Nigeria budget 2021 – The Commerce Africa https://thecommerceafrica.com African Reneissance Mon, 21 Dec 2020 14:12:58 +0000 en-US hourly 1 https://wordpress.org/?v=5.9 Senate Increases 2021 Budget by N5.05bn, Passes N13.5trn https://thecommerceafrica.com/senate-increases-2021-budget-by-n5-05bn-passes-n13-5trn/ https://thecommerceafrica.com/senate-increases-2021-budget-by-n5-05bn-passes-n13-5trn/#respond Mon, 21 Dec 2020 14:12:56 +0000 http://thecommerceafrica.com/?p=2958 The Senate Monday passed the sum of N13.5 trillion appropriation bill for 2021 fiscal year.

The red chamber made an upward review of the Budget by N5.05 billion from the N13.08 trillion presented by President Muhammadu Buhari in October.

The passage of the budget was sequel to the consideration of a report by the Senate Committee on Appropriations, chaired by Senator Barau Jibrin (APC, Kano).

The Red Chamber also approved the sum of N496.5 billion as Statutory Transfers; N5.6 trillion as recurrent expenditure; N4.1 trillion as capital expenditure N3.3 trillion as debt servicing and N4.1 trillion as contribution to the Development Fund for capital expenditure.

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Budget 2021: N51bn Earmarks for Capitals in FMITI https://thecommerceafrica.com/budget-2021-n51bn-earmarks-for-capitals-in-fmiti/ https://thecommerceafrica.com/budget-2021-n51bn-earmarks-for-capitals-in-fmiti/#respond Fri, 09 Oct 2020 08:05:42 +0000 http://thecommerceafrica.com/?p=2252 The Nigeria’s Federal Ministry of Industry, Trade and Investment is allocated N51 billion fo capital projects in the 2021 fiscal year, President Muhammadu Buhari on Thursday told a joint session of the National Assembly in Abuja.

Other key capital spending allocations in the 2021 Budget include Power: N198 billion (inclusive of N150 billion for the Power Sector Recovery Plan); Works and Housing: N404 billion; Transportation: N256 billion;
Defence: N121 billion; Agriculture and Rural Development: N110 billion; Water Resources: N153 billion; Education: N127 billion;
Universal Basic Education Commission: N70 billion; Health: N132 billion; Zonal Intervention Projects: N100 billion; and Niger Delta Development Commission: N64 billion.

The 2021 budget amounts to N13.08 trillion is anchored on oil benchmark price of $40 per barrel with recurrent expenditure of N5.65 trillion, personnel cost of N3.76 trillion and Debt Service of N3.12 trillion.

Statutory transfers has been put at N484.4 billion while Pension, Gratuities & Retirees Benefits was put at N500.19 billion.

A projected inflation rate of 11.95 per cent and GDP growth rate of 3.00 per cent was considered.

The president budgeted N128 billion for the National Assembly and N63.5 billion for the Niger Delta Development Commission.

Other allocations include N29.7 billion for the North East Development Commission, N110 billion for the Nigerian Judicial Council, N70.05 billion for UBEC and N40 billion for the electoral umpire, INEC.

Mr Buhari said the 2021 budget is titled ‘Economic Recovery and Resilience’ with the aim of promoting economic diversity.

According to President Buhari, the Recurrent Expenditure is allocated to paying salaries and overheads in MDAs providing these critical public services.
“These include: N227.02 billion for the Ministry of Interior; N441.39 billion for the Ministry of Police Affairs; N545.10 billion for Ministry of Education; N840.56 billion for Ministry of Defence; and N380.21 billion for Ministry of Health.

The President added that “Personnel cost is still our largest single item of expenditure. In the 7 months to 31st July 2020, it accounted for 34 percent of total Federal Government spending and is projected at 33 percent of 2021 expenditure”

To check the incidence of payments to non-existent personnel and unauthorised allowances, Buhari said “only Federal staff that have been captured on the Integrated Personnel Payroll Information System (‘IPPIS’) platform will receive salaries.”

“All agencies have been directed to ensure that they obtain all necessary approvals before embarking on any fresh recruitment. Any breach of these directives will be severely sanctioned”, he said.

