On 8 October 2020, President Mohammadu Buhari presented the 2021 Budget to the National Assembly. The estimate for expenditure is NGN13.082 trillion, while revenue is NGN7.886 trillion. The fiscal deficit is NGN5.196 trillion: an increase of 4% compared to the prior year’s figure. President Buhari also disclosed that the Honorable Minister of Finance, Budget, and National Planning would pass the Finance Bill 2020 with the 2021 Appropriation Bill. The Finance Bill 2020 will provide fiscal incentives as well as align with the 2021 revenue projections.
Here are the fiscal parameters and a summary of the 2021 budget.
|Assumption||2020 Revised Budget in Q2 2020||2021 Proposed Budget||Change|
|Benchmark oil price||US$28 per barrel||US$40 per barrel||43%|
|Oil production volume (bpd)||1.80 million||1.86 million||3%|
|Average exchange rate||₦360/ US$1||₦379/ US$1||5%|
|GDP Growth rate (%)||-4.42||3||168%|
|Capital expenditure||₦2.49 trillion||₦3.604 trillion||46%|
|Statutory transfer||₦0.43 trillion||₦0.484 trillion||13%|
|Debt service (inclusive of sinking fund)||₦2.95 trillion||₦3.344 trillion||13%|
|Recurrent expenditure (non-debt)||₦4.94 trillion||₦5.65 trillion||14%|
|Total revenue||₦5.84 trillion||₦7.886 trillion||35%|
|Total expenditure||₦10.81 trillion||₦13.082 trillion||21%|
|Fiscal deficit||₦4.98 trillion||₦5.196 trillion||4%|
The 2021 Budget aims to achieve Economic Recovery and Resilience. This concept is to attain Economic Sustainability Plan goals, accelerate the economic recovery rate, and enhance economic diversification, competitiveness, and social inclusion.
To download the 2021 Budget proposal, click here.