ZCZC
BCN-14
NIGERIA-ECONOMY-BUDGET
Nigeria’s Buhari signs off on record budget
ABUJA, Dec 18, 2019 (BSS/AFP) – Nigerian President Muhammadu Buhari on
Tuesday signed off on a record budget, ratcheting up ambitious spending goals
as the country struggles to bolster its stuttering economy.
The budget for 2020 was well up from last year at 10.6 trillion naira —
$34.6 billion (31 billion euros) at the central bank’s official exchange
rate.
It was based on a projected price for crude oil of $57 per barrel and
output of 2.18 million barrels a day in Africa’s leading producer.
The government predicted growth would reach 2.93 percent as Nigeria tries
to shake off the hangover after emerging from its deepest recession in
decades in 2017.
Buhari was elected for a final four-year term in February on pledges to
boost the economy and create jobs for Nigeria’s young and rapidly expanding
population.
But the government has consistently failed to fulfil its ambitious
spending targets in previous years.
“With today’s global oil market outlook and our strategic approach to
revenue growth, we are optimistic that we will be able to finance the 2020
budget,” Buhari said as he signed it into law.
The authorities are trying to increase revenues as they look to wean
Nigeria, one of Africa’s largest economies, off oil.
They plan to increase value-added tax from 5 to 7.5 percent.
Parliament increased the budget from the 10.33 trillion naira spending
plan that Buhari presented to it in October.
Lawmakers said the increase was aimed at increasing funds for national
security, road infrastructure, mines and steel development, health and other
social needs.
For the first time in years, the budget was passed and approved on
schedule as Buhari’s ruling party now holds sway in parliament.
Debt servicing is expected to gobble up some 2.3 trillion naira of
expenditures in 2020, while the deficit will be 1.52 percent of GDP.
BSS/AFP/HR/1005