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.
- Recurrent Expenditure – N5.64 trillion
- Capital Expenditure – N4.125 trillion
- Debt Servicing – N3.324 trillion
- Statutory transfer – N496.528 billion
Nairametrics had 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
- Benchmark oil price of 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).
- Exchange rate of N379 per US Dollar.
- GDP growth projected at 3.0%
- Inflation closing at 11.95%
What you should know
- 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.
What this means
The signing of the bill before the end of the year indicates that the budget will run from January 1st to December 31st, 2021.