FEC approves 2021-2023 MTEF/FSP, projects N12.6trn budget for 2021

July 15, 2020 9:41 pm

PRESIDENT BUHARI PRESIDES OVER VIRTUAL FEC MEETING 20. President Muhammadu Buhari presides over a virtual FEC Meeting held at the Council Chambers, State House Abuja. PHOTO; SUNDAY AGHAEZE. JULY 15, 2020

The federal executive council (FEC) has approved the revised 2021-2023 medium-term expenditure framework and fiscal strategy paper (MTEF/FSP).

At its virtual meeting on Wednesday which was presided over by President Muhammadu Buhari at the council chamber of the state house, FEC approved a N12.66 trillion budget for each of the three fiscal years.

Clement Agba, the minister of state for budget and national planning, listed other projections in the budget as $40 per barrel oil benchmark, an oil production volume of 1.6 million barrel per day, an inflation rate of 11.9 percent, projected gross domestic growth rate of three per cent and revenue target of N7.50 trillion.

On projected revenue for 2021, he said: “Yes, I spoke of the various assumptions that have been made in terms of parameters and those assumptions are what drives revenues that we get and in terms of how you are able to reflate the economy and spend helps your GDP”.

“For Nigeria, it was projected that by the end of this year we should have the GDP top at -4.42 percent. However, with the stimulus, if properly done and executed, we expect that the GDP will improve to about negative -1.8 percent.

“So in terms of the revenue projection, for 2020 it was N5.84 trillion but for 2021 we expect that it will be N7.50 trillion.

“Even though the oil production is much lower than our capacity because we are restricted by the OPEC Plus quota in order to get the prices at par, we have brought in 63 government-owned enterprises (GOE).

“We are bringing them into the budget in order to be able to bring up additional N2.17 trillion into the budget, hence we are saying we are projecting a larger budget size for 2021 over and above the N10.84 trillion for the revised 2020 budget.

“When you look at the N7.5 trillion and the expectations to spend N12 trillion, yes definitely there will be gap and that gap has to be financed.

“Even in the 2020 budget we had provisions to repay debt and in 2021 there is a provision to repay debt. There is a sinking fund, we look at the ratio and ensure that we are able to pay our debts.

“Of course that is why we have the debt management office to run those numbers and advise us.”

Nigeria’s 2020 revised budget totals N10.8 trillion.