The Appropriation bill of N10.594 trillion signed into law by President Muhammadu Buhari in December 2019 has been cut down by 0.675%.
The Federal Government of Nigeria on the 14th May, approved a 2020 Nigerian budget review. The revision featured a N71.5billion reduction from the N10.594 trillion budget, bringing it to N10.523 trillion budget, during a virtual FEC meeting at the State House.
The amendment was announced by the Minister of Finance Budget and National Planning, Mrs Zainab Ahmed, during her briefing with the State House correspondents after the meeting.
Other highlights of the 2020 Nigerian Budget Review
- Mrs Zainab Ahmed mentioned that an amendment to the Medium Term Expenditure Framework(MTEF) for 2020-2022 was approved.
- The price of crude oil has been fixed at $25 per barrel, with crude oil production at 1.94 million barrels per day and an exchange rate of N360 to $1. She explained the rationale behind the revision and approval.
“This is because, as we cut down the size of the budget, we also have to bring in new expenditure previously not budgeted, to enable us adequately respond to the COVID-19 pandemic.
“The Federal Government in this budget will have direct revenue of funding the budget of N5.158 billion.
“The deficit to this budget N5.365 trillion and this will be financed by both domestic as well as foreign borrowing. “The foreign borrowing we are doing for 2020 are all concessionary loans from the IMF which has already been approved and has crystallized, from the World Bank, Islamic Development Bank as well as Afri- EXIM bank.
“There will also be some drawdown of previously committed loans for major ongoing projects that we will be drawing from both existing facilities as well as some special accounts with the approval of Mr. President and the National Assembly. And also revenue that we are expecting to realize from privatisation.
“So, the borrowing, the multilateral loans draw down coming from special accounts and coming from the privatization will fund the fiscal deficit of N5.365 trillion that we have in the proposed amendment of the 2020 budget.”
- The minister also mentioned the approval of the purchase of three locally-manufactured boats for the Nigeria Customs Service for its surveillance and anti-corruption activities on the maritime waters.
Hinging on this, she hinted on the need to encourage made in Nigeria products to boost the economy, especially during this pandemic period.
“On prioritization of made in Nigeria products, as you know the President (Muhammadu Buhari) has set up an economic stimulus committee chaired by the Vice President (Prof. Yemi Osibajo). The work of the committee is to develop 12 months economic stimulus plan and we are at the final stage of that work.
“We have prioritised spending in that plan to use and consume made in Nigeria. For example some of the public works projects that will employ a lot of our youths is to be done using strictly our raw materials, so we don’t have to import bitumen for example to build our roads.
“Some of the FEC memos that were taken given today have been in council waiting in the queue for a couple of months now. The one for transport is not new, it didn’t just come today and council felt it should go because it’s been there for a long time.
“But, we have got approval from Mr. President that spending as much as possible should be made in Nigeria on goods and products that are produced in Nigeria, so that it saves our foreign exchange and also helps to grow the economy.”
- Also, the minister said the request of $80 million loan from the Islamic Development Bank on behalf of the Ebonyi State government was approved by FEC.”