46. The federal executive meeting had been on hold for a while due to the challenges posed by the coronavirus infection which is usually worsened by physical meetings. Overhead costs are projected at N426.6 billion in 2020.
This is driven by investor confidence, oil production recovery in key exporting countries, sustained strong agricultural production as well as public investment in non-dependent economies. We have adopted a conservative oil price benchmark of US$57 per barrel, daily oil production estimate of 2.18 mbpd and an exchange rate of N305 per US Dollar for 2020. As per the OPEC+ alliance agreement, such non-compliance is to be subsequently sanctioned with a commensurate reduction in volumes. What is fundamentally a public health crisis has led to economic recessions of historic proportions in several economies drawing comparisons with the Great Recession of this century and the Great Depression of the prior century. 26. By consensus, Nigeria's revenue of N8.15tn is inadequate to fund the N10.33tn proposed expenditure, leaving a deficit of N2.18tn.
While the base case scenario indicates a contraction of 4.5% in 2020, the worst-case scenario forecasts a GDP contraction of 7%. NNPC discloses basis for employment and managerial progression in the oil firm.
He said the COVID-19 pandemic delayed the voter registration exercise and CVR is a national exercise that requires the mobilization of a lot of equipment, materials, and personnel. FEC has approved the review to the 2020 budget and the Medium Term Expenditure Framework for 2020-2022 as recommended by the ministry of finance. Our fiscal reforms shall introduce new performance management frameworks to regulate the cost to revenue ratios for Government Owned Enterprises, which shall come under significant scrutiny. Distinguished and Honourable Members of the National Assembly, you will recall that the 2019 ‘Budget of Continuity’ was based on a benchmark oil price of US$60 per barrel, oil production of 2.3 mbpd, and an exchange rate of N305 to the United States Dollar. Delivered By: At the Joint Session of the National Assembly, Abuja. Mr. Senate President, Mr. Speaker, Distinguished and Honourable Members of the National Assembly, this speech would be incomplete without, once again, commending the patriotic resolve of the 9th National Assembly to collaborate with the Executive in the effort to deliver inclusive growth and enhance the welfare our people. The economic environment remains very challenging, globally. The provision of N65 billion for the Presidential Amnesty Programme has been retained in the 2020 Budget. Who stands to benefit from the estimated ₦250bn INEC budget? READ: Japan grants $9.4 million to Nigeria for the provision of medical equipment. In compliance with the provisions of the 2018 Appropriation Act, we implemented the 2018 capital budget till June 2019. 13. They asked that the officials ensure it is functional so that the President would have no need to travel abroad for medical tourism. The additional revenues will be used to fund health, education and infrastructure programmes. This is 7 percent higher than the 2019 comparative estimate of N7.594 trillion inclusive of the Government Owned Enterprises. On the flip side, the devaluation of the official exchange rate as reflected in the revised budget would translate into more revenues in local currency terms, thereby providing some revenue boost. The WTO has announced the postponement of its November 9 meeting which was scheduled to publicly announce the new DG. On October 8, 2019, President Muhammadu Buhari presented the 2020 Budget and Finance Bill to the National Assembly for consideration and passage into law. 14. The increase is largely due to favourable prices of crude oil in the international market, minimal disruption of crude oil production given the stable security situation in the Niger Delta region and our import substitution drive, especially in key commodities.
12. The economic growth rate of the nation remains lackluster since the country exited recession in the second quarter of 2017, also the slow growth continues in the year 2019 with real growth rate of 1.94% in the second quarter of the year.
If you use the official exchange rate ($1 for N310), it moves to $33.3 billion. The revised 2020 national budget, which was passed by the National Assembly in June, was signed by President Muhammadu Buhari today. FEC has approved the review to the 2020 budget and the Medium Term Expenditure Framework for 2020-2022 as recommended by the ministry of finance. Ibrahim Gambari in attendance [PHOTO CREDIT: @BashirAhmaad]. Mele Kyari, the Head of Nigeria’s state oil company, the Nigerian National Petroleum Company (NNPC) conceded that the country had exceeded its quota in May 2020 due to technical challenges but aims to achieve full compliance by July. A WTO document seen by Reuters said: “For reasons including the health situation and current events, delegations will not be in a position to take a formal decision on 9 November.”, Reuters also reported that WTO insiders said the delay was because there was “no indication the Trump administration – which will continue to govern trade policy in the weeks ahead irrespective of any U.S. election result – had switched its support to Okonjo-Iweala.”. Based on these parameters, we projected a deficit of N1.918 trillion or 1.37 percent of Gross Domestic Product.
