The Federal Government is proposing a budget of 7 to 8 trillion naira for 2016, up from 4.4 trillion this year, according to a document from the office of Vice President Yemi Osinbajo, Reuters reports.
The document, used as the basis for a presentation by Osinbajo to the cabinet during a two-day retreat, proposed capital expenditure of 2 trillion naira next year, up from 1.3 trillion naira in 2015. The document further outlined the need for a “massive infrastructure building” programme for roads, rail and power, along with “expansionist” fiscal and monetary policies and indicated that this would be paid for by a 25 billion naira infrastructure fund and a 2.5 trillion naira “special intervention fund”. But it gave no details of where this money would come from.
A key focal area for the Federal Government appears to be the power sector. “Fixing the transitional electricity market is currently the most important priority area,” the document stated. “This administration will have a strong focus on solar energy most especially for the provision of power for social services like health and education,” it said. Agriculture, mining and manufacturing were also listed as key areas to develop in order to diversify the economy.