Analysis of

2014 Budget

This analysis takes a look at the Nigerian 2014

Budgetary allocations to different Ministries,

Departments and Agencies of the Nigerian Sector.

A comparative analysis of allocations to the 4

Components as outlined in the Budget is also

carried out.

A review is carried out to know if this and previous

budgets meets the UNDP Recommendation.

How well can we ascertain that the Government

will cut down on Foreign travels.

The Nigeria budget is made up of four

components:

Part A – Statutory Transfers

Part B – Debts Service

Part C – Recurrent Expenditure (non-debt)

Part D – Capital Expenditure

Statutory

Transfer Debt Service

Recurrent

Expenditure

Capital

Expenditure

Consolidated Revenue Fund of the Federation

MDA Expenditure

Total 2014 National Budget:

Statutory

Transfer Debt Service

Recurrent

Expenditure

Capital

Expenditure

N4,642,960,000,000

399,687,801,891

712,000,000,000

2,430,665,361,597

1,100,606,836,512

Statutory

Transfer

NJC

NDDC

UBEC

INEC

NASS

NHRC

68,000,000,000

61,940,000,000

70,470,000,000

45,000,000,000

150,000,000,000

1,350,000,000

PCC 2,927,801,891

The Federal Government is required

by law to make certain mandatory

expenditures annually in respect of:

399,687,801,891

Debt

Service

712,000,000,000

Whenever the Federal Government spends

more money than the revenues it earns, it

must find the financial resources to pay for

this additional spending.

Moneys borrowed

within Nigeria

moneys borrowed from

outside Nigeria

663,610,000,000

48,390,000,000

Domestic

Debts

Foreign

Debts

Recurrent

Expenditure

2,430,665,361,597

Spending by the Ministries, Departments

and Agencies (MDA) of Government on

Salaries, Pensions & Overheads

1,973,418,403,241

457,246,958,356

Salaries

Overheads

Pensions

Capital

Expenditure

1,100,606,836,512

Capital Expenditure is used to provide infrastructure

such as roads, water and power; fund educational

services such as schools, colleges and universities; and

provide healthcare facilities and services among

others.

Infrastructure Healthcare Educational

Services

Budget Component Allocation %

Statutory Transfer 399,687,801,891 8.61%

Debt Service 712,000,000,000 15.34%

Recurrent Expenditure 2,430,665,361,597 52.35%

Capital Expenditure 1,100,606,836,512 23.70%

United Nations Development

Programme recommendation

“Allocate 70% of Budget to

Capital Expenditure and 30%

to Recurrent Expenditure.”

UNDP

Recommends

8.61%

15.34%

52.35%

23.70%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Budget Component

Capital Expenditure

Recurrent Expenditure

Debt Service

Statutory

Transfer

Aggregate Recurrent Total Capital Total Allocation

3,542,353,163,488 1,100,606,836,512 4,642,960,000,000

76.3% 23.7%

Year Recurrent % Capital %

2013 67.49% 32.51%

2012 72.21% 27.79%

2011 76.20% 23.80%

2010 59.77% 40.23%

2009 72.24% 27.76%

2008 72.99% 27.01%

2007 65.52% 34.48%

2006 71.26% 28.74%

2005 65.71% 34.29%

2004 80.46% 19.54%

76.3% of total allocation would be spent on Salaries, Pensions & Overheads while

23.7% goes to Infrastructure, Educational services and Healthcare facilities.

Year 2010 was when

Capital Expenditure

got 40% allocation,

so far the highest

ever.

Actionaid Country Director, Hussaini Abdu

"We are very worried that over 70% of

the budget is actually going for recurrent

expenditure and less than 30% on capital

expenditure. No country develops under

such provisions because what grows a

country or builds the economy is the

amount of investments you are making

on infrastructure and other structural

issues that you required to strengthen

your economy”.

How well does each MDA perform

according to the UNDP Recommendation?

