More Questions, Less Hope for Nigeria's 2022 Budget Proposal

President Muhammadu Buhari has said the government plans to borrow more than U.S.$10 billion to help finance the 2022 budget of nearly U.S.$40 billion. He added that the two recessions experienced in four years, has affected the growth of the economy despite the reforms introduced.

However, there has been a public outcry at the government's frequent borrowing, but Buhari - in a presentation to parliament - said that Nigeria's debt level was still within sustainable limits. 

Nigeria is yet to see a recovery from the Covid-19 pandemic and the slump in the oil price, a commodity on which the country's economy rests. Economic analysts say Nigeria's budget signaled the government was not about to make any major policy shift as spending would remain elevated to deal with a deteriorating security situation in many parts of Nigeria.

Nigeria has passed a string of record budgets since Buhari took office in 2015, but the country has struggled to fund the spending plans due to low revenues, which has worsened during the Covid-19 pandemic. The World Bank has said that rising insecurity, along with high food inflation and stalled reforms, was a drag on growth and a factor in rising poverty.

The 2022 Budget, titled "Economic Recovery and Sustainability," is aimed at diversifying the economy, investing in critical infrastructure, strengthening security, reducing poverty, and minimizing regional, economic, and social disparities.