Nigerian Senate to conclude budgetary hearings
The Nigerian Senate will conclude a series of budget related hearings and engagements with ministries, departments and agencies today.
The meetings come after President Muhammadu Buhari unveiled a record $39.8 billion budget for 2022 last month. The budget projects a 25% year-on-year rise in government spending as the economy grapples with the fiscal impacts of the COVID-19 pandemic.
Nigerians have voiced concern over the budget, however, claiming that although larger than 2021, it is still much lower than required to meet the needs of the nation.
In the short term, expect Nigeria to not make any major policy shifts as spending remains elevated and they continue to be stuck with large budget caused by prioritizing defense and internal security, namely relative to Islamist insurgencies. Additionally, the economy is expected to grow an additional 3% this year after the present rise of 5% owing to an expected recovery in crude oil prices and production.
In the long-term, expect concerning rising inflation to continue well into 2022 and beyond as rates of poverty and food insecurity illustrate no signs of immediate reduction. It is also possible that Nigeria’s economic prospects could deteriorate if crude oil prices plummet again which, as the other factors discussed, could greatly impact Buhari’s future as a leader.
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