Senator Udoma Udo-Udoma, the minister for Budget and Planning, on Thursday in Abuja presented details of the 2016 budget which was signed on May 6, with a capital expenditure plan of N1.75 trillion, which he said represents 29 per cent of the total budget.
The capital expenditure component of the budget, he noted, is a significant improvement on the less than N400 billion or 11 per cent of the approved 2015 budget.
Included in the 2016 budget, Udo-Udoma said, is the now-worrisome Apapa-Oshodi expressway, which would be fixed up to the Oworonsoki end that joins the Lagos-Ibadan expressway near the third mainland bridge intersection. The government hopes to commit N5 billion on the Apapa-Oshodi project which has so far failed significantly becoming a death trap, made worse by the oncoming raining season. The road is a gateway to the Murtala Muhammed International Airport and the Apapa and Tincan Island ports, among others.
Other major road projects according to the breakdown, includes N13 billion earmarked for counterpart funding for the 2nd Niger Bridge; and N40 billion for the Lagos-Ibadan expressway.
There is also a N146.8 billion railway projects, including N8.5 billion for the Itakpe-Ajaokuta-Warri axis; N18.3 billion for Abuja-Kaduna; 60 billion counterpart funding (CF) for Lagos-Kano; just as for the Calabar-Lagos.
Udo-Udoma also noted that the 2016 budget includes includes N35.6bn for pilot scheme of 7,068 housing units in the nation’s six geopolitical zones and FCT
The spending plan will be supported by revenue targets including N1.88 trillion from Company Income Tax; N1.48 trillion from Value-Added Tax (at the current rate of 5%).
The budget is also based on assumptions such as 2.2 million barrels per day of oil production at benchmark price of $38 per barrel. It also assumes that real GDP would grow at 4.37 per cent.