Roman Oseghale's blog

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NIGERIA – A look at the 2023 National Budget, and will it Impact the Economy.

___Nigeria is a poor country, and the country is broke, the trillions we hear deceives us!

Between 2014 and 2021, Nigeria’s National Budget increased from N4.70 trillion to N13.08 trillion, increase of 178.3%, and between 2014 and 2023 the budget has increased from N4.70 trillion to N20.51 trillion, increasing by 336.4%.

But the interesting thing is the reality comes to life when the budget is converted to US Dollars, while the budget increased from N4.70 trillion to N13.08 trillion from 2014 to 2021 (178.3%) the dollar valued remained almost the same using the exchange rate in the budget for each year, in 2014 the US dollars equivalent of the budget was US$29.34 billion and by 2021 had only increased to US$31.89 billion (8.7%), between 2014 and 2021 the average national budget was US$29.04 billion while population increased from 176.4 million in 2014 to 213 million in 2021.

It wasn’t until 2022 that Nigeria’s national budget crossed US$40 billion for the first time in history to reach US$41.74 billion and reaching US$47.15 billion in 2023, between 2014 and 2023 the Naira equivalent of the budget increased by 336.4% while the US Dollars increased by only 60.7%.

Nigeria is a country rich in Mineral and Human resources but a poor country in wealth creation, the trillions of Naira we hear deceives us. Comparing the three largest economies in Africa only goes to substantiate this fact…..Nigeria with a projected population of 215 million people as at 2022 will operate a 2023 national budget of US$47.15 billion with a budget deficit of US$24.82 billion (52.65%), South Africa with a population of 59.4 million people is operating a budget size of US$136.6 billion dollars for its 2022/2023 fiscal year, while Egypt with a population of 109.3 million people is operating US$111 billion 2022/2023 national budget.

South Africa is just 28% of Nigeria’s population, but Nigeria’s budget is just 34.5% of South Africa’s budget and 42.5% of Egypt’s budget and Egypt is only 51% of Nigeria’s population. Nigeria’s budget per capita is a mere US$221 while that of South Africa is US$2,300 and Egypt US$1,016. Nigeria needs a budget that can impact the economy and spur economic growth what the country presently operates is a drop compared to what it should be.

Watch Roman Oseghale give a detailed analysis of the 2023 budget and why it cannot impact the economy to spur the economic growth Nigeria needs to create wealth for its people.

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The Continuous Depreciation of the Naira

Nigerians are losing the value of their wealth during both economic growth and economic recession. 

The Naira is a currency caught between the devil & the deep blue sea, it has depreciated against the US$ by 67,605% in 40yrs a currency it was once stronger than during both Economic Growth & Economic Recession eroding the wealth of Nigerians. During Economic growth the rate of depreciation is slower than when the economy is in recession, and the reason is when the economy is booming and Nigerians are making money they switch to luxury goods which also puts pressure on the Naira.

The only way to curb the continuous depreciation of the Naira is through industrialization and hard-line economic and social policies!

To stop the trend, Nigeria must move from Consumption Economy to a Production Economy.

Watch Roman Oseghale give an analysis of the trend and why.