2022 Budget: FG targets N3.16trn revenue from oil

The Federal Government has set a target of N3.16 trillion revenue from oil in 2022.

It also projected N2.13 trillion as non-oil taxes while FGN Independent revenues are projected to be N1.82 trillion.

In the budget, oil price benchmark of $57 per barrel and daily oil production estimate of 1.88 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day) were parts of the budget parameters.

President Muhammadu Buhari disclosed these on Thursday during the 2022 Budget presentation to the Joint Session of the National Assembly in Abuja.

The “Budget of Economic Growth and Sustainability” has a total expenditure of N16.39 trillion.

Buhari stated that based on fiscal assumptions and parameters, total federally-collectible revenue is estimated at N17.70 trillion in 2022.

Also, total federally distributable revenue is estimated at N12.72 trillion in 2022 while total revenue available to fund the 2022 Federal Budget is estimated at N10.13 trillion. This includes Grants and Aid of N63.38 billion as well as the revenues of 63 Government-Owned Enterprises.

According to him, “We expect the total fiscal operations of the Federal Government to result in a deficit of N6.26 trillion. This represents 3.39 per cent of estimated GDP, slightly above the 3 per cent threshold set by the Fiscal Responsibility Act 2007. Countries around the world have to of necessity over-shoot their fiscal thresholds for the economies to survive and thrive

“We need to exceed this threshold considering our collective desire to continue tackling the existential security challenges facing our country.”