40 per cent of 2016 budget may go to capital projects



• Electricity, roads, rail top agenda • FG banks on TSA to deliver safety nets
• Begins conditional cash transfer next year

THREAT of recession is pushing the President Muhammadu Buhari-led Federal Government to plan massive infrastructural and social investment spending, The Guardian has learnt.

Last night, the Presidency hinted of plans to spend not less than 40 per cent of the 2016 budget on capital projects, a move which one of the sources described as ‘unprecedented in the nation’s budgetary history.’

Also top on the agenda of the Buhari administration is to mobilise substantial funds within and outside government to fund the Conditional Cash Transfer (CCT).

CCT programmes aim to reduce poverty by making welfare programmes conditional upon the receivers’ actions, meaning that the government (or a charity) only transfers the money to persons who meet certain criteria.

Government also plans to make significant savings from leakages and fraud, which, according to one of the sources, “have marred government spending in the past.”

No doubt, reports about government’s plan to spend up to N8 trillion in 2016 have continued to dominate the media space without any of the presidential officials confirming it. Yet, it is clear that the Buhari presidency has decided to raise such huge funds to build critical infrastructure as rail, roads and power, while also commencing in 2016 some of the promises of the All Progressives Congress (APC) for a Conditional Cash Transfer — including perhaps the N5,000 welfare package for the unemployed (youths) — and school feeding on a national scale.

Going by the yet-to-be-confirmed report on an N8 trillion budget estimate in 2016, therefore, it would appear that the Federal Government is ready to spend up to N3 trillion on roads, rail infrastructure as well as on other safety nets.

Sources within the Central Bank of Nigeria (CBN) confirmed that the saving from the new implementation of the Treasury Single Account (TSA) is working and is projected to bring in hundreds of billions of naira for the 2016 budget.

Specifically, some members of the newly inaugurated Federal Executive Council, have started holding several planning meetings with the Vice President on finalising the budgetary estimates and making a proposal ready for consideration of the Federal Executive Council on President Buhari’s directve.

The Guardian was told last night that the president is determined to ensure that every available resource of the Federal Government is applied to “funding a very ambitious budget just to bring economic succour to the Nigerian people in a way that has not been done for a long time now in the area of public infrastructure and social safety nets for the very poor people, many of whom came out to support his election earlier this year.”

It was disclosed that even before the new ministers were sworn in last week, the presidency had been holding meetings with top civil servants and CBN officials on how to fund to CCT. A template was said to have been decided which the FEC will be considering soon for final approval before going to the National Assembly for appropriation.

According to the template, couple million Nigerians are likely to benefit from the CCT in 2016, while the Buhari presidency is planning to ensure that within the next four budgets the lives of tens of million Nigerians or thereabout would have been touched by the CCT.

Part of the plan for infrastructure is the $25 billion, which the Vice President has spoken about publicly severally. The fund, according to informed government sources, would include contributions from the budget and also from both local and international investors. Already there are positive responses from foreign investors to contribute to the fund as there would be opportunities for the investors to bring their business ideas and project proposals. Indeed, a source said the government gets a new offer regularly to be part of the fund from all kinds of international financiers and investors.

On the funding side, it is believed that the Buhari presidency from day one has been working with revenue generating agencies on how to radically raise internal revenue, especially with dropping oil prices, cutting expenses and overheads, and also raising funds locally and internationally from creditors considering that the nation’s debt to GDP ratio is still within international levels.

According to official sources, the nomination of Mr Babatunde Fowler as FIRS Chairman is a reflection of the presidency’s plan to raise revenue significantly as both individuals have presided over state governments’ efforts to raise revenue substantially.

While there was a recent resolution defeated on the Senate floor that the Federal Government should commence immediate implementation of the CCT, some of the new ministers have confirmed that diligent plans are being considered to start the implementation of the programme in the 2016 budget.

When asked to confirm if the CCT would be part of the 2016 budget, Senior Special Assistant to the Vice President, Mr Laolu Akande, simply said, “yes, there are plans to start the CCT next year, but you have to wait until a final budget estimate, which should be ready soon.”

  • Yemi Amodu

    Sterling Homes ltd selling Plots and Acres of Land

    Hebron garden estate is owned by Sterling homes Ltd and it’s
    completely free from “omo-onile” and government acquisition. Land
    mass: more than 10acres. Land type: dry, sandy and leveled. Location: Lekki,
    about 6minutes drive to Eleko beach and 15minutes drive to Lekki free trade
    zone. There are several notable Landmarks before the estate. These include, The
    Lagos Business School, Crown Estate, Farapark, Sapphire Garden, Green Springs
    School and Shares immediate environment with Mayfair Gardens and Beechwood
    Estate & lots more. PAYMENT PLAN FOR A PLOT: *Smart plan: Outright payment
    #2.8m. *Easy Plan: ‎#3m. Spread #210,000 for 10months after the initial deposit
    of #900,000. Contact Yemi Amodu @ Sterling Homes LTD for more information: Plot
    2, River Valley Estate, Ojodu Berger. Mobile 08136119495, 07084546154

    Havilah park and garden is an estate located about 6mins
    drive off the Lagos-Ibadan expressway. It’s about 25mins drive to Berger
    bus-stop. The estate is fenced with a gate house, and our ultra- modern
    borehole is already in place. The price of a plot is #630,000 outright, and we
    still have other installment plan also. For more information and site
    inspection call Yemi Amodu @ Sterling Homes LTD: Plot 2, River Valley Estate,
    Ojodu Berger, Lagos. Mobile: 07084546154, 08136119495

    Moriah park is situated at Agbowa, Ikorodu. The estate is
    facing the Lagos state housing scheme popularly called Fashola estate. It’s
    fenced round with a gate house and an industrial borehole has been constructed
    at the site as well. It’s selling for a promotional offer of #750,000 outright,
    though we still have other installment payment option. For more information and
    site inspection, call Yemi @ Sterling Homes LTD: Plot 2, River Valley Estate,
    Ojodu Berger, Lagos. Mobile: 07084546154, 08136119495

    • 21stCenturySlave


      • Yemi Amodu

        Thank you sir and hope to hear from you, i wouldn’t mind if you can send me your number so as to explain better.. Thank uou

  • vic


    • slim

      Do you have sense of belonging at all?

      • ufoma

        No, he doesn’t have , you are the one that have!!!

        • Simeon Oluseyi

          what he doesnt have is sense of reasoning!

          • Odogwu


        • Me@Me

          Your name say it all!!!

  • emmanuel kalu

    There is a good start by increasing the capital budget to 40%. however care must be taken to ensure that project are not over prices and are done accurately. The president also has to ensure that MDA don’t only focus on revenue generation, but focus on providing the services to the people. A clear case of this, is custom now allow rice importation via land border. they are doing this to increase revenue collected, however they are killing local production.