Nigerian President Muhammadu Buhari has presented a budget of 33.868 billion dollars (about N10.33 trillion) for the 2020 fiscal year to the joint session of the country’s National Assembly.
Presenting the budget on Tuesday, 8 October 2019, in Abuja, Buhari said that the budget proposal was aimed at strengthening Nigeria’s macroeconomic environment; investing in critical infrastructure, investing in critical infrastructure, human capital development and enabling institutions, especially in key job creating sectors.
He said that the 2020 budget was also targeted at incentivising the private sector investment essential to complement the government’s development plans, policies and programmes; and enhancing the social investment programmes to further deepen their impact on those marginalised and most vulnerable Nigerians.
Giving the highlights of the budget, Buhari said the 2020 budget was based on the new VAT rate of 7.5 percent, up from five percent and that the budget was predicated on the oil price benchmark of 57 dollars per barrel, daily oil production estimate of 2.18 million barrels per day and an exchange rate of N305 to the dollar for 2020.
“We expect enhanced real GDP growth of 2.93 percent in 2020, driven largely by non-oil output, as economic diversification accelerates, and the enabling business environment improves. However, inflation is expected to remain slightly above single digits in 2020,” he said.
He said that N8.155 trillion was estimated as the total Federal Government revenue in 2020, comprising oil revenue of N2.64 trillion, non-oil tax revenues of N1.81 trillion and other revenues of N3.7 trillion. This is seven percent higher than the 2019 comparative estimate of N7.594 trillion inclusive of the Government Owned Enterprises.
On the breakdown of the budget, Buhari said that planned expenditure for 2020 was N10.33 trillion. The expenditure estimate includes statutory transfers of N556.7 billion, non-debt recurrent expenditure of N4.88 trillion and N2.14 trillion of capital expenditure (excluding the capital component of statutory transfers), while N2.45 trillion was earmarked for Debt service.
He, however, said that the finance minister would later give the breakdown of the budget proposals for 2020.