Nigeria’s National Assembly Approves $34.4bn Budget for 2021

Nigeria’s legislature on Monday approved the sum of N13.588 trillion (about $34.4bn) as the country’s 2021 budget and was increased by lawmakers by N505 billion (about $1.3bn).

Both chambers of the National Assembly based the country’s budget on an approved exchange rate benchmark of N379/$1 and crude oil production of 1.86 million barrels per day (including 400,000 barrels of condensate) at $40 per barrel.

In a special plenary on Monday to mark the end of the year, lawmakers passed the budget out of which N496 billion (about $1.3bn) will be for statutory transfers for agencies such as the National Assembly and INEC which is under the first line charge.

President Mohammadu Buhari had in October presented the 2021 budget of N13.08 trillion to a joint session of the national assembly.

The capital expenditure in the budget presented by the president was estimated at N2.083 trillion which represents 29 percent of the total budget.

However, the increase by the lawmakers will now see capital expenditure in the budget increased to N4.125 trillion (about $10.5bn).

The lawmakers also approved N3.3 trillion (about $8.4bn) for debt service, N5.6 trillion for Recurrent (Non–Debt) Expenditure

While presenting his report, Jibrin Barau, Chairman of the committee on appropriation noted that the COVID-19 pandemic affected all sectors of the economy.

He noted that the executive arm of government could present a supplementary budget owing to the fact that the country’s crude oil price is on the rise.

“That the impact of COVID-19 has affected all facets of life. There is a remarkable increase in Nigeria’s oil price. In view of increasing oil prices, the executive may wish to submit a supplementary bill to lift the country out of recession,” Senator Jibrin said.

By Abel Ejikeme

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