The Nigerian lawmakers approved the government’s $74 billion three-year spending plan paving the way for the adoption of the 2018 record budget for spurring economic growth after a slump. President Muhammad Buhari’s administration proposed a budget of 8.6 trillion nairas ($23.9 billion) next year and 9 trillion nairas in both 2019 and 2020 for Africa’s biggest oil producer and most-populous nation.

Nigerian Lawmakers

The benchmark crude price in the budget is $47 a barrel, higher than $45 initially submitted by the government, according to the version approved by lawmakers in the capital, Abuja. More than a third of the 2018 spending, which is a 16 percent increase on this year’s, will go into roads, rail, ports and power to help spur business and expand an economy that contracted by 1.6 percent last year.

Economic growth is forecast by Nigerian Lawmakers to reach 7 percent in 2020, according to the three-year plan

The Buhari’s administration wants to plug a projected budget deficit of 2 trillion nairas with 1.7 trillion nairas of new debt, half of which will come from external sources. It will draw more funds from the planned privatization of non-oil assets worth 306 billion nairas, Buhari told the Nigerian lawmakers earlier this month.

While Nigeria’s budget calendar runs from January through December, approving spending proposals has been delayed by more than four months in the past as lawmakers and the executive haggle over allocations. This has reduced policy predictability and slowed some investments, according to the budget office.

Culled from Bloomberg Politics | Nigerian Lawmakers Approve $74 Billion Three-Year Spending Plan