Buhari to present N13.08tr 2021 Budget Thursday

By Bolaji Ogundele, Abuja

Nigeria’s 2020 N13.08 trillion budget estimates approved on Wednesday by the Federal Executive Council (FEC) will be transmitted to the National Assembly on Thursday.

Minister of Finance, Budget and National Planning Mrs Zainab Ahmed, who stated this after the FEC meeting at the Presidential Villa, said the estimate will run on a projected $40 per barrel oil benchmark

Also projected are: oil production of 1.8 million barrels per day, 400,000 barrels of condensate a Gross Domestic Product (GDP) growth at three per cent, inflation target at 11.95 per cent foreign exchange at N379 to dollar.

There is also a N7.89 trillion revenue projection and N4.489 trillion fiscal deficit.

She was with Minister of State for Budget and National Planning, Mr Clement Agba; Minister for Information and Culture Lai Mohammed; and Director-General of the Budget Office, Ben Akabueze. The projected Capital Expenditure for the year is N2.083 trillion.

On the performance of the 2020 Budget as at July, she said  the revenue performance was at 68 per cent, while expenditure stood at 92.3 per cent.

She added: “We do expect that Nigeria’s economy will recover to the path of growth early in 2021, so the total aggregate revenue that is projected for the 2021 Budget is N7.89 trillion. What is unique about the 2021 Budget is that we have brought in the budgets of 60 government-owned enterprises. If you recall, in 2020, we brought in 10, now we have brought in 60.

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”These 60 exclude NNPC and the Central Bank and the reason being NNPC, a national oil company, internationally national oil companies are not included in the national budget. Also, the CBN is an autonomous body. Only those two are excluded, 60 government-owned enterprises included. That is to say their revenue and all categories of expenditure are now integrated in the Budget.

”We have a total aggregate revenue of N7.89 trillion and also an aggregate expenditure of N13.08 trillion for 2021. There’s a fiscal deficit of N4.489 trillion, this represents 3.64%, slightly above what is required by the Fiscal Responsibility Act of three per cent and also to report that the total capital expenditure that is projected in the Budget is 29 per cent of the aggregate expenditure.

”This is an improvement over the 24% that we had in the 2020 Budget, but slightly below the 30% that we targeted in the economic recovery.

”Just to clarify that the 1.86 million barrels per day crude oil production includes 400,000 condensate, so we have complied with the OPEC quota, which is placed at about 1.5 million barrels per day. So, the 1.46 is in meeting with the OPEC quota.

”The details of the budget will be provided to the country after Mr President submits the budget which we hope might be on the 8th of October.

Minister of State Agba said the administration already had templates set to accelerate the recovery of the economy from the shock inflicted by COVID-19

”You talked about the growth rate to be very ambitious. First, we have to use modern approach and this is done by NBS, when you consider the economic sustainability plan which is also going to run for another six months next year, remember we have the N2.3 trillion stimulus.

”The economy too has also now been opened, the lock down has been lifted, economic activities have picked up and we have also selected some sectors in the economy that we are putting in a lot money that will create activities and hen the multiplier effect of it”, he explained.

Speaking on the fiscal deficit of N4.489 trillion on the Budget and the plan to break even, Agba said government hoped that sources of revenue generation, including oil and gas, would perform positively in the course of the year.

Akabueze said all agencies of government has received not less than 50 per cent of their capital budget for the year.

”As the Honourable Minister stated earlier on, the overall budget implementation, expenditure-wise, as of July, was 92.3 per cent. And she pointed out items like debt service, personnel cost performed 100  per cent. Capital budget as of that day has reached 60 per cent performance and that is what then brought down the overall average to 92 per cent.