President Goodluck Jonathan on Wednesday presented a 4.2 trillion naira (27.3 billion dollar) budget for 2011 as he heads into a campaign season for April elections in the oil-rich nation.
His proposal was based on Nigeria, an OPEC member and one of the world’s largest oil exporters, producing 2.3 million barrels per day at a benchmark rate of 65 dollars per barrel.
Jonathan, who took over as president following the death of Umaru Yar’Adua in May, said the 2011 budget would be geared towards “fiscal consolidation, improving economic growth and creating jobs” as well as wealth creation.
According to the president, who made the presentation before a joint session of the National Assembly, the figure was lower than the 5.2 trillion naira approved for 2010.
Jonathan also spoke of the sovereign wealth fund with which Nigeria is planning to replace its excess crude account.
Revenue above the benchmark oil price is put into the account, but the amount of savings has been significantly reduced recently due to various spending.
The president said the government wanted to ensure “prudent utilisation” of oil revenue, adding that such money would be spent to improve infrastructure, including electricity and roads.
Nigeria is the world’s eighth largest oil producer, but the government has been unable to provide basic services, including adequate electricity, and poverty remains widespread.
Jonathan is seeking the ruling party’s nomination for the April 9 presidential election. Ex-vice president Atiku Abubakar is challenging him for the nomination.