Nigeria proposes US$27bn budget for 2020

Minister of Finance, Budget and National Planning of Nigeria, Zainab Ahmed

The Federal Government of Nigeria will propose to the National Assembly about N9.79 trillion as total expenditure in the 2020 budget, the Minister of Finance, Budget and National Planning, Zainab Ahmed, has said.

Mrs Ahmed announced this on Tuesday in Abuja at a public consultation forum with civil society groups and agencies on the draft 2020-2022 Medium Term Expenditure Framework.

The amount represents an increase of 9.75 per cent over N8.916 trillion spending for 2019.

The projection includes a proposed revenue of about N7.64 trillion and a total proposed fiscal deficit component of about N2.142 trillion.

She said the key assumptions of the budget were based on an oil production capacity of 2.18 million barrels per day, crude oil price of US$55 per barrel, against US$60 per barrel last year, and exchanged rate of N305 to the dollar.

Also, she said inflation rate for the year is projected at an average of 10.81 per cent, with nominal consumption figure of about N122.75 trillion and nominal gross domestic product of N142.96 trillion. The GDP growth rate is put at about 2.93 per cent.

On the expenditure, the minister said debt service is projected to increase from N2.14 trillion in 2019 to about N2.45trillion; Statutory Transfer of N526.46 billion, from N502.1 billion in 2019; and sinking fund of N296 billion, from N110billion.

Also, recurrent non-debt appropriation was put at about N4.57trillion against N4.39 trillion in the 2019 Budget.

A breakdown of the non-debt proposal, the minister said, includes Ministries, Departments and Agencies (MDAs) personnel cost of N2.675 trillion; Government-owned enterprises (GOEs) personnel costs (N218.8 billion; overheads for MDAs (N280.3 billion; overheads of GOEs (N146.14 billion).