Nigeria to spend N2.174tr on capital expenditure

Dayo Emmanuel

The Federal Government of Nigeria is to spend N2.174tr on capital expenditure according to the recently signed 2017 budget.

The amount represents about 29% of the total budget figure of N7.44tr and an increase of over N300bn above the capital expenditure of the previous year which stood at N1.8tr.

According to the budget tracking organization; budgIT, the said amount earmarked for capital expenditure in 2017 represents 5.5% increase over 2017 proposed budget.

A capital expenditure is an amount spent to acquire or improve a long-term asset such as equipment or buildings. Usually the cost is recorded in an account classified as property, plant and equipment. The cost (except for the land) will then be charged to depreciation expense over the useful life of the asset.

With the increase in Nigeria’s capital expenditure it is expected that some needs the amount is earmarked for would enjoy great facelift.

 

NIGERIAN BUDGET IN TRILLION NAIRA

2012-2017

YEAR	TOTAL BUDGET	CAPITAL EXPENDITURE
2012	4.697	1.284
2013	4.987	1.59
2014	4.962	1.287
2015	4.493	0.557
2016	6.07	1.8
2017	7.44	2.174