“At exactly 11:04am today, President @MBuhari signed into law, the revised N10.8 trillion budget for the year 2020,” Ahmad tweeted. 41. I am confident that the benefits of these new Ministries as it relates to efficient and effective service delivery to our citizens significantly outweighs their budgeted costs. “It has come to my attention that for reasons including the health situation and current events, delegations will not be in a position to take a formal decision on 9 November,” WTO General Council Chairman, David Walker, announced on Friday. This represents 70 percent of the budgeted deficit for the full year. The budget has new benchmarks which now includes $25 per oil barrel, and a target production rate of 1.94 million barrels per day and then an exchange rate of N360 to $1, Finance minister Zainab Ahmed said while briefing State House correspondents on Wednesday. The bulk of the increment within the new budget is channelled into recurrent spending and debt service – at ₦99 billion and ₦226 billion respectively, whereas capital expenditure receives a marginal boost of ₦23 billion and statutory allocation was revised downwards significantly. The INEC boss, who said that the exercise is expected to gulp a sum of N1billion, affirmed his support for diaspora voting and called on the National Assembly to amend the Electoral Act to accommodate diaspora and early voting. He added that the move was targeted at boosting power supply in Taraba and Benue states as well as the entire north-eastern region of the country. We will reward exceptional revenue and cost management performance, while severe consequences will attend failures to achieve agreed revenue targets. Thus, Nigeria has found itself grappling with a dual crisis – an oil crash and the pandemic with all its attendant economic ramifications. Get the latest content delivered to your inbox.. Reserve a seat in our professional accounting and tax training, Copyright 2020 - Bomes Resources Consulting, On October 8, 2019, President Muhammadu Buhari presented the, lowering cases of regressive taxation and. Recurrent spending must be kept at bay, and productive capital expenditure, prioritized. 48. 20. Oil production was equally revised downwards to 1.8million barrels per day (mbpd) from 2.18 mbpd due to the OPEC quota.
It is indeed not sustainable. I therefore seek your support in passing into law two Petroleum Industry Executive Bills I will be forwarding to you shortly. Specifically, oil revenues were below target by 49 percent as at June 2019. Nearer to home, however, Sub-Saharan Africa is projected to continue to grow from 3.1 percent in 2018 to 3.6 percent in 2020. This 67 percent increase in funding is done to enable the Commission to perform its functions more effectively. Debt service is estimated at N2.45 trillion, and provision for Sinking Fund to retire maturing bonds issued to local contractors is N296 billion. The State House official at the appearance before the committee, presented a budget of N19.7 billion for 2021, out of which N1.3 billion was proposed for the State House Clinic. As such, only recurrent expenditure items have been implemented substantially. Budget deficit is projected to be N2.18 trillion in 2020. And the consequence for fiscal indiscipline is lethargic growth or in Nigeria’s case another recession in just four years, thus creating a pattern of economic omens in leap years. However, inflation is expected to remain slightly above single digits in 2020. a. See our, Q2 2020 GDP- NIGERIA RECORDS A -6.10% DECLINE, THE NIGERIAN ECONOMY GROWS BY 1.87% IN Q1…. 33. Between 2017 and 2018, he traveled abroad at least thrice for medical reasons and in fact, one of the trips lasted for over 100 days. Judging by the 2020 budget figures, Nigeria will use and estimated 2.5 trillion naira for debt servicing. 45. @MBuhari With businesses clamouring for government support, consumer demand at a record low, and a slowdown in capital inflows, the prospects for non-oil revenues are dim. READ: Who stands to benefit from the estimated ₦250bn INEC budget? On the other end, Bangladesh, a low-income Asian country, has responded effectively to the economic challenges of the pandemic in two major ways. The main emphasis will be the completion of as many ongoing projects as possible, rather than commencing new ones. Despite these anomalies, I am happy to report that we met our debt service obligations, we are current on staff salaries and overhead costs have also been largely covered. According to Channels, the disclosure was made today by Prof. Mahmood Yakubu, accompanied by National Commissioners, Directors & the Technical Team, during the Commission’s 2021 Budget Defense session before the Senate Committee on INEC. Oil export of 2.18 million barrels per day, Oil price bench mark of 57 dollar per barrel, Exchange rate pegged at 305 naira per dollar, University Basic Education Commission: N112 billion, North East Development Commission: N37.83 billion, Industry, Trade & Investment: N40 billion, Social Investment Programmes: N30 billion, Zonal Intervention Projects: N100 billion, Niger Delta Development Commission: 81bn Education: N48 billion.
Mr. Senate President; Right Honourable Speaker; I am pleased to report that the Nigerian economy thus far has recorded nine consecutive quarters of GDP growth. “This is because, as we cut down the size of the budget, we also have to bring in new expenditure previously not budgeted, to enable us adequately respond to the COVID-19 pandemic,” she said.