Africa’s most populous nation Nigeria has named her 2021 budget ‘Economic Recovery and Resilience’ – with her President Muhammadu Buhari saying revenue generation to fund annual budgets has been the greatest challenge faced by his administration.
The Nigerian leader while presenting the country’s 2021 budget said he has ordered supervising Ministers of Ministries Departments and Agencies in the country to ensure strict monitoring of revenue-generating agencies under their supervision. He has also asked the National Assembly to pay attention to the revenue as much as they do to the expenditure.
The Nigerian leader while presenting the country’s 2021 budget said he has ordered supervising Ministers of Ministries Departments and Agencies in the country to ensure strict monitoring of revenue-generating agencies under their supervision. He has also asked the National Assembly to pay attention to the revenue as much as they do to the expenditure.
“Revenue generation remains our biggest challenge,” Buhari said.
Earlier the Federal Executive Council (FEC) approved a sum of N13.09 trillion for the 2021 fiscal year, with a capital expenditure estimated at N2.083 trillion which represents 29 percent of the total budget.
He said the 2021 budget is based on an exchange rate benchmark of N379 to 1$ and crude oil production of 1.86 million barrels per day (including 400,000 barrels of condensate) at $40 per barrel, a GDP at 3 percent, and an inflation rate at 11.95 percent. Buhari said he has directed the Minister of Finance to finalize the Finance Bill and transmit same to the National Assembly for consideration and passage.
Some highlights of the 2021 budget show that the country’s legislature gets N128 billion, while the health ministry gets N380.21b. The education ministry budget has been increased by 65 percent to improve the quality of education of students. Buhari warned that government agencies that embark on fresh recruitment without authorisation will be sanctioned severely.
The Nigerian leader’s stance that all federal staff must be on the Integrated Payroll and Personnel Information System (IPPIS) platform before getting their salaries, may ensure that the long-standing battle between the federal government and the country’s university lecturers don’t end soon.
MDAs will receive N3.8 trillion for the execution of capital projects, while the capital budget is focused more on completing ongoing projects than the execution of new ones.
By Abel Ejikeme