bloomberg.net, Ana Monteiro, Hilton Shone
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