NIGERIA'S 2009 BUDGET Was N3,101,813,750,626. That amount was approximately N146 million more than original amount presented by President Yar'Adua. This increase was apparently due to additions made by the President.

After much delay, President Yar'Adua finally presented the proposed 2009 budget of N2.87 trillion ($24 billion) to Nigeria's National Assembly. The budget, which reflects a 8.4% increase from the last budget, was apparently parsed down to account for the continuing drop in the price of oil, Nigeria's main source of revenue, and the current global slow down. Consequently, this, the second budget presented by the Yar'Adua administration, presents a deficit of N1.09 trillion or 3.95% of national GDP. However, the deficit will be financed by funds unspent from the 2008 budget. The government will also retrieve $200 million from the Nigerian trust fund at the African Development Bank and will issue $500 million worth of bonds, for 10 years, on the international capital market to further plug the deficit.

The budget announcement was received by the international markets with a thud. Nigeria's currency, the Naira, fell against the U.S. Dollar from $120 to $129.5. The additional announcement by the federal government that it failed to properly implement the 2008 budget, also affected the price of oil.

Senator Omisore wrote a letter to the Minister of Finance in which he criticized the $500 million bond plan, stating,

"Nigerians are becoming concerned that the country is inadvertently going back to the era of unbridled consummation of external loans, a practice for which the nation and her citizenry had suffered severely in the past."

The Senator insisted that loans will not assist Nigeria in achieving the development it seeks and given the recent $3 billion loan from the World Bank, the Senator and others may have some cause for concern. He went on to state,

"...research has shown that no developing country can ever attain the feat achieved by the current developed nations by relying perpetually on external loans, but through trade promotion and substantial foreign exchange earnings."