Nigeria president approves record budget for 2022

Nigeria president approves record budget for 2022

AFP/ Abuja

Nigerian President Muhammadu Buhari has signed off on his government’s 2022 budget of a record 17tn naira ($41bn, €37bn), as Africa’s largest economy struggles with soaring inflation.

Last year’s slump in oil prices triggered by the coronavirus pandemic was hard on the continent’s top producer, where activity shrank by 1.8% according to the World Bank.

Although Nigeria has returned to growth this year, criminal attacks and kidnappings in the northwestern and central states have held it back.

Government spending plans for next year are 26% higher than 2021.

However, the real-terms increase will be far smaller when compared with forecasts for 17% inflation.

Even as he signed the budget, Buhari attacked “worrisome changes” by lawmakers, who had added an extra 550bn naira of outlays for the coming year.

“I will revert to the National Assembly with a request for amendment and/or virement (money transfer) ... to ensure that critical ongoing projects ... and those nearing completion do not suffer a setback due to reducing funding,” the president said.

The spending plan assumes that the country’s economy will expand 4.2% next year, after 2.7% in 2021, and calls for a deficit of more than 6tn naira, which is to be financed with new borrowing.

“Effective