President Buhari on December 31, 2020, signed into effect, the Federal Government’s budget for the year 2021.
The Federal Government of Nigeria, for the 2021 fiscal year will be spending N13.588 trillion (Ghs 202 billion) on government expenses and programmes.
The N13.588 trillion 2021 budget is an increment of N505.61 billion (Ghs 7.5 billion) from the initial N13.082 trillion presented by the President to the National Assembly in October 2020.
The 2021 budget is also an increase of 31.9 per cent from the initial N10.3 trillion (Ghs 153 billion) approved by the National Assembly for the 2020 fiscal year.
Nigeria in its 2021 budget tagged “Budget of Economic Recovery and Resilience” projected both oil and non-oil revenue to be Ghs 31.2 billion and Ghs 22.2 billion respectively.
Recurrent expenditure represented 41.5 per cent (Ghs 83.8 billion) of the total budgeted amount, whereas capital expenditure represented 30.4 per cent (61.3 billion) of the total budget.
Breakdown of the budget
- Recurrent Expenditure – N5.64 trillion
- Capital Expenditure – N4.125 trillion
- Debt Servicing – N3.324 trillion
- Statutory transfer – N496.528 billion
The parameters & fiscal assumptions underpinning the 2021 budget
- Benchmark oil price of $40 per barrel.
- Daily oil production estimate of 1.86 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day).
- Exchange rate of N379 per US Dollar.
- GDP growth projected at 3.0%
- Inflation closing at 11.95%
