3 money makers from president Buhari’s budget speech (+ 7 key points he made.)

Many Nigerians are hustling to go and disappear in the UK, US and other European countries when there are loads of viable opportunities here.

According to President Buhari’s budget speech, IMF has projected that world economies would stabilise and grow in 2018 and Africa would grow faster than developing economies because there is a huge need gap.  Almost 5% growth compared to 2% in other developing nations.

As Nigerians are looking for a way out of the country for greener pastures, foreigners with a business eye are coming in to fill the need gap. The government is relaxing Visa restrictions and business Permits to make it easier for small and large scale investors to come in

Following Buhari’s 2018 budget speech, these are the money makers and viable areas to inves

Agriculture & farming

  • The president’s passion as a farmer who also owns crops and cattle’s was evident in this budget speech. As far as he is concerned Nigeria should be a food secured nation.
  • In 2018 there would be massive support for agriculture. It one of the  top 5 budget expenditure pegged at 118.98 billion.
  • The budget aims to continue Irrigation projects presently ongoing at Ada, Enugu State; Lower Anambra, in Anambra State; and Gari, in Jigawa State.
  • To further support investors and State Governments, we will accelerate the establishment of at least 6 Staple Crop Processing Zones in each state, they would process rice, sugar maize, soya, cassava 
  • Food smugglers beware: they would be treated as a threat to national security
  • Nigeria to partner with Togo government  in tackling smuggling and other cross border crimes.
  • I would like to assure investors in the agricultural value chain that the menace of smuggling will be handled decisively.
  • In his budget closing remarks, his first point was creating a nation that feeds itself

Business opportunities in agriculture:

 Fertilizers, Food processors & preservatives, actual farming, food transportation and distribution, storage and warehousing, pesticides, exports trade, packaging

Mineral exploration;

  • Nigeria is now in full mineral exploration mode. the objective is to tap existing resources and discover more.
  • Bitumen exploration began in 2016 in Ondo state to consolidate on these efforts, 2018 budget has established 30 billion Naira Solid Minerals Development Fund to support other minerals exploration activities across the country.
  • There is exploration for oil in the North and more coal in the East. Whether or not they would find any natural resources  anything there is business and career opportunity

Places to invest / opportunities:

Geologist, environmental scientist.

Business people can go into hydraulic drilling equipment, heavy duty machinery, mineral deposit instruments, etc.

Building & construction:

  • This is definitely the money maker as 30% of Nigerian’s budget is going into capital expenditure: Power, Works and Housing: N555.88 billion.
  • The investment in construction of roads is the highest ever in 12 years inspite of the decline in oil prices.
  • Another 45 billion has also be earmarked for rebuilding north east Nigeria.
  • 12 federal roads are presently ongoing.
  • Opportunities & places to invest
  • Civil engineers, project Managers, Quantity surveyors and other building staff.
  • Machineries’, and equipment
  • Transportation.
  • Helmet, and other onsite props
  • Cements, sand, gravels, stones, asphalt and other building materials like nails and wood

More key points from 2018 budget… According to Buhari’s speech

  • Previous administration left a debt trap

Contractors owed trillions of naira are not willing to go back to work again except they are paid what was owed by Jonathan administration In some areas, we have made payments so projects may be completed; while in others, we are reconciling the liabilities to identify and settle legitimate claims.

  • Buhari administration is reviving abandoned projects and initiatives.

Food smuggling pact between Nigeria and Togo agreed in 2003. Bonny Bodo road …also abandoned

The completion of the 10 MW Wind Farm in Katsina State, a project that was abandoned since 2012; and

  • In the oil sector Niger delta militants win!

Special allocation for them in the budget, Buhari mentioned negotiations with them more than once in the budget. Niger delta ministry is getting almost 54 billion while NDDC almost 72 billion dollars.

  •  Tax evasion is super high.

Tax to GDP is 6%. The lowest in the world. That means only six of our gross domestic products is taxed. Some countries with no mineral resources survive mainly on taxation alone.

  • Power

Improved Megawatts of power but poor distribution networks holding down power supply, Nigeria is going green with African sovereign green bond, a first for the supply of clean energy

  • Subtle Jab sat the Nigerian senate

He hinted the Senate should expedite the passage of the Bill for the Nigeria Centre for Disease Control to enable us consolidate on the successes recorded to date

Regrettably, the late passage of the 2017 Budget has significantly constrained budget implementation and hopefully 2018 budget would be passed by the 1st of January.

  • MDAS not remitting revenues.

A key revenue shortfall was from Independent Revenues; only 155.14 billion Naira was remitted by September 2017 as against the projected pro-rated sum of 605.87 billion Naira. This represents a 74 percent shortfall, which is very disappointing.

That budget was long though.

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