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The budget proposal of N13.08 trillion for the 2021 fiscal year which President Buhari presented to the Federal Executive Council, FEC, earlier has now been approved.
The Minister of Finance, Budget and National Planning Mrs Zainab Ahmad read a list covering a projection for several budget factors for 2021 in Nigeria – expenditure, revenue, exchange rate and more.
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The approval of the Medium Term Expenditure Framework (MTEF), the Fiscal Strategy Paper (FSP) quotes a projected total revenue aggregate of N7.9 trillion in the 2021 budget.
The projected capital expenditure for the year is at N2.083 trillion according to Zainab Ahmad.
2021 Budget list in Nigeria – Exchange rate, oil production and crude oil benchmark
President Buhari presided over the meeting of the council on Tuesday. There, Zainab Ahmad stated that the budget is to enable the country to attain more inclusive growth.
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Also, it will help in the achievement of the key objectives of the government. These include creating jobs, stimulating the economy, enhancing growth and creating infrastructure and manufacturing. She said it expects that the economy will recover to the “path of growth” early in 2021.
FEC also pegs the benchmark oil price at $40 dollars per barrel in the 2021 budget.
Crude oil production in the revised 2020 budget was lowered to N1.94 million barrels per day from N2.18 million in an announcement by Zainab Ahmad.
For the 2021 budget, oil production is to resume at N1.86m BPD.
The FEC further moved the FX benchmark from N360/$ which it was after the 2020 revised budget, to N379/$. The approved 2021 budget projects a GDP of 3% with a nominal growth to N138.415 billion by 2023. Inflation rates of 11.95%.
Nigeria’s nominal Gross Domestic Product (GDP) is currently at N130.836 billion in 2020. However, according to the FEC, what it expects for 2021 is an increase to N132.1254 billion.
The budget will go to the National Assembly in October.
