President Goodluck Jonathan signs the 2012 budget into law today

President Goodluck Jonathan signs the 2012 budget into law today, keeping all the key figures the same as approved by parliament last month as expected.

Jonathan said total expenditure would be 4.697 trillion naira ($30 billion) with an additional 180 billion naira for special programmes, which takes spending to 4.877 trillion naira.

"It is a budget of fiscal consolidation, inclusive economic growth and job creation," Jonathan told reporters at the signing ceremony.

Delays to the budget, widespread corruption and a patronage culture mean many of the capital projects proposed in budgets never get completed, leaving infrastructure dilapidated. Jonathan, like his predecessors, pledged to change this culture.

"One of the main goals of this administration is to complete and exit the large stock of ongoing projects and programmes. Thus, the 2012 budget is focused on completing viable ongoing projects," he said.

Capital expenditure was 1.34 trillion naira, little more than a quarter of the total, meaning Africa's biggest oil producer spends most of its money on keeping government running.

The spending plans assume a $72 a barrel benchmark oil price, up from $70 in the proposal submitted by Finance Minister Ngozi Okonjo-Iweala in December, boosting revenues available to the government.

Nigeria saves money it earns over the benchmark oil price to cushion the economy against price shocks and Central Bank Governor Lamido Sanusi has said it should not go above $70 barrel.

There remains scepticism among economists over the government's ability to contain spending, reflected in a continual raiding of its oil savings in its Excess Crude Account over the past few years, despite oil prices stuck at historic highs.

Nigeria passed a law last year to set up a sovereign wealth fund but powerful state governors have tried to block its launch and there is no clarity on its status.

The wealth fund was supposed to replace the Excess Crude Account, which can be too easily dipped into. The goal was to save for future generations, finance infrastructure projects and provide a stabilisation fund in case oil prices fall.

But reform plans have stalled since Jonathan was elected last year. A bill aimed at overhauling the corrupt energy sector has been stuck in parliament for years, while the proposed wealth fund, constitutional reforms and power privatisation plans are months behind schedule.

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