President Muhammadu Buhari has signed the 2021 Appropriation Bill of N13.588 trillion into law today, 31st December 2020. The budget estimate increased by N505.61 billion from the initial N13.082 billion presented by the President to the National Assembly earlier in October. . The signing of the bill before the end of the year indicates that the budget will run from January 1st to December 31st, 2021.
The breakdown of the budget shows the recurrent expenditure is N5.64 trillion while the capital expenditure –is N4.125 trillion as debt Servicing stands at N3.324 trillion and statutory transfer is N496.528 billion
It had been reported that the Nigerian Senate agreed to pass the appropriation bill of N13.588 trillion, indicating an increase of 31.9% from N10.3 trillion approved for the 2020 fiscal year . The parameters & fiscal assumptions underpinning the 2021 appropriation bill shows the government benchmark the oil price at 40 US Dollars per barrel.
Daily oil production estimate of 1.86 million barrels (inclusive of Condensates of 300,000 to 400,000 barrels per day while the Exchange rate is put at N379 per US Dollar .. GDP growth projected at 3.0% and inflation closing at 11.95%
Recurrent expenditure (N5.64 trillion) represents 41.5% of the total budgeted amount while the N4.125 trillion budgeted for capital expenditure represents 30.4% of the total budget. The 2021 budget is tagged “Budget of Economic Recovery and Resilience”. Oil revenue for the year is projected at N2.01 trillion, while Non-oil revenue is estimated at N1.49 trillion