The following MDA (6) fulfills the UNDP recommendation

S/N MDA Recurrent% Capital%

1 Power 5.44 94.56

2 Aviation 19.04 80.96

3 Water Resources 20.08 79.92

4 Transport 21.78 78.22

5 Works 22.15 77.85

6 Lands & Housing 30.38 69.62

MDA with appreciable Recurrent : Capital Allocation

7 Women Affairs 33.95 66.05

8 Police Service Commission 43.58 56.42

9 Agriculture & Rural Development 47.26 52.74

10 Niger-Delta (including NDDC) 57.80 42.20

11 Office of NSA 60.17% 39.83%

Year Recurrent Capital Total Recurrent % Capital %

2014 3,397,810,244 59,051,290,389 62,449,100,633 5.44% 94.56%

2013 4,204,008,698 73,159,378,866 77,363,387,564 5.43% 94.57%

2012 3,116,536,317 70,300,000,000 73,416,536,317 4.25% 95.75%

2011 8,150,616,175 78,100,030,625 86,250,646,800 9.45% 90.55%

2010 3,580,819,527 153,207,074,322 156,787,893,849 2.28% 97.72%

2009 4,965,947,715 88,471,515,074 93,437,462,789 5.31% 94.69%

2008 25,408,533,868 114,375,000,468 139,783,534,336 18.18% 81.82%

2007 3,867,128,061 100,784,441,479 104,651,569,539 3.70% 96.30%

2006 3,382,764,019 74,710,240,083 78,093,004,102 4.33% 95.67%

Ministry of Power

2014 Budget is the minimum in about 10years. The Power ministry

has consistently allocate more funds to Capital Expenditure even

surpassing the UNDP recommendation, however Nigerians have

not enjoyed commensurate benefit of these allocations. Therefore,

it goes beyond budgeting to actually make the people enjoy the

dividend of Democracy.

Ministry of Power

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

2014 2013 2012 2011 2010 2009 2008 2007 2006

Recurrent %

Capital %

Top MDA with high Recurrent Allocation S/N MDA Recurrent % Capital %

1 Police Formation & Commands 97.68% 2.32%

2 Federal Character Commission 97.26% 2.74%

3 ICPC 97.16% 2.84%

4 Interior 95.83% 4.17%

5 Justice Including NHRC 95.10% 4.90%

6 ICRC 94.74% 5.26%

7 Youth Development 93.91% 6.09%

8 FRC 90.95% 9.05%

9 Education Including UBEC 89.96% 10.04%

10 Petroleum Resources 89.95% 10.05%

11 Defence/Mod/Army/Air Force/Navy 89.92% 10.08%

12 Code of Conduct Tribunal 89.77% 10.23%

13 Information 86.11% 13.89%

14 Trade & Investment 85.32% 14.68%

15 Labour & Productivity 84.67% 15.33%

16 National Population Commission 84.06% 15.94%

17 Mines & Steel Development 83.92% 16.08%

18 Federal Civil Service Commission 82.98% 17.02%

19 Culture & NOA 82.69% 17.31%

20 Health 82.36% 17.64%

21 National Salaries, Incomes & Wages Commission 80.52% 19.48%

22 National Sports Commission 79.84% 20.16%

Recurrent

Expenditure

Capital Expenditure

The implication of high Recurrent Expenditure as against

Capital Expenditure is that more funds are used to maintain

Personnel (Salaries, Wages, Allowances, Pension, etc.) while

less funds are reserved for Infrastructural development,

Heath Services and Educational Services.

Nevertheless this huge personnel allocation, our Schools

lack sufficient academic strength, our Hospitals do not

have enough Medical practitioners.

Ministry with High Personnel & Overhead Allocation

97.68 95.83 95.10 93.91

89.96 89.95 89.92 86.11 85.32 84.67

2.32 4.17 4.90 6.09

10.04 10.05 10.08 13.89 14.68 15.33

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Police Interior Justice Youth Education Petroleum Defence Information Trade & Inv. Labour &Prod.

How does this 2014

Budget compare

with past years? (Statutory transfer, Debt

Services, Recurrent &

Capital Expenditure)

YEAR STATUTORY

TRANSFERS

DEBTS

SERVICE

RECURRENT

EXPENDITURE

CAPITAL

EXPENDITURE TOTAL

2014 399,687,801,891 712,000,000,000 2,430,665,361,597 1,100,606,836,512 4,642,960,000,000

2013 387,976,000,000 591,764,000,000 2,386,024,770,349 1,621,455,655,252 4,987,220,425,601

2012 397,929,101,917 559,580,000,000 2,471,814,067,335 1,319,777,651,919 4,749,100,821,171

2011 196,115,163,718 542,381,827,452 2,481,705,176,915 1,005,989,391,174 4,226,191,559,259

2010 180,279,158,994 497,071,797,452 2,077,358,560,347 1,853,906,761,420 4,608,616,278,213

2009 140,693,160,103 283,649,892,795 1,649,429,453,681 796,737,536,101 2,870,510,042,680

2008 187,600,000,000 372,200,000,000 1,259,121,253,061 673,155,465,876 2,492,076,718,937

2007 102,300,000,000 326,000,000,000 1,056,563,540,997 781,530,882,480 2,266,394,423,477

2006 86,460,000,000 289,500,000,000 961,108,775,596 539,233,587,755 1,876,302,363,351

2005 89,600,000,000 355,723,000,000 737,330,997,094 617,284,246,044 1,799,938,243,138

2004 532,324,500,000 369,369,000,000 539,286,472,751 349,868,371,837 1,790,848,344,588

Overall Budget from 2004 - 2014

Statutory Transfer from 1999 to 2014

YEAR STATUTORY TRANSFERS TOTAL %

2014 399,687,801,891 4,642,960,000,000 8.61

2013 387,976,000,000 4,987,220,425,601 7.78

2012 397,929,101,917 4,749,100,821,171 8.38

2011 196,115,163,718 4,226,191,559,259 4.64

2010 180,279,158,994 4,608,616,278,213 3.91

2009 140,693,160,103 2,870,510,042,680 4.90

2008 187,600,000,000 2,492,076,718,937 7.53

2007 102,300,000,000 2,266,394,423,477 4.51

2006 86,460,000,000 1,876,302,363,351 4.61

2005 89,600,000,000 1,799,938,243,138 4.98

2004 532,324,500,000 1,790,848,344,588 29.72

2010 seems to be a golden year; 2014 Statutory

transfer shows a growing trend from 2010.

