Ministry of Defence would spend no less than N2.68 trillion (US$16.38 billion), in the next four years ending 2016.
According to a recent report, defence expenditure, which is budgeted at N359.73 billion (US$2.19 billion) this year, is expected to grow at 22 per cent a year to reach N780.64 billion (US$4.76 billion) indicating a total rise of 126.6 per cent by 2016.
The report titled, ‘The Nigerian Defence Industry – Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016’ and released by ICD Research/Strategic Defence Intelligence, indicated that the cumulative defence expenditure over the four year period is expected to be N2.68 trillion (US$16.38 billion).
Of the total expenditure, N2.38 trillion (US$14.55 billion) representing 88.8 per cent of the whole, would be invested in personnel and others, while the remaining US$1.83 billion is expected to be spent on equipment and infrastructure development costs.
The country’s heavy dependence on the export proceeds of crude oil, increasing oil prices would result in a high growth in GDP, even during the economic recession.