Nigeria’s upper house of parliament passed a record 9.12 trillion naira ($29.8 billion) budget for 2018 on Wednesday aimed at boosting growth in west Africa’s biggest economy nine months before the country’s next presidential election.
Growth remains fragile after Africa’s top crude oil producer last year emerged from its first recession in 25 years. The recession was largely caused by low crude prices and militant attacks on energy facilities since oil sales make up two-thirds of government revenue.
The total sum laid out in the spending plan passed by the Senate is higher than the 8.6 trillion naira budget presented to parliament by President Muhammadu Buhari in November. The budget still needs to be returned to Buhari to be signed into law.
Lawmakers said the increase was due to the assumed oil price rising to $51 per barrel, up from $45 in Buhari’s earlier version. The budget assumes crude oil production of 2.3 million barrels per day and an exchange rate of 305 naira per dollar.
Buhari, who took office in 2015, plans to seek a second term in next February’s election. His handling the economy is likely to be a major campaign issue.
Budgets under Buhari, who took office in May 2015, have been Nigeria’s largest ever. But economists say implementation has been poor and failed to provide the type of capital expenditure needed to improve infrastructure and diversify the economy away from its reliance on crude oil sales.