NJC NDDC UBEC INEC NASS NHRC PCC

Debt Services from 1999 to 2014 Domestic Debts Foreign Debts

YEAR DOMESTIC FOREIGN DEBTS SERVICE TOTAL %

2014 663,610,000,000 48,390,000,000 712,000,000,000 4,642,960,000,000 15.34

2013 543,376,000,000 48,388,000,000 591,764,000,000 4,987,220,425,601 11.87

2012 511,980,000,000 47,600,000,000 559,580,000,000 4,749,100,821,171 11.78

2011 503,465,330,805 38,916,496,647 542,381,827,452 4,226,191,559,259 12.83

2010 463,155,300,805 33,916,496,647 497,071,797,452 4,608,616,278,213 10.79

2009 227,809,018,411 55,840,874,384 283,649,892,795 2,870,510,042,680 9.88

2008 306,200,000,000 66,000,000,000 372,200,000,000 2,492,076,718,937 14.94

2007 265,000,000,000 61,000,000,000 326,000,000,000 2,266,394,423,477 14.38

2006 220,000,000,000 69,500,000,000 289,500,000,000 1,876,302,363,351 15.43

2005 185,749,000,000 169,974,000,000 355,723,000,000 1,799,938,243,138 19.76

2004 185,769,000,000 183,600,000,000 369,369,000,000 1,790,848,344,588 20.63

From 2009; there has been a growing

increase in the Debt Services allocation,

current allocation stands at 15.34%.

Year Total Recurrent Total Capital Total Budget % Growth

2014 3,542,353,163,488 1,100,606,836,512 4,642,960,000,000 -6.90

2013 3,365,764,770,349 1,621,455,655,252 4,987,220,425,601 5.01

2012 3,429,323,169,252 1,319,777,651,919 4,749,100,821,171 12.37

2011 3,220,202,168,085 1,005,989,391,174 4,226,191,559,259 -8.30

2010 2,754,709,516,793 1,853,906,761,420 4,608,616,278,213 60.55

2009 2,073,772,506,579 796,737,536,101 2,870,510,042,680 15.19

2008 1,818,921,253,061 673,155,465,876 2,492,076,718,937 9.96

2007 1,484,863,540,997 781,530,882,480 2,266,394,423,477 20.79

2006 1,337,068,775,596 539,233,587,755 1,876,302,363,351 4.24

2005 1,182,653,997,094 617,284,246,044 1,799,938,243,138 0.51

2004 1,440,979,972,751 349,868,371,837 1,790,848,344,588

The 2014 Capital Expenditure of 1.1tn is compared

to that of Year 2010, if inflation is put into

consideration (Deflator of 3.71), the actual/Real

Capital Expenditure budget for 2014 is

296,659,524,666.

Recurrent & Capital Expenditure from 2004 - 2014

Summary of 2014 Budget Components

Recurrent Expenditure

52.35%

(MDA Salaries,

Pensions &

Overhead costs)

Capital Expenditure

(Infrastructure,

Educational

Services &

Health)

15.34% 8.61%

Statutory Transfer

23.70%

Debts Service (Foreign and

Domestic Debt)

Foreign travel by government

personnel will be further curtailed.

This directive shall apply to all

Ministries, Departments and

Agencies of the Federal

Government.

(President Goodluck Jonathan) Jan 1, 2014 Presidential Press Release

MDA 2012 2013 2014

Grand Total 15,310,545,925 19,621,732,323 14,777,749,467

Government Allocation to Foreign Travels (2012 – 2014)

Total of 14.78Billion has been allocated to INTERNATIONAL

TRAVEL & TRANSPORT: TRAINING & INTERNATIONAL

TRAVEL & TRANSPORT: OTHERS

Top 10 Ministries with High Allocation Total

Ministry of Foreign Affairs 5,196,552,734

Ministry of Defence 1,748,368,642

Presidency 1,545,992,529

Office of National Security Adviser 1,012,834,421

Ministry of Education 585,139,210

Ministry of Finance 496,531,468

Ministry of Trade & Investment 307,370,808

Ministry of Science & Technology 279,409,490

Office of SGF 277,831,400

Ministry of Justice 251,114,363

Freely share, freely use and freely acknowledge the source – © Wale Micaiah

Data source:

- Nigeria Budget office (www.budgetoffice.gov.ng)

Analysis by: Wale Micaiah (M.Sc., CISM, CCNP-Sec, MCSA)

e: walegate@yahoo.com

m: 08078001800

b: walemicaiah.blog.com

w. www.statisense.com