On Debt Service, the President said “we remain committed to meeting our debt service obligations. Hence, we have provisioned N3.12 trillion for this in 2021, representing an increase of N445.57 billion from N2.68 trillion in 2020. A total of N2.183 trillion has been set aside to service domestic debts while N940.89 billion has been provided for foreign debt service. N220 billion is provided for transfers to the Sinking Fund to pay off maturing bonds issued to local contractors and creditors.”

Total overhead costs of MDAs and Government Owned Enterprises are projected to rise to N625.50 billion in 2021, mainly due to the inclusion of the overheads of an additional 50 Government Owned Enterprises. Overhead provisions have also been made for newly created agencies. To keep a tab on running costs, MDAs must adhere to extant expenditure controls.

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Nigeria Budgets N13 trillion for 2021 Fiscal Year https://thecommerceafrica.com/nigeria-budgets-n13-trillion-for-2021-fiscal-year/ https://thecommerceafrica.com/nigeria-budgets-n13-trillion-for-2021-fiscal-year/#respond Thu, 08 Oct 2020 12:42:00 +0000 http://thecommerceafrica.com/?p=2249 Nigeria’s President Muhammadu Buhari Thursday presented the 2021 budget to a joint session of the legislatures in Abuja.
The budget amounts to N13.08 trillion is anchored on oil benchmark price of $40 per barrel with recurrent expenditure of N5.65 trillion, personnel cost of N3.76 trillion and Debt Service of N3.12 trillion.

Statutory transfers has been put at N484.4 billion while Pension, Gratuities & Retirees Benefits was put at N500.19 billion.

A projected inflation rate of 11.95 per cent and GDP growth rate of 3.00 per cent was considered.

The president budgeted N128 billion for the National Assembly and N63.5 billion for the Niger Delta Development Commission.

Other allocations include N29.7 billion for the North East Development Commission, N110 billion for the Nigerian Judicial Council, N70.05 billion for UBEC and N40 billion for the electoral umpire, INEC.

Mr Buhari said the 2021 budget is titled ‘Economic Recovery and Resilience’ with the aim of promoting economic diversi

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Nigeria Proposes N12.66trn Budget for 2021 https://thecommerceafrica.com/nigeria-proposes-n12-66trn-budget-for-2021/ https://thecommerceafrica.com/nigeria-proposes-n12-66trn-budget-for-2021/#respond Wed, 22 Jul 2020 07:28:17 +0000 http://thecommerceafrica.com/?p=1191

The federal government has proposed the sum of N12.66trillion as aggregate expenditure for 2021 on a deficit of N5.16 trillion to be financed by total loan packages of N4.28 trillion.

The proposals as contained in the 2021- 2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) forwarded to the Senate by President Muhamnadu Buhari for approval, targets N481.41billion as statutory transfers, N5.75trillion as recurrent expenditure, N3.33 trillion for capital expenditure and N3.12 trillion for debt servicing.

Critical parameters and assumptions upon which the proposals are based as contained in the documents acknowledged by the President of the Senate, Ahmad Lawan are $40 as oil price benchmark,  1.86 million barrels as oil production per day,  N360 to US dollar as exchange rate etc.

Also included in the proposals are N500 billion intervention fund against COVID-19 pandemic, N52 billion for Public Works Programme, N32.46 billion for Social Intervention Programme, N5 billion as bail out for the aviation sector, N60 billion for maintenance of roads through direct labour across the six geo-political zones etc. 

Aside the N4.28 trillion, the federal government as proposed in the documents, targets the sums of N205.15 billion from privatisation proceeds to fund the budget.

President Buhari in a letter attached to the documents said:  “It is with pleasure that I forward the 2021 – 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for the kind consideration and approval of the Distinguished Senate.

“Let me seize this opportunity to express my deep gratitude for the cooperation, support and commitment of the leadership and distinguished members of the Senate in our collective efforts to sustain the restoration of the January – December financial year.

“In line with our commitment, we have worked very hard to achieve an earlier submission of the MTEF/FSP. This is to allow the National Assembly enough time to perform its important constitutional duty of reviewing the framework.

“I herewith forward the 2021 – 2023 MTEF/FSP as the 2021 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2021 – 2023 MTEF/FSP. I seek the cooperation of the National Assembly for expeditious legislative action on the submission.”

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