President Muhammadu Buhari was presenting his first budget since he resumed office.
He announced his plans to increase expenditure by 20% in year 2016 by borrowing heavily amid falling oil prices.
His budget stated that, he would be spend $31bn (£20.8bn) in 2016 on infrastructure and the economy. However, Nigeria has been hard hit by the falling price of oil.
In accordance to the Opec oil cartel, petroleum exports make up to 90% of the total overseas revenue.
The budget deficit is expected to double to 2.2 trillion naira ($11bn, £7.4bn) next year and the President said the government would request for funding overseas of 900bn naira as well as 984bn naira internally.
Since the beginning of the year, oil prices have fallen from about $55 a barrel to around $36-$37 and he said that of the 3.9 trillion naira revenue forecast for 2016, just 820bn will come from crude.
He also stated that the huge decline is having an adverse effect on our economy, in both the private and public sectors, employers have struggled to meet their salary and other employee related obligations.
The president pledged to improve tax collection and invest in other industries including mining and agriculture, so that the economy needs to move away from dependency on oil.
Th unemployment rate is growing, up from 8.2% in the second quarter to 9.9% between July and September. Inflation is also rising, hitting 9.4% in September, especially on fuel shortages and higher food prices.
The president said he is expecting increment in Nigeria’s economy by 4.4% next year as a result of how the 2016 budget was outlined. It will ensure that the economy is revived to deliver inclusive growth to Nigerians and create a significant number of jobs.
