Nigeria cabinet approves N13.08 trln budget proposal for 2021
Nigeria on Wednesday said it plans to spend N13.08 trillion in 2021, higher than the N12.66 trillion proposed in the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper approved by the Federal Executive Council (FEC) in July.
At the end of FEC meeting on Wednesday, the minister of finance and Budget Zainab Ahmed told journalists that the oil benchmark has been pegged at $40 per barrel in the 2021 budget proposal.
The Minister said the budget proposal is predicated on N379 per dollar exchange rate; oil benchmark of $40 barrel per day; and oil production volume of 1.86 million per day.
Analysts said the disparity between the proposal in the MTEF and the latest approval could be due to the devaluation of the naira, which will translate to more naira receipts on oil revenue as a result of the exchange rate gain.
The Central bank of Nigeria (CBN) has devalued the naira twice since March, first from N307 to the naira to N360 and then N379 to the dollar on the official window.
What that means is that Nigeria will earn more naira from the exchange of oil revenue into the local currency at the prevailing exchange rate.
President Mohammadu Buhari is expected to present the budget outlay before the joint sitting of the National Assembly next week for approval.
, who was accompanied by Minister of State for Budget and National Planning, Clement Agba; the Minister for Information and Culture Alhaji Lai Mohammed and the Director-General of the Budget Office, Mr Ben Akabueze, also said the projected Capital Expenditure for the year is projected at N2.083 trillion.
Other indices projected to tune the 2021 Budget include oil production at 1.86 million barrels per day, including 400,000 barrels of condensate; Gross Domestic Product (GDP) growth target at 3%; inflation target at 11.95%; and foreign exchange set at N379 to one dollar