Nigeria’s president, Muhammadu Buhari on Thursday, presented the N13.08 trillion budget estimates for the 2021 fiscal year to a joint session of the National Assembly for consideration and approval.
The budget is N2.28 trillion higher than the 2020 revised budget of N10.805 trillion, and has a total aggregate revenue projection of N7.89 trillion with a deficit of N4.48 trillion.
The budget proposal is predicated on N379 per dollar exchange rate; oil benchmark of $40 barrel per day and oil production volume of 1.86 million per day.
Inflation is projected at 11.95 percent; while Gross Domestic Product (GDP) growth rate is fixed at 3 percent.
According to the estimates, total capital expenditure projected in the budget is N3.58 trillion, representing 29% of the aggregate expenditure, a 24 percent rise from the 2020 budget.
Further breakdown of the budget shows that N5.66 trillion is for recurrent (Non-Debt) expenditure; N3.05 trillion for Personnel Costs; N350 billion for Special Intervention (Recurrent); and N20 billion for Special Intervention (Capital).
Sector by sector allocations:
Ministry of Power: N198 billion
Works and Housing N440 billion
Ministry of Defence N121 billion
Ministry of Defence N110 billion
Ministry of Water Resources N146 billion
Ministry of Education N127 billion
UBEC N70 billion
Ministry of Health N132 billion
Zonal Intervention Projects (ZIP) N100 billion
Niger Delta Development Commission (NDDC) N64 billion.
While presenting the budget, Buhari urged the lawmakers to pay as much attention to the government’s revenue generation, which he said had remained the major challenge of his administration.
He said the budget was prepared amid the global economic downturn occasioned by COVID-19 pandemic.