President Muhammadu Buhari on Thursday presented the 2021 Federal Budget Proposals to a joint session of the National Assembly. The budget tagged Budget of Economic Recovery and Resilience is estimated at N13.08 trillion.
Major highlights of the budget include;
1. The 2021 budget is predicated on the back of N379/USD exchange rate; oil benchmark of $40 barrel per day; and oil production estimate of 1.86 million barrel per day.
2. The 2021 Appropriation Bill, according to President Buhari was designed to further deliver on the goals of the Economic Sustainability Plan (ESP).
3. Total capital expenditure projected in the 2021 budget is estimated at N3.85trn, representing 29% of the aggregate expenditure.
4. N25 billion have been provided in 2021 Budget to fund the recently introduced N75 billion Nigeria Youth Investment Fund (NYIF).
5. Total revenue available to fund the 2021 Federal Budget is estimated at N7.886 trillion. Which includes Grants and Aid of N354.85 billion as well as the revenues of 60 Government-Owned Enterprises.
6. Oil revenue is projected at N2.01 trillion. Non-oil revenue is estimated at N1.49 trillion.
- The 2021 projected budget expenditure are as follow:
a. Non-debt Recurrent Costs of N5.65 trillion;
b. Personnel Costs of N3.76 trillion;
c. Pensions, Gratuities and Retirees’ Benefits of N501.19 billion;
d. Overheads of N625.50 billion;
e. Debt Service of N3.124 trillion;
f. Statutory Transfers of N484.49 billion; and
g. Sinking Fund of N220 billion (to retire certain maturing bonds).
8. The budget deficit will be financed mainly by new borrowings totaling N4.28 trillion, N205.15 billion from Privatization Proceeds and N709.69 billion in drawdowns on multilateral and bilateral loans secured for specific projects and programmes.
9. Statutory Transfers
a. Niger Delta Development Commission – N63.51 billion;
b. North East Development Commission – N29.70 billion;
c. National Judicial Council – N110.00 billion;
d. Universal Basic Education Commission – N70.05 billion;
e. Independent National Electoral Commission – N40.00 billion;
f. National Assembly – N128.00 billion;
g. Public Complaints Commission – N5.20 billion;
h. Human Rights Commission – N3.0 billion; and
i. Basic Health Care Provision Fund – N35.03 billion
10. Recurrent Expenditure
2021 recurrent cost estimate, allocated to paying salaries and overheads in MDAs providing critical public services. These include:
a. N227.02 billion for the Ministry of Interior;
b. N441.39 billion for the Ministry of Police Affairs;
c. N545.10 billion for Ministry of Education;
d. N840.56 billion for Ministry of Defence; and
e. N380.21 billion for Ministry of Health.
11. Debt Service
N3.12 trillion has been allotted to meeting debt service obligations in 2021. A total of N2.183 trillion has been set aside to service domestic debts while N940.89 billion has been provided for foreign debt service. N220 billion is provided for transfers to the Sinking Fund to pay off maturing bonds issued to local contractors and creditors.