President Muhammadu Buhari got reelected in February 2019. His administration was saddled with the responsibility of designing the financial chart of the country.
Below are the major facts of the 2020 national budget that may have warranted applause for the Buhari-led government, brought contempt, or even bring you to the point of pity for the nation (All whichever way you see it).
- 2020 National Budget Got Presented & Approved Early Enough: President Buhari’s administration presented the budget to the legislature in October 2019.
The National Assembly approved it on Thursday, December 5, 2019. The budget was reached at a total of 10.59 trillion Naira ($35bn). It was recorded that the budget was the earliest of all four times in the history of Nigeria’s democratic dispensation that a Federal budget was passed early.
- It was Planned To Be Financed Through Debt: The national budget of 2020 was passed with a record deficit of 1.52 percent of the estimated gross domestic product – representing around 2.18 trillion Naira ($7.2bn) – to be financed through foreign and domestic borrowing. Borrowing did not just assume place.
- The National Assembly Raised the Plan: President Muhammadu Buhari presented the spending plan of 10.33 trillion ($31.3bn) but it was raised to 10.59 trillion by the legislature upon approval.
- The oil production was targeted at 2.3 million barrels per day for the benchmark of $57 per barrel.
- Education Got Least Capital Projects: The national budget of 2020 covered only a sum of N11. 6 billion for the sector’s capital projects.
- Coronavirus Happened: With no plans for any such pandemic, the Nigerian Federal government has since the outbreak of the novel coronavirus, pumped 6.5 billion, and then set aside 1trn and proposes N500 billion intervention fund still under scrutiny in the national assembly to revamp the healthcare sector.
- The Fall in Oil Price: At the fall in the price of oil to $30 per barrel in the international market, the Federal government slashed the budget to N10.27 trillion as against the initial N10.59 trillion. As at last CBN update on April 6, the private sector donations to the COVID-19 struggle has skyrocketed to a whopping sum of N21.588 billion
- The total deficit increased from N2.2 trillion to N5.18 trillion with borrowing from N1.59 trillion to N4.43 trillion.
- Oil production becomes reduced from 2.3 million per barrel to 1.7 million per barrel