Nigeria now has the fourth lowest budget per capita among the 20 largest African economies; behind only the Democratic Republic of the Congo, Sudan, and Ethiopia.
What is left for capital projects per capita, however, is understandably too meager for any significant infrastructure development given Nigeria’s persistent budget deficit; which can reach 50% in some years. Given that infrastructure development is essential to economic growth; it might make sense for the federal government to engage in project-related borrowing.
This finding supports the executive branch’s proposal to begin the $30 billion project loan that is now in discussion, in order to unlock some of the nation’s economic potential.
The national budget for Nigeria’s 2022 fiscal year was increase by the federal government by N17. 13 trillion, or 18%, over the 2021 budget.