The Federal Government has proposed a national budget of N6 trillion for the 2016 fiscal year, 30 percent of which will be for capital expenditure. It has also approved and submitted the Medium Term Expenditure Framework, MTEF, to the National Assembly.
Briefing State House Correspondents after an emergency meeting of the Federal Executive Council (FEC) presided over by President Muhammadu Buhari, the Minister of National Planning and Budget, Udo Udoma stated that in view of the current economic realities, FEC predicated the budget on $38 dollars of barrel of crude oil as benchmark for the MTEF. He also revealed that the government expected a total of 2.2 million barrels of crude oil per day.
“At today’s Council, the Council approved the Medium Term Expenditure Framework, MTEF which sets out the policies of government over the next years. It sets out the fundamental economic underpinning of the budget.
“The highlights are as follows: we project and we are working with $38 crude oil price, we consider that to be very conservative but because of the uncertainty, we felt that we should start with a conservative crude oil price,” Vanguard quoted him to have said.