Nigeria’s Federal Executive Council (FEC) has approve a 6 trillion naira ($30.3 billion) budget for 2016 at the emergency meeting held in Abuja on Monday, with a 1.5 trillion naira increase on last year.
Budget and Planning Minister Udoma Udo Udoma said 30 percent of the budget would be allocated for capital expenditure, adding that ministers aimed to fund this through a rise in non-oil revenues.
Udoma said the cabinet was assuming a conservative oil price of $38 a barrel and oil production at 2.2 million barrels per day. Lawmakers passed the 2015 budget at $53 a barrel in April.
“The cabinet today approved a medium-term framework for three years. It will be submitted to the National Assembly. We are projecting a 30 percent capital budget for next year,” the minister told newsmen after a cabinet meeting in the presidential villa.
Finance Minister Kemi Adeosun said the government would identify spending excesses and impose guidelines to cut waste.
It was not clear whether the fuel subsidy, a heavy burden on the nation’s purse, would be retained in 2016. “We are looking into that,” said Udoma when asked if it would be retained.